The global carbon black market is anticipated to exhibit remarkable growth in the coming years owing to rising demand for high-quality raw materials among manufacturing companies. Carbon black is a black colored powder offering conductive, tinting, and reinforcing properties. It is produced from petroleum products, such as fluid catalytic cracking (FCC) tar, coal tar, and ethylene cracking tar.
Increasing use of carbon black in the manufacturing of automobile tires to improve their performance properties can propel market growth. Growing concerns among automobile manufacturers regarding the safety of passengers are likely to impel demand for premium quality products. Hence, tire manufacturers are using high-quality raw material to design strong and durable products. This, in turn, can stimulate demand for specialty carbon black among tire manufacturers and boost market growth in the years to come. In addition, extensive product use in the construction, chemical, and electronics sectors to develop quality products can stimulate growth of the market. These products include conveyor belts, tubes, cables, antistatic films, and roofing films. Moreover, growing need for plastic products offering advanced antistatic properties, conductivity, coupled with improved ultra violet resistance, can augment market growth in the coming years.
Stringent policies imposed by various regulatory bodies, such as Office of Environmental Health Hazard Assessment (OEHHA), European Commission (EC), and U.S. Environmental Protection Agency (EPA), can hamper market growth. Furthermore, environmental concerns and volatile raw material prices can restrain growth of the market. However, constant efforts by manufacturers to develop specialty carbon black can create lucrative opportunities for the market. Most companies are likely to adopt business strategies like acquisitions and mergers to expand their product portfolio and gain competitive edge over others.
The market can be segmented on the basis of type and application. Based on type, the market can be categorized into lamp black, furnace black, gas black, and thermal black. In terms of application, the market can be classified into tires and industrial rubber products, toners and printing inks, plastics, coatings, and textile fibers.
Asia Pacific is expected to hold the largest share in the market owing to high demand for carbon black among tire manufacturing facilities. Growing population is anticipated to propel demand for automobile, which can impel demand for tire in the region. Tire manufacturers are expected to use high-quality raw material to provide strength to their products. In addition, the product enhances abrasion resistance and tensile strength of automotive tires to increase their life. This factor can fuel the product demand in developing countries, such as China and India, thereby boosting regional market growth in the coming years. Additionally, high economic growth owing to rapid industrialization and increasing foreign investments can stimulate growth of the market in the region. Supportive initiatives by the Indian government to promote manufacturing within the country can boost the product demand. Programs like “Make in India” are likely to encourage companies to manufacture their products in India and increase their profit margins. Launch of new and premium quality products by the players can gain traction among consumers. For instance, Orion Engineered Carbons launched its new production line in South Korea. This new line will produce high-quality specialty carbon black to meet consumer demand. The product can be used in various applications, such as printing inks, engineered plastics, automotive coatings, and adhesives. Similarly, Himadri Speciality Chemical is likely to make high investment to expand its production capacity in the coming years. Moreover, it is planning to set up a new product line in India to produce high-grade product.
North America is likely to bode well in the coming years owing to increasing use of the product in the automobile sector. Rising demand for high-performance rubber and coatings from the aerospace and packaging sectors can impel regional market growth. Launch of innovative products by local companies can gain traction among consumers and boost market revenue. For instance, Cabot Corporation launched a new carbon black series named Propel. The product can be used to manufacture ultra-high-performance tires. Growing need for quality tires in luxury and sports vehicles can impel demand for high-performance tires. This new product adds better grip and handling profile to tires, which can be used for specific applications.
Some of the leading companies operating in the carbon black market are Orion Engineered Carbons GmbH, Phillips Carbon Black Limited, China Synthetic Rubber Corporation (CSRC), Cabot Corporation, and Aditya Birla Group.
Research Support Specialist, USA