Carbon Black Market - Snapshot

Carbon black is a pure elemental carbon which is in the form of fine or aggregate particles that are formed by incomplete combustion or decomposition of hydrocarbons under controlled temperature and pressure. Furnace black, thermal black, acetylene black, and gas black are major types of carbon black. Furnace black is most commonly produced by using heavy aromatic oils as feedstock. Carbon black is employed in a wide range of materials in order to enhance their performance in terms of physical, electric, and optical properties.

Carbon black contains more than 95% of carbon and negligible quantities of oxygen, hydrogen, and nitrogen. It is typically manufactured in the form of fine or aggregate particles that are formed by incomplete combustion or decomposition of hydrocarbons under controlled temperature and pressure.

global-carbon-black-market.jpg

More than 90% of carbon black produced worldwide is primarily used as a reinforcement and performance agent in rubber products. In rubber compound materials, carbon black is blended with natural and synthetic elastomers along with various processing oils and then, it is heated to produce various rubber products. Due its ability to provide better reinforcement and improved resilience, tear strength, conductivity, and other physical properties; carbon black is well-recognized as a rubber-reinforcing agent in the tire manufacturing industry. Carbon black is employed in treads, sidewalls, and inner liners; non-tire applications such as mechanical rubber goods (MRG) including industrial rubber goods, membrane roofing, automotive rubber parts (for example, sealing systems, hoses, and anti-vibration parts); and general rubber goods such as hoses, belts, gaskets, and seals. Apart from rubber applications, carbon black is used in specialty sectors such as paints & coatings and inks & pigments. When used as a pigment and additive, carbon black enhances the material performance in terms of conductivity, viscosity, static charge control, and UV protection. This particular grade is known as specialty carbon black. In the paints & coatings industry, carbon black is used in jet black paints in the form of treated fine particles. Several end-use industries such as automotive require black pigments with the maximum jetness and bluish undertones.

The global carbon black market is anticipated to expand at a CAGR more than 4% from 2018 to 2026 and reach value of US$ 23.9 Bn by 2026. In 2016, the reinforced grade segment held a major market share of more than 65%, in terms of both volume and value. Specialty grade is the rapidly expanding segment of the market for carbon black. It is driven by the rising demand from the industrial manufacturing sector.

Increasing demand for specialty-grade carbon black for use as a pigment in coatings, plastics, and other industries has prompted leading carbon black manufacturers to increase their production capacity for specialty–grade carbon black. Volatility in prices of raw materials (such as carbon black oil and carbon black feedstock) and hazardous gases emitted into the atmosphere during the manufacture of carbon black are major restraining factors for the global carbon black market. The external substitution of carbon black by other materials such as precipitated silica or nano silica is another restraint of the carbon black market.

Asia Pacific held the leading share of more than 50% of the global carbon black market, in terms of volume, in 2017. China is a major producer of carbon black with a few major producers operating in the market in the country along with several small and inefficient manufacturers. India is a major country importing carbon black from China. In Asia Pacific, a majority of the demand for carbon black comes from China and India, due to the expanding tire manufacturing industry and the construction sector in these countries. There exists high supply shortage due to the Government of China’s regulations on operating inefficient plants, which has led to massive shutdowns in the country. Hence, China’s utilization rate of carbon black is below the global average utilization rate of carbon black. Asia Pacific is estimated to maintain its dominance in the global market throughout the forecast period, with shifting of production base by tire manufacturers to developing countries in the region. The market share of North America, Europe, and Asia Pacific is expected to increase at a rapid pace, while the market share of Latin America and Middle East & Africa is expected to increase at a sluggish pace between 2018 and 2026.

Around 65% of the global carbon black market is consolidated, while the rest is fragmented with a few small players operating in the market. Key players operating in the market are Cabot Corporation, Orion Engineered Carbons, Birla Carbon, Continental Carbon Company, Tokai Carbon Co. Ltd., and Philips Carbon Black Ltd. Other players include Pyrolyx AG, Nippon Steel & Sumikin Chemical Co., Ltd., Shandon Huadong Rubber Materials Co., Ltd., Black Bear Carbon BV, Mitsubishi Chemical Corporation, Imerys Carbon & Graphite, OMSK Carbon Group, Longxing Chemical Group, and ASHAHI CARBON CO., LTD. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. The report also comprises a matrix of comparison between the top four players operating in the global carbon black market along with analysis of their market shares in 2017.

Carbon Black Market - Overview

Carbon black (CB) is manufactured through partial combustion of heavy hydrocarbons under controlled temperature and pressure to obtain fine particles and aggregates having a wide range of structure and surface properties. This results in different grades of carbon black for use in different applications. Carbon black is used in several end-use industries such as tire manufacturing and non-tire rubber goods as a reinforcement filler and paints, coatings, plastics, and printing inks industries as a black pigment. However, carbon black is environmentally hazardous to produce, which is impeding the carbon black market in several regions across the world.

Among end-user industries, the tire manufacturing segment held a major share of the global carbon black market in 2017. The trend is likely to continue throughout the forecast period. Plastics is a significant end-user industry segment of the global carbon black market. Carbon black is used as a black pigment to improve weathering characteristics and in the mix batch of polymer resins for production of PVC and polypropylene. In terms of volume, the plastics segment stood at 554,105.6 tons in 2017. In terms of consumption, the reinforced grade segment was highly attractive in 2017, due to extensive usage of reinforced-grade carbon black in the tire manufacturing industry.

In terms of value and volume, Asia Pacific accounted for a major share of the global carbon black market in 2017. The region is expected to continue its dominance throughout the forecast period. China and India are highly lucrative markets for carbon black in Asia Pacific. Stringent regulations imposed by the U.S. EPA (Environmental Protection Agency) on hazardous chemicals released from carbon black manufacturing facilities in the country are likely to hamper the carbon black market in North America during the forecast period. Europe is expected to lose its market share by the end of the forecast period, owing to implementation of regulations about the environment, energy efficiency, and safe manufacture of tires in the region, which were introduced in 2012. The carbon black market in Latin America and Middle East & Africa is likely to expand at a sluggish pace during the forecast period. Volatility in prices of carbon black is adversely affecting the market in these regions, as several players are increasing the price of their carbon black products.

This report analyzes and forecasts the market for carbon black at the global and regional levels. The market has been forecast in terms of revenue (US$ Mn) and volume (kilo tons) from 2018 to 2026, considering 2017 as the base year. The study includes market indicators, drivers, and restraints of the global carbon black market. It also covers the anticipated impact of these drivers and restraints on the demand for carbon black during the forecast period. The report also highlights opportunities in the carbon black market at the global and regional levels.

The report also analyzes price trends and forecasts prices of carbon black at the global and regional levels. The report further includes import–export trade analysis in terms of value (US$ Thousand) and volume (tons) for the period from 2013 to 2017 to better understand the supply–demand scenario at the regional and country levels.

The report includes detailed value chain analysis, which provides a comprehensive view of the global carbon black market. Porter’s Five Forces model for the carbon black market has also been included to help understand the competition landscape of the market. The study encompasses market attractiveness analysis, wherein grade and end-user industry segments have been benchmarked based on their market value, growth rate, and general attractiveness.

The study provides a decisive view of the global carbon black market by segmenting it in terms of grade and end-user industry. In terms of grade, the market has been segmented into reinforced grade, semi-reinforced grade, and specialty grade. In terms of end-user industry, the carbon black market has been segregated into tire manufacturing, non-tire rubber goods, plastics, paints & coatings, inks & pigments, and others. The others segment includes Li-ion batteries and adhesives & sealants. The tire manufacturing segment has been sub-divided into passenger car tires, truck & bus tires, and other tires. Market segments have been analyzed based on the present and future trends. The regional segmentation includes the current and forecast demand for carbon black in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The report provides the actual value of the carbon black market for 2017 and the estimated market value for 2018 along with forecast for the next eight years. The size of the global carbon black market has been provided in terms of value (US$ Mn) and volume (kilo tons). The market value has been provided for the global, regional, and country-level markets.

The report comprises profiles of major companies operating in the global carbon black market. Around 65% of the global carbon black market is consolidated, while the rest is fragmented with a few small players operating in the market. Key players include Cabot Corporation, Orion Engineered Carbons, Birla Carbon, Continental Carbon Company, Tokai Carbon Co. Ltd., and Philips Carbon Black Ltd. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. The report also comprises a matrix of comparison between the top four players operating in the global carbon black market along with analysis of their market share for 2017.

The global carbon black market has been segmented as follows:

Global Carbon Black Market, by Grade

  • Reinforced Grade
  • Semi-reinforced Grade
  • Specialty Grade

Global Carbon Black Market, by End-user Industry

  • Tire Manufacturing
    • Passenger Car Tires
    • Truck & Bus Tires
    • Other Tires
  • Non-tire Rubber Goods
  • Plastics
  • Paints & Coatings
  • Inks & Pigments
  • Others (Li-ion batteries, Adhesives & Sealants, etc.)

Global Carbon Black Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of MEA

Key Takeaways

  • Global and regional market share of the carbon black market in terms of volume (kilo tons) and value (US$ Mn), by different grade and end-user industry segments for the period between 2018 and 2026
  • Detailed analysis of the country-level demand for carbon black in countries/sub-regions including the U.S., Canada, Germany, the U.K., Italy, France, Russia & CIS, China, India, Japan, ASEAN, Brazil, Mexico, GCC, and South Africa with respect to different grade and end-user industry segments for the period from 2018 to 2026
  • Technical overview of the carbon black production process
  • Key indicators, drivers, restraints, and opportunities in the global carbon black market
  • Import–export analysis of the carbon black market in major countries across all regions
  • Price trend forecasts of the global carbon black market in terms of grade and regional segments
  • Value chain analysis and Porter’s Five Forces analysis of the global carbon black market
  • Regulatory landscape and SWOT analysis
  • Market attractiveness analysis of the global carbon black market, by grade and end-user industry segments
  • Key findings for the carbon black market in each region and in-depth analysis of major grade and end-user industry segments of the global carbon black market, in terms of volume and value
  • Competition matrix of key players operating in the market and market share of major companies
  • Detailed company profiles of 16 market players
  • In-depth PEST analysis of the carbon black market in each region.
.