Carbon Black Industry Overview

The global carbon black market was valued at USD 22.35 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 4.8% from 2024 to 2030. A significant factor driving this growth is the increasing use of carbon black in plastic production, particularly as the demand for plastics in electrical and electronic components continues to rise. Carbon black is produced through two primary methods: thermal decomposition or partial combustion, using oil or natural gas as a feedstock. There are four main production processes: the furnace black process, channel process, acetylene black process, and lampblack process.

In the U.S., the market is expected to expand due to growing environmental concerns and the rapid development of the automotive industry. The trend toward refurbishing vehicles has led to a higher demand for high-performance coatings in various industries, including automotive, marine, aerospace, and industrial. Carbon black enhances the strength and durability of tires by improving abrasion resistance and tensile strength. Additionally, the expanding construction and manufacturing sectors, which rely on industrial rubber and equipment, are expected to drive demand for carbon black over the forecast period.

The pricing of carbon black is influenced by several factors, with raw materials, auxiliary materials, and utilities playing a major role. The fluctuating price of crude oil has a significant impact on the cost of carbon black. Other macro-level factors affecting pricing include working capital and pre-operational costs, such as installation and setup, capitalized interests, project engineering and management, and commissioning expenses. These costs are key considerations in determining the overall price structure of carbon black in the market.

Gather more insights about the market drivers, restrains and growth of the Carbon Black Market

Regional Insights:

Asia Pacific Carbon Black Market Leadership (2023):

• In 2023, the Asia Pacific region dominated the global carbon black market, accounting for a substantial revenue share of 63.3%, positioning it as the leading market globally.
• Key growth drivers in Asia Pacific include:
  • High economic growth coupled with accelerated industrialization and urbanization across emerging economies, which has significantly boosted regional demand for carbon black.
  • Rising foreign investments that continue to pour into the region, encouraged by strong economic growth and an expanding industrial base.
  • Favorable regulatory policies that support manufacturing activities, attracting international companies and driving demand for carbon black.
• The region is increasingly becoming a manufacturing hub as companies from various industries set up operations, resulting in a rise in demand for carbon black over recent years.

Impacts on North America and Europe Markets:

• In contrast, the North American and European markets may face challenges due to strict environmental regulations targeting emissions and manufacturing practices, which could potentially impact market growth.
• Despite these challenges, strong demand for tire manufacturing in these regions is anticipated to provide ongoing support for the carbon black market, helping to offset some of the regulatory impacts.

India Carbon Black Market:

• Major manufacturers are relocating their production facilities to countries like India and Vietnam due to:
  • Lower labor costs compared to other regions, which helps reduce overall production expenses.
  • Governmental support in these countries, which provides incentives and favorable conditions for manufacturers, making it attractive for them to set up operations.

China Carbon Black Market:

• The increase in automotive production in China is expected to boost the demand for carbon black in the forecast period, as it is widely used in tire and rubber manufacturing.
• Initially, carbon black was primarily exported to China from other countries, as China’s production capabilities were limited. However:
  • With the rise in production capacities within China, the need for imports has decreased, and China is increasingly able to meet its own demand for carbon black domestically.

U.S. Carbon Black Market (North America):

• North America’s carbon black market is predominantly led by the U.S., which is a leader in both product consumption and production within the region.
• Key drivers of the U.S. carbon black market include:
  • Increased demand for tires due to the rise in annual tire replacements, supporting carbon black usage in tire production.
  • Growth in construction and automotive sectors, which has led to higher demand for products like paints, coatings, and non-tire rubber products containing carbon black.
  • Plastics made with carbon black are lightweight, offering benefits such as reduced carbon emissions and improved fuel efficiency, which appeals to eco-conscious manufacturers and consumers.
• North America is expected to see strong demand throughout the forecast period, driven by:
  • Rising needs from end-use industries for tires, rubber products, and high-performance coatings.

Europe Carbon Black Market:

• Europe’s carbon black market benefits from favorable regulatory policies that promote the use of plastics in automotive components, helping manufacturers align with eco-friendly standards.
• Automotive Original Equipment Manufacturers (OEMs) in Europe are increasingly adopting thermoplastics as a metal substitute in vehicle manufacturing. This shift supports:
  • Enhanced vehicle performance and fuel efficiency.
  • Reduced overall curb weight of vehicles, leading to lower fuel consumption and emissions.
• These factors collectively drive demand for carbon black in the region’s automotive applications, especially as manufacturers focus on lightweight and efficient vehicle designs.

Browse through Grand View Research's  Petrochemicals Industry Research Reports.

• The global biolubricants market size was valued at USD 2.95 billion in 2024 and is projected to grow at a CAGR of 13.7% from 2025 to 2030.
• The global plastic market size was estimated at USD 624.8 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2030.

Key Carbon Black Company Insights

Key companies are adopting several organic and inorganic growth strategies, such as capacity expansion, mergers & acquisitions, and joint ventures, to maintain and expand their market share.

• In June 2023, Bridgestone Corporation announced the commencement of the development of tire-derived oil and recovered carbon black via pyrolysis of worn tires with the help of test units established at the Bridgestone Innovation Park in Tokyo. This is aimed at encouraging the social deployment of chemical recycling technologies that allow the efficient pyrolysis of worn tires.
• In April 2023, Orion Engineered Carbons announced the implementation of its new cogeneration technology producing renewable energy in its Ivanhoe plant (Louisiana, U.S.). The system comprises a steam turbine generator, which ingests the waste steam from the production process of the carbon black plant and alters it to electricity.
• In March 2023, Tokai Carbon Co., Ltd. entered into a strategic partnership with Sekisui Chemical Co., Ltd., for the real-world application of the Carbon Capture and Utilization (CCU) technology. This deal was aimed at manufacturing varied carbon products and materials for the capture and storage of carbon dioxide (CO2) as solid carbon.

Key Carbon Black Companies:

• Orion Engineered Carbons Holdings GmbH
• OMSK Carbon Group
• Sid Richardson Carbon & Energy Co.
• Tokai Carbon Co. Ltd.
• Asahi Carbon Co. Ltd.
• Ralson Goodluck Carbon
• Atlas Organic Pvt. Ltd.
• Continental Carbon Co.
• OCI Company Ltd.
• Birla Carbon
• Bridgestone Corp.
• Cabot Corp.
• China Synthetic Rubber Corporation (CSRC)
• Himadri Companies & Industries Ltd. (HCIL)
• Mitsubishi Chemicals
• Nippon Steel & Sumikin Chemical Co. Ltd.
• Jiangxi Black Cat Carbon Black Inc.

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