Global carbon black market forecast to exceed $29 billion by 2031

New York, NY – The global carbon black market was valued over US$ 18.6 Bn in 2020 and is estimated to expand at a CAGR of 4.5% from 2021 to 2031 and is expected to cross the value of US$ 29.9 Bn by the end of 2031 according to Transparency Market Research.

The carbon black market is growing at a significant rate after the threatening pandemic. The global carbon black market is driven by increasing applications of carbon black in various end-use industries, predominantly paints & coatings, tire, and rubber industries. Manufactures operating in the carbon black market are focusing on product innovations to gain revenue benefits in developing countries. The increase in demand for carbon black in the automobile industry is driving the global carbon black market. Manufacturing companies should focus on overcoming challenges in the carbon black market such as fluctuation in raw material prices. Raw materials used in carbon black are directly affected by the prices of crude oil. In order to maintain steady growth, market players need to increase efficiency and productivity of their operations.

The rise in demand for carbon black in various applications such as rubber reinforcement, paints & coatings, plastics, battery electrodes, and inks & toners is driving the carbon black market. Increasing applications of carbon black in the tire industry is a major driver for the carbon black market. Carbon black is widely used as a reinforcement filler in tire and non-tire rubber formulations. Growing sales and production of vehicles across the globe is contributing to market growth. Carbon black can be popularly used in reinforcing rubber in tires. It can make up about 30% of the weight of a tire. Carbon black is an important component of automotive rubber parts in vehicles such as sealing systems, hoses, anti-vibration parts, and engine mounts.

Urbanization, industrial growth, and increase in the number of construction & manufacturing industries across the globe are driving the carbon black market. Carbon black is also used as a performance enhancer in various end-use industries such as paints & coatings, and inks & pigments, and plastic industry. There is a surging demand for carbon black in the rubber industry as it makes rubber stronger and resistant to wear and tear. Carbon black used in rubber also prevents rubber tires against UV light and oxidation. Hence, applications of carbon black as a filler in rubber compounds are increasing. It offers strength to rubber, increase its volume, and improve physical properties. Carbon black is specifically used in mechanical rubber goods such as industrial rubber goods, membrane roofing, and automotive rubber parts such as sealing systems, hoses and anti-vibration parts, etc.

The presence of competitive market players who are focusing on increasing the production of carbon black, owing to the rising demand from various industries, is contributing to the carbon black market growth. Market players are focusing on staying ahead of the competition. Increasing research & development activities to explore innovative and cost-efficient ways to manufacture carbon black is driving market growth. Advancement in the technology is augmenting the carbon black market. The carbon black market is expanding rapidly in Asian countries such as India and China.

Asia Pacific is expected to dominate the carbon black market in the upcoming years. There is a surging demand for carbon black in various end-use industries in Asia Pacific. This factor is boosting the production of carbon black in the region. Factors responsible for major market share are growing automotive sector, increasing demand for vehicles, and industrialization in the region. The significant presence of market players in Asia Pacific can be attributed to the global market growth. Market players operating in China and India are expected to witness potential revenue opportunities due to increasing demand and production of carbon black. Top market contributors are increasing their product portfolio to cater the rising demand from end-use industries. The expansion of the tire industry in Europe is also expected to drive the carbon black market in the region in the upcoming years.

The global carbon black market is harshly affected by coronavirus pandemic, impacting various businesses and manufacturing activities. Disruption in value chain has led to huge losses for manufacturers operating in the global carbon black market. Even though the COVID-19 pandemic has weakened all business activities in the carbon black market, manufacturers are creating potential opportunities, owing to the increasing demand from various end-use industries such as tire, plastic, paint & coatings, etc. Increasing applications of carbon black in coating, printing inks, and plastic processing is creating revenue streams for manufacturers in the carbon black market. Strategic approach by market players help them recover from COVID-19 losses. Countries such as China holds major market share due to rapid industrialization. The rapidly growing automotive industry is expected to create value-grab opportunities for the manufacturers in the upcoming years.