The global carbon black market is expected to surpass $25 billion by 2020 growing at a CAGR of over 4%. Driven by rising demand from tyre industry, in addition to construction and manufacturing sectors which use carbon black to provide strength to industrial rubber compounds and other equipment. Global carbon black market is highly competitive, with all major players investing heavily in R&D to improve the quality of their product.
The three largest players in the market are Birla Carbon, Cabot Corporation and Orion Engineered Carbons. Asia-Pacific represents the largest market for carbon black in the world, with a strong hold of 37% share, wherein majority of the demand emanates from emerging economies such as China and India, on account of expanding tyre manufacturing facilities and growth in construction sector. Asia-Pacific is anticipated to maintain its dominance in the market through 2020, with tyre manufacturers shifting production base to developing countries in the region. Developed economies such as the US and Western Europe are expected to display flat demand though use of specialty blacks is likely to pick up fastest in these regions.
Carbon black is a deep black colored powder with reinforcing, tinting and conductive properties which are utilized across various sectors. Tyre industry is the largest customer of carbon black, wherein it is used to improve strength and longevity of automotive tyres by increasing tensile strength and abrasion resistance. However, global carbon black market is witnessing increased penetration of specialty carbon black which provides sharp color and enhanced conductivity, viscosity and UV protection.
Demand for carbon black in paints and coatings, and inks is expected to show an increase over the next five years. Demand for non-rubber applications that mainly use specialty blacks will display significant increase. Plastic and printing inks are likely to account for significant share of specialty black demand. Another emerging application area for specialty carbon black is metallurgy. Moreover, as special blacks commands higher price than the widely used furnace blacks, they offer higher margins to suppliers. Furthermore, the demand for special blacks is not influenced by the cyclicality in the rubber and motor vehicle industries.
Companies profiled in the carbon black market report include Birla Carbon, Bridgestone Corporation, Cabot Corporation, China Synthetic Rubber Corporation, Columbian Chemicals Co., Continental Carbon Company, Evonik Industries AG, Mitsubishi Chemical Holdings Corporation, Orion Engineered Carbons, Phillips Carbon Black Ltd., Sid Richardson Carbon & Energy Co. and Tokai Carbon Co. Ltd. among others.
Driven by rising demand from tyre industry, in addition to construction and manufacturing sectors which use carbon black to provide strength to industrial rubber compounds and other equipment.
Increasing demand for specialty carbon black has prompted leading carbon black manufacturers to either increase their production capacity in the segment or convert the production line for standard carbon black to specialty carbon black. Increasing investment in tyre industry coupled with rising demand for specialty products is anticipated to propel growth in global carbon black market through 2020.
Volatility of raw material prices and environmental concerns provide major challenge on the global carbon black market by 2020. Also, substitution by other materials such as Silica is seen as another major restraint for the market.