Specialty Carbon Black Market

• The significantly growing demand for printing inks in the packaging industry is fueling the demand for specialty carbon black.

The potential characteristics of specialty carbon black such as UV protection, conductivity in plastics, aesthetical values, and higher performance in carbon additive batteries used in electric vehicles are considered the major drivers of specialty carbon black market growth. In the automotive industry, the utilization of the specialty carbon black is in electric and hybrid electric vehicles. Developed countries are adopting electric vehicles in recent times. These electric vehicles that are operated in lithium-ion battery technology utilize high-performance carbon additives as battery electrodes. This factor is considered the major market driver of specialty carbon black market growth. 

The automotive sector is a pivotal driver for the Global Specialty Carbon Black Market Industry, as it utilizes specialty carbon black in tires and various components to enhance durability and performance. In 2024, the market is projected to reach 12.5 USD Billion, largely fueled by the increasing production of vehicles and the demand for high-performance tires. Specialty carbon black contributes to improved fuel efficiency and reduced rolling resistance, which are critical factors for manufacturers. As the automotive industry continues to innovate, the demand for specialty carbon black is expected to rise, thereby propelling market growth.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific emerged as the fastest-growing market for specialty carbon black with a revenue share of more than 45% in 2021. The growth in this region can be attributed to increasing plastic consumption in major end-use industries, such as construction, automotive, conductive polymers, and packaging. Increasing polymer production in China, India, and Southeast Asian countries, such as South Korea, Thailand, Malaysia, and Vietnam, is anticipated to remain a key driving factor in the regional market growth during the forecast period.

Figure 3: SPECIALTY CARBON BLACK MARKET SHARE BY REGION 2023 (%)       Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

North America occupied a significantly large share of the Specialty Carbon Black Market in 2021. Economic recovery in the U.S. and expanding automotive and commercial building activities are likely to trigger product demand in paints & coatings, molded plastics, and wires & cables. There is substantial demand for food and conductive grade specialty carbon black in North America concerning the growth of polymer and packaged food industries.

Europe was the second-largest regional segment in terms of revenue in 2021 and is anticipated to expand with a CAGR of 7.9% in the coming years. This is attributed to the recovery of the overall economy along with strong demand from the textile industry. However, Europe and North America are relatively mature markets, with stagnancy and low growth prospects. Additionally, these regions are highly regulated by many legislations, and manufacturers are required to follow several stringent procedures to ensure the overall sustainability of the product.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Specialty Carbon Black market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Specialty Carbon Black industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Specialty Carbon Black. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Specialty Carbon Black industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Specialty Carbon Black industry to benefit customers and expand the market sector. The Specialty Carbon Black market has recently given medicine some of the most important advantages. Major Specialty Carbon Black market players, including Imerys, Mitsubishi Chemical Corporation, Denka Company Limited, Phillips Carbon Black Limited, Tokai Carbon Co., Ltd., and others, are attempting to increase market demand by funding R&D initiatives.

Imerys is a provider of mineral-based specialties for various industries. It operates through two segments: Performance Minerals (PM) and High-Temperature Materials & Solutions (HTMS). The PM segment supplies functional additives in the plastics, rubber, paints and coatings, filtration, ceramics, mobile energy, paper, and board, food and beverage, health, and personal care markets.

Also, Tokai Carbon USA is a company that specializes in the research, development, and manufacturing of engineered carbon and graphite materials. It offers fine graphite for semiconductors, CVD SiC coatings, glassy carbons, silicon carbide heating elements, EAF elements, and friction materials.