U.S. Carbon Black Market Size, Share & COVID-19 Impact Analysis, By Process Type (Furnace Black, Thermal Black, Acetylene Black, and Others), By Grade (Standard and Specialty) and By Application (Tire, Non-Tire Rubber, Plastics, Inks & Toners, and Others), 2023-2030

The U.S. carbon black market size was worth USD 3.48 billion in 2022 and is projected to record a CAGR of 4.2% during the forecast period.

Carbon black is an almost pure form of carbon which is produced in the form of colloidal particles by partial combustion or thermal decomposition of hydrocarbons. The U.S., being one of the largest bases for the hydrocarbon processing industry, naturally has an ample supply of raw materials to produce this form of carbon. Its unique property, such as high capacity to absorb ultraviolet (UV) light and convert it into heat makes it less prone to wear and boosts its rolling resistance. This unique property makes it an ingredient of choice in tire production. The U.S. is a major base for many leading tire manufacturers, such as The Goodyear Tire & Rubber Company, Cooper Tire & Rubber Company, and Titan Tire Corporation. Thus, there is a significant demand for carbon black in the U.S. and is poised to experience positive growth during the forecast period.

COVID-19 Lockdown forced people to remain in their homes, significantly decreasing road traffic. With fewer traffic volumes, tire suppliers also faced low demand from consumers. In addition, as per the International Organization of Motor Vehicle Manufacturers, automotive production severely declined by the COVID-19 crisis, with a drop of almost 16% in global auto production in 2020.

LATEST TRENDS

Shifting Focus Toward Natural Gas-based Production to Accelerate Market Growth

U.S.-based tire and carbon black manufactures are facing various economic and environmental challenges owing to the emission of greenhouse gases during the production of this form of carbon. To tackle this, companies are moving toward more sustainable solutions, such as natural gas-based production. In the U.S., natural gas is available in abundance, which makes it easier to produce this form of pure carbon. In natural gas-based production technology, electric plasma is used to crack natural gas that ends up producing carbon black and hydrogen. This process directly prevents any release of greenhouse gases, such as carbon dioxide, nitrogen oxide (NOx), and sulfur dioxide (SOx). It also offers more than 99% yield, significantly lowering its environmental impact. Trend of this new production technology will definitely shape the landscape of the U.S. market during the forecast period.

DRIVING FACTORS

Rapid Growth in Lithium-Ion Battery Production To Act as Hotbed for Market Development

The U.S. automotive industry has experienced significant growth due to the growth in electric vehicle sales in the past five years, and is projected to grow further at a rapid pace. As per the International Energy Agency, by the end of 2023, every new fifth car sold will be an electric one. The electric vehicle industry is expected to lower the carbon emissions generated from road transport, which accounts for almost one-sixth of the global emissions. Lithium-ion batteries are the key component in an electric vehicle and increasing demand for the same is poised to boost the electric vehicle sales. Conductive carbon black is an essential ingredient in a lithium-ion battery as it increases the range and life cycle of the battery. Due to the above mentioned factors, the U.S. carbon black market growth is set to ride on the back of robust sales of electric vehicles throughout the forecast period.

RESTRAINING FACTORS

Greenhouse Gas Emissions to Decrease Use of Traditional Production Technologies

At present, this industry produces its product by utilizing oil-based feedstocks. This production method is currently restricted in the U.S. due to environmental concerns. Traditionally, the product is produced by the incomplete combustion of hydrocarbon oil. This process emits harmful gases, such as NOx and SOx. These emissions are harmful for humans as well as the environment, restricting the demand for this process to some extent. Every year, the industry produces 35 to 40 million tons of carbon dioxide (CO2). As governments are tightening their norms and consumers are asking for greener products, manufacturers are under pressure to adhere to these norms.

SEGMENTATION

By Process Type Analysis

Based on process type, the market is segmented into furnace black, thermal black, acetylene black, and others.

The furnace black segment held the largest U.S. carbon black market share in 2022 and is poised to remain a dominant production process throughout the assessment period. This process is largely preferred as it allows production of large amount of black carbon used in reinforcing rubber products. However, manufacturers are exploring and expanding in other production processes that are sustainable and green.

• For instance, in March 2023, Cabot Corporation launched two new products named VULCAN® 7H-C circular reinforcing carbon and STERLING® SO-RC110 circular reinforcing carbon. These products are made from recycled carbon products and high in quality, consistency, and processing ability.

By Grade Analysis

Based on grade, the market is segmented into standard grade and specialty grade.

The standard grade segment accounted for the largest share in the market during the historical period and is poised to remain a major segment during the forecast period. This is attributed to its wide usage in prominent areas, such as tire production and other rubber applications. However, the demand for specialty grade is gaining momentum and is projected to record the highest CAGR during 2023-2030.

• For instance, in January 2023, Orion Engineered Carbons partnered with ION Specialties to showcase its specialty grade product line in Mexico. This product line is expected to meet the demand from applications, such as adhesives, inks, paints & coatings, and plastics.

By Application Analysis

Based on application, the market is segmented into tire, non-tire rubber, plastics, inks & toners, and others.

Carbon black is an important raw material in the tire manufacturing process. As a result, the tire industry is expected to be a major application in this market. However, this form of carbon has a significant demand in other industries as well, such as rubber products, paints & coatings, printing inks, and others. Apart from traditional consumers, the lithium-ion industry is also going to become the fastest growing consumer in the foreseen period.

• Currently, the U.S. has a battery production capacity of ~63 GWh, and expected to record a CAGR of nearly 45%. This humongous growth will create significant demand for carbon black in the future.

KEY INDUSTRY PLAYERS

In terms of the competitive landscape, the market depicts the presence of established and emerging companies. Cabot Corporation, Aditya Birla Group, Orion Engineering Carbons, and Jiangxi Black Carbon are a few manufacturers leading the U.S. market in terms of share. Out of these players, Cabot Corporation is the leading the market with a production capacity of nearly 2.2 million tons. However, foreign companies, such as Tokai Carbon, Aditya Birla Group, and Orion Engineering Carbons have improved their presence to take advantage of the increasing product demand in the country.

LIST OF KEY COMPANIES PROFILED:

• Cabot Corporation (U.S.)
• Aditya Birla Group (India)
• Orion Engineering Carbons (Luxembourg)
• Phillips Carbon Black (India)
• Tokai Carbon (Japan)
• Jiangxi Black Carbon (China)
• Continental Carbon Company (U.S.)
• Omsk Group (Russia)

KEY INDUSTRY DEVELOPMENTS: 

• May 2023 – U.S. based company named Monolith announced that its product was successfully used in tire production by one of the largest tire producers - The Goodyear Tire & Rubber Company. An specialty of Monolith’s carbon black is that it is produced with nearly zero emissions.
• March 2022 – U.S.-based Cabot Corporation acquired Tokai Carbon to expand its battery materials business. This will not only increase the production capability of Cabot Corporation, but also allow the company to enter one of the fastest growing markets, such as electric mobility.

REPORT COVERAGE

The study report thoroughly examines key factors, such as leading companies, process type, grade, and application. It also provides valuable information on market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years. It examines the industry's newest market dynamics, opportunities, historical data, and revenue growth estimates at the country level.

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