Carbon black is widely used in a variety of manufacturing processes worldwide. This market is expected to grow to USD$26.40 billion by 2030, driven by rising demand from industries and corporate sustainability agendas and targets (including limited consumption of raw materials and decarbonization).
Carbon black is a form of elemental carbon used primarily as a pigment and reinforcement in tires and other automotive parts. However, most production methods don’t incorporate material recycling or resource efficiency and emit high amounts of carbon dioxide and other greenhouse gases.
Key Market Trends Overview
In terms of industrial applications, the rubber industry comprises 85% of the carbon black end-user market, of which automobile tires constitute 65%. It’s also expected to be increasingly used in the production of batteries and electronics.
In terms of geographic market segmentation, the United States currently dominates global carbon black production and is expected to do so until 2030. China, India, Japan, and Southeast Asian countries are expected to increase their demand in the coming years.
Future Growth Opportunities for the Carbon Black Market: Recovered Carbon Black and Decarbonized Production
1: Incorporating Recovered Carbon Black to Enable Material Circularity
As corporations increasingly seek opportunities to reduce their carbon footprints and enhance environmental sustainability, many industries that utilize carbon black in their production processes are looking for ways to replace it with recovered carbon black.
Replacing carbon black with a recovered version helps businesses achieve greater sustainability and material circulation. It also provides opportunities for new business models while helping the global shift toward a more regenerative and circular economy.
2: Decarbonizing the Carbon Black Production Process
Current production of carbon black emits high levels of CO2, a major contributor to global climate change. Introducing decarbonization strategies along the production process could help a range of industries incorporate sustainability and net-zero targets into their operations through:
- Electrification with plasma technology and electric boilers.
- Carbon capture and storage to reduce emissions from tail gas combustion.
- Substituting natural gas with bio-synthetic natural gas (bio-SNG).
The Future of the Global Carbon Black Market
Developing innovative, disruptive, and sustainable technologies to produce carbon black creates growth opportunities for new business models, enables greater collaboration across industry stakeholders, and supports a low-carbon and regenerative economy. As global demand for carbon black continues to increase, along with developing innovative new applications and incorporating decarbonization and circular economy strategies, the carbon black market is expected to grow significantly by 2030.
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