Supply Chain Disruption in Automotive Industry to Hinder Growth
The lockdown imposed by the government agencies to limit the spread of the novel coronavirus has led to a major disruption in the supply chain operations. This is due to the suspension of industrial processes and reduced number of workforce. The fewer availability of raw materials is further leading to a large scale interruption in industrial activities that is likely to hinder the market growth during the forecast period.
Carbon black is produced by an incomplete combustion process of heavy petroleum products such as coal tar, ethylene cracking tar, and FCC tar. Owing to its high coloring power, it is extensively used as a pigment for several industrial applications such as automotive, electronics, inks & coatings, and others.
The global carbon black market size is expected to showcase considerable growth by reaching USD 17,027.1 million by 2027 while exhibiting a CAGR of 4.4% between 2020 and 2027. This growth is attributed to the rising rubber industry and the increasing incidence of road fatalities that is propelling the demand for advanced carbon black globally. This information is published by Fortune Business Insights, in its latest report, titled, “Carbon Black Market Size, Share & Industry Analysis, By Type (Furnace Black, Channel Black, Thermal Black, Acetylene Black, Others), Grade (Standard Grade, Specialty Grade), Application (Tire, Non-Tire Rubber, Inks & Coatings, Plastic, Other), and Regional Forecast, 2020-2027.” The report further mentions that the market stood at USD 12,639.2 million in 2019 and is likely to gain momentum during the forecast period.
What does the Report Include?
The market report includes qualitative and quantitative analysis of several factors such as the key drivers and restraints that will impact growth. Additionally, the report provides insights into the regional analysis that covers different regions, which are contributing to the growth of the market. It includes the competitive landscape that involves the leading companies and the adoption of strategies by them to announce partnerships,introduce new products, and collaboration that will further contribute to the growth of the market between 2020 and 2027. Moreover, the research analyst has adopted several research methodologies such as SWOT and PESTEL analysis to extract information about the current trends and industry developments that will drive the market growth during the forecast period.
Increasing Demand for Rubber from Automotive Sector to Propel Market Growth
The increasing number of road accidents and the growing demand for superior ride experience is propelling the car manufacturers to adopt optimum quality tires. According to the report by the World Health Organization, around 1.35 million lives are lost due to road vehicle crashes across the globe. Major companies such as Michelin, MRF, and others are focusing on developing advanced tires to sustain any road conditions that are likely to drive the adoption of carbon black globally. Therefore, the growing demand for rubber from the automotive sector is expected to bode well for the global carbon black market growth in the forthcoming years.
Plastics Segment Held 6.1% Market Share in 2019
The plastics segment, based on application, held a market share of about 6.1% in 2019 and is likely to gain momentum owing to the increasing adoption of plastics across several industrial applications such as oil & gas, ink & coatings, plastics, and automotive.
Asia-Pacific to Remain at the Forefront; Increasing Plastic Goods Production to Aid Growth
Among all the regions, Asia-Pacific stood at USD 7,094.5 million in 2019 and is anticipated to hold the highest position in the global carbon black market during the forecast period. This is attributable to the increasing plastic goods production that will propel the demand for advanced carbon black in the region.
The market in North America is expected to showcase considerable growth owing to the surging demand for carbon black for the production of specialty grade inks and coatings products in the region between 2020 and 2027.
Prominent Companies Focus on Facility Expansion to Amplify Their Market Positions
The global carbon black market is fragmented by the presence of major companies that are focusing on expanding their facility to cater to the growing demand for carbon black across several industrial applications in the forthcoming years. Additionally, other key players are striving to maintain their presence by adopting strategies such as merger and acquisition, the introduction of new products, and collaboration that will favor the market growth in the forthcoming years.
- November 2019 – Cabot Corporation announced the expansion of its carbon black facility located at Cilegon, Indonesia. According to the company, the facility expansion will aid in providing reliable, local, and optimum quality products to cater to the increasing demand for carbon black across the country.
List of the Companies Profiled in the Global Market of Carbon Black:
- Thai Carbon Black Public Company Limited/Birla Carbon (Thailand)
- Cabot Corporation (U.S.)
- Orion Engineered Carbons SA Group (Germany)
- Phillips Carbon Black Limited (India)
- Tokai Carbon Co., Ltd. (Japan)
- Omsk Carbon Group (Germany)
- Jiangxi Blackcat Carbon Black Inc., Ltd. (China)
- OCI COMPANY Ltd. (South Korea)
- HimadriSpeciality Chemical Ltd. (India)
- Longxing Chemical Industry Co., Ltd. (China)
- Mitsubishi Chemical Corporation (Japan)
- Other Key Players
Shridhar Patil is part of a talented team of content writers working at Fortune Business Insights™, one of the promising market research firms in the industry. With quality experience in developing content, he is actively involved in writing articles, press releases, and blogs for the company. He is highly motivated and works towards seeking knowledge from every possible source, with a penchant for updating himself to valuable information around him.