Carbon black market will grow at 4.5% CAGR during 2018-2027, thanks to its rising applications and demand. The nanoparticle conventionally was used in rubber tyres as a filler and a reinforcing agent. However, today its unique properties has expanded to embed UV stabilization, conductivity, pigmentation, and various other specialized applications. The rising application of carbon blacks in combination with plastics promises a major arena of opportunities for players in the specialty carbon black market. Carbon blacks are becoming increasing common place in industrial packaging, conductive packaging, fibers, films, pipes, moldings, and semi-conductor cable compounds. Among various semi-conductor compounds, various products like stretch films, agriculture mulch film, and photographic containers promise robust opportunities.
Among various regions in the market, Asia Pacific promises tremendous growth for players in the carbon specialty black market. Asia Pacific is witnessing a major increase in auto sales, especially from emerging countries of India and China. The global slowdown has affected sales in recent times, particularly in India. However, the automotive sales are expected to emerge strong with growing investment in infrastructure, rising disposable incomes, and horizons of electric vehicles.
Environment Legislations to Increase Costs in the Coming Future
The carbon specialty black products are facing increased environmental control due to their potential to the environment. This is resulting in increased costs and manufacturers in various regions are estimating future costs in lieu of the stringent regulations. For example, Tokai, a carbon black manufacturer has added 3 cents per pound environmental surcharge on its products in recent times. Additionally, companies like Orion Engineered Carbons has also added 1.5 cents per pound to its products. This rising trend is expected to drive shifts in pricing and push costs upwards. However, rising demand and relatively low costs of compliance are expected to drive robust growth, despite the upward pricing trend.
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High Volume of Sales to Continue with Manufacturing Expansion
The specialty carbon black market has witnessed tremendous growth in recent years. The coating for automotives has been a boon for players in the market, and with the rise of EVs and increased opportunities in the sector, the demand and production volume is expected to rise considerably. For example, Himadri Specialty Chemical announced a new plant expansion in India along with its existing production facility in West Bengal, India. Additionally, in 2018, nearly $2 billion sales with 1,000 kilto tons of volume was recorded in the market. Orion Engineered Carbons, another manufacturing giant has also announced production expansion with new facilities in Italy. The rising opportunities, increased applications, and increased innovation are likely to drive significant opportunities for players in the specialty carbon black market.