The future of the carbon black market looks good with opportunities in tyre, non-tyre rubber, plastic, coating, and ink applications, according to a report published by market research firm Lucintel.
The global carbon black market is forecast to grow at a CAGR of 5.9% from 2015 to 2020. The major driver of growth for this market is the strong demand for carbon black from tyre and industrial rubber compound.
In this market, carbon black is used in tyre, non-tyre rubber, plastic, ink, and coating applications. Lucintel predicts that the demand for carbon black in tyre application is likely to experience good growth in the forecast period, supported by continuously increasing fleet size of passenger cars and light commercial vehicles.
Within the carbon black market, the transportation industry is expected to remain the largest segment over the forecast period due to increasing demand for tyre and other rubber molded parts.
Asia Pacific is expected to remain the largest market due to higher vehicle production and shift of tyre companies in low-cost countries, such as India and China. Asia Pacific and Rest of the World are expected to witness good growth over the forecast period because of growth in automotive demand and increasing investment in tyre production facilities in low-cost countries.
For market expansion, the report suggests innovation and new product development, where the unique characteristics of carbon black can be capitalized. The report further suggests the development of partnerships with customers to create win-win situations and development of low-cost solutions for end users.
Emerging trends, which have a direct impact on the dynamics of the industry, include the shift from commodity to more specialize grade carbon black, increasing use of carbon black as pigment in lightweight auto parts to enhance conductivity and UV protection properties, and increasing merger and acquisition activities with the purpose of consolidating the market.