The global carbon black market is slated to book formidable profits in the coming years as the evolution of automotive industry backs it with an unwavering demand. Revival of the automotive industry as the COVID-19 subsides with vaccination rollout is expected to positive impact the demand for carbon black. Its usage in tires will remain pivotal to market’s growth path. Carbon black is extensively used in automotive tire to achieve superior quality that reduces tire wastage and makes them last longer.
According to Fairfield Market Research, the global carbon black market was worth US$17.4 Bn in 2018 and it is expected to reach US$23.6 Bn by 2025. Between the forecast years of 2021 and 2025, the market is expected to exhibit a steady CAGR of 6.5%.
Automotive Tires Steadfastly Steer Growth of Global Carbon Black Market in Top Gear
The automotive tire market is expected to showcase a CAGR of 3.5% between 2021 and 2025. This steady rise will translate to a higher demand for carbon black, which is used as a rubber reinforcing additive. Increasing focus to make automotive tires long-lasting is expected to improve the uptake of carbon black during the forecast period. Carbon black protects the tires from the damaging effects of the ozone and UV light. This chemical compound is also responsible for the black colour of the tires, which is the obvious choice for optimal functionality. Development and commercialization of high-end and premium vehicles will prompt uptake of carbon black, which is a crucial compound in improving the durability and strength of the tire.
Industrial and Mechanical Rubber to Show Great Consumption of Carbon Black as Retail Industry Shifts Patterns
The demand for industrial and mechanical rubber is also expected to have a positive impact in the sales of carbon black. Mechanical rubber used for the production of hoses, gaskets, seals, conveyer belts is expected to stoke the uptake of carbon black during the forecast period. Automotive rubber parts, shoe shoes, and electronic packaging films are all expected to drive the global carbon black market as shopping patterns change in a post-pandemic world. In addition, the use of carbon black will also be seen in paints, plastics, printing inks, wire & cables, and a wide range of consumer goods.
China to Show Keen Interest as Labour Costs Remain Low and Vehicle Production Reaches Highs
Fairfield Market Research clearly indicates that the China will dominate the global caron black market between 2021 and 2025. As of 2019, Asia Pacific held a lion’s share of 60% in the global carbon black market of which China held 40%. Easily available distilled coal tar and affordable labour are the two underlying factors driving China’s leadership in the market, giving Asia Pacific an edge over other regions. Furthermore, increasing production of electric vehicles (EVs) as the automotive industry in the region revives it is expected to augment market’s growth.
Meanwhile, Europe is expected to lean towards specialty carbon black as the region aims to achieve the “Smart and Sustainable Mobility Strategy” with 30 million EVs by 2030.
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