Report

United States Carbon Black Market size was valued at USD 2.42 billion in 2022 which is expected to reach USD 3.31 billion in 2030 growing at a CAGR of 4.01% for the forecast period between 2023 and 2030. The market for carbon black is fuelled by several important factors. Carbon black is essential to the production of tires and other automotive parts, making the automotive industry one of the main drivers. The demand for carbon black in the automotive industry is anticipated to increase as global demand for vehicles grows because of factors like population growth and rising disposable income.
Similarly, the demand for carbon black is driven by the tire industry, one of the biggest consumers of the substance. Beyond automotive use, carbon black has a wide range of industrial uses, including inks, coatings, rubber products, and plastics. It works as a pigment, adding colour and UV stability, as well as a reinforcing filler, enhancing the mechanical properties of rubber and plastic products. The production of asphalt for constructing roads using carbon black, which provides improved durability and UV resistance, is a major driver in the construction industry.
Additionally, a growing emphasis on sustainability is having an impact on the market and encouraging producers of carbon black to look into cleaner, more environmentally friendly production techniques. The properties of carbon black and the manufacturing procedures are greatly improved by technological, research, and development efforts.
Energy Storage Solutions
Negative active mass (NAM) electrodes of industrial batteries and automotive batteries have used carbon black as a conductive additive for many years. Carbon black can enhance the electrode's electrical conductivity in conventional lead-acid batteries, as well as boost formation efficiency and lower residual sulfate levels. These properties of Carbon black make it crucial in lead battery systems.
According to Experian's registration data (via Automotive News), there were 257,507 BEV registrations in the first three months of 2023, up 63% from the same period last year and accounting for about 7 percent of the Automotive market in the United States. This increase in demand for EV's is likely to continue and drive up the requirement of Carbon Black in batteries.
Strong Automotive Growth
Expansion of the automotive sector is a significant driver of the carbon black market as automotive parts, including seals, hoses, belts, and gaskets, use carbon black. When tires are made, carbon black is incorporated as a reinforcing filler to improve their performance. The demand for carbon black in the automotive industry is anticipated to increase due to rising vehicle production and rising consumer demand for lightweight and fuel-efficient vehicles.
According to MarkLines, the new vehicle sales in the United States during May 2023 witnessed a rise of 22.8% on a year-on-year basis along with a 1.3% hike on a monthly basis. This increase in new automotive sales in the United States will increase the number of automotive manufacturers which will drive up the demand for carbon black.
Stringent Emission Standards
The carbon black market is significantly impacted by regulatory adjustments and changing emission standards. Stricter laws are being implemented by governments all over the world to cut emissions and enhance air quality. Hydrocarbon feedstock must be burned in order to produce carbon black, which may cause pollutant emissions.
In accordance with the National Emission Standards for Hazardous Air Pollutants (NESHAP), the new action completes the residual risk and technology reviews (RTR) conducted for the major source categories of Carbon Black Production as well as the technology review conducted for the Carbon Black Production area sources. To address hazardous air pollutant (HAP) emissions not previously covered by NESHAP, Environmental Protection Agency (EPA) has added new emissions standards for the major source categories of Carbon Black Production during November 2021.
Additionally, the demand for high-performance tires is driven by tighter emission regulations for automobiles, which in turn drives up the need for carbon black in tire production.
Specialty Applications
Products containing high-performance and specialty carbon black are in high demand in the United States market. In order to meet their specific requirements, various industries, including automotive, aerospace, electronics, and specialty coatings, call for carbon black with particular properties.
For Example, the Raven P5 Ultra Carbon Black from Birla carbon is a high-performance black for adhesive and sealant applications. When used in adhesive and sealant formulations, produces a smooth surface finish and has good compatibility. It can be used in structural formulations due to the moderate surface area. The moderate structure improves rheology and permits a quicker, more thorough dispersion. The product can be used in polyurethane, epoxy, silicone, acrylic, or hybrid adhesive systems.
Specialty carbon blacks with improved reinforcement and other desired qualities are in high demand as a result of this. To meet the unique requirements of domestic industries, United States carbon black producers concentrate on creating and supplying these high-value, specialty grades.
Huge Infrastructure Projects
The United States experienced significant growth in the construction industry at the beginning of 2023 as a number of non-residential projects got underway, including the Golden Triangle Ethylene Cracker Plant, several energy storage projects, the Florida lane expansion, and college stadiums. According to we build value, a 27% increase in new construction projects starts between the fourth quarter of 2022 and the first quarters of 2023.
The construction and infrastructure industries use carbon black extensively. It is utilized in the creation of asphalt, which is extensively used in the building of roads. Asphalt benefits from carbon black's increased strength, resilience, and UV resistance. The need for carbon black in building supplies is anticipated to rise in the United States as infrastructure development projects in the country are increasing.
Impact of COVID-19
The global supply chains, manufacturing processes, and consumer demand in a number of industries were all affected by the pandemic. As a result, the demand for carbon black which is crucial to sectors like automotive, tire manufacturing, construction, and industrial manufacturing, decreased. Supply chains in the United States were disrupted by trade restrictions, lockdowns, and logistical issues which included the supply of raw materials for the manufacture of carbon black. The ability of carbon black manufacturers to produce their products could be impacted by delays in the delivery of feedstock and other necessary materials. Operations at carbon black production facilities were hampered by the pandemic. To ensure worker safety, manufacturing facilities reduced staffing and implemented safety procedures. These actions had an impact on the production capacity, along with temporary plant closures and reduced operating capacities.
Impact of Russia-Ukraine War
The war between Russia and Ukraine had little to no direct effect on the United States Carbon Black market. However, there were a few indirect consequences of the geopolitical unrest on the United States market like the decrease in import demand of the United States automotive from European countries. Since imports of Russian natural gas are banned by a number of European nations, the United States stepped up to meet Europe's requirements. The supply situation for Carbon Black in the United States market became more constrained as a result of the rise in exports of feedstocks (natural gas) from the United States to Europe. However, as time went on, the increased production of natural gas in the United States began to benefit domestic manufacturers of Carbon Black as the availability of the feedstock.
Key Players Landscape and Outlook
Hydrocarbon feedstock is burned during the production of carbon black, which can result in emissions and contribute to air pollution. Government agencies' strict environmental regulations and emission standards may have an impact on the operations of carbon black producers, forcing manufacturers to adopt cleaner technologies and lessen their environmental impact.
During January 2023, Orion Engineered Carbons installed new control technology that will significantly lower air emissions at its Borger, Texas, plant. Upgrades to the site's cogeneration system, which uses heat produced by the carbon black production process to create electricity the plant can use, which was a USD 60 million project. Additionally, the electricity is resold to the electrical grid. With 23 tons of nitrogen oxide and sulfur dioxide emissions per day eliminated by the new emissions technology, there will be a significant improvement in air quality.
In the upcoming years, it is anticipated that the carbon black market will experience a slow recovery and steady growth. The demand for environmentally friendly carbon black products will be driven by the growing emphasis on sustainability and environmental regulations. Additionally, the automotive industry will see new opportunities for carbon black due to technological advancements and the increasing use of electric vehicles. The carbon black market is likely to regain momentum and experience sustained growth in the long run as industries recover and the state of the global economy improves. However, it is necessary for businesses to adapt to changing consumer demands.