Cobaltous Carbonate Market - Forecast(2023 - 2028)

Cobaltous Carbonate Market Overview

The cobaltous carbonate market size is estimated to reach US$1,350.2 million by 2027 after growing at a CAGR of 6.2% from 2022 to 2027. Cobaltous carbonate is an inorganic compound that occurs as spherocobaltite in crystalline form. The compound is formed by combining cobaltous sulfate and sodium bicarbonate due to which it adopts a structure like calcite. Cobaltous carbonate has various applications and is used in additives for paints & coatings, as a cathode in e-vehicles batteries, as an anti caking agent in dietary supplements, as an intermediate and catalyst in chemicals, and also it is used in animal feedstock and agrochemicals. Hence, due to such high applicability, cobaltous carbonate is majorly used in sectors like automotive, aerospace, chemicals, paints & coatings, and agriculture. Factors like growing demand for electric vehicles, increase in paints & coating production and growing production of specialty chemicals are driving the growth of the cobaltous carbonate market. However, cobaltous carbonate is hazardous and can cause skin & eye infections. Hence, the regulation imposed by a government organization to curb this hazardous effect can limit the production output of cobaltous carbonate which can hamper the growth of the cobaltous carbonate industry.

Cobaltous Carbonate Market COVID-19 Impact

COVID-19 left a negative impact on the functionality of major end-users of cobaltous carbonate such as the aerospace and chemicals sectors. Cobaltous carbonate is used as a catalyst in chemicals production and also it forms the main material for making jet engines in the aerospace sector. The lockdown implemented led to a lack of available workforce and raw materials due to which the productivity of these sectors decreased. For instance, according to General Aviation Manufacture Association, in 2020, total airplane deliveries were 2,399 compared to 2,658 showing a 9.7% decrease. Further, according to the National Association of Chemical Distribution, in Q1 2020, gross domestic production of chemicals in the US fell by 5%. Hence, such a decrease in the production of the aerospace and chemicals sector reduced the usage of cobaltous carbonate in them. This resulted in a negative impact on the growth of the cobaltous carbonate industry.

Report Coverage

The report: “Cobaltous Carbonate Market Report – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the cobaltous carbonate industry.

By Grade – Industrial Grade, Technical Grade, Chemical Grade, Bio-Tech Grade, and Others.
By Packaging – Cardboard Box, Drum (Fibre, and Steel), Bags, and Others.
By Application – Agriculture Chemical, Catalyst, Pigments, Additives, Dietary Supplements, Ion Exchange Agents, Laboratory Chemicals, Metal Base Production, and Others.
By End-Use Industry – Agriculture, Pharmaceutical, Chemical, Paints & Coatings, Automotive, Aerospace (General Aviation, and Commercial Aviation), Power Industry (Wind, Thermal, and Hydro), and Others.
By Geography - North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa)

Key Takeaways

• Asia-Pacific dominates the cobaltous carbonate industry because the region consists of major end-users such as paints, automotive, and chemicals in countries like China and India, with China being the leading market for paints and electric vehicles.
• Cobaltous Carbonate is used majorly in animal feeds as inorganic metal salt which may be deficient in the minerals and elements necessary for healthy development and growth.
• Cobaltous carbonate has high applicability in the aerospace sector as it is considered an essential material during the making of a jet engine and also it ensures the engine’s workability at high temperatures.

Figure: Asia-Pacific Cobaltous Carbonate Market Revenue, 2021-2027 (US$ Million)

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Cobaltous Carbonate Market Segment Analysis – By Grade

Industrial grade segment accounted for approximately 22% of the cobaltous carbonate market share in 2021 and is estimated to grow at a significant CAGR during the forecast period. The industrial grade of cobaltous carbonate can tolerate more extreme conditions than other grades and is used in various industrial sectors like automotive for lithium-ion batteries of e-vehicles, aerospace for jet engines, and as a catalyst for chemical making. Hence the rapid development in these sectors has increased their productivity. For instance, according to International Energy Agency, in 2020, global electric car sales reached 3 million units showing a 40% increase from 2019. Also, according to General Aviation Manufacture Association, in 2021, preliminary aircraft deliveries were valued at $25.2 billion, an increase of 10.2%. Further, according to European Chemical Industry Council, in the first half of 2021, chemical output increased by 12.9% in EU countries. Such an increase in production and sales level the in automotive, aerospace and chemical sectors will drive the market growth for the industrial-grade segment.

Cobaltous Carbonate Market Segment Analysis – By End-Use Industry

The paints & coating segment accounted for approximately 16% of the cobaltous carbonate market share in 2021 and is estimated to grow at a significant CAGR during the forecast period. Cobaltous carbonate is used to make cobalt pigments which is majorly used in the paints & coatings sector as a coloring agent. The increase in demand for paints coatings from various end-users has positively impacted the usage of cobaltous carbonate in the paint & coatings sector. For instance, according to British Coating Federation, in 2019, the UK sale of paints & coatings was valued at US$4.16 billion with 703 million liters being sold. Further, according to China’s National Bureau of Statistics, in 2019, China’s paint sales were 24.16 million tonnes showing a 38.3% increase compared to 2016. Such an increase in sales of paints & coatings on account of growing demand will create more usage of cobaltous carbonate in the paints & coating sector as a coloring agent. This will positively impact the growth of the cobaltous carbonate industry.

Cobaltous Carbonate Market Segment Analysis – By Geography

The Asia-Pacific region accounted for approximately 38% of the cobaltous carbonate market share in 2021 and is estimated to grow at a significant CAGR during the forecast period. The region consists of major economies like China and India which consist of the major end-user of cobaltous carbonates like automotive, chemicals, and paints. Cobaltous carbonate is used in the automotive sector to increase the energy density of e-vehicle batteries, as additives & pigments in paints, and as an intermediate in chemical production. The economic development in these nations has increased their scale of industrial productivity. For instance, according to International Energy Agency, in 2021, China led the growth in the electric car market as sales for electric vehicles tripled to 3.4 million units which were higher than global sales in 2020. Also, according to China Coatings Industry Association, in 2020, paints & coating in China increased by 2.6%. Further, according to India’s National Investment Promotion and Facilitation Agency, in 2021, the country’s share in the global specialty chemicals market increased to 4%. Such an increase in productivity of major end-user of cobaltous carbonate will create more usage for the compound resulting from a positive growth for the cobaltous carbonate industry.

Cobaltous Carbonate Market Drivers

Growing Demand for Electric Vehicles

Cobaltous carbonate which occurs naturally as spherocobaltite is rich in electrical and mechanical properties, and it is majorly used in car batteries of electric vehicles to extend the life of batteries and prevent it from overheating. Hence, with the growing technological advancements, consumers have started shifting their demand from manual vehicles to electric hybrid vehicles, which has resulted in an increase in sales of such vehicles. For instance, according to European Environment Agency, in 2020, electric car registration in the EU was up to 1,325,000 units, up from 550,000 units in 2019 showing an 11% increase. Further, according to International Energy Agency, electric car registration increased by 41% in 2020 globally, with China and Europe being the largest electric vehicle market. Hence, such high registration of electric vehicles will increase the scale of production of electric vehicles leading to more usage of cobaltous carbonate in batteries. This will boost  cobaltous carbonate industry growth.

Increase in Production Volume in Specialty Chemicals

The cobalt pigment made from cobaltous carbonate is used in ceramics which is majorly used in the chemical industry for the fabrication of pipes, pumps for abrasive fluids, and liners for gasifying systems. Moreover, catalyst and intermediate cobaltous carbonate are also used in the making of specialty chemicals. The growing demand for specialty chemicals from various end-users has increased the production level of chemicals. For instance, according to according American Chemistry Council, in 2021, the US production volume of specialty chemicals increased by 2.6% compared to -15% in 2020, while basic chemical output increased by 1.8% compared to 0.5% in 2020. Such an increase in production level will create more usage of cobaltous carbonate, which will boost the growth of the cobaltous carbonate industry.

Cobaltous Carbonate Market Challenge

Stringent Regulations by Government Organization

Cobaltous carbonate being an inorganic compound is hazardous in nature and exposure to it can cause serious eye and skin infections. Hence, in order to restrict such effects of cobaltous carbonate, certain regulations have been imposed by government organizations in relation to the usage of such chemical substances. For instance, The Toxic Substance Control Act under US Environment Protection Agency has regulations relating to the usage of toxic chemical substances like cobaltous carbonate. Hence such regulation can limit the usage of cobaltous carbonate in certain sectors like agriculture, which can hamper the growth of the cobaltous carbonate industry.

Cobaltous Carbonate Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In the cobaltous carbonate market report, the cobaltous carbonate top 10 companies are:

1. Celtic Chemicals
2. Imerys Pigments
3. KEZI Industries
4. IS Chemical Technology
5. AN Pharma Tech
6. Ark Pharm, Inc.
7. Finetech Industry Limited
8. MP Biomedicals
9. Aurora Fine Chemicals LLC
10. VladaChem

Recent Developments

• In 2022, Hyundai Motor Group launched a new automotive manufacturing plant in Indonesia to produce the country’s first locally assembled electric vehicles by utilizing the country’s mineral resources.
• In 2021, Platinum Equity signed a definitive agreement to acquire Solenis, a leading global producer of specialty chemicals used in water-intensive industries, from Clayton, Dubilier & Rice ("CD&R") and BASF.
• In 2021, Asia Paints India’s largest paint and décor company launched a new luxury paint called Royale Glitz which is a luxurious interior wall paint that will provide consumers with glitzy and glamorous interior walls.

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