Recovered Carbon Black Market - Forecast(2023 - 2028)

Recovered Carbon Black Market Overview

The recovered carbon black market size is forecast to reach US$780.3 million by 2027 after growing at a CAGR of 12.3% during 2022-2027. Recovered carbon black (rCB) is a residual material, obtained from used tires through pyrolysis process. The recovered material contains a mixture of fumed silica, zinc components, and sulphur compounds. The use of recovered carbon black is gaining traction in multiple sectors as it helps in reducing the carbon footprint and contains less polycyclic aromatic hydrocarbon. This recovered substance is used as a color pigment, for tire production, paints and coatings, and several other applications. Recovered carbon black finds its extensive use in the automotive sector where it is utilized in the manufacturing of multiple components such as hoods, tires, hoses, and belts. The automotive sector is booming globally with increasing production and sales of vehicles and this is expected to contribute to the market’s growth during the forecast period. For instance, according to the 2021 data by the European Automobile Manufacturers Association, passenger car registrations in the European region increased 25.2% in the first half of 2021. Furthermore, the recovered carbon black is used in the production of several electronic products such as home appliances, computer and mobile phone casings, and various other electrical components. The electronic sector is expanding globally with increasing demand for electronic products and this is expected to drive the market’s growth during the forecast period. For instance, as per the July 2021 data by China.org.cn, consumer electronics export in South Korea maintained a growth trajectory for 12 months in a row. However, the complex process of recovering carbon black might hamper the market’s growth during the forecast period.

COVID-19 Impact

The recovered carbon black market was severely affected due to the COVID-19 pandemic. The market was introduced to challenges such as disruption in the supply chain and idling of factories, which hampered the market’s growth during the pandemic. The market players had to implement several measures to withstand the unprecedented circumstance amid the pandemic. Moreover, the stagnant growth in the automotive industry further hampered the market’s growth. As per the report by the International Organization of Motor Vehicle Manufacturers, in 2020, the production of automobiles plunged 16% globally due to the COVID-19 pandemic. The recovered carbon black market had considerable growth towards the end of 2020. Going forward, the market is projected to witness significant growth due to the expansion of the automotive and electronics sector.

Report Coverage

The report: “Recovered Carbon Black Market Report - Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the recovered carbon black industry. 

By Packaging: Bags (Small Bags, Large Bags), Sacks, and Others
By Application: Tire, Technical Rubber (Seals, Molded Parts, Vibration Dampers, Others), Plastics, Toners, Inks, Paints and Coatings, and Others
By Grade: Reinforcing Grade, Semi-Reinforcing Grade, and Specialty Grade
By End Use: Automotive (Passenger Vehicle, Commercial Vehicle, Light Commercial Vehicles, Heavy Commercial Vehicles, Construction, Residential, Commercial, Office, Hotels and Restaurants, Educational Institutes, Others), Aerospace, Marine, Electronics, Packaging, and Others
By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), and RoW (Middle East and Africa).

Key Takeaways:

• The automobile sector is driving the recovered carbon black market’s growth. According to the June 2021 stats by European Automobile Manufacturers Association, registrations of passenger cars in the European region jumped 53.4% in May 2021 compared to the same month in 2020.
• The increasing demand for electronic products is projected to influence the market’s growth during the forecast period. As per the October 2020 report by Consumer Technology Association, smartphone sales will rise in 2022 with 76% of all smartphones expected to have 5G capabilities in 2022.
• The Asia-Pacific region is expected to witness the highest demand for recovered carbon black owing to the booming automobile industry in the region. As per the stats by the China Association of Automobile Manufacturers, the annual sales volume of Chinese new energy vehicles is projected to reach 3 million units by 2025 which was 1.2 million units in 2019.

Figure: Asia Pacific Recovered Carbon Black Market Revenue, 2021-2027 (US$ Billion)

Recovered Carbon Black Market Segment Analysis - By Application

The tire application segment dominated the recovered carbon black market in 2021 and is growing at a CAGR of 12.7% during the forecast period. The residual material consists of a mixture of fumed silica, zinc components, and sulphur compounds used in multiple high-end applications ranging from color pigment, plastics, paints, and coatings. However, recovered carbon black finds its massive use in the production of tires as it helps in reducing the size of the carbon footprint to a great extent. The demand for recovered carbon black is increasing in the tire application and this is expected to augment the market’s growth during the forecast period. For instance, as per the March 2022 journal by Multidisciplinary Digital Publishing Institute, the demand for recovered carbon black is expanding in the tire sector with rCB as a substitute for commercial carbon black in tires. Such growth in the demand for recovered carbon black in tire application is expected to increase the requirement of recovered carbon black, in turn driving the market’s growth during the forecast period.

Recovered Carbon Black Market Segment Analysis - By End Use

The automotive sector dominated the recovered carbon black market in 2021 and is growing at a CAGR of 13.2% during the forecast period. Recovered carbon black contains less polycyclic aromatic hydrocarbon and helps in achieving sustainability goals which allow its massive consumption in the automotive industry. The residual material is used in the production of vehicle tires, hoses, belts, and various other components in large quantities. The automotive sector is displaying tremendous growth globally and this is expected to further drive the market’s growth during the forecast period. For instance, according to the October 2021 stats by Maruti Suzuki, the mini and compact segment in India registered 400568 units sold between April-September in 2021-22 which was 307,322 units in the same period in 2020-21. Similarly, registrations of diesel trucks in the European region increased to 361,135 units in 2019 compared to the previous year with the United Kingdom (+10.2%) witnessing the highest demand for diesel trucks. Such massive growth in the automotive sector is expected to bolster the demand for recovered carbon black, ultimately driving the market’s growth during the forecast period.

Recovered Carbon Black Market Segment Analysis - By Geography

The Asia-Pacific region held the largest share in the market in 2021, up to 32%. The high demand for recovered carbon black is attributed to the booming automotive sector in the region. Recovered carbon black is used in the region’s automotive industry for manufacturing high performance tires. The automotive sector is expanding with increasing vehicle production in the region and this is anticipated to stimulate the demand for recovered carbon black during the forecast period. For instance, as per the CEIC data stats, in 2020, 3481193 units of diesel vehicles were sold in China which was 2,805,966 units in 2019. Similarly, according to the October 2021 stats by Maruti Suzuki, 479,253 units of passenger cars were sold between April-October in 2021-22 in India compared to 437,078 units between April-October in 2020-21. Such a huge boost in the region’s automotive industry is expected to increase the requirement of tires which in turn will increase the demand for recovered carbon black during the forecast period.

Recovered Carbon Black Market – Drivers

Increasing demand for electronic products is driving the market’s growth

The electronics sector is one of the important application areas for recovered carbon black where it is used in the production of numerous electronic products and components such as home appliances, computers, and mobile phone casings. The demand for the electronic product is expanding robustly globally and this is expected to propel the market’s growth during the forecast period. For instance, according to the Global Electric Market Outlook 2022 report by the German Electro and Digital Industry Association, the electronic sector in South Korea touched a volume of USD 218.01 billion in 2020, increasing 4%. Similarly, as per the data by India Brand Equity Foundation, shipments of 5G smartphones crossed 4 million units in India in 2020 due to higher consumer demand post-lockdown. Such massive demand for electronic products is expected to bolster the demand for recovered carbon black, thereby driving the market’s growth during the forecast period.

Booming automotive sector is influencing the market’s growth

The automotive sector accounts for the largest market for recovered carbon black. The residual substance with fumed silica compounds and less polycyclic aromatic hydrocarbon is used extensively in the automotive sector. Recovered carbon black is utilized in the manufacturing of tires, hoses, belts, hoods, door panels, and various other components. The automotive sector is booming globally with increasing production and sales of vehicles and this is expected to influence the market’s growth during the forecast period. According to the August 2021 stats by SteelOrbis, Maruti Suzuki India Limited sold 141,238 units of passenger cars in July 2021, surging 39% year-on-year. Similarly, according to the January 2022 stats by China.org.cn, the sale of passenger cars in China touched 20.15 million units, increasing by 4.4% in 2021. Such massive expansion in the automotive sector globally is expected to increase the requirement of recovered carbon black, in turn influencing the market’s growth during the forecast period.

Recovered Carbon Black Market – Challenges

The complex recovery of carbon black might hamper the market’s growth

The recovery of carbon black is a complex process that has been a challenge and this might hamper the market’s growth during the forecast period. The recovery of carbon black is complex as it needs sophisticated equipment for separation. As per the July 2019 journal by ScienceDirect, the process of recovering carbon black is technically complex and expensive. Such complex recovery of carbon black restricts their widespread adoption and this might affect the market’s growth during the forecast period.

Recovered Carbon Black Market Industry Outlook

Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the Recovered Carbon Black Market. Global Recovered Carbon Black top 10 companies include:

1. Pyrolyx AG
2. Delta-Energy Group, LLC
3. Black Bear Carbon
4. Scandinavian Enviro
5. Klean Industries
6. Bolder Industries
7. Dron Industries
8. ENRESTEC
9. The Hosokawa Group
10. Elysium Nordic

Recent Developments

• In February 2022, Scandinavian Enviro announced that the company has received an order for 60 tonnes of recovered carbon black from a key European tire manufacturer. The tire manufacturer will utilize the recovered carbon black for production tests and bolster the proportion of recovered materials in its tires.
• In February 2022, Scandinavian Enviro announced that the company became a member of the Scandinavian Automotive Supplier Association. Through this, Scandinavian Enviro aims to collaborate with the companies in this association and contribute practical knowledge about recovered carbon black material.
• In August 2021, Black Bear Carbon signed an agreement with HELM AG for producing recovered carbon black from used tires. Both companies will produce recovered carbon black for international clients.

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