Growing product usage in the manufacturing of plastics is anticipated to fuel growth. Demand for the product will also rise because of these plastics’ expanding use in electrical and electronic components. It is produced by thermal decomposition or the partial combustion process, which uses oil or natural gas as a feedstock.
WESTFORD, Mass., Sept. 2, 2025 /PRNewswire/ — SkyQuest Technology Consulting published a report, titled, ‘Carbon Black Market – Global Opportunity Analysis and Industry Forecast, 2025-2032′, valued at USD 24.49 Billion in 2024. With a projected CAGR of 4.8% from 2025 to 2032, the market is expected to reach USD 35.64 Billion by the end of 2032. This growth is attributable to ongoing demand for tires from automotive sectors and rising demand for specialty carbon black.
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Carbon Black Market Key Growth Drivers
The demand for carbon black in the rubber industry is primarily driven by the growth and development of the automotive tire, commercial tire, and mechanical rubber goods (MRG) industries. More OEM and replacement tires are also being manufactured. Tire replacement is influenced by truck traffic, vehicle trends, and the number of miles driven. The rising demand for larger vehicles, such as trucks and buses, is also expected to fuel the expansion of the carbon black market during the forecast period.
Additionally, exceptional conductivity and UV protection are just two of the unique characteristics of specialty carbon black that are significant to end users. To meet end-user performance standards and application-specific functionalities, it is made by partially burning hydrocarbons. Specialty compounds with smaller particle sizes are suitable for a range of specialized applications because they offer better UV protection, superior jetness, and darker mass tones than regular grades.
Recent Developments in Carbon Black Market
- In June 2025, Epsilon Carbon, a renowned provider of carbon black from India launched a new specialized Hard Grade carbon black. The novel best-in-class N134 is known for its superior abrasion resistance and durability. The launch made Epsilon the first Indian organization to install a dedicated manufacturing unit designed for producing the N134 grade hard carbon.
- In February 2025, Orion reported USD 1.88 billion in revenue for 2024, with specialty carbon black volumes rising 11% yearly. Despite the demand for soft rubber, Orion began selling recycled carbon black products and strengthened its circular economy initiatives, with growth in 2025 as its target.
- In January 2025, Sumitomo Rubber Industries Ltd. and Mitsubishi Chemical Corporation announced their plans to launch a new joint project to recycle carbon black. Sumitomo Rubber will supply rubber chippings to Mitsubishi Chemical, which will then recycle them using coke ovens for chemical recycling.
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Major Challenges in Carbon Black Industry
Changes in the price of crude oil can have a significant impact on the market, because of how heavily its production is dependent on natural gas and oil. The price volatility of these commodities can significantly impact manufacturing costs, and lower overall profit margins. Changes in the price of oil may cause manufacturers to modify their pricing strategies, which may affect their relationships with existing customers. These factors may, therefore, make it challenging for manufacturers to maintain steady profitability.
Many federal, state, local, international, and domestic laws and regulations relating to environmental protection, and occupational health and safety must be followed by market participants. Many national and international health organizations classify carbon black as a possible or suspected human carcinogen. The Climate and Clean Air Coalition, for instance, claims that black carbon has a variety of impacts on ecosystem health. The environmental regulatory bodies are enforcing strict environmental regulations on activities that may affect the environment. As a result, stringent environmental laws, especially in developed areas, make it difficult for traditional manufacturing processes to expand the market.
Competitive Landscape
Capacity expansion is a key strategy used by major market leaders such as Cabot Corporation and Orion Engineered Carbons S.A. to maintain their market share. Market players are using strategies like product diversification, sustainable business practices, and strategic alliances to stay ahead of the competition and satisfy shifting consumer demands. Major players are investing in expanding their manufacturing capabilities in high-growth regions like China and India. For instance, well-known businesses like Cabot Corporation and Birla Carbon Black Company have expanded their production bases globally, setting up 42 and 17 manufacturing facilities, respectively. Such strong strategic initiatives will continue to drive market expansion over the course of the forecast period.
The major players in the carbon black industry include,
- BASF SE (Germany)
- Dow Inc (US)
- Mitsubishi Chemical Holdings (Japan)
- Nouryon (Netherlands)
- Dominion Colour Corporation (Canada)
- Birla Carbon Public Company Limited (India)
- Cabot Corporation (US)
- Birla Carbon Thailand Public Co. Ltd. (Thailand)
- Orion Engineered Carbons SA (Luxembourg)
- Phillips Carbon Black Limited (India)
- CSRC Group (Taiwan)
- Omsk Carbon Group (Russia)
- OCI COMPANY Ltd. (South Korea)
- Himadri Speciality Chemicals Ltd. (India)
- Longxing Chemical Industry Co., Ltd. (China)
Carbon Black Market Segmental Analysis
The global carbon black market is segmented into type, application, grade, and region. By type, the market is classified into furnace black, channel black, thermal black, and acetylene black. Depending on the application, it is divided into tire, non- tire rubber, plastics, inks & coatings (lithium-ion batteries, graphite manufacturing, and construction industry (metallurgy). According to grade, the market is bifurcated into standard and specialty.
- By type, the furnace black dominated the market in 2024. This is due to its low cost and extensive use in rubber and tire applications. Due to its high yield and suitability for mass production, it held the largest share.
- By application, the automotive industry’s need for durable, high-performing tires propelled the tire segment to the top of the application category. Carbon black is used to fortify the rubber in tires, making them more durable.
- By grade, the standard grade carbon black held the largest market share in 2024 due to its widespread use in tires and industrial rubber products. It offers a cost-performance balance for high-volume applications.
Regional Outlook
Asia-Pacific held the largest share of the carbon black market in 2024 due to robust demand from the industrial, and tire manufacturing sectors in China and India. The region enjoys low production costs and a strong automobile supply chain.
North America accounted for the fastest growing region with a sizable portion of the market due to its sophisticated production techniques, and strong demand for specialty carbon black in coatings and plastics. Due to its robust R&D and sustainability programs, the US continues to play a significant role.
Why is Demand for Carbon Black Rising in the United States?
Extensive use of carbon black as a vital raw material in multiple industry verticals such as construction, electronics, and packaging is helping drive its sales in the country. Rapidly surging sales of vehicles and expanding mobility needs of the United States are driving up the demand for tires, wherein carbon black is the primary raw material. Growing construction activity and high use of carbon black in coatings, adhesives, sealants, and concrete are also expected to boost revenue generation potential for all market players. High investments in material science R&D, emphasis on specialty carbon black grade production, and its high demand in modern industrial settings are estimated to ensure sustained carbon black sales in the United States across the study period.
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