Growing Demand from Tire Industry
Carbon black is required majorly for tires of the automotive vehicles. It is used as a filler and a strength reinforcing agent. Lately, there has been an increasing demand for carbon black from the automotive sector. This is majorly due to the increase in the total automotive production in Brazil. In 2017, the total automotive production in the country witnessed an increase of 25.20%. Additionally, the increasing demand for lightweight vehicles and electronic vehicles is expected to further boost the demand for carbon black from the tire industry during the forecast period. However, the declining automotive production in Argentina has impacted the demand for carbon black to a certain extent.
Furnace Black is expected to have the Largest Share
In 2017, the furnace black segment accounted for nearly 95% of the market and is also expected to have the fastest growth during the forecast period. It is the most common type of carbon black production in South America. Most of the manufacturers in the region use furnace black to manufacture carbon black. Furnace black provides reinforcement & superior resilience, tear-strength, and conductivity. Hence, it is used as a rubber reinforcing agent in tires and other rubber goods. It is widely used in industrial rubber production as a filler, and as a pigment in plastics, inks, and paints & coatings. Furthermore, the growing use of furnace black as a pigment in the coating and polymers industries is expected to further augment the growth of the market.
Brazil Dominates the Market
Brazil is the expected to have the largest demand for carbon black in the region during the forecast period. This is majorly due to the increasing automotive production in the country. Furthermore, the increasing investments in the country’s automotive sector are expected to boost the demand for carbon black. For instance, in October 2017 Mercedes-Benz announced that the company will be investing USD 750 million in their truck and bus factories. The company is also planning on making investments during 2018 - 2022 in order to renovate their factories in São Bernardo do Campo (São Paulo) and Juiz de Fora (Minas Gerais), and also to develop new products and technology. This is expected to boost the demand for carbon black from the automotive sector in Brazil during the forecast period.
Key Developments in the Market
October 2017: Cabot Corporation decided to purchase Tech Blend, a leading manufacturers of black masterbatches, for USD 64 million.
Major Players: Birla Carbon, Cabot Corporation, Orion Engineered Carbon, Sid Richardson Carbon and Energy Ltd, and Tokai Carbon Co., among others.
Reason to Purchase this Report
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- To understand the dominating type in the market
- To identify the countries that are expected to witness the fastest growth during the forecast period
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3-month analyst support, along with the Market Estimate sheet (in Excel)
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1.1 Research Phases
1.2 Study Deliverables
1.3 Scope of the Report
2. Executive Summary
3. Market Insights
3.1 Industry Value-Chain Analysis
3.2 Industry Attractiveness – Porter’s Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Consumers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products and Services
3.2.5 Degree of Competition
4. Market Dynamics
4.1.1 Rising Demand from the Automotive Sector
4.1.2 Other Drivers
4.2.1 Substitution by Silica
4.2.2 Volatility of Raw Material Prices
4.3.1 Increasing Research on Active fibers
4.3.2 Other Opportunities
5. Market Segmentation and Analysis (Market Size, Growth and Forecast)
5.1 By Type
5.1.1 Furnace Black
5.1.2 Gas Black
5.1.3 Lamp Black
5.1.4 Thermal Black
5.2 By Application
5.2.1 Tires and Industrial Rubber Products
220.127.116.11 Pressure Pipe
18.104.22.168 Film and Sheet
22.214.171.124 Molded Parts
5.2.3 Tonners and Printing Inks
5.2.4 Paints and Coatings
5.2.5 Textile Fibers
6. Regional Market Analysis (Market Size, Growth and Forecast)
6.7 Rest of South America
7. Future of the Market
8. Competitive Landscape
8.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
8.2 Market Share Analysis**
8.3 Strategies Adopted by Leading Players
9. Company Profiles (Overview, Financials**, Products & Services, and Recent Developments)
9.1 Birla Carbon
9.2 Bridgestone Corporation
9.3 Cabot Corporation
9.4 Hubron International
9.5 Koppers Incorporated
9.6 Mitsubishi Chemical Holdings Corporation
9.8 Orion Engineered Carbons
9.9 Phillips Carbon Black Ltd.
9.10 Sid Richardson Carbon And Energy Limited
9.11 TOKAI CARBON CO., LTD.
*List not exhaustive
**Subject to availability on public domain
- Birla Carbon
- Bridgestone Corporation
- Cabot Corporation
- Hubron International
- Koppers Incorporated
- Mitsubishi Chemical Holdings Corporation
- Orion Engineered Carbons
- Phillips Carbon Black Ltd.
- Sid Richardson Carbon And Energy Limited
- TOKAI CARBON CO. Ltd.