Report Overview

The thriving automotive industry and ongoing large infrastructure development projects across the country are projected to propel the expansion of the India carbon black market during the forecast period between 2023 and 2029.

India Carbon Black Market - Industry Trends & Forecast Report, 2029

India carbon black market size was estimated at USD 78.54 billion in 2022. During the forecast period between 2023 and 2029, the size of India carbon black market is projected to grow at a CAGR of 9.12% reaching a value of USD 132.61 billion by 2029. Major growth drivers for the India carbon black market include an increasing automotive and rubber industries in the country. The demand for carbon black in India has been further increasing due to population growth, rapid urbanization, large number of infrastructure development projects, and rising disposable incomes. Carbon black finds extensive use across various industries due to its unique capability to blend with additives, elastomers, and binding agents, resulting in the production of advanced and eco-friendly high-quality products. In India, the forecast period is expected to witness a rise in carbon black demand, primarily driven by the growing need for industrial rubber applications such as conveyor belts and hose pipes. Also, the market's growth is fueled by the increasing demand for carbon black in sectors like printing, coatings, toners, and other related industries. These factors play a pivotal role in driving the expansion of the carbon black market in India during the forecast period.

India Carbon Black Market – Overview

India carbon black market refers to the sector within India's economy that involves the production, distribution, and consumption of carbon black. Carbon black is a fine black powder composed primarily of elemental carbon, which is produced through the incomplete combustion or thermal decomposition of hydrocarbons. It serves as a reinforcing filler in various industries, particularly the rubber industry, where it enhances the strength and durability of rubber products such as tires. The India carbon black market encompasses the manufacturing of carbon black, its supply chain, market dynamics, and the demand for carbon black across different sectors such as automotive, rubber, plastics, coatings, inks, and batteries within the Indian market. The market involves both domestic carbon black manufacturers and international players operating in India, catering to the growing demand for carbon black products in the country.

India Carbon Black Market

Growth Drivers

Expanding Automotive Industry

The increasing demand from the construction, automobile, electronics, consumer products, and various other industries is fueling the rapid growth of the rubber sector. In these industries, a wide range of products including wires and cables, tires, hoses, air springs, windows and doors, belts, and gaskets are predominantly manufactured using rubber components. Carbon black, an essential ingredient in almost all rubber compounds, serves as a reinforcing filler to enhance the physical properties of rubber. It not only strengthens the rubber but also aids in vulcanization and improves its volume. Carbon black also facilitates heat dissipation from the tire's tread and belt region, leading to extended durability of rubber goods. Significant amounts of carbon black are added to the inner liners, sidewalls, and carcasses of tires. The market is expected to experience continuous growth throughout the projected period, driven by the increasing acceptance of rubber products and the rapid expansion of the tire industry.

Restraints

Fluctuating Raw Material Prices

The prices of raw materials used in carbon black production, such as hydrocarbons, can experience volatility due to various factors, including changes in global oil prices, supply disruptions, geopolitical tensions, and market dynamics. These fluctuations in raw material prices pose challenges for carbon black manufacturers in terms of cost management and profitability. The uncertainty surrounding raw material costs can impact the overall competitiveness and pricing strategies of carbon black products in the market. Manufacturers may need to adjust their production processes, sourcing strategies, or pass on the increased costs to customers, which can influence the demand and growth of the India carbon black market. Managing and mitigating the impact of fluctuating raw material prices becomes a crucial factor for the industry participants to sustain their operations and navigate market uncertainties effectively.

Impact of COVID-19 on India Carbon Black Market

COVID-19 pandemic adversely affected the India carbon black market. During the initial stages of the pandemic, the nationwide lockdown measures imposed to contain the spread of the virus disrupted manufacturing operations and supply chains, leading to a decline in demand for carbon black. The automotive and industrial sectors, major consumers of carbon black, experienced a slowdown, affecting the overall market. However, as restrictions eased and economic activities resumed, the demand gradually recovered. The India carbon black market experienced a shift in consumer preferences towards eco-friendly and sustainable products, which led to an increased adoption of specialty carbon black grades. The pandemic's long-term effects continued to shape market dynamics, with manufacturers focusing on resilience and adapting to changing market demands.

India Carbon Black Market

Segmental Coverage

India Carbon Black Market – By Type

By type, the India carbon black market is divided into Acetylene Black, Channel Black, Furnace Black, and Lamp Black segments. The furnace black segment holds the highest share in the India carbon black market by type. The furnace black offers excellent reinforcing properties, making it an ideal choice for the tire industry, which is a major consumer of carbon black. With the growth of the automotive sector in India, the demand for tires has been consistently high. Additionally, furnace black finds extensive use in various other industries, including industrial rubber products and plastics, further contributing to its market dominance. The established production infrastructure and widespread availability of furnace black also play a role in its higher market share compared to other carbon black types in India.

India Carbon Black Market – By Grade

Based on grade, the India carbon black market is bifurcated into Specialty and Commodity segments. The specialty grade segment holds a higher market share. There was a strong market demand for specialty grade carbon black, which is a high-quality refined form of carbon black produced using a distinct manufacturing process. In this process, hydrocarbons are burned with a controlled air supply to create specialty-grade carbon black. This type of carbon black is widely used for pigmenting, UV stabilization, and as conductive agents, which significantly contributes to the market's growth.

India Carbon Black Market – By Application

Based on application, the India carbon black market is divided into Tire, Industrial Rubber, and Plastic segments. The plastic segment holds the highest share in the India carbon black market. The substance finds primary application as a conductive filler, pigment, and particle-reinforcing agent in the plastics industry. With its exceptional strength, thermal conductivity, and antistatic properties, it is widely used as a filler in the manufacturing of various plastic products, such as pipes, films, stretch wraps, photography containers, and industrial bags.

Black carbon also acts as a UV light absorber, providing protection to plastics against fading, chalking, discoloration, and cracking. These factors contribute to increased utilization of the substance in the production of plastic goods and are expected to drive market growth.

India Carbon Black Market – By Region

Based on region, the India carbon black market is divided into North India, South India, East India, and West India. 

Competitive Landscape

Major players operating in the India carbon black market include Phillips Carbon Black Ltd, Himadri Speciality Chemical Ltd, Aditya Birla Carbon, Cabot Corporation, Orion Engineered Carbons, Continental Carbon India Ltd, Birla Carbon, Longxing Chemical Stock Co. Ltd, China Synthetic Rubber Corporation, and Tokai Carbon Co. Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2022 - Epsilon Carbon invested approximately USD 0.675 million to nearly double its plant capacity, with the goal of achieving a leading position in the Indian market in terms of manufacturing scale.

Scope of the Report

By Type

• Acetylene Black

• Channel Black

• Furnace Black

• Lamp Black

By Grade

• Specialty

• Commodity

By Application

• Tire

• Industrial Rubber

• Plastic

By Region

• North India

• South India

• East India

• West India