Asia Pacific is anticipated to hold the largest share of the market during the forecast period. Asia Pacific comprises Australia, China, India, Japan, South Korea, and other Asian countries. Countries such as India and China generate huge numbers of waste tires annually, which is a key factor supporting the growth of the recovered carbon black market in the region. Asia Pacific is characterized by high vehicle production, coupled with strong tire demands. The governments of China and India, among others, are focusing on encouraging the sales of electric vehicles. Moreover, growing demand for non-tire rubber products is expected to propel the recovered carbon black market growth in the region.
The ongoing pandemic has drastically altered the status of the industrial sector and has negatively impacted the growth of the recovered carbon black market. The implementation of measures to combat the spread of the virus has aggravated the situation and has impacted the growth of several industrial sectors. Industries such as automotive, industrial, oil gas, chemical, aerospace have been impacted by the sudden distortion in operational efficiencies and disruptions in the value chains attributable to the sudden closure of national and international boundaries. For instance, an article published by ACEA highlighted the severity of impact of COVID-19 upon the automotive sector. The production and sales of motor vehicles suffered a sudden halt in operation, with sales of car registering a drop by 25% in Europe. This has direct correlation with the demand for recovered carbon black market. Moreover, the recovered carbon black market is still in the nascent stage, with manufacturers developing products with different grades and technological advancements.
Further, the pandemic created a disruption in orders and deliveries along with cancellations and a backlog of orders. The significant decline in the growth of several industrial sectors significantly impacted the demand for recovered carbon black in the global market. The significant disruptions in terms of sourcing of raw materials from suppliers as well as temporary closures of the manufacturing base due to indefinite lockdowns and temporary quarantines have impacted the growth of the market during the pandemic period. Nevertheless, as the economies are planning to revive their operations, the demand for recovered carbon black is expected to rise globally. The expanding demand for recovered carbon black for various applications such as tire, non-tire rubber, plastics, coatings, and inks application, along with significant investments by prominent manufacturers is, expected to drive the growth for recovered carbon black.
Producing recovered carbon black from waste generated by rubber goods, specifically tires is an ecologically beneficial process. Moreover, the outcome is also finer than virgin carbon black, allowing for better cuts in the finished product. To produce 1 kg of virgin carbon black, ~1.5–2 kg of crude oil is required.Recovering carbon black also entails reusing valuable raw materials, propelling one higher up the recycling hierarchy. Thus, replacing virgin carbon black, produced out of traditional furnace processes, with recovered carbon black considerably reduces carbon footprint. The use of recovered Carbon Black (rCB) alone can reduce the size of the carbon footprint by 80%, which is why many large tire manufacturers are trying to use significantly more recovered carbon black. For instance, in October 2018, Pyrolyx USA began constructing a plant in Terre Haute, Indiana, USA. It is expected to be fully completed in May 2019 and will start production in June 2019. The plant will have the capacity to process 40,000 tons of used tires per year and produce about 13 kilotons of recycled carbon black and 17.5 kilotons of pyrolysis oil, and 6.2 thousand tons of steel. Thus, the cost and environmental advantages associated with recovered carbon black are propelling the market growth.
Based on application, the global recovered carbon black market is divided into tire, non-tire rubber, plastics, and others. The tire segment is anticipated to hold the largest share of the market during the forecast period. Recovered carbon black is one of the immediate products of the pyrolysis process and is usually added to rubber as both a filler and as a strengthening/reinforcing agent. For numerous types of tires, it is used in inner liners, sidewalls, carcasses, and treads, utilizing various types based on specific performance requirements. The recovered carbon black market is predicted to rise swiftly, as it is replacing traditional carbon black in manufacturing tires. Also, recovered carbon black, produced from waste generated by tires, contributes an economic advantage. Besides, the usage of recovered carbon black instead of virgin carbon black lessens carbon footprint by approximately 80%. Most of the major tire manufacturers are predicted to use a substantial amount of recovered carbon black in the coming years. These factors are anticipated to bolster the tire segment during the forecast period.
Black Bear Carbon B.V.; Bolder Industries; ENRESTEC; Klean Carbon; Radhe Group Of Energy; Scandinavian Enviro Systems AB; SR2O Holdings, LLC; Delta Energy LLC; Pyrolyx AG; and Alpha Carbone are a few well-established players operating in the global recovered carbon black market. These companies offer their products worldwide, which help them in catering to a wider customer base. The major market players are highly focused on the development of high-quality and innovative products to meet the customer’s requirements. Over the past a few years, the companies operating in the market have realized the immense potential pertaining to the recovered carbon black market, and they are adopting strategies such as mergers & acquisitions and product launches. For example, in 2019, Pyrolyx AG and its Pyrolyx USA subsidiary signed an agreement to purchase the assets of Newport, Indiana-based J&R Recycling for US$ 4.5 million.
The regional trends and factors influencing the Recovered Carbon Black Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Recovered Carbon Black Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 4.04 Billion |
| Market Size by 2028 | US$ 8.76 Billion |
| Global CAGR (2021 - 2028) | 11.7% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Application
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Recovered Carbon Black Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Recovered Carbon Black Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
Based on application, the global recovered carbon black market is segmented into tire, non-tire rubber, plastics, and others. By geography, the recovered carbon black market is segmented into five main regions—North America, Europe, Asia Pacific, Middle East & Africa, and South America.
The List of Companies - Recovered Carbon Black Market
Recovered carbon black is expected to witness tremendous growth in the coming years. Increasing demand for sustainable materials and recycling will propel the demand for virgin carbon black. With the rising concerns pertaining to climate change, global manufacturers are under pressure to amend their operations in order to reduce the emissions and be carbon neutral. Such factors will increase the demand for recovered carbon black.
Europe is expected to hold the highest share in the global recovered carbon black demand. High rate of recycling and regulations on the use of virgin carbon black are expected to aid the growth of the recovered carbon black market in the region.
Asia Pacific region accounts for a significant share of the global population and the rising disposable incomes and urbanization have contributed to a significant growth of automobile demand. Moreover, the region has a low rate of tire recycling in comparison with North America and Europe and holds huge potential with the amount of waste tires being generated each year. Such factors have propelled the demand for recovered carbon black in Asia Pacific.
Tire segment is the largest consumer of virgin carbon black. With the increasing demand for vehicles, tire demand is also projected to grow significantly in the coming years. With the growing demand for sustainable solutions and the incorporation of recycled raw materials in the tire manufacturing sector, tires is expected to be a major application area for recovered carbon black.
The major players operating in the global recovered carbon black market are Black Bear Carbon B.V.; Bolder Industries; ENRESTEC; Klean Carbon; Radhe Group Of Energy; Scandinavian Enviro Systems AB; SR2O Holdings, LLC; Delta Energy LLC; Pyrolyx AG; and Alpha Carbone among many others.
Recovered carbon black is obtained through the pyrolysis of end-of-life tires (ELTs) and can be used in place of the virgin carbon black. They provide an alternate and sustainable option to the use of virgin carbon black in tires and other applications. The market is in a nascent stage and the report addresses the potential demand and opportunity in the recovered carbon black market and its applications. Based, on application, the recovered carbon black market is segmented into tire, non-tire rubber, plastics, and others.