April 22, 2024

Conductive Carbon Black Market is Estimated to Witness High Growth Owing to Rising Demand from Automotive Battery Applications

Conductive carbon black is an essential additive that enhances the conductivity of polymers and elastomers without compromising other physical properties such as durability, tensile strength and fire resistance. It is commonly used in various applications such as plastic packaging, battery electrodes, wires and cables, and automotive tyres. The growing automotive industry coupled with increasing vehicle electrification across major economies is primarily driving the consumption of conductive carbon black. With improving charging infrastructure and supportive government policies, the electric vehicles (EVs) market is projected to witness robust growth over the next decade, thereby augmenting the demand for batteries and conductive carbon black.

The Global conductive carbon black market is estimated to be valued at US$ 777.86 Mn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in The Conductive Carbon Black are 63 Moons Technologies Limited, MetaQuotes Software Corp., Algo Trader AG, Refinitiv Ltd, and Virtu Financial Inc.

The growing production of electric vehicles provides significant opportunities for conductive carbon black manufacturers with automotive battery being one of its major end-use industries. Stringent regulations regarding vehicular emissions also boost the popularity of EVs.

North America and Europe currently dominate the global conductive carbon black market. However, Asia Pacific is expected to witness the fastest growth owing to rapid industrialization and presence of emerging economies like China and India with growing manufacturing sectors. The expanding capacities of lithium-ion battery players in India and China will positively impact the regional conductive carbon black consumption.

Market drivers

The rapid rise in electric vehicles sales around the world is one of the key drivers for conductive carbon black market. As per projections, the global EV stock is estimated to reach 145 million by 2030 from around 13 million in 2021. This tremendous growth in EVs will substantially augment the demand for lithium-ion batteries containing conductive carbon black as cathode material.

PEST Analysis
Political: There are no major political issues affecting the conductive carbon black market currently. However, future regulations regarding carbon emissions may impact demand.
Economic: The general healthy state of the global economy supports demand from end use industries such as plastics, batteries, and coatings. Rising incomes increase affordability of electronic products as well.
Social: Growing environmental and sustainability concerns drive demand for advanced materials in rechargeable batteries and related applications. Electronic products become more ubiquitous in daily life.
Technological: Continuous R&D leads to new applications in conductive inks, films, and coatings. Additive manufacturing techniques allow for novel design possibilities. Graphene and other nanomaterials pose potential competition over the long term.

The Asia Pacific region accounted for the highest volume share of over 35% of the global conductive carbon black market in 2024. Countries like China, Japan, South Korea and India have not only a large production base to meet domestic demand but also export needs. The growing middle class population, rising disposable incomes, and increasing penetration of electronic goods are major factors for the region’s prominence.

North America is expected to be the fastest growing region during the forecast period. This can be attributed to a surge in demand for Li-ion batteries for electric vehicles and energy storage applications across the U.S. and Canada. Government incentives and directives toward lowering vehicle emissions and diversifying the energy mix also support regional growth.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it