Brazil Carbon Black Market Demand, Share and Analysis 2021-2025

1. Brazil Carbon Black Market Demand, Share and Analysis 2021-2025 Carbon black, a crucial component in the modern automotive industry, has become an integral part of the culture in Brazil. With the use of carbon black reinforcement in tires, vehicles can now travel significantly longer distances compared to older tires. Traditional tires required replacement after every 5,000 kilometers, whereas the new age tires with carbon black reinforcement can perform reliably for up to 50,000 kilometers. This transformation has led to a remarkable change in the automotive industry, driving the demand for carbon black in Brazil. According to a recent study conducted by Fairfield Market Research, the global carbon black market was valued at US$17.4 billion in 2018, and it is projected to reach US$23.6 billion by 2025, with a healthy compound annual growth rate (CAGR) of 6.5% between 2021 and 2025. The versatile properties of carbon black have made it a vital element in the production of various products used in everyday life, especially when a stronger and deeper black color is desired. This fine black powder, composed of elemental carbon, is manufactured by burning hydrocarbons such as coal tar, ethylene tar, fluid catalytic cracking (FCC) tar, or charred vegetable matter.

2. Access Full Report: https://www.fairfieldmarketresearch.com/report/carbon-black- market Carbon black is primarily used as a reinforcement agent in the rubber industry but also finds applications as a pigment, conductive or insulating agent, rheology modifier, and UV stabilizer in a variety of rubber and non-rubber applications. The demand for carbon black continues to grow in sectors such as rubber tires, industrial rubber goods, automotive rubber parts, inks, paints & coatings, plastics, wire and cables, due to its ability to enhance material performance including viscosity, conductivity, and static charge control. Specialty carbon black, a niche segment of the carbon black market, has experienced lucrative growth prospects compared to commodity carbon black. Although it currently accounts for around 8% of the total volume, specialty carbon black commands higher prices and margins due to its use as black pigmenting, conductive, and UV stabilizing agents. Specialty carbon black is extensively utilized in paints, printing ink toners, plastics, batteries, wire and cables, sealant systems, solid carbons, and plays a crucial role in enhancing conductivity, power performance, and lifespan in batteries. Rubber carbon black and mechanical rubber goods (MRG) are the most widely consumed grades of carbon black, representing over 92% of the total carbon black market. Rubber carbon black, known for its cost-effectiveness, is extensively used in tire components such as sidewalls, treads, and inner liners, improving the strength, durability, and processing of high- performance tires and industrial rubber goods. The automotive tire market is expected to grow at a CAGR of 4.5% between 2021 and 2025, driven by the strong demand from automotive production and the adoption of high-performance and premium tires. The increasing demand for tire replacements, driven by the radialization of tires and consumer preferences for tire pressure monitoring systems, presents lucrative opportunities for the global carbon black market in Brazil. Tires remain the key consumer segment in the global carbon black market, accounting for over 70% of the global demand in 2019. The rising disposable incomes in developing economies, including Brazil, are anticipated to boost the growth of new vehicle sales, thereby driving the demand for carbon black in the tire industry. The expansion of economic activities and the resulting increase in vehicles miles traveled (VMT) per year further encourage tire replacements, contributing to the demand for carbon black. The tire replacement market accounts for more than two-thirds of the total tire demand, especially in developed economies. Factors such as the growing middle-class population, rapid changes in electric vehicles, adoption of shared transportation, and advancements in driverless technology are projected to drive the transportation industry in Brazil, leading to increased demand for carbon black in the tire industry and further fueling the growth of the carbon black market. Industrial and mechanical rubber goods are also significant applications for carbon black, consuming both MRG and specialty carbon blacks. Carbon black is employed in mechanical rubber goods such as conveyer belts, hoses, gaskets, seals, automotive rubber parts, electronic packaging films, and shoe soles. Additionally, the carbon black market has witnessed notable growth in niche applications such as printing inks, paints, plastics, wires & cables, and consumer goods. These applications predominantly utilize specialty carbon black, which is one of the fastest-growing product types in the carbon black market.

3. Asia Pacific accounted for more than 60% of the global demand for carbon black in 2019, with China being the largest producer, accounting for over 40% of the total carbon black production. Brazil has observed significant investments in the tire industry in recent years, paralleling the automotive industry's revival. The region's tire consumption is expected to be boosted by the growth in passenger and light commercial vehicles, economic recoveries, and increased tire replacement rates. Furthermore, Europe is projected to exhibit stable demand for rubber and MRG carbon black, with rising demand for specialty carbon black driven by the need for conductive additives in paints, plastics, inks, and especially EV batteries. Specialty carbon black is expected to play a vital role in the European Union's 'Smart and Sustainable Mobility Strategy,' aimed at achieving 30 million electric vehicles by the end of this decade. Companies operating in the carbon black market, including Cabot Corporation, Birla Carbon, Orion Engineered Carbons, Jiangxi Black Cat Carbon, and Tokai Carbon Co., Ltd., are focusing on technological advancements and integrating cleaner, renewable sources to produce carbon black. The adoption of cleaner production processes and renewable energy sources aligns with the global efforts to reduce greenhouse gas emissions and promote sustainable practices. For instance, Monolith Materials, a company that utilizes renewable energy to convert natural gas into carbon black, has announced new investments in carbon black production, aiming to reduce GHG emissions by as much as 1 million tons annually compared to traditional production processes. With the growth of the automotive industry and the increasing demand for high-performance tires, Brazil is expected to witness a substantial rise in the consumption of carbon black. As the global carbon black market continues to expand, companies are striving to meet the evolving demands of the industry while focusing on sustainability and environmental responsibility. Web: https://www.fairfieldmarketresearch.com/ Email: sales@fairfieldmarketresearch.com