Recovered Carbon Black Market

The global Recovered Carbon Black Market is valued at USD 105.1 Million in 2022 and is projected to reach a value of USD 2373.6 Million by 2030 at a CAGR (Compound Annual Growth Rate) of 56.10% between 2023 and 2030.

Premium Insights

Increasing demand for the product in high-performance coatings is anticipated to propel the market's expansion. As a result of the use of VOC-emitting raw materials, the coatings industry is under intense scrutiny. Recovered Carbon Black (rCB) replaces conventional carbon black, improving the aesthetic and protective properties of coatings. Carbon black is typically produced through pyrolysis, a thermal catalytic decomposition process in which tire rubber is recycled to produce carbon black. In addition to producing steel and oil, the process is utilized in the automotive, construction, and industrial sectors. EnviroCB, a leading Recovered Carbon Black manufacturer, estimates that approximately 18 million tons of tire refuse are generated annually globally.

The United States led the world in recovering black carbon consumption due to many market participants and annual refuse tire production. EPA and the Rubber Manufacturers Association published an article in December 2019 stating that over 290 million tires are disposed of annually in the United States. However, approximately 130 million tires produce sustainable fuel, while more than 16 million are used to recover carbon black for producing rubber and new tires. Tire production is the largest consumer of Recovered Carbon Black in the United States, followed by other rubber products. As it replaces traditional carbon black in tire manufacturing, the Recovered Carbon Black market is expected to expand rapidly. The economic value of Recovered Carbon Black is enhanced because it is derived from waste rubber products, specifically tires.

In addition, it is finer than pure carbon black, allowing for more precise incisions in the final product. It is anticipated that each kilogram of Recovered Carbon Black used in place of conventional carbon black will conserve between 1.5 and 2 kilograms of crude oil. Thus, it is anticipated that Recovered Carbon Black will acquire popularity as it contributes to reducing the global carbon footprint and using non-conventional sources.

Economic Insights

Inflation concerns and sluggish demand will likely restrain companies' investments, resulting in a decline in capital expenditures. With sluggish growth and excessive inflation, developed markets appear poised for a recession. Fears of new COVID outbreaks and China's already uncertain post-pandemic path pose a significant threat of more severe supply chain suffering and manufacturing disruptions this year. Volatile financial markets, escalating trade tensions, a more stringent regulatory environment, and the pressure to incorporate climate change into economic decision-making will compound the difficulty of the challenges confronted.

Top Market Trends

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1. Increasing Sales of Electric Vehicles: Recovered Carbon Black is utilized as a partial replacement for virgin carbon black in several industries, including the tire industry. Thus, the extant carbon black market determines the market potential for Recovered Carbon Black. In the automobile industry, the electric vehicle is the current tendency. The tire industry will benefit from this new opportunity by manufacturing all-season tires, performance tires, rib tires, and spare tires, among others. A prominent European premium tire manufacturer ordered 60 MT of Recovered Carbon Black with Scandinavian Enviro Systems AB in February 2022. This has increased the demand for Recovered Carbon Black on the market.
2. Rising Need for Sustainable Products: Recovered Carbon Black is an eco-friendly material primarily derived from the pyrolysis of recycled tires. Utilizing and recycling used tires has environmental and economic benefits. During the forecast period, the need for eco-friendly alternatives and reducing carbon footprints is anticipated to offer lucrative growth opportunities for Recovered Carbon Black market participants. In addition, manufacturers' continued emphasis on research and development is anticipated to drive the global Recovered Carbon Black market over the next few years. Carbon black has been recovered and is renowned for its capacity to reduce CO2 emissions and its eco-friendliness. Pure carbon black is a suitable substitute for Recovered Carbon Black. Consequently, recovering carbon black from unprocessed carbon black produced by conventional furnace procedures reduces carbon footprint significantly. Several prominent tire manufacturers are attempting to increase their use of rCB because, when used alone, it can reduce the carbon footprint by 80%.

Market Segmentation

The global Recovered Carbon Black market can be categorized on the following: Applications and Regions. Based on Applications, the market can be categorized into Tire, Non-Tire Rubber, Plastics, Coatings, and Inks. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Application

Tires to Accommodate Maximum Share due to Rising Vehicular Production

In 2022, tire manufacturing was the leading application for Recovered Carbon Black. The expansion of the global transportation industry and the urbanization of developing nations in Asia-Pacific and Central and South America are expected to drive the growth of the Recovered Carbon Black (rCB) market over the forecast period. Due to the increase in automobile production, tire production increased considerably in Asia-Pacific's emerging economies, particularly in China and India. This increase in output is due to the expansion of the transportation industry in these economies. Low-cost land for production facilities, increased disposable income, and the availability of qualified labor has all contributed to the industry's growth in the region.

Based on Region

North America to Lead Global Sales owing to Increased Focus on Sustainable Tire Production

It is anticipated that North America will dominate the market. The United States and Canada are the two largest economies in the region. The U.S. Tire Manufacturers Association (USTMA) forecasted total U.S. tire shipments of 340.2 million units in 2022, compared to 335.2 million units in 2022; Original Equipment (OE) shipments for passenger, light truck, and truck tires are projected to increase by 6.2%, 4.4%, and 6.3%, respectively, with a total increase of 2.9 million units. On the other hand, Canada's construction industry increases the demand for Recovered Carbon Black as a reinforcing agent through applications such as hoses, gaskets, seals, rubber sheets, and rubber roofing. As part of the 'Investing in Canada Plan,' the government has announced plans to invest nearly USD 140 billion in infrastructure by 2030.

After North America, Asia-Pacific was the second-greatest market for Recovered Carbon Black. Due to the lack of technological advancements in producing Recovered Carbon Black, the region has a low penetration rate compared to developed regions. Due to the monetary framework that encourages private investments in the manufacturing sector and favorable government policies, the industry is expected to experience rapid growth.

Competitive Landscape

The market is still in its infancy, with manufacturers developing products with varying quality levels and technological advances. Constantly emphasizing the development of new product grades to suit various applications, the leading companies are at the forefront of the industry. Pyrolyx, for instance, produces the product in three varieties, cct-6400, rC-6400, and rC-7400. The quality of cct-6400 varies based on the constituent materials. European tires typically contain more silica than their American counterparts. The Ash content of European tires is 20%, while that of American tires is 14%. Cct-6400 and rC-6400 are employed in producing tire and non-tire rubber, whereas rC-6400 is strongly recommended for use in producing high-performance coatings and polymers.

The key players in the global Recovered Carbon Black market include - 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, Alpha Carbone among others.

Recent Market Developments

• May 2022: Pyrum Innovations AG began the test operation of a new pelletizer at its plant site in Germany, which will enable the Recovered Carbon Black (rCB) obtained through the pyrolysis process to be bonded into pellets, thereby increasing their transportability and facilitating their further processing.
• March 2022: Continental AG has expanded its partnership with Pyrum Innovations AG to optimize and expand the recycling of end-of-life tires through pyrolysis by manufacturing high-quality Recovered Carbon Black (rCB) for Continental's tire production.
• August 2021: Black Bear Carbon and HELM have executed a memorandum of understanding. It is stated that Black Bear will produce approximately 12,000 metric tons of Recovered Carbon Black per year, reducing carbon dioxide emissions by more than 65,000 tons per year compared to traditional carbon black usage.

Segmentation of the Global Recovered Carbon Black Market