Recovered Carbon Black Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

Recovered carbon black (rCB)  is a sustainable material derived from end-of-life tires through pyrolysis and other thermal degradation processes. This process involves breaking down the tires at high temperatures in the absence of oxygen, which results in the production of rCB along with oil and gas byproducts. It is increasingly being used as a reinforcing filler in rubber compounds, plastics coatings and inks, serving as a sustainable alternative to traditional carbon black importance. The rCB has a carbon content of +96%. It is ground to a very fine particle size of less than 10 microns, pelletized, dried and then packaged. 

MARKET OVERVIEW

The market valuation of recovered carbon black market was valued at approximately USD 491 million in 2023 and is projected to reach USD 12.4 billion in 2034 exhibiting a CAGR of 13.5% during the forecast period of 2024-2034. Recovered carbon black is crucial in promoting sustainability across multiple industries, which makes it an important component. towards environmentally friendly manufacturing practices. The market is aligned with diverse sectors, which makes it a sustainable and growing market.

GROWTH DRIVERS

The stringent environmental regulations and global sustainability initiatives drives the adoption of recovered carbon black. For instance, the European Union's REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) regulations and the US Environmental Protection Agency (EPA) guidelines emphasizes reducing carbon footprints. It encourages the industries to adopt sustainable practices like using rCB. Recovered carbon black offers a cost-effective alternative to traditional carbon black, which is one of the significant drivers of the market.

According to Smithers, recovered carbon black, when compared to virgin black, provides cost savings based on recent increases in petroleum-based raw materials. The usage recovered carbon black can also assist companies with sustainability initiatives providing a more environmentally friendly alternative. Industries such as automotive, tire, flooring, plastics, conveyor belts, tubes, hoses, and more are looking for more sustainable materials, making recovered carbon black an ideal solution.

The tire industry, which is the largest consumer of recovered carbon black. The leading tire manufacturers like Michelin and Billy are committed to increasingly use their sustainable material to meet sustainability goals. Michelin boasts about their car tire containing 45% sustainable materials including rCB. According to Statista, the global automotive tire market was valued at some USD 126 billion in 2022, it is expected to reach the value of over USD 176 billion in 2027.

MARKET SEGMENTATION:

·         By Application- tire, non-tire rubber, plastics, coatings and others

·         By Region- North America, Europe, Asia Pacific, The Middle East and Africa, South America

Recovered Carbon Black Market Segment By Application Review:

The tire industry is the largest consumer, utilizing rCB primarily as a reinforcing filler to enhance the strength, durability, and performance of tires. The advances in RCB production technology have improved its quality, making it increasingly comparable to virgin carbon black, which helps tire manufacturers reduce raw material costs and environmental impact. Non tire rubber applications such as industrial belts, hoses, seals, gaskets and footwear also benefit from the reinforcing properties of rCB, enhancing durability, flexibility and elasticity.

The plastics industry uses rCB as a black pigment and performance additive and packaging automotive parts and consumer goods. It improves UV resistance, electrical conductivity, and mechanical properties while promoting sustainability and the coatings industry. The rCB serves as a pigment and performance additive and paints coatings and inks providing deep black coloration, UV protection and improved conductivity for anti-static and electromagnetic interference shielding purposes. The other applications of rCB include adhesives and sealants, batteries and specialty products where its unique properties enhanced mechanical strength, durability and conductivity.

Recovered Carbon Black Market Regional Analysis:

North America significant market driven by strict environmental regulations in the US and Canada, which pushes industries to adopt sustainable practices. The Environmental Protection Agency mandates on reducing carbon emissions, promotes the market. The key presence of leading market players in this region like Pyrolyx USA, drives the market towards growth. Europe is a valuable market driven by factors like EU regulations like REACH and the Circular Economy Action Plan are significant drivers. These regulations encourages the recycling of end life of tires, which fuels the market growth. The presence of European Tyre and Rubber Manufacturers Association promotes the adoption of the market.

Asia Pacific is a rapidly growing market, driven by the rapid industrial growth in countries like China and India. The presence of large automotive sectors in these countries are consumers of recovered carbon black. The Middle East and Africa is a growing market driven by growing infrastructure and construction activities in the region, which drives the demand of recovered carbon black in materials like rubber and plastics. South America is a promising market driven by the presence of vast agriculture sector which uses significant amount of rubber products.

Key Challenges:

The achievement of consistent quality in recovered carbon black is one of the significant harder and challenge for the market. The quality of recovered carbon black may vary depending on the feedstock used like end-of-life tyres, industrial rubber etc., and the pyrolysis process employed. The inconsistent quality affects the performance of recycled carbon black in the end products. It makes it less reliable for manufacturers as compared to virgin carbon black this inconsistency may lead to reluctance in adoption by industries requiring high precision. The compliance with strict regulation, require significant investment in certification and adjustment to project production processes, adding operational burden. As the noncompliance may lead to legal penalties and damage to the company's reputation.

Competitive Landscape:

In the highly competitive recovered carbon black market, companies are investing heavily in research and development to innovate and improve the product and services. They are also collaborating, forming strategi partnerships, or acquiring other companies to gain access to new market segments, enhance distribution networks, and increase market share. Recent developments includes – Continental AG expanded its partnership with Pyrum Innovations AG to further optimize and expand the recycling of end-of-life tires through pyrolysis, in March 2022. Black Bear Carbon signed an agreement with HELM AG for producing recovered carbon black from used tires, in August 2021. Klean Industries two end of life tire pyrolysis projects in Melbourne and Sydney, in October 2022.

Global Key Players:

·         Delta Energy LLC

·         Black Bear Carbon

·         Scandinavian Enviro Systems AB

·         Klean Industries

·         Alpha Carbone

·         Bolder Industries

·         EcoCarbon Innovations, Inc.

·         Waverly Carbon

·         LD Carbon

·         Ecolomondo Corporation

·         Other Players