The United States Carbon Black Market which currently has a market size of ~USD 2.7 Bn. is projected to grow at a CAGR of 2.5% during the time period 2022-2028 as per the findings of Ken Research.
STORY OUTLINE
- Rising sales of automotive industry accelerate the US Carbon Black market as Carbon Black is widely used in automotive vehicles.
- Urbanization also pump the US Carbon Black market as the high prevalence of Urbanization leads to transportation and construction processes which use Carbon Black.
- Industrial growth also make use of Carbon Black and related products thereby contributing to the growth of the US Carbon Black market.
- Increase in demands of Rubber goods is also a major factor responsible for the growth of US Carbon Black market as most of the rubber goods have Carbon Black.
A fast growing industry, increasing automotive sales, industrial growth and increase in urbanization rates, along with rise in the demand for rubber goods are the various reasons contributing to the growth of US Carbon Black Market. As per Ken Research, this market is expected to become a ~USD 3 Bn. industry by 2028.
1.Rising sales of Automotive: accelerating the US Carbon Black market
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Carbon Black is widely used in the automotive vehicles primarily in their tires. The main purpose of usage of this product is to ensure the good strength of the tires. As the sales of automotive vehicles rises, the demand for Carbon Black also rises which ultimately results in the growth of US Carbon Black Market.
Automotive vehicles have always been sold widely in the US. In 2018 and 2019, approximately 17.3 million and 17 million vehicles were sold.
However, the US witnessed a sharp decline in the sales of automotive vehicles after the arrival of Covid-19. In 2020, only 14.5 million automotive vehicles were sold. Speaking of 2022, approximately 15 million vehicles were sold.
Despite the pandemic, it is still a large number and it is only expected to further rise in the upcoming years.
As per the data of 2020, almost 92% households in the United States have at least one automotive vehicle.
Moreover, in 2020, globally approximately 77 million vehicles were manufactured. US happens to be the second largest producer of these vehicles, being only after China and producing almost ~9 million vehicles.
When there are such high number of automotive vehicles being sold and made, the demand for Carbon Black also rises as the Carbon Black is required in strengthening of tires which are a key element in any vehicle. This way, the automotive vehicles help in the growth of US Carbon Black market.
2.Rising Urbanization: pumping the US Carbon Black Market
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Urbanization has been rapidly growing in the United States. Urbanization is also a key contributor of US Carbon Black market as the urbanization rise, the construction processes, and transportation also rise in the country, all of which requires the use of Carbon Black.
In the 2000s, 79% of people were living in urban areas and the rest 21% were living in rural areas. During the 2010s, the percentage of people living in urban areas rose to 81 and rest 19% people were still in rural areas.
During the 2020s, 83% of people are living in urban areas and the 17% of people are still living in rural areas.
This number is projected to become 85% people living in urban areas during the 2030s. During the 2040s, it is anticipated that 87% of people would be living in urban areas and the rest 13% of people would be living in rural areas.
By 2050s, 89% of people would be living in urban areas and just 11% of people would be living in rural areas.
When such high percentage of US population is living in urban areas, the number of automotive vehicles, transportation processes, and construction processes also happen to be happening at large. All of these things require the use of Carbon Black which ultimately drives the US Carbon Black market.
3.Rising demand for Rubber products which also make use of Carbon Black:
The rising demands of Rubber is another factor that is majorly contributing to the growth of US Carbon Black market. Many rubber products such as tires, belts, rubber gloves, hoses, shoe soles, gaskets, etc. make use of Carbon Black.
In 2021, the United States exported approximately USD 73 Mn. worth of rubber. The country is known to be the 19th largest exporter of rubber in the world which primarily exports it to Brazil, Netherlands, Canada, Mexico and Germany.
Speaking of their imports, US imported about USD 200 bn. worth of rubber in 2021. The nation happens to be 2nd largest importer of rubber which mainly imports from Indonesia, Vietnam, and Thailand.
The high number of US’ imports depict nothing but the demand for rubber and rubber products in the country. Many rubber products make use of Carbon Black. Thus, as the demand for rubber rises, the demand for Carbon Black also rises which in turn helps in the growth of the US Carbon Black market.
4.Industrial growth in the country: pumping the US Carbon Black market
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Industrial growth in the country also results in generating the demand for Carbon Black as it is widely used in manufacturing and construction processes.
The United States witnessed approximately 2.3% of industrial growth in 2019. This number decreased down to -2.6% and -3.2% in the years 2020 and 2021 respectively primarily due to the negative effect of Covi-19. Due to the pandemic, all the construction and manufacturing processes were frozen.
However, in the 2022, the industrial growth made a strong come back. The US witnessed an industrial growth of 3.8%.
Now as the industrial growth increases, the construction and manufacturing processes also increase which ultimately generate the demand for Carbon Black, thereby contributing to the growth of US Carbon Black Market.
CONCLUSION
There are various reasons responsible for the growth of US Carbon Black market. Some of the major reasons behind the growth of US Carbon Black market include rise in automotive vehicle sales, industrial growth, increase in demands for rubber goods and increase in urbanization rates. As per Ken Research, this market is anticipated to grow at a CAGR of ~2.5% in the next five years.
