Australia Carbon Black Market size was valued at USD 500.19 million in 2022 which is expected to reach USD 816.69 million in 2030 with a CAGR of 6.32% for the forecast period between 2023 and 2030. The automotive industry is one of the major drivers for Carbon black in Australia. The manufacturing of car tires has a direct impact on the demand for carbon black. The demand for carbon black is increasing as the automotive industry expands and innovates. The popularity of electric vehicles (EVs) is driving up demand for carbon black because EV tires need qualities like low rolling resistance and enhanced tread wear, which carbon black offers.

Moreover, seals, gaskets, and coatings made of rubber are among the rubber-based construction materials that use carbon black. The demand for carbon black is being driven by infrastructure development projects and urbanization initiatives in Australia's construction industry. Additionally, the use of carbon black in industrial coatings ensures that pipelines, other infrastructure, and mining machinery will be protected from corrosion and wear.

Finally, sustainable and environmentally friendly products are increasingly valued by businesses and consumers. Manufacturers of carbon black are under pressure to create environmentally friendly substitutes, such as carbon black made from renewable resources or with lower carbon footprints. The demands of environmentally conscious consumers and industries are likely to give manufacturers a competitive edge.

Renewable Energy Projects

In Australia, the share of renewable energy in total electricity generation increased from 32.5 percent in 2021 to 35.9 percent in 2022. During 2017 when renewable energy made up just 16.9% of generation, that number has more than doubled now says Clean Energy Council. Around 108 renewable projects are currently being built or are about to begin construction. 16,009 MW of new renewable energy capacity and over USD 22.7 billion in capital investment will be produced by this wind, solar, and bioenergy projects.

 The growth of renewable energy sources like wind turbines and solar panels in Australia drives the demand for carbon black. Both photovoltaic panels and related materials used in the solar industry, as well as parts for wind turbines such as blades, coatings, and seals, are made with carbon black.

Increasing Infrastructure Developments

The construction and expansion of roads require a significant amount of carbon black. Asphalt and other road surfacing materials use carbon black to increase performance, durability, and wear resistance. The need for carbon black in the materials used to build roads grows as infrastructure development projects expand.

The federal budget for 2022–2023 will provide funding for major infrastructure projects totaling USD 12.07 billion over a ten-year period for national road and rail projects. The USD 11.33 billion WestConnex 33 km traffic motorway in NSW is scheduled for completion in 2023 and Sydney Metro, Australia's largest public transportation project and the country's first fully automated metro rail system, are two of the biggest infrastructure projects in the country. 

To support and facilitate the development of infrastructure, carbon black is a crucial component. Therefore, the demand for Carbon Black is also driven by the expansion of infrastructure projects in Australia.

Shift towards Electric Vehicle

In Australia, the move toward electric vehicles is a key factor in the growth of carbon black. When making EV tires, carbon black is crucial because it offers vital characteristics like low rolling resistance, enhanced tread wear, and grip. The demand for carbon black in tire manufacturing is likely to rise as electric vehicle adoption rises.

According to The Driven, in 2023, Australia witnessed an increase in EV adoption accounting for 5.7% of all vehicles sold in January and 5,932 EVs sold in February. EV sales increased to 6.8% of all vehicular sales, which is a significant increase in the Australian market.

Graphite is frequently used as the anode (negative electrode) in lithium-ion batteries, which is majorly used in EV's because it has a high capacity and stability. To increase the electrical conductivity and functionality of the graphite anode, carbon black is used as a conductive additive. Due to these factors the rise in EV sales contributes to driving up the Carbon Black market in Australia.

Strong Mining Activities

Carbon black is used in Australia's mining and resources industry for things like conveyor belts, gaskets, and seals. Mining activity, investments in resource extraction projects and the demand for high-performance rubber products for mining equipment are among the factors that influence the demand for carbon black in Australia.

In Western Australia, a prospective tenement for lithium and rubidium was granted to Aldoro Resources. The tenement is 80 kilometers southeast of Mount Magnet and covers 9 square kilometers between previously existing Aldoro tenements. The license is for a rare metals exploration project that could be prospective for lithium-tantalum-cesium (LTC) and rubidium mineralization, says Proactive.

Carbon black is used in the mining industry is used in rubber goods, industrial coatings, tires, dust suppressants, and cable insulation helping mining operations perform, safely, and reliability.

Growing Electrical Productions

Electronic parts like printed circuit boards (PCBs), conductive films, and coatings are produced using conductive carbon black. Materials with high conductivity and dependable performance are necessary for these applications. The expanding electronics industry, including the rising use of electronic devices, improvements in smart technologies, and the popularity of electric vehicles, have all contributed to the demand for conductive carbon black.

To construct what is likely to be Australia's first large-scale lithium-ion battery cell production facility focusing on the electric vehicle market. Recharge Industries has hired international consultancy firm Accenture as its engineering provider. Construction on the facility, which will be situated in Geelong, Victoria, in the centre of the once-vibrant auto manufacturing industry and is scheduled to start in the second half of 2023, states The Driven. This rise in battery production will likely drive up the demand for carbon black in Australia.

Impact of COVID-19

Australia heavily depends on India and China for Carbon Black imports. China was one of the countries where COVID-19's effects were both severe and prolonged. To stop the spread of Covid-19, lockdowns were implemented at the country's main ports tightening the supply situation. Several manufacturers have ceased operations entirely or reduced production as a result of the pandemic in China. These factors had a significant impact on the carbon black supply in Australia. The pandemic also decreased Australia's Carbon Black demand in the end-use sectors of construction and the automotive industries as the sales and building activities declined. During the pandemic, the demand and Supply scenario for Carbon Black in Australia was poor.

Impact of Russia-Ukraine War

The conflict between Russia and Ukraine had a negative impact on Australia's downstream industries, like automotive and construction. For instance, the shortage of microprocessors brought on by the war caused a decline in Australian car sales during Q2 of 2022, which in turn reduced the demand for Carbon black. However, since the nation depends heavily on Asian countries for Carbon Black imports, the war has little effect on the manufacturing side and the supply condition of Carbon Black in Australia. Lastly, the geopolitical tension causes price fluctuating of major upstream like crude oil and natural gas weakening the buying sentiments and leading to delays in investments.

Australia Carbon Black Market: Report Scope

Australia Black Market Assessment, Opportunities and Forecast, 2016-2030F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative & quantitative assessment of the current state of the Carbon Black market in Australia, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 and Russia-Ukraine war impact, opportunities and forecast between 2023 and 2030. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.

In this report, Australia Carbon Black Market has been segmented into the following categories: 

1.       By Type

1.1.    Furnace Black

1.2.    Acetylene Black

1.3.    Thermal Black

1.4.    Channel Black

1.5.    Others

2.       By Functionality  

2.1.    Tire improvement  

2.2.    Conductivity   

2.3.    Surface enhancement  

2.4.    Others  

3.       By Application 

3.1.    Tire  

3.2.    Footwear 

3.3.    Industrial Belts  

3.4.    Tubes and hoses  

3.5.    Extruded profiles  

3.6.    Printing Inks  

3.7.    Battery electrodes  

3.8.    Others   

4.       By End-use Industry  

4.1.    Textile  

4.2.    Automotive  

4.2.1.Passenger Cars (PCs) 

4.2.2.Light Commercial Vehicles (LCVs) 

4.2.3.Heavy Commercial Vehicle (HCVs) 

4.2.4.Others 

4.3.    Construction  

4.3.1.Residential 

4.3.2.Commercial 

4.3.3.Industrial 

4.4.    Manufacturing  

4.4.1.Electrical  

4.4.2.Auto parts  

4.4.3.Colorants  

4.4.4.Rubber goods  

4.4.5.Others 

4.5.    Plastics  

4.6.    Others 

5.       By Region

5.1.    Western Australia

5.2.    Northern Territory

5.3.    Queensland

5.4.    South Australia

5.5.    New South Wales

5.6.    Victoria

5.7.    Tasmania

Key Players Landscape and Outlook

The rise in demand for specialty carbon black in specialized industries like electronics is evidence of the changing demands of the market and the value of customized solutions. The demand for specialty carbon black is anticipated to increase as industries continue to develop and look for cutting-edge materials. Key manufacturers are creating specialty carbon black products with characteristics and functionalities for specialized applications will have an advantage over rivals in satisfying the changing demands of the market.

To strengthen its market position and aid in the switch to electric vehicles, specialty chemicals manufacturer Cabot plans to invest roughly USD 200 million in conductive carbon additives (CCA) capacity over the next five years.

The expansion of the construction and automotive industries, rising demand for renewable energy sources, and the emphasis on sustainability all contribute to the positive outlook for the Australian carbon black market. The need for carbon black is anticipated to increase as the nation makes more investments in infrastructure improvement, renewable energy initiatives, and sustainable practices. Additionally, the trend toward environmentally friendly products and the requirement to adhere to strict regulatory standards will present opportunities for manufacturers to create creative and long-lasting carbon black solutions.

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•    What is the current and future market size of the product/service in question globally or specific to different countries?
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•    How are the markets predicted to develop in the future and what factors will drive or inhibit growth?
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Key Players Operating in the Australia Carbon Black Market

·         Cabot Australasia Pty. Ltd.

·         Orion Engineered Carbons LLC

·         Birla Carbon

·         Continental Carbon Australia Pty. Ltd.

·         Koppers Australia Pty. Ltd

·         Carbon Black Australia Pty. Ltd

·         Nippon Carbon CO., Ltd.

·         Chemiplas Australia Pty Ltd

·         Parchem Construction Supplies Pty. Ltd

·         Cancarb Limited

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