Global Carbon Black In Lead-Acid Battery Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2024-2032)

Carbon Black in Lead-Acid Battery Market Growth

Carbon black is a conductive additive material which is primarily utilised in the negative electrodes of lead-acid batteries. Its primary functions involve enhancing the electrical conductivity of electrodes and improving the overall performance of the battery.

Increased usage of carbon black to extend the life cycle of lead-acid batteries is one of the prominent factors fuelling the carbon black in lead-acid battery demand. Carbon black can suppress the formation of lead sulphate on negative electrodes and improve the electrochemical performance of negative plates, which increases the overall longevity of batteries. The surge in demand for power backup systems such as UPS and inverters also provides a positive market outlook.

Carbon Black in Lead-Acid Battery Market Trends

Several telecom towers are adopting carbon black-based-lead-acid batteries in their power systems to provide fast charging and maximise the battery performance. These batteries are inexpensive compared to lithium-ion batteries, which also makes them a preferable option in the telecom sector.

Strategic initiatives by several market players to expand the production of carbon black in lead acid battery storage for the automotive, e-bikes, telecom, and motive power, among other sectors, also provide impetus to the growth of the carbon black in lead-acid battery market.

Recent Developments

A division of the Indian multinational corporation Aditya Birla Group is allocating USD 1 billion to establish a manufacturing facility in South Carolina, the United States, aimed at producing essential materials for electric vehicles and battery storage solutions for renewable energy, which can contribute to the demand of carbon black in lead-acid battery market. The company plans to construct a 435,000-square-foot plant in Orangeburg County to initiate operations for the production of next-generation synthetic graphite. This facility will focus on generating anode active materials required for battery manufacturing. In its initial phase, the plant is anticipated to yield 25,000 tons of synthetic graphite each year to satisfy the expected demand from the electric vehicle, energy storage, and defence sectors.

Industry Outlook

Rising Automotive Production and Solar Power Adoption Presents Opportunities to the Market.

According to OICA data, global motor vehicle production has demonstrated varying trends across different regions from 2019 to 2023. As per the carbon black in lead-acid battery industry analysis, in Europe, vehicle production saw a significant decline of 15% from 2019 to 2023, reflecting challenges in the automotive sector, possibly due to economic slowdowns and regulatory changes. However, a 9% increase in 2023 compared to 2020 indicates a recovery in the region. The Americas experienced a less pronounced decline of 5% between 2019 and 2023, but production has rebounded strongly with a 22% increase in 2023 over 2020. Asia-Oceania, the largest producer, showed resilience with a 12% growth from 2019 to 2023, and a notable 25% increase from 2020 to 2023, highlighting its dominant position in the global automotive market. Africa, though smaller in production volume, recorded the highest growth rates, with a 51% increase from 2020 to 2023, suggesting emerging manufacturing capabilities.

These production trends are closely linked to the demand for carbon black in lead-acid batteries, essential components in motor vehicles, which fuels the growth of the carbon black in lead-acid battery industry. The recovery and growth in vehicle production, particularly in Asia-Oceania and the Americas, will likely drive increased demand for lead-acid batteries, and by extension, carbon black, a critical material for battery performance and longevity.

Global solar PV installations are projected to grow at an average annual rate of 8% from 2021 to 2030. Asia dominates the market, with its share expected to slightly decrease from 51% in 2021 to 47% by 2030. However, Asia will continue to lead, driven by substantial growth in China and India, despite ongoing supply chain pressures. North America is expected to increase its shares, growing from 18% to 27% over the same period, increasing carbon black in lead-acid battery industry revenue. The anticipated increase in solar PV installations, particularly in Asia, Europe, and North America, is likely to boost demand for energy storage solutions, including lead-acid batteries. Carbon black plays a crucial role in improving the performance and longevity of lead-acid batteries, which are widely used in renewable energy storage systems.

Enhanced Battery Performance, Established Market, and Cost-effectiveness of Carbon Black Support the Growth of the Market.

• Carbon black improves the conductivity and longevity of lead-acid batteries, making it an essential component to produce high-performance batteries.
• The lead-acid battery industry is well-established, particularly in automotive and backup power applications, ensuring consistent demand for carbon black.
• Carbon black's utility in various types of batteries (e.g., automotive, industrial, UPS systems) ensures a broad market base and influence the carbon black in lead-acid battery market dynamics and trends.    
• Compared to other conductive additives, carbon black is relatively cost-effective, making it an attractive option for manufacturers looking to optimize performance without significantly increasing production costs.

Regulatory Pressures, Raw Material Price Volatility, Environmental Concerns, and Competition from Lithium-ion Batteries Can Challenge the Market Growth.

• Stricter environmental regulations on lead-acid battery production and disposal may limit the growth of the market.
• Fluctuations in the cost of raw materials for carbon black production can impact profitability and market stability.
• The production and disposal of lead-acid batteries raise significant environmental concerns, which can negatively impact the carbon black in lead-acid battery demand forecast.
• The growing preference for lithium-ion batteries in automotive and renewable energy sectors can reduce the demand for lead-acid batteries, thereby affecting the carbon black market.

Growth in Renewable Energy Storage, Technological Advancements, and Rapid Industrialisation Provide Opportunities to the Market.

• The expansion of solar and wind energy projects increases the demand for efficient energy storage solutions, where lead-acid batteries play a crucial role.
• Innovations in carbon black production that enhance battery efficiency and reduce costs can create new market opportunities.
• Rapid industrialisation and infrastructure development presents an opportunity for carbon black manufacturers to expand their carbon black in lead-acid battery market value and capitalize on the growing need for industrial and automotive batteries in these regions.
• The robust supply chain of carbon black supports consistent production, making carbon black a dependable component for the lead-acid battery industry.

Competitive Factors in the Global Carbon Black in Lead-Acid Battery Market.

• Manufacturers that can produce high-quality carbon black with superior electrical conductivity and effective dispersion properties gain a competitive edge.
• Continuous innovation in carbon black formulations to improve battery efficiency, extend battery life, and reduce production costs is essential. 
• Innovations that reduce the environmental impact of carbon black production, such as using renewable feedstocks or improving energy efficiency, are increasingly important.
• Large-scale producers can often achieve lower production costs through economies of scale, enabling them to offer more competitive pricing. 
• Companies with strong supplier relationships or vertically integrated operations that minimize supply chain disruptions can maintain cost competitiveness, affecting carbon black in lead-acid battery demand growth. 
• Companies with a broad geographic presence and a well-established distribution network can better serve the diverse needs of global customers. 
• Companies that can diversify their product offerings to serve a wide range of battery applications, such as automotive, industrial, and energy storage are better positioned to capture different segments of the market.

Carbon Black in Lead-Acid Battery Industry Segmentations

Based on battery type, the market is bifurcated into flooded lead-acid battery and valve regulated lead-acid (VRLA) battery. The carbon black in lead-acid battery market segmentation, on the basis of grade, includes speciality and conductive. The major regional markets of carbon black in lead-acid battery are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Carbon Black in Lead-Acid Battery Market Share by Battery Type

Flooded lead acid battery occupies a sizeable carbon black in lead-acid battery market share and is expected to grow at a CAGR of 5.3% in the forecast period owing to the increased utilisation of carbon black-based flooded acid batteries in forklift trucks as cost-effective and high-performance solutions.

Carbon-based flooded lead-acid batteries also find rigorous applications in electric motors of submarines due to their low material cost. Additionally, they are widely utilised in the power backup system of the submarine vessel.

Competitive Landscape

Cabot Corporation, incorporated in 1882, is a speciality chemicals and performance materials manufacturer, based in Massachusetts, the United States. Some of its popular products include adhesive and sealants, batteries, coatings, food and beverage, and pharmaceutical and personal care, among others.

Aditya Birla Management Corporation Pvt. Ltd. is a Fortune 500 company, founded in 1857 and headquartered in Maharashtra, India. The company has adopted advanced CFBS-based Semi-Dry FGD systems in two of its production plants as a step towards its decarbonisation goals.

Orion Engineered Carbons GmbH, established in 2011, is one of the leading producers of speciality chemicals. The company, headquartered in Texas, the United States, offers its carbon black solutions for batteries, tires, coating systems, and polymers, among others.

Other carbon black in lead-acid battery market players include Beilum Carbon Chemical Limited, Shandong Jinkeli Power Sources Technology Co. Ltd., Denka Company Limited, Imerys SA, and IsraZion ltd., among others.

Carbon Black in Lead-Acid Battery Market Regional Analysis

The Asia Pacific accounts for a significant share of the global market and is expected to grow at a CAGR of 5.9% in the forecast period due to the increased production of vehicles in the region, which facilitates the utilisation of carbon black additives-based lead-acid batteries in these vehicles. Countries such as India, China, and Australia are expected to grow at a CAGR of 6.7%, 5.6%, and 4.0% in the forecast period. Additionally, increased investment in the automotive sector to enhance the functionalities of automotive vehicle components such as lead acid batteries aids the carbon black in lead-acid battery market opportunities.

Key Price Indicators of the Global Carbon Black in Lead-Acid Battery Market.

• The cost of carbon black is significantly influenced by the availability and price of raw materials such as petroleum-based feedstocks. 
• Advances in production technology that enhance yield or reduce energy consumption can lower costs, potentially leading to more competitive pricing in the market.
• Compliance with environmental regulations regarding emissions and waste management during carbon black production can increase operational costs. 
• Tariffs and trade policies affecting the import of raw materials or finished carbon black products can create price volatility in different regions, affecting carbon black in lead-acid battery market expansion.
• The presence of large multinational corporations and regional producers in the carbon black market creates competitive pricing pressures. 
• The development of alternative materials that could replace the need for carbon black in lead-acid batteries may exert downward pressure on prices as companies seek to maintain market share.