The future of the Chinese carbon black market looks good with opportunities in the tyre, non-tyre rubber, plastic, coating, and ink applications, according to a new market report published by Lucintel.

The Chinese carbon black market is forecast to grow at a CAGR of 7.0% from 2016 to 2021 on the account of the major drivers of growth for this market are the strong demand for carbon black from tyre and industrial rubber compound.

In this market, carbon black is used in tyre, non-tyre rubber, plastic, ink, and coating applications. On the basis of its comprehensive research, Lucintel predicts that the tyre application is expected to remain the largest segment during the forecast period supported by continuously increasing fleet size of passenger cars and light commercial vehicles.Within the carbon black market, the transportation industry is expected to remain the largest market by value and volume. Increasing demand for tire and other rubber molded parts are expected to spur growth for this segment over the forecast period.

For business expansion, the report suggests innovation and new product development, where the unique characteristics of carbon black can be capitalized. The report further suggests the development of partnerships with customers to create win-win situations and development of low-cost solutions for the end user.

Emerging trends, which have a direct impact on the dynamics of the industry, include the shift from commodity to more specialize grade carbon black and increasing use of carbon black as pigment in lightweight auto parts to enhance the conductivity and UV protection properties. Sid Richardson Carbon and Energy Co. Ltd, Cabot Corporation, Birla Carbon, Orion Engineered Carbons and Continental carbon Company are among the major suppliers of the carbon black. Some companies are opting for M&A as a strategic initiative for driving growth.

Lucintel, a leading global strategic consulting and market research firm, has analyzed growth opportunities in the Chinese carbon black market by application and end use industry and has come up with a comprehensive research report, “Growth Opportunity in the Chinese Carbon Black Market 2016-2021: Trends, Forecast, and Opportunity Analysis.”

The Lucintel report serves as a spring board for growth strategy as it provides a comprehensive data and analysis on trends, key drivers, and directions.