Market Trends of Middle-East and Africa Carbon Black Industry
This section covers the major market trends shaping the MEA Carbon Black Market according to our research experts:
Tires and Industrial Rubber products to Dominate the Market
- The tires and industrial rubber products segment is the largest application segment of the market studied, accounting for a significant share of the reviewed market.
- Carbon black is a filler and a strong reinforcing material in car tires. Carbon black is a joint reinforcement utilized in the tire industry due to its influence on tires' mechanical and dynamic qualities. It is used in various formulas with various rubber types to tailor the performance attributes of tires.
- Carbon black is mainly used in automobiles' inner liners, sidewalls, and carcasses. When added to rubber composites, it exhibits heat-dissipation properties. It also enhances handling, tread wear, and fuel economy. It is also resistant to abrasion.
- According to the Association of Natural Rubber Professionals, Ivory Coast is the world's fourth-largest rubber producer.
- According to the Central Intelligence Agency (CIA) (World Factbook), natural rubber exports from the Ivory Coast were around USD 1.8 billion in 2021, compared to USD 1.33 billion in 2020. Ivory Coast was the third biggest natural rubber exporting country that year, accounting for 10.6 percent of global natural rubber sales.
- According to the Central Intelligence Agency (CIA) (World Factbook), natural rubber exports from Liberia were around USD 193.7 thousand in 2021, compared to USD 115 thousand in 2020. According to sales, Liberia is the world's tenth-largest natural rubber exporting country.
- Tire manufacturers in the Middle East and Africa regions, such as MRF Limited, The Goodyear Tire & Rubber Co., Bridgestone Middle East & Africa FZE, JK Tires and Industries, Compagnie Generale des Etablissements Michelin SCA (Michelin SCA), and Apollo Tyres Limited.
- All the above factors are expected to drive the construction industry, enhancing the demand for formaldehyde during the forecast period.
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Saudi Arabia is Anticipated to Hold a Major Share of the Middle-East and Africa
- Saudi Arabia holds a prominent share of the Middle-East and Africa carbon black market in terms of market share and market revenue. The region is set to continue to flourish in its dominance over the forecast period.
- The key consumers of carbon black in the country are sectors such as the tire industry, plastic industry, paints and coatings industry, and others.
- Considering the rising demand for tires in the country, various firms have announced their plans to set up a tire manufacturing plant.
- In February 2022, Kumho Tire, a subsidiary of China's Doublestar, partnered with Saudi Arabia's Blatco (Black Arrow Tire Co.) to develop a tire manufacturing plant in Riyadh, as there is presently no tire manufacturing in Saudi Arabia. This was part of the Saudi-South Korean Business Forum, which took place in January and saw the signing of 13 agreements, 10 of which were signed by the oil giant Saudi Aramco. According to many reports, the factory's manufacturing capacity would be trillion tires per year, with production set to begin in the third quarter of 2023.
- These tires are consumed mainly in the automotive sector. According to the Organisation Internationale des Constructeurs d Automobiles (OICA), almost 557 thousand passenger automobiles and commercial vehicles were sold to Saudi buyers in 2021, compared to 453 thousand in 2020. Toyota, Hyundai, and Mazda are the most popular car brands in Saudi Arabia.
- Further, carbon black is used in plastics production as well. According to the Government of Saudi Arabia, the country's plastic materials, and manufacturing have emerged front and center in the kingdom, with a total investment of SAR 35 billion (USD 9.3 billion) and approximately 1300 factories participating. Plastic industry investments are expected to contribute to around 2.6 percent of total industrial investments.
- Paints and coatings are used in the interiors of houses to add color or for ornamental purposes, as well as to fulfill a variety of other duties. Their duties differ based on the surroundings and room.
- The major paints and coatings manufacturers in Saudi Arabia are Jotun, Jajeera Paints, AkzoNobel NV, Sigma Coatings (PPG Industries Inc.), and National Paints Factories Co. Ltd
- Saudi Arabia is embarking on several residential and commercial projects, which are projected to boost the Kingdom's building activity. Some examples are the USD 500 billion 'Neom' futuristic mega-city project and the Red Sea Project - Phase 1, which is scheduled to be finished in 2022.
- According to the General Authority for Statistics (Saudi Arabia), the revenue of the industry "building construction" in Saudi Arabia in 2022 was USD 28.87 billion, with a forecast to 2024. The revenue from building construction in Saudi Arabia is expected to reach roughly USD 28.7 billion by 2024.
- Thus, all the above-mentioned factors are likely to provide the increasing demand for the Middle-East and Africa carbon black market during the forecast period.
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