India’s carbon black market, valued at $84.179 billion in 2024, is projected to grow at a CAGR of 6.57 percent through 2029, driven by increased demand for automotive tyres and specialty black applications in various industries
India's carbon black industry is projected to experience steady growth between 2024 and 2029, driven by expanding demand from the automotive sector and increased application of speciality black in multiple industries. The market, valued at $84.179 billion in 2024, is forecast to grow at a compound annual growth rate (CAGR) of 6.57 percent over the next five years.
Carbon black, a crucial material in tyres production, is seeing increased demand, especially in India's rapidly growing automotive industry. The country's vehicle manufacturing capacity, combined with its economic growth, makes it a major market for automotive tyres, where carbon black plays a critical role in enhancing abrasion resistance and tyre strength. According to the Automotive Tyre Manufacturers Association, tyre production for two- and three-wheelers rose significantly in recent years, with a 15 percent increase in 2022 and a 6 percent increase in 2023.
This upward trend in tyre demand is expected to continue as the Indian market for vehicles expands, particularly for two-wheelers, which are widely used across various social and economic segments. Tyre manufacturers are increasingly adopting carbon black mixtures in their production processes to meet growing demands for durable, high-performance tyres.
Another key driver of growth in the carbon black market is the increasing penetration of speciality carbon black, a material known for its high surface area, tinting strength, and conductivity. Speciality black is widely used in products requiring specific properties such as UV protection and viscosity, making it a popular choice in the plastics, coatings, and ink industries.
Speciality carbon black is also finding applications in a wide array of industries, including printing, construction, insulation, and fireproofing, as well as in high-end products like fibres, metal carbides, and consumer electronics. As India's economic activities continue to expand, the demand for these specialised carbon black products is expected to rise, providing a further boost to the overall market.
The versatility of carbon black is a significant factor in its rising demand across various industries. Its use as a pigment in newspaper inks, printing inks, and paints continues to grow. Additionally, carbon black's electric conductivity makes it valuable as a conductive filler in products like plastics, elastomers, paints, adhesives, and films, where it helps prevent static electricity.
As a result, industries such as electronics and automotive are increasingly relying on carbon black to meet performance requirements, further driving demand in the coming years. The growing need for carbon black in both conventional and specialised applications is positioning India's carbon black market for sustained growth through 2029.