Activated Carbon Market

Updated on : July 11, 2024

Activated Carbon Market

The global activated carbon market size was valued at USD 4.4 billion in 2023 and is projected to reach USD 8.4 billion by 2030, growing at 9.8% cagr from 2023 to 2030. Activated carbon, alternatively termed activated charcoal, denotes a highly porous variant of carbon subjected to oxygen or chemical treatment, forming a network of minuscule pores that amplify its surface area. This enhanced surface area renders activated carbon adept at adsorbing various impurities and contaminants from both liquids and gases. The market for activated carbon is categorized based on types such as Powdered Activated Carbon, Granular Activated Carbon, and other variants. Furthermore, it is segmented by applications, encompassing both liquid-phase and gas-phase applications. Moreover, the market for activated carbon is stratified by end-use industries, including water treatment, food and beverages, pharmaceuticals and medical sectors, automotive, and industrial applications, among others. Diverse raw materials such as coal, coconut, peat, wood, and others are utilized in the production of activated carbon and is the part of the market segmentation of activated carbon.

Activated Carbon Market Size, Dynamics & Ecosystem

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Activated Carbon Market Dynamics

Driver: Rising need for pollution control to generate demand for activated carbon

The surge in demand for activated carbon is expected due to the growing necessity for mercury control technology in industrial air purification applications. Over the forthcoming years, numerous production facilities across the US and Europe, including coal-fired power plants, clinker-cement plants, and other establishments operating large industrial boilers, will need to comply with rigorous new emission standards for mercury and other hazardous air pollutants mandated by the US Environmental Protection Agency (EPA). Consequently, to mitigate environmental pollution, the demand for activated carbon is projected to escalate during the forecast period.

Restraint: Scarcity of raw materials leading to increase in price of activated carbon

Activated carbon is typically derived from a range of raw materials including coal, coconut, wood, peat, and others. Natural disasters have had a notable impact on the value chain of the activated carbon market. Consequently, the price of raw materials, particularly coconut shell charcoal, has risen. Additionally, the cost of coal-based activated carbon has increased due to heightened energy demands, particularly in China, driven by the high demand for coal in various manufacturing sectors such as power generation, iron and steel production, and cement plants.

Opportunities: Reactivated carbon to provide lucrative opportunities to producers of activated carbon

The surge in demand for activated carbon is largely attributed to stringent regulations governing air quality maintenance and the proliferation of municipal and industrial wastewater treatment facilities. The heightened pressure on activated carbon producers, stemming from the elevated production costs, significantly impacts the industry. Consequently, producers of activated carbon primarily prioritize the production of reactivated carbon to address these challenges.

Challenges: Weak economic conditions to decrease industrial growth

Global economic challenges, particularly in Somalia, Malawi, and others, have a direct impact on industrial expansion. Activated carbon finds significant application across various sectors including chemical, petrochemical, food and beverages, pharmaceuticals, mining, and automotive industries, facilitating air purification, water treatment, decolorization of chemical products, solvent purification, odor removal, and more. Likewise, fluctuations in crude oil prices also influence the value chain of chemical, petrochemical, and related industries, thereby affecting their growth trajectories.

Activated Carbon Market Segmentation & Geographical Spread

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By Type, Powdered Activated Carbon accounted for the fastest growing during the forecast period

Powdered activated carbon (PAC) is a finely ground black powder produced from carbon-rich sources like wood, coal, coconut shells, or similar carbonaceous materials. This material undergoes high-temperature treatment in the presence of steam or oxygen to activate the carbon and generate a porous surface area. The increasing demand from various end-use sectors including food and beverages, automotive, pharmaceuticals, and medical industries, among others, contributes to the expansion of the activated carbon market throughout the forecast period.

By Application, Gas phase application holds the largest market share during the forecast period

Activated carbon finds widespread application in gas-phase purification for cleansing air and various gases. Its highly porous nature enables it to adsorb a diverse array of organic and inorganic compounds, rendering it highly effective as a filtration material for gases. It plays a crucial role in managing emissions from both automotive and industrial operations.

By End-Use Industry, Water treatment segment holds the largest market share during the forecast period

Activated carbon sees extensive utilization within the water treatment sector, primarily for water purification purposes. This highly effective adsorbent is capable of eliminating a broad spectrum of organic and inorganic contaminants from water, encompassing substances such as taste and odor compounds, colorants, organic pollutants, and disinfection by-products.

By Raw Material, Coal holds the largest market share during the forecast period

Activated carbon derived from coal, known as coal-based activated carbon, is produced through the heating of coal at high temperatures in the presence of an activating agent like steam. This type of activated carbon finds frequent application in water treatment, air purification, and various industrial processes. Its efficacy lies in its ability to effectively eliminate a range of contaminants from water, including chlorine, volatile organic compounds, and taste and odor compounds.

Asia Pacific is projected the fastest growing in the activated carbon market during the forecast period

The demand for activated carbon in this region is primarily propelled by water treatment industries. Factors such as a growing population, rising living standards, and heightened awareness of environmental pollution contribute to the increased demand for purified air and water, thereby fostering the growth of activated carbon. Additionally, the expansion of various industries further augments this demand.

Activated Carbon Market Players

The activated carbon market comprises major companies, who engaged in the production of activated carbon such as Kuraray Co., Ltd.(Japan), Osaka Gas Chemicals Co. Ltd. (Japan), Haycarb Pvt. Ltd.(Sri Lanka), Norit (Netherlands), and Kureha Corporation (Japan). Expansions, acquisitions, joint ventures, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the Activated Carbon market.

Read More: Activated Carbon Companies

Activated Carbon Market Report Scope

This research report categorizes the activated carbon market based on Type, Raw Material, Application, End-use Industry, and Region.

Activated Carbon Market based on Type:

• Powdered Activated Carbon
• Granular Activated Carbon
• Other Types

Activated Carbon Market based on Raw Material:

• Coal
• Coconut
• Wood
• Peat
• Other Raw Materials

Activated Carbon Market based on Application:

• Liquid Phase Application
• Gas Phase Application

Activated Carbon Market based on End-use Industry:

• Water Treatment
• Food & Beverages
• Pharmaceutical & Medical
• Automotive
• Industrial
• Other End-use Industries

Activated Carbon Market based on Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

• In March 2023, Evoqua Water Technologies LLC strengthened its presence in North America through the acquisition of the Texas-based industrial water treatment service business from Kemco Systems.
• In June 2022, Albemarle Corporation announced that it is expected to restructure its Bromine and Lithium global business units (GBUs) as part of a new corporate framework aimed at enhancing its ability to meet customer demands and cultivate the necessary talent to thrive in a competitive global landscape.
• In August 2022, Ingevity acquired Nexeon Limited to establish its presence in the electric vehicle (EV) market and expand the opportunities of its existing activated carbon business.
• In October 2021, Evoqua Water Technologies LLC opened a new Sustainability and Innovation Hub in Pittsburgh, Pennsylvania (US), to carry out cutting-edge technologies for water treatment.
• In March 2021, Evoqua Water Technologies LLC announced the expansion of its existing Global Engineering and Technology Center, located in Chennai, India.
• In February 2021, Ingevity announced the expansion of an activated carbon manufacturing plant in China.

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