[181 Pages Report] The global activated carbon market was valued at USD 4.7 billion in 2015 and is projected to reach USD 8.1 billion by 2021, at a CAGR of 9.4% from 2016 to 2021. The market size in terms of volume was 2,743.4 KT in 2015 and is projected to reach 5,424.9 KT, by 2021, at a CAGR of 8.4% from 2016 to 2021. In this study, 2015 has been considered the base year, 2016 as estimated year and 2021 as the forecasted year to estimate the market sizes of activated carbon.

�Stringent Government Regulations for Emission Control, Mercury Control from Power Plants, High Demand for Clean Drinking Water, and Industrial Growth in Asia Pacific especially in ASEAN Countries propel the growth of the activated carbon market globally.�

The global activated carbon market is projected to reach USD 8.1 billion by 2021 at a CAGR of 9.4%. The market is projected to grow at a CAGR of 8.4% and reach 3,557.6 KT by 2021 by volume.

The growing use of activated carbon in industrial applications has led to increase its share in the gas phase applications, which is driving the activated carbon market in the Asia-Pacific region. Moreover, the growing use of activated carbon for soil remediation applications as well as in pharmaceutical applications have witnessed significant growth during the last five years is further expected to boost the growth of the activated carbon market. However, scarcity of raw material especially in Asia-Pacific is major factor restraining the growth of the activated carbon market globally.

�Powdered Activated Carbon: The fastest growing type of activated carbon�

Powdered activated carbon was the fastest-growing segment in the activated carbon market in 2015. Demand for powdered activated carbon in industrial applications such as pharmaceutical industry for decolorization, deodorization operations is expected to drive its demand during forecast period. The industrial growth in emerging clusters across the globe such ASEAN countries, North African Countries, and Central & Eastern European countries is expected to drive the demand for activated carbon.

�Gas Phase Application: The fastest-growing application of activated carbon�

Gas Phase Applications is the fastest growing application segment in the global activated carbon market. Use of activated carbon for air purification applications, mercury removal, hydrogen sulfide removal, chlorine removal is driving the global activated carbon market. Moreover, the growing use of hybrid and electronic cars is also likely to drive the demand in the automotive application of the market.

�Asia-Pacific: The fastest-growing market for activated carbon�

The Asia-Pacific region is the fastest-growing market for activated carbon, in terms of value and volume. Increasing investments by companies, especially in automotive sector, the growing shift of production facilities to the emerging economies of the region; the strong industrial base, are the major factors contributing to the growth of the activated carbon market in this region.

Market Dynamics

DRIVERS

SHORT TERM DRIVERS

Mercury Control for Air Purification Leading to propel demand for activated carbon

The high demand for activated carbon (AC) is anticipated to grow due to the demand in mercury control technology for industrial air purification applications. Over the next several years, many production facilities U.S. and Europe including coal-fired power plants, clinker cement plants, and other facilities operating large industrial boilers will be required to meet stringent new emissions standards for mercury and other hazardous air pollutants overseen by the U.S. Environmental Protection Agency (EPA) and EPA has set Maximum Achievable Control Technology (MACT) standards which require sources to meet specific emission limits that are based on the emission levels already achieved by the best-performing similar facilities.

European Commission also has directives such as IPPC Directive (Directive 2008/1/EC) to control industrial emissions; they follow Best Available Techniques (BAT) as their key principle. Best Available Techniques means the best technology available in the market which is accessible to every person to prevent pollution caused by pollution including mercury emission.

In 2002, China established the total mercury import amount and utilization as per the consumption. The total import amount is controlled at about 200 tons each year (no import in 2005). But at present, there is still a relatively big amount of intentional consumption of mercury in China and there is a high gradient between China and developed countries in terms of overall prevention and control of mercury pollution which can be reduced. Recently, China has taken necessary measures to restrain or phrase out mercury containing technologies and products. However, there are some industries that have not yet phased out mercury containing technologies and products due to lack of alternative products and technologies but in near future as the technological capabilities of Chinese industries increases, it will enhance the demand for activated carbon also.

Legislation, guidelines and action plans have been established in many countries, in an effort to reduce mercury emissions. For instance, new legislation coming into force in countries such as Canada and U.S. may require coal-fired power plants to retrofit specific technologies for mercury control. The European Union and countries such as Australia and Japan are also setting up programs in which the mercury emissions from coal-fired power plants are being monitored more closely, with a possible view to setting standards in the foreseeable future. Such initiatives are expected to propel the demand for activated carbon over near future.

LONG TERM DRIVER

Research and New Product Development

Activated carbon producers are highly focused on research and development activities by using new technologies to develop new activated carbon products for specific applications.

Such research and development activities of activated carbon producers enable to develop better products for specific applications such as for hydrogen sulfide removal, while competing with the existing products offered by competitors. The major activated carbon companies provide activated carbon products in both granular as well as powdered form and for almost all applications. Calgon Carbon (U.S.) produces both granular and powdered activated carbons which are used in different applications including removing organic compounds from water and air. Haycarb Plc (Sri Lanka) provide coconut shell, coal based activated carbon with different types and sizes such as granular, pelletized, and powdered for wide variety of applications including purification of water, air, and kidney dialysis. Calgon Carbon Products (U.S) provides activated carbon products for various applications such as water and air purification, petroleum and gas purification and solvent recovery.

RESTRAINTS

Scarcity of Raw Material Causing Price Hikes in Asia Pacific

Due to the excessive demand of activated carbon, there is shortage of raw materials such as coconut shell charcoal which are used for making of activated carbon. Owing to this, the prices of the raw materials mainly coconut shell charcoal has increased. The cost of coal-based activated carbons has increased due to the higher energy demands mainly in China whose demand for coal for its manufacturing industry including power, iron and steel, and cement plants is increasing continuously. This has led to a scarcity of suitable grades of coal which are used to produce activated carbon. Charcoal which is made from activated is the basic raw material for activated carbon in Asia Pacific especially in the countries like Sri Lanka, India, Indonesia, and Philippines. However, drop in coconut production has affecting on the operational effectiveness of activated carbon producers, as a result of which producers have slashed their production capacities by 50-60%. Which has resulted in price hikes of activated carbon.

OPPORTUNITIES

Reactivated Carbon-An Opportunity for Activated Carbon Producers to Maximize the Profits

The demands for activated carbon has increased tremendously due to the strict regulations for air quality, increasing numbers of municipal water treatment, and industrial plants.

Another prime factor in global activated carbon market is increasing pressure on activated carbon producers activated carbon producer to their activated carbon production cost. Hence activated carbon producers are highly focusing on production of reactivated carbon, of which price ranges from 65% to 85% of the cost of virgin activated carbon. Reactivated carbon is an economical alternative to traditional activated carbon. Furthermore, there are no disposal problems or environmental liability concerns for activated carbon end users. Reactivated carbon possesses the competitive advantages over traditional activated carbon due its environmentally friendly nature. Thermal reactivation process reduces the carbon dioxide footprint by five times as compared to the production of virgin material. Municipal water treatment plants in Europe have are highly preferring reactivated carbon. Through reactivation the spent activated carbon can be recycled for reuse, eliminating the costs and long-term liability associated with disposal. Reactivated carbon solves the problem related to pricing, is efficient, and is also non-hazardous environmentally. Which is creating an lucrative opportunities to maximize the profits.

CHALLENGES

Weak Economic Conditions Lowered Industrial Growth-Impacted on Activated Carbon Sales

Weal economic conditions across the globe especially in China, Countries in Latin America such as Brazil and European countries has directly impacted on industrial growth to some extent. Activated carbon finds prominent use in industrial sector such as in chemical, petrochemical, food & beverages, pharmaceutical, mining, and automotive industry for multiple applications such as for air purification, water treatment, decolorization, solvent purification, and odor removal etc. Also, fluctuation in crude oil prices also impacted on value chain of chemical, petrochemical, and its allied industries, which in turn impacted on growth of these industries. As demand for activated carbon is directly proportional to operational activities in these industries, hence such attributes are expected hamper the growth of activated carbon market.

Scope of the Report

Report Metric Details Years considered for the study 2014-2021 Base year considered 2016 Forecast period 2017-2021 Units considered Value (USD Billion) and Volume (KT) Segments covered Type, Application and Region Regions covered APAC, North America, Europe, South America, MEA and Others Companies profiled Calgon Carbon Corporation (U.S), Osaka Gas Co. Ltd (Japan), Cabot Corporation (U.S), and Haycarb Plc. (Sri Lanka), Kuraray Chemical Co. Ltd (Japan), KUREHA CORPORATION(Japan), Donau Carbon GmbH(Germany), Silcarbon Aktivkohle GmbH(Germany), Oxbow Activated Carbon LLC (U.S).

Scope of the Report:

This research report categorizes the global activated carbon market based on agent, application, and region, and forecasts the revenue growth and provides an analysis of trends in each of the submarkets.

On the Basis of type:

Powdered Activated Carbon

Polymer Coated Activated Carbon

Granular Activated Carbon

Bead Activated Carbon

Extruded or Pelletized Activated Carbon

Others (Pelletized Activated Carbon)

Each type is further described in detail in the report with value forecasts until 2021.

On the Basis of Application:

Liquid Phase Applications Water Treatment Food & Beverages Industry Pharmaceutical & Medical Others (Electronics, Mining, etc.)

Gas Phase Applications Automotive Industrial Others (Oil & Gas, Pulp & Paper etc.)

Metal Extraction

Medicine

Others

Each application segment is further described in detail in the report, with value forecasts until 2021.

On the Basis of Region:

Europe

North America

Asia-Pacific

South America

Middle East & Africa

Others

Each region is further segmented by key countries such as, the U.S., Mexico, Canada, China, Japan, South Korea, India, Australia, Germany, the U.K., Italy, France, Turkey, Russia, Saudi Arabia, UAE, Argentina, and Brazil.

Key Market Players

Calgon Carbon Corporation (US) ,Osaka Gas Co. Ltd (Japan), Cabot Corporation (U.S), Haycarb Plc. (Sri Lanka), Kuraray Chemical Co. Ltd (Japan), KUREHA CORPORATION (Japan), Donau Carbon GmbH (Germany), Silcarbon Aktivkohle GmbH (Germany), Oxbow Activated Carbon LLC (U.S), Prominent Systems, Inc. (US)

Recent Developments

In June 2016 Cabot Corporation (U.S) opened new technology center in Shanghai (China) for research and development activities of activated carbon

In November 2016, Calgon Carbon Corporation acquired the activated carbon and filter aid business of CECA which is the subsidiary of Arkema Group(France)

In September 2016, Cabot Corporation launched new activated carbon product under the brand DARCO H2S HF for odor control applications and hydrogen sulfide removal.

In March 2016, Osaka Gas Co., Ltd commenced the activated carbon reactivation center in Spain to serve the municipal drinking water market in the Japan.

To speak to our analyst for a discussion on the above findings, click Speak to Analyst