Activated Carbon Market Size (2023-2030)

The Global Activated Carbon Market was valued at USD 5.7 Billion and is projected to reach a market size of USD 10.02 Billion by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 7.3%.

Activated carbon, often referred to as activated charcoal, is a type of carbon with a disordered and porous structure that distinguishes it from regular graphite. Its porosity spans from visible cracks and crevices to molecular dimensions, giving it a high surface area. This unique structure enables activated carbon to effectively adsorb a wide range of chemicals. It possesses the most substantial physical adsorption capabilities of any known substance, along with a substantial volume of adsorbing porosity. In recent times, the activated carbon market has experienced significant advancements in reactivation services and their integration into the global supply chain for activated carbons. These developments have influenced the supply and demand dynamics of these materials. Technological innovations and product enhancements have led to increased utilization of reactivation processes for used activated carbons. Numerous companies have pioneered these technologies and entered the reactivation sector, offering services like on-site reactivation. This trend has encouraged many businesses to recycle previously discarded activated carbon, ultimately opening up new application possibilities. These factors are anticipated to drive the adoption of activated carbon in emerging application areas.

Key Market Insights:

In the past year, the most significant price surges were observed in Asia. This included notable increases in the Korean ETS (Emission Trading Scheme) and Chinese pilot programs. The Korean ETS saw price hikes due to limited trading activity, while in China, the prices rose as a result of increased output, leading to a lower scarcity of allowances.

Meanwhile, Switzerland experienced a remarkable threefold increase in prices, aligning more closely with EU allowance pricing. This adjustment was part of their annual update, which is based on the pricing trends in the EU ETS. Additionally, Portugal saw a substantial near-doubling of its carbon tax rate, reaching €24 per metric ton of CO2e (equivalent to US $26 per metric ton of CO2e) in anticipation of its connection to the EU ETS.

The EU Green Deal, which aims to achieve carbon neutrality by 2050, has spurred a stronger push for climate action and expanded adoption of carbon pricing measures across Europe. Numerous countries have set new climate targets and are exploring the implementation of domestic carbon pricing initiatives to complement the EU ETS by encompassing additional sectors.

In 2021, Germany revealed its intention to establish a nationwide carbon market that would encompass heating and road transportation. Around the same time, Luxembourg planned to introduce a carbon tax targeting industries not covered by the EU ETS. Similarly, Austria has announced its intentions to impose a carbon price on businesses outside the EU ETS, although the specific details of this program are still under development.

The Environmental Protection Agency (EPA) has put in place Maximum Achievable Control Technology (MACT) standards, which mandate that emission sources adhere to defined limits based on the emissions achieved by the top-performing facilities.

Meanwhile, the European Commission has issued several directives to regulate industrial emissions, with one of them being the IPPC Directive (Directive 2008/1/EC). This directive is centered on the core principle of adopting the most advanced techniques accessible, known as Best Available Techniques (BAT). BAT signifies the most cost-effective and feasible technologies on the market for mitigating mercury pollution.

Global Activated Carbon Market Drivers:

Increasing use of Activated Carbon in Water Treatment is a major factor behind propelling the market

Activated carbon is a widely utilized material for adsorbing various substances, including natural organic compounds, taste and odor compounds, and synthetic organic chemicals found in drinking water. Its effectiveness as an adsorbent is attributed to its highly porous nature, which provides a substantial surface area for contaminants to adhere to. Several major manufacturing industries, including chemicals, oil & gas, food & beverage, mining, and textiles, generate significant amounts of wastewater containing diverse contaminants like non-biodegradable chemicals, organic matter, and traces of metals and oxides. In recent times, there has been a notable increase in the demand for activated carbon in the treatment of drinking water, groundwater restoration, and service water treatment due to its exceptional adsorption properties. Groundwater pollution is primarily a result of the presence of organic compounds and chlorinated hydrocarbons originating from the widespread use of agrochemicals like herbicides, pesticides, and insecticides in the agricultural sector. Activated carbon's application in water treatment effectively eliminates these harmful substances, even in trace amounts.

Rapid Urbanization is fueling the growth of the Activated Charcoal Market

The world's expanding population, rapid urbanization, and industrial growth have created a heightened demand for clean and drinkable water. Water plays a vital role in households, commercial enterprises, manufacturing processes, and construction activities. Unfortunately, the current freshwater resources on Earth are inadequate to meet this escalating demand. These resources have already been excessively exploited, resulting in their depletion and a global water scarcity crisis. Moreover, the discharge of industrial pollutants and other human activities has significantly polluted water sources, rendering them unfit for consumption. Large-scale industrial facilities are notable contributors to both water and air pollution, and due to the increasing emphasis on environmental conservation, there is mounting pressure to address pollution at its source. Consequently, industrial plants are increasingly turning to activated carbon as a solution for treating water and air pollution generated during their operations. Industries such as chemicals, paints and dyes, and paper and pulp are taking proactive measures by establishing water treatment units that directly utilize activated carbon, thereby bolstering the activated carbon market.

The rising application of Activated Carbon in the Healthcare and pharmaceutical industry is augmenting the Market

In the pharmaceutical sector, activated carbon plays a crucial role in several applications. It is utilized to separate and purify suspensions, typically those based on solvents, and to influence various chemical reaction processes. During the production of vitamins, activated carbon is employed to eliminate color and impurities. Additionally, it is a key component in the purification of pain relievers such as acetaminophen, caffeine, paracetamol, and salicylic acid. Investments continue to flow into the pharmaceutical industry, with both pharmaceutical companies and outsourcing firms expanding their manufacturing facilities. This trend has had a positive impact on the activated carbon market. Activated carbon finds further application in medical contexts, including the treatment of cholestasis during pregnancy and the reduction of cholesterol levels. It also serves as an anti-flatulent agent in abdominal radiography procedures. In the field of kidney disorders, activated carbon is used as a filtering medium for blood dialysis, and it is even incorporated into wound dressings to control odor. As concerns about health issues related to sedentary lifestyles and poor dietary habits grow, the number of patients suffering from various diseases is expected to rise. This increase in health-related issues is likely to drive the demand for implantable surgeries, which, in turn, will contribute to the growth of the global activated carbon market.

Global Activated Carbon Market Opportunities:

Regenerating activated carbon offers several advantages, including environmental benefits and cost savings. Opting for regenerated carbon instead of new activated carbon aligns with sustainability principles, as it results in fewer greenhouse gas emissions compared to the production and use of fresh activated carbon. This approach also ensures compliance with local environmental regulations and EPA guidelines. Furthermore, the process of regeneration eliminates the expenses and legal liabilities associated with disposing of spent carbon through traditional methods like landfilling. Factors such as environmental concerns, evolving regulations, and rising costs linked to virgin-grade activated carbons are driving a shift in demand toward reactivation as a more sustainable alternative. Consequently, the increasing demand for regenerated carbon is expected to create a favorable environment for market growth.

Global Activated Carbon Restraints and Challenges:

Activated carbon filters have limitations in terms of their ability to remove certain chemicals that don't adhere to carbon, such as sodium, nitrates, heavy metals, and fluoride. These filters become less effective as their bonding sites become saturated with contaminants, necessitating frequent replacements. Additionally, activated carbon filters are not effective against certain pathogenic bacteria and viruses, and they can potentially foster bacterial growth, diminishing their overall efficiency. Moreover, powdered activated carbon can pose challenges when it comes to removal from water treatment reservoirs, and it cannot be regenerated for reuse after utilization. Consequently, these drawbacks restrict the expansion of the activated carbon filter market. The primary raw materials used in the production of activated carbon include coal, wood, peat, and coconut shells, with coconut shells being a predominant source. However, the availability of coconut shells is subject to fluctuations due to their extensive use in various industries like steel, oil, iron, electricity, and cement. These supply fluctuations pose an additional hurdle to the growth of the activated carbon market.

ACTIVATED MARKET REPORT COVERAGE:

Global Activated Market Segmentation:

Activated Market Segmentation: By Type

• Powder Activated Carbon
• Granular Activated Carbon
• Extruded Activated Carbon
• Charcoal Activated Carbon Cloth
• Polymer Activated Carbon
• Impregnated Carbon
• Woven Carbon

In 2022, the powdered activated carbon (PAC) type held the majority share in the market, accounting for 61.1% of the total revenue. PAC is favored for its impressive adsorption capacity, versatility in meeting various treatment objectives, and its ability to effectively remove a wide range of particulates. Notably, companies like Cabot Corporation responded to the surging demand for PAC by doubling their production capacity of activated carbon in Canada.

Concurrently, the granular activated carbon (GAC) segment is also experiencing significant growth, primarily due to its regenerative capabilities. GAC finds extensive use in air treatment applications and municipal water treatment facilities. Key raw materials utilized in the production of GAC include coal and charcoal derived from coconut shells.

Activated Market Segmentation: By Phase Type

• Liquid Phase
• Gas Phase

In 2022, the gas phase held the largest share of the market, accounting for 52.5% of the total revenue. This dominance is primarily attributed to the increasing demand for water treatment methods, driven by the implementation of standards and regulations that compel industries to adopt such practices. Governments and regulatory agencies have put forth these standards as measures to protect the environment, and these initiatives are expected to positively impact the market in the coming years.

The liquid phase stands as a growing market on a global scale. The market for liquid-phase treatment is propelled by the growing concerns about the environment and the regulations that require companies to embrace environmentally friendly water treatment techniques.

Activated Market Segmentation: By End-Use

• Food & Beverage Processing
• Pharmaceutical & Medical
• Automotive
• Air Purification
• Water Treatment
• Others

In 2022, the water treatment segment emerged as the market leader, commanding a substantial revenue share of 42.8%. The increasing adoption of water treatment technology is a global trend, with companies worldwide actively innovating and developing new methods for water treatment and recycling. Additionally, regulatory standards that mandate companies to employ efficient water disposal practices and environmentally friendly compounds are expected to further bolster this market.

The air purification segment experienced the most rapid growth globally in 2022. This growth can be attributed to the escalating demand for air-conditioners and air filters in both domestic and commercial applications. Technological advancements, coupled with a steady increase in disposable income and greater affordability for access to cleaner air, are anticipated to drive this market in the forecast period.

Activated Market Segmentation: Regional Analysis

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

In 2022, Asia Pacific emerged as the dominant market leader, capturing a significant revenue share of 51.0%. This dominance can be attributed to the region's robust supply of coconut shells and coconut shell-based activated carbon. Activated carbon finds extensive use in water purification and gold mining applications within the Asia Pacific region. Notably, Indian dry coconuts are preferred over those from other Asian countries due to their higher oil content. Major market players like Jacobi Carbons and Haycarb source their coconut shells primarily from Asian nations such as Sri Lanka, Indonesia, the Philippines, and India.

Conversely, North America stands out as the fastest-growing market. This growth can be attributed to factors including increased automobile demand, a growing geriatric population, and heightened environmental concerns within the region. Applications of powdered activated carbon (PAC) are anticipated to surge, with a similar upward trend expected in gas-phase applications.

COVID-19 Impact on the Global Activated Carbon Market:

The COVID-19 pandemic had a multifaceted impact on the activated carbon market. Initially, as lockdowns and restrictions disrupted industrial production and supply chains worldwide, there was a temporary slowdown in demand for activated carbon across various applications. However, as the pandemic progressed, the significance of air and water purification became even more pronounced, leading to a resurgence in demand for activated carbon in healthcare settings, indoor air quality management, and water treatment facilities. Moreover, the heightened awareness of health and safety measures encouraged the adoption of activated carbon-based face masks and personal protective equipment. While there were short-term disruptions, the long-term implications of the pandemic have underscored the essential role that activated carbon plays in maintaining public health and environmental standards, potentially driving sustained growth in the market.

Latest Trends/ Developments:

The global shortage of clean water has prompted significant investments in water purification infrastructure by countries like China, India, Canada, and the United States, among others. Activated carbon has gained increasing importance in water treatment processes, including the purification of sewage water, service water, and groundwater. Additionally, due to mounting environmental concerns, governmental authorities have enforced stringent regulations for the treatment of industrial wastewater. Many countries have mandated the incorporation of water treatment units in various industries, including chemicals, paints, and dyes.

However, a scarcity of essential raw materials like coconut shell carbon and coal-based carbon has led to rising prices, serving as a hindrance to market growth. Furthermore, activated carbon has limitations in removing chemicals that do not readily bond with carbon, such as nitrates, fluoride, and heavy metals.

Conversely, the surging popularity of activated carbon in the field of smart electronics and electrical is expected to drive industry growth. This trend is likely to create ample opportunities in the development of supercapacitors and hydrogen storage technologies.

Key Market Players:

1. Kureha Corporation
2. Jacobi Carbons AB
3. Calgon Carbon Corporation
4. Carbon Activated Group
5. Ingevity
6. Tronox
7. Boyce Carbon
8. Cabot Corporation
9. Osaka Gas Chemicals Co, Ltd
10. Evoqua Water Technologies LLC

In February 2023, Evoqua Water Technologies finalized a formal agreement for the sale of its carbon reactivation and slurry operations to DESOTEC. This deal encompasses the transfer of the workforce, reactivation facilities, and related equipment associated with this product line in both Pennsylvania and Arizona. Additionally, it includes the reactivation operations and carbon vessel manufacturing plant located in California. DESOTEC holds a prominent position in Europe for providing industrial mobile filtration solutions that rely on activated carbon technology.

In October 2022,  Kuraray announced that the European base of its subsidiary Calgon Carbon Corporation, Chemviron S.A., had commenced full-scale operations at its expanded Feluy facility in Belgium. This comes after the company had successfully conducted test operations of the reactivated carbon production facilities at the plant, which would enable Calgon Carbon to provide a stable activated carbon supply globally.