Activated Carbon Market Size (2024 – 2030)

The Global Activated Carbon Market was valued at USD 5.25 Billion in 2023 and is projected to reach a market size of USD 7.7 Billion by the end of 2030. The market is anticipated to expand at a compound annual growth rate (CAGR) of 5.6% between 2024 and 2030. 

Also referred to as activated charcoal, activated carbon is a highly porous form of carbon that has undergone chemical or oxygen treatment to produce a network of minuscule, low-volume pores that enhance its surface area. Activated carbon is efficient at adsorbing (gathering) a variety of pollutants and contaminants from liquids and gases due to its large surface area. Granular activated carbon, powdered activated carbon, and others are the many types of activated carbon that make up the market. Applications such as liquid phase and gas phase applications separate the activated carbon market. The water treatment, food and beverage, pharmaceutical and medical, automotive, industrial, and other end-use industries have divided the activated carbon market into segments. As part of the market segmentation of activated carbon, a variety of raw resources, including coal, coconut, peat, wood, and others, are utilized to make the product. Activated carbon is recyclable and reusable when it comes to cleaning petrol and air. Another name for it is activated charcoal. Tighter emission standards are required due to growing consumer awareness and environmental concerns. This has prompted important businesses to invest in innovative ideas and technology so that the product can be used in cleaning and air treatment applications, for example. The application of this technology to treat many kinds of water, including wastewater, groundwater, drinking water, and service water, is growing. The product's main purpose is to eliminate substances that change the taste and smell of end-use applications, including food and drink items, water and air, and dissolved organic pollutants. The use of Activated Carbon Injection (ACI) technology has reduced the cost of purification procedures. Cement kilns and power stations are the main consumers of these approaches to reduce mercury emissions. Globally increasing mining-related pollution levels and toxic gas emissions are the primary drivers of market expansion. The product is used to collect carbon emissions from the air and water in these end-use activities. 

Key Market Insights: 

The availability and cost of raw materials, such as coconut shells, coal, and wood, significantly impact activated carbon production costs. Fluctuations in raw material prices by 10-15% can affect market profitability.

Stringent environmental regulations and a growing emphasis on sustainability are shaping the market. Compliance with emission standards and the demand for eco-friendly solutions are driving demand for high-quality activated carbon, accounting for approximately 25% of market growth.

Continuous research and development efforts are leading to the development of advanced activated carbon products with enhanced adsorption capacities and selectivity. This is expected to open up new application areas and drive market growth by 8-10%.

Global Activated Carbon Market Drivers: 

Growing Product Demand for Air Purification Systems to Accelerate Industry Development 

The need for air filtration systems in industries and generators has increased due to the global air pollution increase. Air pollution has increased over the past few years due to rapid industrialization and the growth of coal-based electricity-generating power plants. Consequently, new pollution control laws have been released by the governments of many nations. As a result, end items like carbon filters are being consumed at higher rates. Because the bed structure of these filters is composed of granular or powdered carbon, they can extract micro-impurities from the air as they pass through. These carbon filters also provide excellent filtration against chemicals, harmful gases like SOX and NOX, and volatile organic compounds (VOCs). The presence of micro-pollutants in the air has caused a sharp rise in the number of individuals suffering from dyspnoea, a respiratory disorder, in recent years.

Concerns over pollution control are becoming more prevalent, which has raised the market. 

The increased requirement for mercury control technology in industrial air purification applications is expected to drive up demand for activated carbon. The US Environmental Protection Agency (EPA) will oversee overseeing the implementation of strict new emission standards for mercury and other hazardous air pollutants in the coming years. These standards will apply to a large number of production facilities in the US and Europe, including clinker cement plants, coal-fired power plants, and other facilities that operate large industrial boilers. Therefore, during the projection period, there will likely be a rise in demand for activated carbon to reduce environmental pollution. 

Global Activated Carbon Market Restraints and Challenges: 

Activated carbon is commonly made from a variety of raw sources, including peat, wood, coconut, coal, and others. Natural disasters are having a big impact on the market's value chain for activated carbon. As a result, the cost of raw materials has gone up, mostly for coconut shell charcoal. Due to the rising need for energy, particularly in China where coal is highly valued in the country's manufacturing sectors—such as power, iron and steel, and cement plants—the price of activated carbon based on coal has gone up. The lack of raw materials, particularly the production-useful coconut shell charcoal, is one element that will hinder market expansion. The price of raw materials has increased as a result. Prices for products based on coal have gone up as a result of growing energy requirements. In China, coal is widely employed in industries including cement manufacturing, iron and steel manufacture, and electricity generation. As a result, there was a shortage of the coal grades needed to make activated charcoal. Nonetheless, producers' operational output has been impacted by the drop in coconut demand, which has prompted them to raise their production capabilities by 50–60%. Product prices have increased as a result of this action. 

Global Activated Carbon Market Opportunities: 

Producers are under a great deal of pressure to reduce their high production costs due to the increase in demand for activated carbon brought on by strict air quality rules and the growth of wastewater treatment plants. As a result, the industry has been moving more and more towards the affordable alternative of producing reactivated carbon. By regeneration methods, producers can increase the useful life of used carbon materials by using reactivated carbon, sometimes referred to as regenerated or recycled carbon. To enable the use of used carbon, these procedures usually entail thermal or chemical treatment to restore its adsorption capacity. Manufacturers can efficiently manage the combined issues of satisfying market demand and minimizing production expenses by concentrating on the manufacturing of reactivated charcoal. By lowering waste and resource consumption, this strategy change supports environmental goals while also easing financial strains. Reactivated carbon presents a feasible substitute for sectors aiming to comply with strict regulations controlling the quality of air and water. Reactivated carbon is a cost-effective and effective way for municipalities, wastewater treatment plants, and industrial sites to meet their pollution management needs. In the end, the industry's concentration on producing reactivated carbon highlights its dedication to sustainability and innovation in the face of changing legal frameworks and market circumstances. 

ACTIVATED CARBON MARKET REPORT COVERAGE:

Global Activated Carbon Market Segmentation: By Product

• Powdered 

• Granular 

  The Global Activated Carbon Market Segmented by Product, powdered held the largest market share of 61% last year and is poised to maintain its dominance throughout the forecast period. PAC can remove a variety of particles, has a high adsorption capability, and can meet a wide range of treatment objectives. To satisfy the rising demand for PAC, businesses like Cabot Corporation increased the amount of activated carbon they could produce in Canada by twofold. The company announced that it would increase its PAC production capacity by 35 million pounds per year to meet the increased demand for the product from the coal-fired utility sector for the removal of mercury. The market for granular activated carbon is expanding rapidly as well. Its renewal is the reason behind this. Municipal water treatment facilities and air treatment facilities utilize a lot of GAC. The two main raw materials utilized in the production of GAC are coconut shell charcoal and coal. 

Global Activated Carbon Market Segmentation: By Application

• Liquid Phase 

• Gas Phase 

 The Global Activated Carbon Market Segmented by Application, Gas Phase held the largest market share of 53.1 % last year and is poised to maintain its dominance throughout the forecast period. One important aspect that is anticipated to support the market is the growing demand for water treatment techniques as a consequence of standards and laws for enterprises to use these methods. To protect the environment, governments and agencies have released these standards. Throughout the projected period, these initiatives are expected to benefit the market. The gas phase mostly consists of air filtration. The product's primary formulators for gas phase applications include Kuraray Corporation and others. Activated carbon is widely used in air purification products such as air conditioners and gas masks. The product is also utilized for solvent recovery, gas separation, and other uses in gas phase applications. Worldwide, the liquid phase contributes the second-highest amount of revenue. Growing environmental concerns and legislation requiring businesses to use environmentally friendly water treatment methods are driving the industry. 

Global Activated Carbon Market Segmentation: End-use

• Water Treatment 

• Food & Beverage Processing 

• Pharmaceutical & Medical 

• Automotive, 

• Air Purification and Others 

 The Global Activated Carbon Market Segmented by End-Use, Water Treatment held the largest market share of 42.8% last year and is poised to maintain its dominance throughout the forecast period. The use of water treatment technology is expanding globally. Numerous businesses throughout the world are creating and refining new technology for recycling treated water. Regulations requiring businesses to use environmentally friendly materials and effective water disposal methods are expected to support the sector going forward. In terms of income, the end-use of air purification was the second largest worldwide in 2023. This can be attributed to the growing demand for air conditioners and air filters from both residential and commercial applications. Throughout the projection period, the market will benefit from technological improvements, fast-expanding disposable income, and increased affordability of choosing fresher air. The market is anticipated to benefit from growing adsorbent uses in the food and beverage processing sector. Activated carbon comes with several benefits, including the ability to eliminate unpleasant smells, eliminate unpleasant tastes with ease, and maintain colour stability over time quickly and completely. Because of these benefits, food and beverage production uses activated carbon extensively. 

Global Activated Carbon Market Segmentation: Raw Material 

• Coal 

• Coconut 

• Wood 

• Peat and others 

The Global Activated Carbon Market Segmented by Raw Material, Coal held the largest market share last year and is poised to maintain its dominance throughout the forecast period. It is produced by raising the temperature of coal while adding an activating ingredient. This activated carbon product is frequently utilized in a variety of industrial settings, including air filtration and water treatment. Activated carbon based on coal works wonders to rid water of impurities including chlorine, volatile organic compounds, and taste and odor compounds. The low cost of coconut shell makes it highly sought after, as it is an essential raw material in the synthesis of activated carbon. However, natural disasters have raised the cost of raw materials, especially coconut shell charcoal, which has a substantial impact on the market's value chain for activated carbon. Due to the increased need for readily available, clean drinking water and the high availability and affordability of coal as a raw material, the coal segment is predicted to grow at the highest rate of revenue. 

Global Activated Carbon Market Segmentation: By Region 

• North America 

• Asia-Pacific 

• Europe 

• South America 

• Middle East and Africa 

The Global Activated Carbon Market Segmented by Region, Asia-Pacific held the largest market share last year and is poised to maintain its dominance throughout the forecast period. This is because the Asia Pacific region offers favourable prices for both coconut shells and AC made from them. In the area, activated carbon is mostly utilised for applications related to gold mining and water treatment. Due to their higher oil content, Indian dry coconuts are favoured over coconuts from other Asia-Pacific nations. The Philippines, India, Indonesia, Sri Lanka, and other Asian nations are the suppliers of coconut shells to several significant industry players, including Haycarb and Jacobi Carbons. The market's top companies are well-established in the Asia Pacific area and keep funding organic expansion through partnerships and licencing deals. After Asia Pacific, North America is the second-largest market. The main variables expected to have a beneficial impact on the market are expected to be rising environmental concerns, an increase in the senior population, and growing automotive demand in the area. Applications for PAC are anticipated to grow rapidly, while applications for gas phase are anticipated to follow a similar pattern. 

COVID-19 Impact Analysis on the Global Activated Carbon Market: 

Market growth was hindered by government regulations on production activities and a decline in the demand for products from end-use industries. The COVID-19 pandemic impacted numerous economies worldwide and reduced production worldwide. Many companies' production rates decreased as a result of the manufacturing units' stagnation. As a result, there are now fewer products available worldwide for the commercial, industrial, and residential water treatment sectors. Regional industrial operations were impacted by the strict precautions implemented to stop the disease's spread. The amount of activated charcoal used in industrial wastewater treatment decreased as a result of the temporary closure of production facilities. Governments in wealthy nations, like the United States, Germany, and the United Kingdom, made significant investments in the establishment of more effective water and wastewater systems as a means of combating the virus and mitigating the drop in product sales. Regulations by the Government Regarding Production Activities and Declining Demand In addition, the adoption of air filtration techniques resulted from growing air pollution brought on by carbon dioxide (CO2) emissions from industry and automobiles, which fueled the rise of the activated carbon market. 

Latest Trends/ Developments: 

A deliberate effort towards innovation and sustainability has been demonstrated by a number of significant advancements that have surfaced in the carbon industry's recent trends. The announcement by Cabot Corporation of an expenditure of USD 200 million to expand the capacity of conductive carbon in Pampa, Texas, is indicative of a strategic shift towards diversifying its product line and expanding its market reach over the next five years. In a similar vein, Cabot's announcement in March 2023 of the EVOLVE Sustainable Solutions platform highlights a dedication to sustainability through the advancement of carbon product recycling technologies, which lower waste and carbon emissions. The completion of testing and expansion activities for reactivated carbon manufacturing facilities in Germany by Kuraray Co., Ltd. in October 2022 underscores a growing focus on increasing production efficiency and satisfying expanding demand. Furthermore, Ingevity's August 2022 USD 60 million investment in lithium-ion anode materials shows a forward-looking strategy meant to secure future connections with suppliers of activated carbon while optimising revenue from product segments. The industry's proactive reaction to market dynamics, regulatory constraints, and sustainability imperatives is highlighted by these collective developments. 

Key players: 

1. Cabot Corporation 

2. Kuraray Co. 

3. Carbo Tech AC GmbH 

4. Donau Chemicals AG 

5. Haycarb (Pvt) Ltd. 

6. Jacobi Carbons Group 

7. Kureha Corporation 

8. Osaka Gas Chemicals Co., Lt