The competitive landscape offers an analysis of the key developments by the companies operating in the global market between 2016 and 2018. The global market for activated carbon is projected to witness significant growth during the forecast period (2018 to 2023). The market is projected to register a robust CAGR of 8.14% in the coming years owing to the increasing regulations against water and air pollution globally. Additionally, the rising demand in mercury removal applications is likely to favor the global market growth during the forecast period. Furthermore, the increasing demand for regenerated activated carbon in the industrial sector is expected to create lucrative opportunities to the market players. However, the increasing prices of raw materials is likely to hamper the global market growth during the forecast period.
The key manufacturers operating in the global activated carbon market are Cabot Corporation, Kuraray Co., Ltd.; Haycarb (Pvt) Ltd., Prominent Systems, Inc.; Oxbow Activated Carbon, and Kureha Corporation. These players account for the majority of the market share owing to large revenue growth, product development, and diverse product portfolio. Additionally, they are adopting business strategies such as new product launches, acquisitions, and agreements to increase their revenue share and gain substantial share in the global market. For instance, Cabot Corporation launched DARCO H2S HF activated carbon for odor control applications. Furthermore, Kuraray announced the acquisition of Calgon Carbon Corporation, which will help the company to expand its activated carbon business.
According to Wantstats analysis, the global activated carbon market has a huge revenue base in North America, Asia-Pacific, and Europe. Japan, the US, Germany, and China are the major countries contributing to the global market growth owing to the growing demand for activated carbon that finds applications in water and air purification, food and beverages, cosmetics, mercury removal, among others.
The activated carbon market is home to a significant number of tier-1 and tier-2 manufacturers. Additionally, there is a presence of some small- and medium-scale manufacturers in the global market. Therefore, most of the market players are focusing on investing on product launches, agreements, acquisitions, and expansion of their domestic and overseas facilities to meet the rising demand for activated carbon
Threat of New Entrants
The new entrants are the players willing to enter the global activated carbon market to grab the growth opportunities. The threat of new entrants in the global market is estimated to be high. This is mainly attributed to the stringent environmental regulations on mercury emissions coupled with increasing usage of activated carbon for mercury removal, increasing need for the water purification on the backdrop of water scarcity, and rising reuse of water from the industrial wastes by treating it with activated carbon. Moreover, the production process is less complex, and the majority of the raw materials required are derived from waste, which can be obtained at relatively low costs. Furthermore, with the rising demand for energy globally, the use of activated carbon in energy storage applications is increasing, which is likely to incentivize the entry of new players into the global market.
Intensity of Competitive Rivalry
The intensity of competitive rivalry in the global activated carbon market is estimated to be high. The growing concern regarding pollution due to the emissions of elemental mercury and other acid gases and their adverse effects are expected to fuel the demand for activated carbon globally. The growing demand is likely to favor the development of innovative and cost-effective products, which is further expected to intensify the rivalry. The prominent players operating in the global market are adopting various business strategies such as acquisitions, product launch, R&D, and expansion. For instance, in May 2018, Kuraray Co Ltd announced the acquisition of Calgon Carbon Corporation, the largest producer of activated carbon globally. This acquisition will help Kuraray to expand its footprint and the portfolio for activated carbon. The adoption of these strategies is also expected to intensify the rivalry to a great extent during the forecast period.
Threat of Substitutes
There are no effective substitutes available for activated carbon, yet there is a presence of some alternative technologies in the market particularly in the flue gas and wastewater treatment applications. Some of the patented technologies available in the market are MERCONTROL 6012 and ZVI Blue for mercury removal and NALMET for removing a wide range of metals from wastewater. However, the cost-effectiveness and ease of operation of the activated adsorption process as compared to these technologies are the key factors limiting the threat of substitutes.
Bargaining Power of Suppliers
The bargaining power of suppliers in the global activated carbon market is estimated to be high. This is mainly attributed to the stringent regulations over the removal of mercury, CO2, H2S, and other harmful gases from industrial emissions. In addition, the rising awareness regarding water treatment and reuse is boosting the demand for activated carbon globally. Also, there are no significant substitutes available that match the cost competitiveness of activated carbon, which is expected to strengthen the bargaining power of suppliers.
Bargaining Power of Buyers
The vast consumer base of activated carbon ranges from chemicals, mining, energy, oil & gas, automotive to medical industries. In addition, various government regulations on the release of mercury from the coal-fired power plants, natural gas production facilities, and other sources are expected to fuel the demand for the product.
