Activated Carbon for Automotive Market Size Report, Industry Share, Analysis, Growth, 2030

Activated Carbon for Automotive Industry Prospective:

The global activated carbon for automotive market size was worth around USD 259.78 million in 2022 and is predicted to grow to around USD 403.29 million by 2030 with a compound annual growth rate (CAGR) of roughly 5.65% between 2023 and 2030.

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The report delves deeper into several crucial aspects of the global activated carbon for automotive market. It includes a detailed discussion of existing growth factors and restraints. Future growth opportunities and challenges that impact the activated carbon for automotive industry are comprehensively addressed in the report.

Activated Carbon for Automotive Market: Overview

Activated carbon is a type of inexpensive material that showcases specific attributes such as high porosity, surface area, and surface functionalization. Owing to these properties, activated carbon has found several applications especially activities that require removal of pollutants, adsorption, energy, and water treatment. The first recorded case of activated carbon application dates back to 1500 BC, the product still holds high demand in several end-user verticals and the automotive industry is one of the largest consumers of these low-cost materials.

Since the surface area of activated carbon is tremendous consisting of a large microscopic pores network, activated carbon helps in controlling vehicle emissions along with the removal of volatile organic compounds (VOCs) or improving air quality in a cabin. Further advancements have assisted in using activated carbon for the production of electrodes used in supercapacitors. The industry for activated carbon especially for the automotive sector will continue to grow at a steady CAGR during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global activated carbon for automotive market is estimated to grow annually at a CAGR of around 5.65% over the forecast period (2023-2030)
• In terms of revenue, the global activated carbon for automotive market size was valued at around USD 259.78 million in 2022 and is predicted to grow to around USD 403.29 million, by 2030.
• The activated carbon for automotive market is projected to grow at a significant rate due to the growing demand for sustainable packaging.
• Based on application segmentation, activated carbon canisters was predicted to show maximum market share in the year 2022
• Based on type segmentation, granular was the leading type in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022.

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Activated Carbon for Automotive Market: Growth Drivers

Rising urgency to curb carbon emissions to drive market growth

The global activated carbon for automotive market is expected to grow due to the rising urgency toward controlling carbon emissions across industries including automotive which is one of the largest contributors to the emission of environment-degrading gasses such as VOC. A recent study published in Science Direct concluded that the average concentration of total volatile organic compound emissions by diesel and gasoline vehicles were 5.9 ± 2.4 mg/m3 and 6.8 ± 3.0 mg/m3. Another recent study by National Geographic claims that nearly one-third of total air pollution in the US is caused by vehicles in the country.

This has led to regional governments undertaking stricter measures to control carbon emissions and one of the most effective methods to achieve this is by using activated carbon in cabin air filters, ultracapacitors, and evaporative emission control canisters. In 2018, Ford became one of the few automotive companies that managed to reduce its carbon-dioxide emission rate by nearly 3.4 million metric tons. The company reached its goal 8 years earlier than intended.

Research & innovation to act as key driving factor

Companies operating in the activated carbon for the automotive industry are investing in research & development (R&D) which may assist in further growth. In March 2023, a study by the West Midlands Air Quality Improvement Program that is being run at the University of Birmingham reported that charcoal filters were successful in removing Nitrogen Dioxide (NO2) from cabin air. This will further help in eliminating the chances of adverse health reactions to NO2.

Activated Carbon for Automotive Market: Restraints

Limited scope of application to restrict market expansion

The activated carbon for automotive industry is expected to face growth restrictions due to the limited scope of application of activated carbon for the automotive industry. Studies indicate that although the product is useful in reducing carbon emissions, it cannot remove all contaminants from the air. Furthermore, they only act on removing carbon-based chemicals and may not be effective for other pollutants such as fluoride, heavy metals, sodium, and others. This means that vehicle manufacturers will have to invest in additional purification methods to curb the emission of other harmful gasses. Moreover, these filters have to be replaced often for environmental reasons. Typically, the replacement period is between every 19000 km to 24000 km which may add to the total cost of car maintenance as it may cost anything between USD 40 to USD 130.

Activated Carbon for Automotive Market: Opportunities

Growing penetration of affordable automotive segment in emerging markets to provide growth opportunities

The global activated carbon for automotive market is expected to benefit from the increasing demand for affordable automobiles such as passenger cars in emerging economies. For instance, India’s automobile industry contributes nearly 6.4% of the total gross domestic product (GDP) of the nation. Moreover, these nations are also registering higher growth in terms of commercial application of vehicles as regional governments continue to invest in infrastructure and transportation development projects. In addition to this, there has been a rise in the number of international projects from the global automotive sector entering new economies. For instance, in August 2022, McLaren Automotive announced its entry into the Indian market. In April 2023, the country witnessed the launch of the Hyundai Exter, a micro sports utility vehicle (SUV) targeting the growth potential of the country.

Activated Carbon for Automotive Market: Challenges

Rising expansion of electric vehicles to challenge market expansion

One of the key challenges that the global activated carbon for automotive market players is likely to face is the growing competition from electric vehicles (EVs). Due to the nature of these automobiles, they are not required to install any form of engine air or oil filters. EVs also offer a long-term and sustainable solution to reducing carbon emissions along with reduced dependence on fossil fuel for gas or diesel. In 2022, India’s EV market registered a jump of over 190%. Moreover, companies offering EVs are not only targeting the premium segment since in the last few years, but there has also been growth in the affordable EV segment as well for passenger cars. In August 2022, OLA, a new player in the EV market, announced its intention to launch an affordable range of EVs with a range of over 500 km. In June 2023, Toyota unveiled a new set of EV battery technologies that are expected to change the way the automotive sector functions.

Activated Carbon for Automotive Market: Segmentation

The global activated carbon for automotive market is segmented based on application, type, and region.

Based on application, the global market is segmented into automotive capacitors, activated carbon canisters, cabin air filters, and others. The highest CAGR was observed in the activated carbon canisters segment in 2022. They are used to capture hydrocarbon vapor emissions in automobiles. Hydrocarbon vapor is a part of the evaporative emission control system (EVAP) and comes from the fuel tank. The emission of hydrocarbon vapor releases CO2 into the atmosphere along with other forms of greenhouse gases. They are a leading cause of climate change globally with rising sea levels, temperature, and constant cases of floods. As the world seeks measures to lower the impact of business operations on the climate, the demand for efficient canisters equipped with activated carbon is likely to grow. As per the current trend, global warming of 1.5 degrees Celsius can be expected by 2050.

Based on type, the activated carbon for automotive industry is divided into granular, extruded, and others. The segmental growth will be driven by the granular segment as there is more demand for granular activated carbon (GAC). These granules exhibit a particle size of 0.19 to 5.01 millimeters. When compared to other forms, GAC is known to deliver better in terms of performance while not showing any form of impact on the overall performance of the vehicle. Moreover, they are considered easy to use as opposed to extruded or any other form. As demand for efficient automobiles is growing, the adoption rate of GAC is expected to be positive.

Activated Carbon for Automotive Market: Report Scope

Activated Carbon for Automotive Market: Regional Analysis

China to lead growth in Asia-Pacific during the forecast period

The global activated carbon for automotive market is expected to be driven by Asia-Pacific during the forecast period mainly led by China. The country has registered high sales in the automotive industry. As per the Ministry of Industry and Information Technology, in 2021, the country registered sales of nearly 26 million vehicles. When compared to 2020, the sales rate increased by 7.101%. China’s growth can be attributed to the country’s robust manufacturing sector and the growing disposable income of middle-income families in China.

Recently, the region became the second-largest exporter of cars beating Germany. It exported nearly 3.19 million cars in 2022. The rising number of automotive manufacturers in addition to the country’s changing policies in terms of international trade relationships will continue to contribute to China’s growth. In addition to this, other regions including India are expected to deliver significant results as they continue to work toward improving NO2 and CO2 emission rates from the regional automotive sector.

Activated Carbon for Automotive Market: Competitive Analysis

The global activated carbon for automotive market is led by players like:

• Carbon Clean Solutions Limited
• Kuraray Co. Ltd.
• Calgon Carbon Corporation
• Carbon Activated Corporation
• Cabot Corporation
• Evoqua Water Technologies LLC
• Jacobi Carbons
• Haycarb PLC
• TIGG Corporation
• Osaka Gas Chemicals Co. Ltd.
• Kureha Corporation
• Donau Carbon GmbH
• Carbon Activated Korea Co. Ltd.
• Osaka Gas Chemicals America Inc.
• Prominent Systems Inc.

The global activated carbon for automotive market is segmented as follows:

By Application

• Automotive Capacitors
• Activated Carbon Canisters
• Cabin Air Filters
• Others

By Type

• Granular
• Extruded
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa