From 2021 to 2026, the worldwide activated carbon market is expected to grow at a CAGR of 9.3%, from USD 5.7 billion in 2021 to USD 8.9 billion in 2026. The market for activated carbon is being driven by its uses in water treatment and air purification, as well as rigorous government requirements regulating mercury removal from power plants, which have led to increased adoption of activated carbon goods.
The influence of COVID-19 on the worldwide activated carbon market
The COVID-19 pandemic had a significant influence on the activated carbon market in 2020, resulting in a significant drop in its CAGR. In 2020, federal, state, and municipal safety and government orders had a substantial impact on activated carbon producers and suppliers. The COVID-19 epidemic has impacted every industry on the planet. Companies have been obliged to adapt or change their normal business activities as a result of the federal government’s (US) recommendations to prevent the spread of the virus, as well as Shelter-in-Place Orders issued at the state and municipal levels.
Activated Carbon Market Dynamics Driver: Demand for activated carbon is increasing as the need for pollution control grows.
The increased requirement for mercury control technologies for industrial air purification applications is expected to drive up demand for activated carbon. Many production facilities in the United States and Europe, including coal-fired power stations, clinker cement factories, as well as other facilities with big manufacturing boilers, will be needed to meet strict new heavy metals and other hazardous air pollutants emission standards overseen by the US Environmental Protection Agency in the coming years (EPA).
Restraint: Activated carbon prices have risen due to a scarcity of raw resources.
Coconut shells are becoming an increasingly important raw material for activated carbon manufacturers in the Asia Pacific. Natural disasters have a substantial impact on the activated carbon market’s value chain, particularly in terms of raw materials. As a result, the cost of raw materials, particularly coconut shell charcoal, has risen. The cost of coal-based activated carbon has also risen as a result of rising energy needs, particularly in China, where coal demand for industrial industries such as electricity, iron and steel, and cement plants continues to rise.
Reactivated carbon has the potential to generate attractive possibilities for active carbon manufacturers.
The requirement for activated carbon has risen dramatically as a result of severe air quality rules and the growing number of municipal and industrial wastewater treatment plants. The rising pressure on activated carbon manufacturers due to the high production cost of activated carbon is a key factor in the business.
As a result, manufacturers of activated carbon are concentrating their efforts on reactivated carbon. The cost of reactivated carbon is 20-30% less than that of fresh activated charcoal.
Low industrial growth due to poor economic conditions is a challenge.
Globally, weak economic conditions have had a direct influence on industrial expansion to some extent. For air purification, water treatment, decolorization of chemical products, solvent purification, odor elimination, and other applications, activated carbon is widely used in the chemical, petrochemical, food and beverage, pharmaceutical, mining, and automotive sectors.
In October 2018, Osaka Gas Co., Ltd. partnered on a project in the Republic of Indonesia for an Activated Carbon Fibers (ACF) Air Purification Unit. In Indonesia, the project used an air purification system with activated carbon fiber (ACF) to minimize roadside air pollutants, such as nitrogen oxide (NOx). The Japan International Cooperation Agency (JICA) has chosen the project to demonstrate the system’s effectiveness and promote its widespread installation as one of its servers allows users to share with the private sector for distributing Japanese latest technology for the economic and social development of developing nations.