Oct 19 2010
Worldwide demand for activated carbon is slated to undergo a significant geographic shift from developed to developing countries.
Rising population and higher enforcement of environmental standards would drive growth in developing nations, particularly China, India, South Korea and Taiwan. Significant growth is also expected from Eastern Europe, Latin America, and Middle East, albeit at a relatively lower pace. Manufacturers and industrial customers are increasingly looking towards moving production base to low cost regions including China and India, which proffer production benefits such as cheap raw materials, energy and labor costs. End-use applications of activated carbon including water treatment, air purification and food & beverage processing are considered conventional market leaders. Additional growth is however expected to stem from rigid environment regulations across all the regions worldwide. Government legislations such as Clean Water Act and the Safe Drinking Water Act are important factors influencing expansion in the market. China and US constitute two of the largest producers of activated carbon worldwide. Asian countries including Sri Lanka, Indonesia, Thailand and the Philippines are among significant producers and exporters of coconut husks-derived activated carbon.
Future growth for activated carbon would be largely powered by increased applications in the medical & pharmaceuticals industry, fueled by innovations in vitamins, pharmaceuticals, and nutraceuticals production.. Activated carbon is also likely to experience increased demand in motor vehicle emission canisters as a result of new environmental norms. Some of the potential areas representing high growth in the future include removal of cancer-developing agents from chlorine in drinking water; carbon clothes for protection of military personnel during radiological, biological and chemical warfare; carbon reactivation/ recycling; removal of mercury from coal-based power plants and usage of ultraviolet light for removal of cryptosporidium and other pathogens in water.
Demand for activated carbon plunged significantly amidst economic slowdown, experiencing negative growth of 1.4% in 2009 over the previous year. Companies operating in the activated carbon sector resorted to price reductions in order to offset the impact of slowdown on their revenues. The global recession impacted majority of the end-use industries, reeling under market and price pressures. The downturn forced several industries to cut down on production capacity owing to low demand for activated carbon, particularly in wastewater treatment. Even government-controlled water agencies, which use activated carbon for treatment of drinking water, postponed purchases on account of reduced budgets due to the recession. The market is however projected to witness healthy growth rates starting from 2011. Recovery in the market is assisted by turnaround in most of the economies, propelled by strong growth signals from developing economies. A large chunk of future demand for activated carbon is projected to arise from the Asia-Pacific region, driven by brisk pace of industrialization and initiatives towards environmental protection.
The trio of US, Asia-Pacific and Europe together comprise the largest chunk of the Activated Carbon market, as stated by the new market research report. The US traditionally dominates the activated carbon market. The region is also forecast to race ahead of the other world markets at the highest compounded growth rate, driven by new federal environmental regulations and product developments. Asia-Pacific is likely to follow suit as the next significant market for activated carbon.
The Powdered Activated Carbon (PAC) is the largest product segment, which has primarily maintained a stronghold owing to lower production costs and dominance in the liquid phase applications. On the other hand, granular activated carbon (GAC) is expected to grow at a faster pace owing to its regeneration capability. The end-use liquid phase Water Treatment application continues its leadership position as the largest demand area for activated carbon globally. Conversely, Medical & Pharmaceuticals applications are expected to fuel future growth of activated carbon market.