Report Description

Activated Carbon Market Outlook 2032

The global activated carbon market size was USD 4.1 Billion in 2023 and is projected to reach USD 9.89 Billion by 2032, expanding at a CAGR of 9.2% during 2024–2032. The market growth is attributed to the increasing demand for water and air purification solutions, stringent environmental regulations, and the rise in industrial activities.

Increasing demand for clean water and air is driving the market. Activated carbon, known for its exceptional adsorption properties, is widely used in water and air purification processes. Regulatory bodies such as the Environmental Protection Agency (EPA) and the European Environment Agency (EEA) are implementing stringent regulations to control emissions and ensure clean water, which is fueling the market. For instance,

• In April 2023, the US Environmental Protection Agency (EPA) introduced stricter regulations under the Clean Air Act to limit the emissions of volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) from industrial facilities. These regulations mandate the increased use of activated carbon in industrial processes to capture and remove harmful pollutants before they are released into the atmosphere.

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This move aims to reduce environmental and health risks associated with air pollution, thereby driving the demand for activated carbon in air purification applications across various industries.

Growing industrial activities across various sectors, including pharmaceuticals, food & beverage, cosmetics, and automotive, are further boosting the need for activated carbon. This versatile material finds applications in processes such as gold recovery, gas purification, and solvent recovery, reflecting its broad utility. Companies are increasingly investing in research and development to enhance the efficiency and capacity of activated carbon, which creates new avenues for the market. For instance,

• In May 2022, Yardley expanded its product portfolio and launched activated charcoal-based body washes. With this launch, the company focuses on eliminating heightened hygiene concerns.

Rising consumer awareness about health and environmental sustainability contributes significantly to market trends. The shift toward eco-friendly products and processes has heightened the demand for activated carbon in the production of personal care products, beverages, and air filters. The activated carbon market is poised for continued growth, as industries and consumers seek sustainable solutions, driven by technological advancements and regulatory support.

Impact of Artificial Intelligence (AI) in Activated Carbon Market

The integration of Artificial Intelligence (AI) into the activated carbon industry is significantly enhancing production efficiency and product quality. AI-driven systems optimize the manufacturing process by precisely controlling parameters such as temperature, pressure, and reaction time, leading to consistent and higher-quality activated carbon. Additionally, AI algorithms are enabling predictive maintenance and real-time monitoring of production equipment, reducing downtime and operational costs. These advancements improve the overall efficiency of activated carbon production and contribute to meeting the growing demand for high-performance adsorption materials in various applications.

Activated Carbon Market Dynamics

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Major Drivers

Increasing demand for activated carbon in water treatment applications is driving the market. The use of activated carbon for water purification is expected to rise significantly, with growing concerns about water pollution and the need for clean drinking water globally. The ability of activated carbon to effectively remove contaminants such as organic compounds, heavy metals, and chlorine makes it a preferred choice in water treatment plants and municipal water systems.

Rising awareness and implementation of environmental regulations are fueling the market. Governments and regulatory bodies are imposing stricter rules regarding air and water quality standards, leading industries to adopt advanced filtration and purification technologies such as activated carbon. This trend is evident in industries such as manufacturing, automotive, and chemicals & organic chemicals, where reducing emissions and pollutants is a priority.

Surging popularity of activated carbon in gas purification and air filtration applications is propelling the market. The need to control air pollution and improve indoor air quality has become paramount, with increasing urbanization and industrialization. Activated carbon's ability to adsorb volatile organic compounds (VOCs), odors, and harmful gases makes it an essential component in air purification systems used in commercial buildings, automotive vehicles, and manufacturing facilities. For instance,

• In February 2022, Osaka Gas Chemicals Co., Ltd. announced the launch of a new range of activated carbon products with enhanced adsorption capabilities for gas purification applications.

Existing Restraints

Increasing raw material costs are expected to restrain the market. The prices of key raw materials used in activated carbon production, such as coconut shells, coal, and wood, have been on the rise due to various factors such as supply chain disruptions, increasing demand from other industries, and environmental regulations. These cost pressures impact the profit margins of activated carbon manufacturers and are hindering the market.

Limited availability of skilled labor and technical expertise is impeding the market. The production of activated carbon involves complex processes and requires specialized knowledge in areas such as chemical engineering, process optimization, and quality control. There is a shortage of skilled professionals in these domains, leading to challenges in maintaining production efficiency, product quality, and innovation in the market.

Emerging Opportunities

Rising adoption of activated carbon in emerging industries such as pharmaceuticals and healthcare is expected to create significant growth opportunities in the market during the projected period. Activated carbon's ability to adsorb impurities, toxins, and contaminants makes it a valuable ingredient in pharmaceutical products, including medications, supplements, and medical devices. The increasing focus on healthcare and wellness globally is driving the demand for high-quality activated carbon for use in purification, filtration, and drug delivery applications.

Growing awareness and initiatives related to environmental sustainability are expected to create new avenues in the market. There is a growing emphasis on sustainable practices and green technologies, with increasing concerns about climate change, pollution, and resource conservation. Activated carbon, known for its environmentally friendly properties and renewable sourcing options such as biomass, is well-positioned to capitalize on this trend. Companies investing in eco-friendly production methods and promoting carbon neutrality are expected to gain a competitive edge and unlock new opportunities in the market. For instance,

• In March 2023, Cabot Corporation launched the EVOLVE technology program that is involved in advancing sustainable reinforcing carbons. The purpose of the new technology launch is to recover the carbon product from the end-life tires to renew the waste and reduce the carbon content.

Rising popularity of activated carbon in energy storage and renewable energy is expected to create new opportunities in the market. Activated carbon is used in energy storage devices such as supercapacitors and batteries to enhance performance, increase efficiency, and prolong lifespan. The need for advanced energy storage solutions featuring activated carbon is anticipated to grow, as the demand for renewable energy sources such as solar and wind power continues to rise. This trend aligns with global efforts to transition toward a clean and sustainable energy landscape, driving the adoption of activated carbon in energy-related sectors. For instance,

• In August 2022, Ingevity acquired Nexeon Limited to establish its presence in the electric vehicle (EV) market and expand the opportunities of its existing activated carbon business.

Scope of the Activated Carbon Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Regional Outlook

In terms of region, the global activated carbon market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. encompasses Asia Pacific, held a major market share in 2023, due to the strong presence of key industries such as water treatment, air purification, and chemical processing. These industries are major consumers of activated carbon for various applications, driving the demand in the region. Additionally, stringent environmental regulations and increasing awareness about pollution control are propelling the market in the region. For instance,

• In March 2021, Evoqua Water Technologies LLC announced the expansion of its existing Global Engineering and Technology Center, located in Chennai, India.

The market in Europe is projected to grow at a significant pace during the forecast period, owing to rapid industrialization, urbanization, and infrastructure development. Additionally, increasing investments in environmental sustainability and clean energy initiatives are expected to boost the adoption of activated carbon in the region. Furthermore, favorable government policies and incentives promoting the use of activated carbon for pollution control and water purification are fueling the market.

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Activated Carbon Market Segment Insights

Type Segment Analysis

Based on type, the activated carbon market is divided into powdered activated carbon (PAC), granular activated carbon (GAC), and pelletized activated carbon. The powdered activated carbon (PAC) segment held a major share of the market in 2023, owing to its versatility and effectiveness in liquid-phase applications such as water and wastewater treatment. PAC's fine particle size allows for a higher surface area, leading to efficient adsorption of contaminants such as organic compounds, heavy metals, and chlorine. Additionally, PAC is widely used in industries such as pharmaceuticals, food processing, and municipal water treatment plants, driving the segment.

The PAC segment is expected to expand at a significant growth rate in the coming years, due to increasing concerns about water pollution and the need for clean drinking water. The demand for PAC in water treatment applications is projected to surge, as regulatory standards for water quality become stringent. Furthermore, advancements in PAC production technologies, such as improved activation methods and sustainable sourcing of raw materials, are propelling the market.

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Application Segment Analysis

On the basis of application, the global market is segregated into water treatment, air purification, food & beverage processing, pharmaceutical & medical, and industrial processes. The water treatment segment held the largest market share in 2023, attributed to the increasing demand for clean water across various industries and municipalities. Growing population, urbanization, and industrialization have led to heightened concerns about water quality, driving the adoption of activated carbon in water treatment applications. For instance,

• In October 2021, Evoqua Water Technologies LLC opened a new Sustainability and Innovation Hub in Pittsburgh, Pennsylvania (US), to carry out cutting-edge technologies for water treatment.

The air purification segment is anticipated to generate the largest revenue share in the market during the projected period, due to the rising awareness about indoor and outdoor air pollution. The need for effective air purification solutions using activated carbon and carbon fiber is increasing, with growing urban populations and industrial activities. Moreover, stringent regulations regarding air quality standards and emissions control are further propelling the segment. For instance,

• In June 2023, Cabot announced the launch of its new line of activated carbon products specifically designed for air purification applications in the automotive and industrial sectors.

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End-user Segment Analysis

Based on end-user, the activated carbon market is segmented into water treatment plants, municipalities & government agencies, chemical & petrochemicals, food & beverage, pharmaceutical & medical, automotive, electronics, and others. The water treatment plants segment led the market in terms of revenue in 2023, owing to the critical role of activated carbon in removing contaminants and impurities from water sources. Water treatment plants rely heavily on activated carbon for effective purification, with increasing concerns about water pollution and the need for clean drinking water.

The pharmaceutical & medical industry segment is projected to register a robust growth rate during the assessment years, due to the focus of the pharmaceutical industry on producing high-quality drugs and ensuring product purity drives the demand for activated carbon in drug purification processes. Additionally, the medical industry utilizes activated carbon in medical devices and treatments for gas adsorption and detoxification purposes, enhancing the segment.