MARKET OVERVIEW- GLOBAL COAL TAR MARKET
Coal tar refers to the black, sticky residue that remains after the distillation of coal tar. This tar contains compounds such as carcinogens and is used in many applications, including paints and coatings, paving, and asphalt products. This product is known to play an important role in steel and aluminum manufacturing processes. Coal tar is widely used in the manufacture of graphite electrodes, used in electric arc furnaces in steel mills and as a binder for carbon anodes in aluminium smelters. The demand for coal tar is expected to increase, as it is widely applicable in graphite electrodes, tire production, specialty oils, and roofing.
MARKET DRIVERS
The increasing demand for aluminium from the automotive, aerospace, and space industries owing to its strength and low weight and the implementation of stringent regulations regarding vehicle emissions making manufacturers adopt lightweight aluminium components are the major factors driving the coal tar market. The technological advancement in the application and expansion of end-use industries drives the coal tar market. Further, the demand for coal tar products from the healthcare sector is the key factor driving the global coal tar market’s growth. Coal tar has many uses in the healthcare industry. Coal tar is used as a topical drug to treat many skin conditions such as psoriasis, seborrheic dermatitis, eczema, and dandruff. The treatment involves applying coal tar to the affected area. Such medicinal coal tar comes in a variety of forms, such as creams, shampoos, lotions, ointments, and bath salts. Coal tar formulations are also sold as cosmetics. In the medical field, coal tar is mainly used to treat psoriasis.
MARKET OPPORTUNITIES
The rising demand for electric and autonomous vehicles will offer new growth opportunities to the industry. Developing a supportive regulatory framework, government funding, and investment in digital infrastructure is expected to play a key role in positively affecting the market growth during the forecast period.
MARKET RESTRINT
The market has a major restraint as the production of secondary aluminum (recycled aluminum) that does not require coal tar is expected to obstruct the coal tar market’s growth.
MARKET GROWTH CHALLANGES
The rise in concerns regarding the emission of harmful greenhouse gases during the production of coal tar is projected to challenge the coal tar market in the forecast period of 2021 to 2028. Also, the restriction on the use of coal tar-based products are major challenges to the global coal tar market’s growth. Coal tar-based products contain high concentrations of carcinogenic chemicals such as polycyclic aromatic hydrocarbons (PAHs). Human exposure to high amounts of coal tar can lead to cancer because of the presence of PAHs. People who are involved in the production or use of roofing tar, coal tar enamels, pavement tar, refractory bricks, or other coal tar coatings are highly vulnerable to coal tar pitch exposure. In October 2018, Howard County Council, Maryland, US, passed a bill to ban coal tar pavement sealants and some alternatives. The councilman Jon Weinstein introduced the legislation at the request of sixteen fifth-grade students from Centennial Lane Elementary School in Ellicott City. Therefore, such restrictions and ban are likely to hinder the growth of the market during the forecast period.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the coal tar market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. The growing use of advanced types of coal tar pitch across the globe is fuelling the growth of the market and is expected to witness growth at a specific CAGR from 2023-2029.
GLOBAL COAL TAR MARKET SEGMENTAL OVERVIEW
The coal tar market comprises of different market segment like type, application and geography.
GLOBAL COAL TAR MARKET BY TYPE
By type, the coal tar includes key segment of
- Low Temperature Coal Tar
- Medium Temperature Coal Tar
- High Temperature Coal Tar
The medium temperature coal tar is expected to dominate the market over the forecast period. Medium temperature coal tar is a type of aromatic carbonaceous material obtained by the low temperature distillation of low rank coal, and is considered as a desirable raw material for the production of artificial carbon/graphite material.
The high temperature coal tar is expected to register the fastest CAGR during the forecast period. HTCT is derived from high-temperature pyrolysis of coals with a special smell, brown or dark brown colour, and poor fluidity at room temperature. It can be further separated into a light portion and a heavy portion.
GLOBAL COAL TAR MARKET BY APPLICATION
By application, the coal tar includes key segment of
- Graphite Electrode
- Aluminum Smelting
- Carbon Black
- Refractories
Over the forecast period, the aluminum smelting is expected to dominate the market. Aluminum is a vital metal that is used frequently because of its durability, lightweight, and strength. It is a recyclable substance that is used to create low-emission vehicles, smartphones, zippers, and foil. The wiring that connects electrical grids to different end users, including businesses, apartment buildings, and other kinds of residential structures, is also made of metal. Due to its adaptability, aluminum is currently used in a wide range of applications, one of which is aluminum wire rods. Therefore, it is expected that the growing use of aluminum wire rods in aluminum smelting.
The graphite electrode is expected to register the fastest CAGR during the forecast period. The rising demand for graphite electrodes in steel-oriented sectors such as construction, automotive, infrastructure, and aerospace and defence are the key factor driving the market. The Graphite electrode is a large cylindrical structure made up of petroleum needles, coke, and coal tar pitch. They conduct electrical energy from the power source and convert it into heat which is used to melt scrap metal.
GLOBAL COAL TAR MARKET BY GEOGRAPHY
By geography, the coal tar includes key segment of
- North America
- Asia Pacific
- Europe
- RoW
The Asia Pacific is expected to dominate the market over the forecast period. Due to the rising demand for aluminum from the aerospace, automobile, and space industries. The Asia Pacific also constitutes the largest automotive sector and holds the largest aluminum market share due to substantial industrial development. China is the largest manufacturer of automobiles in the world. The country’s automotive sector has been shaping up for product evolution, with the country focusing on manufacturing products to ensure fuel economy and minimize emissions, due to growing environmental concerns due to mounting pollution in the country. The country is focusing on electric vehicles to overcome environmental concerns. In April 2020, the central government of China stated that it would extend subsidies and tax breaks for NEV buyers, which include all-electric cars, plug-in-hybrids, and fuel cell vehicles, for two more years to stimulate consumption, as these subsidies were previously scheduled to be phased out by the end of 2020. Furthermore, the growing demand for carbon fibre in automotive applications has also boosted the demand for the coal tar market in the region.
COVID-19 IMPACT ANALYSIS ON GLOBAL COAL TAR MARKET
The outbreak of the COVID-19 pandemic is expected to have a noticeable impact on market growth. Lockdowns imposed to stem the spread of the disease have disrupted supply chains and manufacturing operations around the world. Massive lockdowns and travel restrictions imposed to combat the pandemic are altering human behavior, disrupting industrial activity, and creating challenges and uncertainties for the global economy and human societies. Due to lockdowns, 81% of the global workforce remained at home by early April 2020, and global manufacturing output fell by 20% in April 2020. The various industries have suffered greatly from COVID-19, with production lines halted, supply chains disrupted, and consumer demand contracted. The COVID-19 pandemic has had a negative impact on the coal tar market, including business. Although the pandemic has slightly reduced the global coal tar market, net income, and the production of coal tar, in the upcoming years, the market is expected to slowly pick up.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the coal tar market is primarily focused on expanding the global growth of the coal tar market with new product innovation, business expansion. An increasing presence of a range of manufacturers operating in the market has led to the growing demand for the market. Besides, the market offers a range of products to fulfil the required demand of consumers, which is further contributing to healthy growth in the market.
The key players studied in market are
- Posco
- Himadri Speciality Chemical
- Nippon Steel Corp
- Shree Shyam Chemicals
- Stella-Jones
- Thyssenkrupp AG
- Tata Steel Ltd
- Indian Tar Coal Co.
- Koppers Holdings Inc
- Mitsubishi Chemical Corporation
- Shandong Weijiao Holding Group Co
RECENT DEVLOPMENT
October 2018: Plastic is mixed with coal tar to build road. The technology is an efficient way of reducing plastic waste. Road in cities like Lucknow, Chennai, Pune, Jamshedpur, and Indore are being constructed.
