Asia Pacific to Emerge as Lucrative Market for Activated Carbon owing to Growing Industrialization

Published Date : Sep 23, 2016

The demand for activated carbon is majorly driven by the implementation of standards such as the Mercury and Air Toxics Standards (MATS) by the U.S. Environmental Protection Agency (EPA), As such, industrial manufacturers and utilities have to upgrade their coal fired power plants to comply with regulations, which is driving the global activated carbon market. Stringent water purification standards are also expected to help the market to grow. The municipal water providers are increasingly striving to achieve water quality standards owing to stringent water regulations. The rise in the number of methods to detect waterborne contaminants is creating a heightened awareness among people across the globe regarding water quality issues.

Scarcity of Raw Materials to Hinder Activated Carbon Market’s Growth

The excessive demand for activated carbon has led to a shortage of raw materials. Coconut shell charcoal, which is a key raw material required for making activated carbon, is falling short, and this is expected to hinder the growth of the market. Another factor impacting the market’s growth is the increased cost of coal-based activated carbon. The high energy demands from countries such as China is fueling the demand for coal and thus has led to a scarcity of suitable grades of coal, which is used for the production of activated carbon. Rise in freight expenses is also responsible for the increased cost of activated carbon.

Asia Pacific to Emerge as Key Regional Segment in Activated Carbon Market

India, China, and Japan are the key activated carbon producing countries in Asia Pacific, thus driving the market. Additionally, the growing industrialization in the emerging nations in Asia Pacific is also expected to fuel the demand for activated carbon. The increasing environmental concerns among the people in the region will aid the growth of the market in the coming years. The importance of gas phase applications such as motor vehicle use, home air purification, gas separation, and air pollution abatement that have gained importance in the region will also drive the market.