Global Demand for Activated Carbon to Expand 9.9 Percent Annually Through 2014

World demand for virgin activated carbon is forecast to expand an impressive 9.9 percent per year through 2014 to 1.7 million metric tons.  The US represents the largest national market for activated carbon in the world, and through 2014, the country will also pace global growth, rising more than 15 percent per year to almost 690,000 metric tons.  This optimistic outlook is based on anticipated new federal environmental regulations mandating mercury removal at coal-fired power plants.  These federal regulations are likely to pass by 2011 and take effect by 2014.  However, a number of states have already passed their own regulations, resulting in US activated carbon demand from coal-fired power plants rising significantly in 2009.  Once the federal regulations take effect, sales of powdered activated carbon are expected to really take off in 2013 and 2014. Demand in the US will also be aided by regulations that require mercury emissions control at cement kilns and at industrial boilers.  These and other trends, including market share and product segmentation, are presented in World Activated Carbon, a new study from The Freedonia Group, Inc., a Cleveland-based market research firm.

Unlike in the US, where federal regulations will dictate the bulk of new demand growth, strong gains of around ten percent per year in China’s market for activated carbon will result from continuing healthy economic growth in the country.  All end uses for activated carbon in China will benefit from this economic growth.  Although the country relies on coal to supply a majority of its energy requirements, US-type mercury removal regulations are unlikely to pass in China in the near future.  Demand for activated carbon in Western Europe and Japan will register weak gains through 2014.  However, in Western Europe there is a chance that coal will make a comeback as a key energy source.  If new coal-fired power plants proliferate in Western Europe, they are likely to also use activated carbon injection systems to curtail mercury emissions in the future.

Through 2014, demand gains for powdered activated carbon will outpace demand growth for granular and other activated carbon products.  This will largely result from the fact that only powdered activated carbon is used for mercury removal purposes at coal-fired power plants.  Gas phase activated carbon applications will see much stronger gains than liquid phase applications due to the massive regulation-driven growth in demand in the large US market.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.