Coal Tar Pitch Market Overview
The Coal Tar Pitch Market size is forecast to reach US$5.7 billion by 2027, after growing at a CAGR of 4.3% during the forecast period 2022-2027. Coal tar pitch is used in a wide range of applications which include aluminium smelting, graphite electrodes, refractories, carbon fiber, paint & coatings, roofing, paving, and other similar applications. Coal tar pitch is primarily used in the production of aluminium, which in turn, is used in the manufacturing of aircraft due to its durable and lightweight properties. In 2020, Martin, American aerospace, defense corporation, observed the highest revenue improvement of US$ 5.6 billion, an increase of 9% during the fourth quarter of 2020, owing to the increasing production of F-35 combat aircraft. An increase in demand for aluminum from the automotive and aerospace industries acts as the major driver for the market. On the other hand, health hazards associated with the use of coal tar pitch may confine the market growth.
There is no doubt that the COVID-19 lockdown had significantly reduced aviation, and production activities as a result of the country-wise shutdown of aviation sites, shortage of labor, and the decline of supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined flight operations due to travel restrictions imposed by multiple governments across the world. This forced airlines to find ways to cut down costs which resulted in the cancellation or postponement of aircraft production orders. According to Airbus, the production rate of airbus decreased by 34% in 2020. Likewise, the production of Boeing declined from 380 in 2019 to only 157 in 2020. The decline in production of these aircraft also declined the use of aluminum required during its production. Since coal tar pitch is primarily used for aluminum smelting in order to extract aluminum for use in the aerospace industry, this, in turn, affected the market in 2020. However, a slow and steady recovery of the market is expected in the upcoming years.
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Coal Tar Pitch Market Segment Analysis – By Application
The aluminium smelting application held the largest share in the Coal Tar Pitch Market in 2021 and is expected to grow at a CAGR of 4.5% between 2022 and 2027, owing to the increasing use of aluminium during the production of automobiles and aircraft across the globe. For instance, recent insights from OICA states that the total automobile production in 2021 in Europe, America, Asia, and Africa increased by 25%, 17%, 28%, and 37% respectively in comparison to 2020. According to a recent study published by the International Netherlands Group (ING), the global sales of new electric vehicles have increased by 50% in 2021 and it is expected to increase by 8% in 2022.
Furthermore, in 2021, Airbus delivered around 460 aircraft while Boeing delivered 230 aircraft. According to the Federal Aviation Administration (FAA), the total commercial aircraft fleet is estimated to reach up to 8,270 by the end of 2037, owing to the growth of air cargo activities. It further states that the US mainliner carrier fleet is estimated to increase at a rate of 54 aircraft per year. In this way, an increase in aircraft and automobile production is expected to increase the demand for coal tar pitches required for aluminium smelting in order to extract aluminium for use in the automotive and aerospace industries. This is likely to drive market growth in the upcoming years.
Coal Tar Pitch Market Segment Analysis – By End-Use Industry
The aerospace industry held a significant share in the Coal Tar Pitch Market in 2021, owing to the increasing production of aircraft in order to meet the increasing demand for flight operations across the globe. For instance, in June 2021, United Airlines announced the acquisition of 270 new airplanes consisting of 70 Airbus jets and 200 Boeing aircraft. In January 2021, FedEx Express invested around US$ 6.6 billion for 24 medium and large Freighters from Boeing. Furthermore, Boeing announced the completion of the first test flight of its twin-engine aircraft, Boeing 777X in 2020 that has a total seat capacity of about 360 passengers.
Hence, an increase in the production of new aircraft is expected to increase the demand for aluminium, owing to its strength and lightweight properties. Since coal tar pitch is primarily used for aluminium smelting in order to extract aluminium for use in the aerospace industry, this, in turn, is expected to accelerate the growth of the market in the upcoming years.
Coal Tar Pitch Market Segment Analysis – By Geography
The Asia Pacific held the largest share in Coal Tar Pitch Market in 2021 up to 28%. The consumption of coal tar pitch is particularly high in this region due to its increasing demand from the automotive and aerospace sectors. For instance, a recent study published by the OICA (International Organization of Motor Vehicle Manufacturers) during the fourth quarter of 2020 states that around 25 million, 3.5 million, 8 million, and 3.4 million units of vehicles were produced in China, South Korea, Japan, and India, respectively, which in turn, contributed to approx. 50% of the global automobile production during the year 2020. Likewise, according to the Department of Promotion Industry and Internal Trade (DPIIT), the Indian Automobiles market invested around US$ 24.5 million worth of FDI (Foreign Direct Investment) during the year June 2020.
Furthermore, in October 2021, Sichuan Longhao Flight Training Co. placed an order for 20 Cessna Skyhawk piston aircraft that are scheduled to be delivered by the end of 2022. In December 2020, the Aviation Industry Corporation of China (AVIC) launched the AC332, a multi-purpose helicopter for civilian use.
Hence, such an increase in demand for the production of new automobiles and aircraft is expected to increase the demand for coal tar pitch required for the production of aluminium, thus, leading to market growth during the forecast period.
Coal Tar Pitch Market Drivers
An increase in aircraft production is most likely to increase demand for the product
According to recent insights from the International Air Transport Association, the passenger flights resulted in around 50% of the total revenue in 2021. Boeing has over 400 737 MAX aircraft in its inventory that is yet to be delivered and it has stated plans to increase its production of the model to 31 per month by the end of 2022. Similarly, Airbus increased its production of A320s to 45 per month in 2021. In 2020, Martin, American aerospace, defense corporation, observed the highest revenue improvement of US$ 5.6 billion, an increase of 9% during the fourth quarter of 2020, owing to the increasing production of F-35 combat aircraft. According to recent insights published on the Stockholm International Peace Research Institute (SIPRI) fact sheet, the world aerospace & defense expenditure reached up to US$ 1981 billion in 2020, the highest recorded level since 1988. The leading country was the U.S with an expenditure of US$ 778 billion during the fourth quarter of 2020. This is followed by China with US$ 252 billion, India by US$ 72.9 billion, Russia by US$ 61.7 billion, and the UK by US$ 59.2 billion expenditure during the fourth quarter of 2020. It also included investments in the production of new defense and combat aircraft. According to CNBC (Consumer News and Business Channel), the Defense Department of the US requested US$ 715 billion for national defense expenditure for the year 2022 which also includes production of new aircraft, an increase from US$ 704 billion allotted in the year 2020.
Properties of aluminium which include high strength, flexibility, and light-weight, along with the ability to tolerate high and low temperatures make them ideal for use in the production of aircraft. Hence, an increase in global aircraft production is expected to increase the demand for coal tar pitch for aluminium smelting in order to extract aluminium. This is most likely to boost the growth of the market in the upcoming years.
An increase in automotive production is most likely to increase demand for the product
According to a recent study published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached up to 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe, and 5180 units in other regions worldwide. Likewise, according to the European Automobile Manufacturers Association (ACEA), the EU demand for new passenger cars significantly increased by 25.2% from January-June 2021 and reached around 5.4 million units in total. Hence, an increase in demand and production of motor vehicles is expected to increase the demand for coal tar pitch for use in automotive parts and components. This is most likely to drive market growth in the upcoming years.
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Coal Tar Pitch Market Challenges
Health hazards associated with the use of coal tar pitch may confine the market growth
In case of contact, coal tar pitch can irritate the eyes, along with causing rash, irritation, and burning on the skin. In case of inhalation, it can irritate the throat, nose, and lungs. Prolonged exposure to coal tar pitch can vapor can also cause fatigue, headache, and dizziness in mild cases along with fainting and coma in severe cases. Moreover, occupational exposure to coal tar or coal tar pitch also increases the risk of skin cancer along with other types of cancer, which include lung, kidney, bladder, and digestive tract cancer in some cases. Hence, such health hazards associated with the use of coal tar pitch may confine the market growth.
Coal Tar Pitch Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the market. Coal Tar Pitch top 10 companies include:
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