GCC Activated Carbon Market - Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region: (GCC)

The demand for activated carbon in Gulf Cooperation Council (GCC) countries is poised for substantial growth. With an estimated market size of $154.75 million in 2024, it is projected to reach $257.54 million by 2031, growing at a compound annual growth rate (CAGR) of 7.5%. Water treatment plants and air purification plants in these countries are expected to be key consumers of activated carbon. Additionally, the significant presence of the oil and gas industry is predominantly influencing the demand generation in the region. Saudi Arabia and the United Arab Emirates are the key markets for activated carbon, owing to the growth in the industrial sector and oil and gas industries. The primary application of activated carbon as an adsorbent is fueling the demand, as adsorbents are extensively used in the oil and gas industry and in amine units for the removal of hydrogen sulfide and CO2 from hydrocarbon streams. With substantial growth potential in the market, key manufacturers are expanding their sales towards GCC member states to meet the demand.

Activated carbon consumption is anticipated to represent a notable portion of the demand for adsorbents. The historical demand analysis reveals that the market of activated carbon witnessed a steady growth rate, with a certain dip due to the pandemic crisis that impacted key end-use industries in the GCC member states. However, the market is now on a trajectory to recover and grow, driven by increasing demand from various sectors.

The GCC water treatment market holds significant value, with water treatment being a key application for activated carbon both in terms of volume and value. The growing number of desalination plants, along with increasing government initiatives towards wastewater treatment, is driving the growth of the water treatment market in this region. Additionally, the rising demand for oil and gas from GCC countries, partly due to geopolitical factors, is boosting the demand for activated carbon in manufacturing industries, further enhancing the demand outlook.

The market growth outlook is also propelled by the rising demand for air filtration. Industrialization, along with an increasing number of coal-fired power plants, is raising levels of air pollution. A significant portion of the population faces health issues due to compromised air quality, leading to stringent regulations imposed by governments to augment the demand for air filtration procedures. Coal-fired power plants, which emit high levels of carbon, require air purification, thereby boosting the demand for activated carbon used in these processes. GCC members have implemented measures to control emissions, further fueling the demand for activated carbon in the region. Moreover, petroleum, manufacturing, and chemical plants also require air treatment processes to control emissions. Industrial air treatment using activated carbon is an efficient technology for removing volatile organic compounds (VOCs) from the air, driving the demand for activated carbon.

Activated carbon has a wide range of applications, including water and wastewater treatment, air purification, recovery of precious metals, and various industrial processes. Among these, the demand for water and wastewater treatment is continuously increasing. The porous structure and versatility of activated carbon make it a popular choice as an adsorbent. Environmental regulations regarding water and air pollution have become more stringent over the years, likely augmenting the demand for activated carbon as it acts as an efficient adsorbent.

The production of activated carbon from renewable sources, such as agricultural waste biomass, is preferred over conventional methods due to energy savings and shorter cycle duration. This technology is gradually being adopted by key market players. The chemical-induced method for activated carbon development is widely applied because it allows manufacturing under various processing conditions, with a wide range of triggering agents. Market participants are investing in this technology to enhance the productivity of activated carbon.

In the Kingdom of Saudi Arabia, the strong presence of water treatment plants, petrochemical plants, and air purification systems is bolstering demand generation. The consumption of activated carbon in Saudi Arabia is expected to account for a significant share of the overall demand in GCC countries. The country's focus on reducing emissions from industrial sectors and introducing norms and standards for emissions is expected to propel the demand for activated carbon. Key market players are likely to focus on their sales in Saudi Arabia to meet the demand generation.

In the United Arab Emirates, the manufacturing sector is a major economic contributor, with food and beverages, plastics and rubber, chemicals, and minerals accounting for a predominant share in manufacturing value added. The significant growth in the manufacturing sector, along with the ease of doing business and the development of supply chain clusters, is expected to influence the demand outlook for activated carbon. The activated carbon market in the UAE is expected to gain market share in the GCC, attributed to higher growth in key end-use industries like water treatment, air purification, and food and beverages compared to other countries.

Among the different forms of activated carbon, granular and powdered forms are key segments in the market. The granular form segment is projected to account for a substantial market share by the end of the forecast period. Granular activated carbon is made from raw materials such as wood, lignite, and coal. Its primary characteristics, such as particle size and diameter, make it distinct from the powdered form. The rise in demand for air purification and significant investment in the air purifying sector are creating ample opportunities for the market of granular activated carbon. Granulated activated carbon is predominantly used for the adsorption of gases and vapors, influencing demand from key end-use industries.

Key applications of activated carbon include its use as an adsorbent in water treatment, which is cost-effective compared to other water treatment media. Activated carbon is preferred due to its low cost and the ability to produce the material from renewable sources. The water treatment segment accounts for a significant portion of the overall consumption of adsorbents in the region. The air purification segment is anticipated to remain one of the fastest-growing application segments due to strong demand for reducing emissions across the region. Activated carbon is used to reduce organic content from gas streams of industrial air emissions, gas process streams, and storage tank vents. With diverse applications and significant investments in the air purification sector, the market growth outlook for activated carbon is promising.

The market for activated carbon is estimated to be oligopolistic, with a substantial portion of the demand share met by key manufacturers. To increase market share and dominance in the region, key players are expanding their sales footprint and strengthening their distribution network. Market participants are also acquiring China-based players to provide cost-effective material and bolster sales volume. For example, Cabot Corporation acquired NSCC Carbon (Jiangsu) Co., Ltd. from Nippon Steel Carbon Co., Ltd., and later acquired Shenzhen Sanshun Nano New Materials Co., Ltd., a key manufacturer of carbon nanotube in China.

Key Companies Profiled

• Cabot Corporation
• Donau Carbon GmbH
• JACOBI CARBONS GROUP
• Calgon Carbon Corporation
• Fujairah Chemical
• NTC Dubai
• DUBI CHEM Marine International
• Veolia Water SA
• Carbon Activated Corporation

Global Activated Carbon Market by Category

By Form, the market has been segregated as:

• Granular
• Powdered
• Pelletized
• Others

By Application, the market has been subdivided into:

• Liquid Phase
  • Food & beverage
  • Water Treatment
  • Medical & Pharmaceuticals
  • Mining
  • Petrochemical
• Gas Phase
  • Industrial air purification
  • Automotive & Transportation
  • Solvent Recovery
  • Others (Gold metal, Catalyst)

By Country, the market is segmented as:

• Kingdom of Saudi Arabia
• United Arab Emirates
• Kuwait
• Qatar
• Oman
• Bahrain