New emission standards for downstream markets will bolster industry growth.
Los Angeles, CA (PRWEB) December 12, 2013
Used primarily for water treatment and air purification, the Activated Carbon Manufacturing industry continues to benefit from an intensified focus on environmental trends. Activated carbon is processed with oxygen to create pores between carbon atoms, increasing the surface area of the product. This, in turn, allows activated carbon to remove contaminants through adsorption, which is a process that binds contaminants to the surface in the pores of the activated carbon as the liquid or gas passes through.
A range of downstream sectors rely on activated carbon for the removal of impurities. According to Cabot Corporation, the chemicals production sector especially relies on industry products to achieve precise purity standards. As such, a rise in industrial production is generally correlated with the issuance of additional contaminants and the need for activated carbon products. According to IBISWorld Industry Analyst Stephen Hoopes, “While the industrial production index is only anticipated to grow slightly over the period, the rising price of industry products and a mounting focus on environmental protection have largely offset mundane downstream performance.” Consequently, over the five-year period, industry revenue is expected to increase at an annualized rate of 4.6%, to reach $1.2 billion.
One of the most important changes for the industry over the five-year period was the proposal for new emission standards for power plants and a range of other industrial facilities. Effectively, these downstream markets are required to prevent a larger share of mercury in coal from being released into the air. To comply with this legislation change, power plants can introduce activated carbon injection systems to limit emissions. As these facilities have up to four years to meet these new emission standards, the majority of the regulation's assistance is expected to occur over the next five years; industry revenue is anticipated to increase 9.5% in 2013 alone.
Over the five years to 2018, industry revenue is forecast to increase, largely due to these new emission standards. However, an anticipated increase in the industrial production index is also expected to aid the industry's performance substantially. “Moreover, international emission regulatory standards and demand are similarly anticipated to grow rapidly over the five-year period, causing industry exports to rise by 2018,” says Hoopes.
For more information, visit IBISWorld’s Activated Carbon Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry manufacture activated carbon, which is a form of carbon that has been processed to make it extremely porous and, thus, have a very large surface area available for adsorption or chemical reactions. Activated carbon is produced from carbonaceous source materials, like nutshells, peat, wood, coir, lignite, coal and petroleum pitch and is used for a range of purposes, including gas purification and water purification.
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