According to the report, the global green carbon industry was valued at $16.8 million in 2025 and is estimated to generate $32.9 million by 2031, witnessing a CAGR of 11.9% from 2022 to 2031. The report offers a detailed analysis of changing market trends, top segments, key investment pockets, value chain, regional landscape, and competitive scenario.
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Drivers, Restraints, and Opportunities
Surge in population, the rise in demand for consumer goods which led to rapid urbanization and industrialization in both developed and developing economies, and the rise in release of toxic chemicals and gases from industries, transport vehicles, and others drive the green carbon market. However, the high cost of green carbon and skilled workforce needed for the production of green carbon are likely to hinder market growth during the forecast period. On the other hand, advancements in R&D activities and rise in adoption of lithium-ion batteries in various end use sectors owing to the high efficiency of lithium-ion batteries will present new growth opportunities for the global green carbon market in the coming years.
Covid-19 Scenario
- The outbreak of the COVID-19 pandemic had a negative impact on the green carbon market. This is owing to disruptions in the supply chain of raw materials and a halt in manufacturing activities.
- However, the market has stabilized post the pandemic.
The lithium-ion batteries segment to dominate the market during the forecast period
Based on application, the lithium-ion batteries segment contributed to the largest share of nearly three-fifths of the global green carbon market in 2025 and is expected to maintain its dominance during the forecast period. Moreover, the same segment is projected to witness the fastest CAGR of 12.1% from 2022 to 2031. The increase in adoption of lithium-ion batteries in the renewable energy sector coupled with the rise in demand for plug-in electric vehicles has surged the demand for lithium-ion batteries where green/bio-based carbon is widely used for producing anode materials.
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The biomass segment to grab the lion’s share during the forecast period
Based on source, the biomass segment grabbed the highest share of more than four-fifths of the green carbon market in 2025 and is expected to dominate the market in 2031. The same segment would witness the fastest CAGR of 11.9% from 2022 to 2031. The rise in awareness for eco-friendly activities coupled with rapid transition toward sustainable energy sources has surged the popularity of biomass-derived carbon owing to its environment-friendly properties.
Europe to garner the largest revenue by 2031
Based on region, the market in Europe was the largest in 2025, accounting for more than two-fifths of the global green carbon market and is likely to maintain its dominance during the forecast timeframe. The same segment is likely to show the fastest CAGR of 12.6% during the forecast period. Germany is the most promising country-level market in the region with increased production of biomass. According to a report published by Germany Bioenergy in 2021, around 55% of renewable energy is obtained from biomass. This may ease the green carbon producers for raw material availability in the European region.
Leading Market Players
- Vatenfall AB
- TEIJIN LIMITED
- Mitsui Chemicals, Inc.
- Charm Industrial
- Drax
- Orsted A/S
- Alstorm
- Enviva
- Clean Energy Systems
- Babcock & Wilcox Enterprises, Inc.
The report analyzes these key players of the global green carbon market. These players have adopted various strategies such as expansion, new product launches, partnerships, and others to increase their market penetration and strengthen their position in the industry. The report is helpful in determining the business performance, operating segments, product portfolio, and developments by every market player.
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