The global synthetic rubber market size was valued at USD 29.9 billion in 2018 and is estimated to grow at a CAGR of 5.7% from 2019 to 2026. Synthetic rubber is an artificial rubber and various raw materials such as styrene, butadiene, chloroprene, isoprene acrylonitrile, isobutylene, ethylene and propylene come together to make it. It is a kind of elastic polymer mainly derived from petroleum byproducts. Automobile products are an enormous market and are the main crux in driving market growth regularly.
Synthetic rubber market is driven primarily by the automobile industry for utilization in both tire and non-tire applications. The properties underlying product score is its resilience, toughness and elasticity which makes the product as central piece in manufacture of tires for the automobile industry. Aircraft, automotive and bicycles account for more than half of total rubber intake.
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Furthermore, increasing sporting events such as car racing tournaments with deep research carried out in tire durability and its demand will hasten market growth. Growing middle class population combined with continuous industrialization has given impetus to the footwear sector which in turn will fuel market growth.
High cost of natural rubber, owing to the dying plantations across the world, is a factor that will boost market growth for synthetic rubbers market. The cheap synthetic rubbers have shone through as the ideal alternative to natural rubber in automobile and construction sector. Synthetic rubber is used for making polymer concrete for waterproofing, tires, hoses, conveyor belt covers, gaskets, tubes and others.
Synthetic rubber finds usage in making footwear, industrial goods, asphalt overlay, tires and adhesives. Tires generate maximum acclaim and demand in market. Tire segment will be maximum revenues generator and will maintain lead in generating demand.
Nitrile butadiene rubber (NBR) is also making a bright foray into this market and the move is highlighted because of its compelling demand in automotive applications. Synthetic rubber has witnessed a burgeoning demand as the automobile industry keeps up its pace with very high growth in almost every part of the world. The introduction of electric vehicles into mainstream market has jolted the overall automobile industry. Government drive to eliminate internal combustion vehicles from its fleet and in place equip with electric vehicle types is a timely push to growth of synthetic rubber industry.
Electric vehicles are the clean energy type and are responsible for changing consumer perception from petrol vehicles to the energy variant. This in tandem with non-tire applications has made automobiles sector the driving factor in market.
The Global synthetic rubber industry is characterized by rationalization and consolidation in the value chain and room for productivity improvements keeps the industry driving on a positive note. However, volatility in crude oil prices and a move to substitute synthetic rubber with natural rubber could dampen market growth.
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Styrene Butadiene Rubber (SBR) leads the market segment in synthetic rubber market. The selective properties inclusive of high abrasion resistance, high tensile strength and good aging stability are factors working in favor of styrene butadiene rubber. The veracity of claim can be gauged by the reason that 50% of SBR is used to manufacture tires. It is a cost-effective approach to that of natural rubber.
The classification of synthetic rubbers walks you through applications and regions. Application wise, synthetic rubber is segmented into tire and non-tire automobile applications. Tire and tire components are the largest growing applications for synthetic rubber industry.
Asia Pacific is the leading market contributors with China being the major producing arm for Asia Pacific. Factors promoting growth in China are rapid industrialization, rising middle class and growing economy. India turns in second in the growth prospects of synthetic rubber. China and India are witness to maximum automobile sales in the countries and hence targeting growth for synthetic rubber in these two countries. A rising construction sector and infrastructure buildings is expected to etch growth in the region
South America and Central Europe will witness considerable growth during forecast period. Construction activities and growing car sales in North America and Africa and Middle East markets are expected to witness market growth albeit at a steady pace. A searing demand for green tires is expected to positively abet growth in the region.
The global synthetic rubber industry is moderately fragmented and highly competitive along with high degree of integration across the value chain. In getting better of competition, industry players are investing a lot of money to produce innovative products with focus on value chain and deep marketing and advertising. M&As are also an area that organizations would like to carefully tread. The Chinese petroleum and chemical company Sinopec is the world’s largest synthetic rubber manufacturing facility in the world.
The global synthetic rubber industry is moderately fragmented and highly competitive along with the high degree of integration across the manufacturing and distribution stage. Some of the major players include LANXESS, Sinopec, China National Petroleum Corporation (CNPC), Sibur, Kumho Petrochemical, JSR Corporation, Asahi Kasei Chemical Corporation, Trinseo, Eastman Chemical Corporation, and Ashland Inc.