The worldwide synthetic rubber market was valued at USD 28.26 billion in 2017 and is forecasted to grow at a CAGR of 5.4% from 2018 to 2026. Synthetic rubber is an artificial rubber and is made from different raw materials such as styrene, butadiene, chloroprene, isoprene, acrylonitrile, isobutylene, ethylene, and propylene. Rubber demand is mainly stimulating with accelerating production of automobile products.
Synthetic rubber market is mainly driven by its high utilization in the automobile industry for both tire and non-tire applications. On account of its resilience, toughness, and elasticity it is one of the basic and major constituents of tires in the automobile industry. More than half of the the total rubber consumption takes place in manufacturing tires for aircrafts, automotive vehicles, and bicycles. Apart from this, a significant portion is utilized for mechanical parts and the consumer products.
The demand for synthetic rubber has witnessed massive scale as the automobile industry witnesses considerably high growth in almost every part of the world. Rise of electric vehicles has provided an essential boost to the overall automotive industry. Government ingenuities are expected to accelerate their shift from country’s vehicle fleet from the combustion to electric drive types is yet another reason rapid growth in the sale of the electric vehicles and has resulted in more usage of the components and their raw materials.
North America Synthetic rubber Market Share by Application, 2017-2026
Note: Inside circle depicts data for 2017 & outside circle depicts data for 2026
The economic factors such as number of potential buyers, purchasing price, and fuel price are also some of the crucial factors affecting the sales of different type of automotive vehicles. electric vehicles. As the electric vehicles are clean energy alternatives to the fuel-based vehicles, it’s becoming a preferable option by many consumers. All these different type of vehicles in tandem with the non-tire applications have made automobiles to be the driving factor for the synthetic rubber market.
Global synthetic rubber industry is characterized by rationalization and consolidation in the value chain. The demand has grown substantial for the synthetic rubber but with a slow closure of the overcapacity gap. Some of the growth prospects for the industry include drive for productivity improvements and consumption moving towards site of production in order to reduce cost and logistics inefficiencies.
North America Synthetic Rubber Market Share by Product, 2017 – 2026
Styrene Butadiene Rubber (SBR) is the largest product segment for the synthetic rubber market. This due to its superior properties such as high abrasion resistance, high tensile strength, and good aging stability. Approximately 50% of SBR is used in the manufacturing of tires. Moreover, it is also a cost-effective alternative as compare to the natural rubber.
On the basis of applications, synthetic rubber market is segmented into tire & tire components, non-tire automobile applications, industrial goods, footwear, and few other mechanical applications. Tire & tire components is the largest and fastest growing application for the synthetic rubber industry.
Asia Pacific is the largest regional segment for the synthetic rubbers with China as the major producer globally. Rapid industrialization, rising middle class and growing economy growth are some of the significant reasons behind China being the largest producer for synthetic rubber. Indian Subcontinent and Southeast Asian countries also have significant growth prospects for the synthetic rubber.
Rubber market in Eastern Europe and Central & South America are also anticipated to witness considerable growth during the forecast period. North America and Western Europe are moderately mature markets for synthetic rubber and are expected to witness stagnating growth rates.
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 synthetic rubber market 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.