Synthetic Rubber Market

Synthetic Rubber Market Size-(2023-2028):

The Global Synthetic Rubber Market was worth US$ 23.2 billion in 2022 and is anticipated to reach a valuation of US$ 30.56 billion by 2028 and is predicted to register a CAGR of 4.7% during 2023-2028.

Market Overview:

Synthetic rubber is a synthetic rubber and various raw materials such as styrene, butadiene, chloroprene, isoprene, acrylonitrile, isobutylene, ethylene, and propylene are joined to form it. It is a type of elastic polymer mainly derived from petroleum by-products. Automotive products constitute a huge market and are the main axis of steady growth in the market. The increasing use of synthetic rubbers in tire and non-automotive tire applications, the growing trend to use synthetic rubbers in automobiles to reduce vehicle weight for fuel efficiency purposes, and the growing demand for fuel efficiency. One of the main factors driving the synthetic rubber market is the growing demand for sports shoes.

However, oversupply due to constant capacity additions is likely to slow market growth. Growing demand for hydrogenated nitrile butadiene rubber (HNBR) in emerging markets is also likely to drive the growth of the synthetic rubber market. The development of bio-based raw materials for synthetic rubber is likely to be a market growth opportunity in the future. Inexpensive synthetic rubbers have become the ideal alternative to natural rubber in the automotive and construction industries.  Synthetic rubber is used to make polymer concrete for waterproofing, tires, pipes, conveyor belt covers, gaskets, tubing, and more. Asia-Pacific is the main contributor to the market, with China being the main producer arm of Asia-Pacific. The factors that promote growth in China are rapid industrialization, the rise of the middle class, and economic growth. China and India are experiencing a peak of car sales in the countries and thus signal the growth of synthetic rubber in these two countries. A growing construction sector and infrastructure buildings are expected to drive growth in the region. South America and Central Europe will experience considerable growth during the forecast period.

Market Drivers and Restraints:

Rising demands for industrial goods are a driving factor to promote the Synthetic rubber industry in the North American, European, and Asia-Pacific regions, as it is widely used in the packaging and manufacturing industry, and with the pandemic, the packaging industry is one of the few which has grown. The Paper industry also has wide implications for synthetic rubber in the form of laminations etc. Synthetic rubber is also used in industrial products such as the construction of corrugated boxes and in recent times this has been one of the growth factors of the industry.

Synthetic rubber is highly regarded for protection against wear, abrasion, and impact, fast cold-curing, excellent adhesion to a wide variety of substrates, better mechanical strength, high elasticity, protection against erosion and corrosion, and easy application. As a consequence of that, synthetic rubber products are gaining popularity in diverse applications. The rapid expansion of the global manufacturing sector due to private and government funding is igniting the demand for synthetic rubber used in textile, automotive, and industrial goods applications.

Factors holding back the market are:

The synthetic rubber technique is extremely useful and is growing at a high rate but at the same time, it is costly. In addition to this, the volatility in prices also impedes growth.
The industry also is expected to invest a lot in research and development to keep improving the quality of the products to meet the standard demands that are in line with government regulations. The availability of raw materials can also hinder the expansion of this market.

SYNTHETIC RUBBER MARKET REPORT COVERAGE:

The Synthetic Rubber Market has been segmented into the following categories.

Synthetic Rubber Market On the Basis of Type:

• SBR
• EPDM
• BR
• SBC
• NBR

Synthetic Rubber Market On the Basis of the Application:

• Tyre Automotive
• Non-Tyre Automotive
• Footwear
• Industrial

The consumer goods segment has witnessed perennial growth prior to the coronavirus pandemic. In particular, the footwear market has grown significantly in Asian countries. Synthetic rubber is used by many textile companies for the production of their goods. The Styrene-Butadiene Rubber (SBR) segment in the Synthetic rubber market dominated the market in terms of value in 2019 and this trend is likely to continue during the forecast period of 2020 to 2025. The primary reason for this domination is that it possesses superior properties that include aging stability, resistance to high abrasion, etc., which makes it the preferred material in the tire manufacturing industry.

The tire manufacturing application segment is the largest shareholder in the Synthetic rubber market in terms of value. Tire manufacturing is an integral part of the automotive industry and its usage has increased over the past few years. Due to the abrasive nature of the materials transported; tires are constantly exposed to heavy wear and impact damage and therefore, require constant improvement in performance to increase their service life. As a result, there is a high demand for Synthetic rubber in the tire manufacturing industry. 

Market Regional Analysis:

• North America
• Europe 
• Asia Pacific 
• Latin America
• The Middle East and Africa 

Asia Pacific (APAC) and the Middle East and Africa (MEA) regions are expected to dominate the Synthetic rubber market in terms of value during the outlook period of 2020 to 2025. It is due to the presence of established textile and manufacturing industries in the areas. The above-mentioned areas utilize Synthetic rubber based on tires, pulleys, footwear, etc. The market in these end-use segments is led by nations like India, Japan, China, and Australia. Amidst the incessant technological growth, the demand for high-performing Synthetic rubber is increasing. This has led to developments in the APAC Synthetic rubber market.

The North American region is the second-largest market for synthetic rubber. In North America, the USA is likely to be the major contributor to this business. It has become one of the production powerhouses of the world and is one of the strongest economies. Automotive sectors in the region are planning huge investments in the industry in the upcoming years that will increase their demand.

Impact of COVID-19 on the Global Synthetic Rubber Market

Coronavirus has exposed severe challenges to the synthetic rubber market by impacting various industry verticals. Major economies around the world, such as the USA, Italy, Brazil, etc., are affected due to pandemics. The Synthetic rubber market saw a decline in growth in this period owing to the decreased demand for rubber products. Decreased construction and mining activities have resulted in low demand that has negatively impacted the industry. More investments are being made toward bio-based Synthetic rubber to improve the longevity of these products. The short-lived rubber tires have imposed several environmental concerns, and thus it is imminent that improvement in the characteristics of these products will take place.

Key Market Players:

1. Exonn Mobil
2. Sinopec
3. Kumho Petrochemical Company
4. Sika AG
5. Mitsubishi Chemicals