Synthetic Rubber Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis

[Research Report] The synthetic rubber market size is expected to grow from US$ 23,438 million in 2022 to US$ 33,383 million by 2031; it is estimated to register a CAGR of 4.5% from 2022 to 2031.

Market Insights and Analyst View:

Synthetic rubber is a man-made rubber manufactured in plants by synthesizing it from petroleum products. It can undergo elastic stretchability or deformation under stress; however, it can return to its previous size without permanent deformation. The different types of synthetic rubber are acrylic rubber, butadiene rubber, butyl rubber, ethylene propylene diene monomer (EPDM), fluoroelastomers, isoprene rubber, nitrile rubber polychloroprene, perfluoroelastomer, polysulfide rubber, silicone rubber, and styrene butadiene rubber. Ethylene propylene diene monomer rubber has excellent atmospheric aging resistance, meaning it is resistant to heat, ozone, and weather. Also, it has a good resistance to most water-based chemicals. It also has a great resistance to abrasives and tearing. EPDM rubber finds application in automotive weather-stripping and seals, glass-run channels, radiators, garden and appliance hoses, tubing, belts, electrical insulation, roofing membranes, and many other applications. Further, the synthetic rubber market growth is driven by increasing demand from applications such as tires, consumer goods, industrial goods, and others.

Growth Drivers and Challenges:

The major factor driving the synthetic rubber market size is the growing demand for tires. The demand for tires is increasing due to the strong growth of the automotive industry, increasing vehicle production in different countries, and rising consumer demand for automotive vehicles. China, the US, Japan, Germany, India, and Mexico are some of the major countries in the automotive production. China is the world's biggest manufacturer and the leading producer of cars. The country is highly involved in the production of personal passenger cars and commercial vehicles. The Chinese government has taken several initiatives to support automobile manufacturers in pushing the production capacity of the country to 35 million units of vehicles by 2031. The US is another largest car manufacturers in the world. Japan has the largest automotive industry in the world; it is a hub for more than ten major automotive manufacturers, including Suzuki Motor Corporation, Honda Motor Co Ltd, Toyota Motor Corporation, and Mitsubishi Motors Corporation. All these factors are driving the demand for tires, thus driving the growth of the market. Further, the electric vehicle has proven to be an essential technology in terms of reducing air pollution in densely populated areas and a promising option for contribution to energy diversification and the reduction in greenhouse gas emission objectives. Various benefits of electric vehicles include zero tailpipe emissions, the potential for greenhouse gas emissions reductions, better efficiency than internal combustion engine vehicles, etc. To encourage the adoption of electric vehicles, countries such as China, India, and the US have passed regulations. Electric vehicle adoption is expanding as technological progress in the electrification of two-wheelers, three-wheelers, buses, and trucks advances and their market grows. According to a report titled 'The Global EV Outlook 2021' from the International Energy Agency, the global stock of electric passenger cars continued to expand rapidly in 2021, reaching 7.2 million units, 40% higher than in 2021. The government in India is also taking various initiatives to promote the manufacturing of electric vehicles in the country. The increasing production of electric vehicles is also driving the market growth. However, the presence of substitute products such as natural rubber and the environmental consequences of the synthetic rubber production process are expected to hamper the growth of the global synthetic rubber market. Synthetic rubber is non-biodegradable in nature, and this is the most concerning environmental aspect of synthetic rubber. Synthetic rubber products take a very long time to decompose, which results in the accumulation of waste in landfills and natural environments.

Strategic Insights

Report Segmentation and Scope:

The "Global Synthetic Rubber Market" is segmented based on type, application, and geography. Based on type, the market is segmented into styrene-butadiene rubber, polybutadiene, fluoroelastomers, silicone rubber, nitrile rubber, EPDM, acrylic elastomers, butyl rubber, and others. The market is segmented based on application into automotive, consumer goods, industrial, medical, building and construction, and others. The automotive segment is further broken down into tire and non-tire applications. The market, based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)

Segmental Analysis:

Based on type, the market is segmented into styrene-butadiene rubber, polybutadiene, fluoroelastomers, silicone rubber, nitrile rubber, EPDM, acrylic elastomers, butyl rubber, and others. The styrene-butadiene rubber segment held a significant synthetic rubber market share and is expected to register significant growth over the studied period. Styrene butadiene rubber is usually very weak unless reinforcing fillers are incorporated. With the use of suitable fillers, this rubber becomes a strong rubber. Styrene butadiene rubber has similar chemical and physical properties to natural rubber. It has better abrasion resistance and poorer fatigue resistance. Demand for styrene-butadiene rubber is increasing sharply with the growing automobile industry. Styrene-butadiene rubber is used in tire and tire products, which also includes tread rubber. It is also used in mechanical goods, adhesives, floor tile, shoe soles, etc.

Regional Analysis: 

Based on geography, the synthetic rubber market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global market was dominated by Asia Pacific. Asia Pacific market includes countries such as Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. The region dominated the market due to the growing demand for tires as a result of the strong growth of the automotive industry in countries such as China, India, Japan, South Korea, and others. Moreover, the growing demand for synthetic rubber from applications such as consumer goods, medical, and industrial products is also fueling market growth.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the synthetic rubber market are listed below:

• In October 2016, Sabic introduced a new range of synthetic rubber products manufactured for the first time in Saudi Arabia at K2016.
• In 2021, DOW  added a gum mixer to the Midland plant to increase its fluoro silicone rubber production capabilities and added a new liquid silicone rubber mixer at its Zhangjiagang (China) facility.
• In November 2021, Asahi Kasei concluded a partnership agreement with Shell (Shell Eastern Petroleum (Pte) Ltd.). Through this partnership, Shell Eastern Petroleum (Pte) Ltd. will be offering high-quality premium sustainable butadiene derived from plastic waste and biomass, and Asahi Kasei will be utilizing sustainable butadiene for the manufacturing of solution-polymerized styrene-butadiene rubber (S-SBR) at its Singapore plant.
• In November 2022, KazMunayGas started construction works on a new butadiene and synthetic rubber plant.
• In March 2021, MOL Group and the JSR Corporation completed the construction of a synthetic rubber plant in Hungary. The plant employs cutting-edge technology and will manufacture annually 60,000 tons of synthetic rubber.
• In May 2023,  Arlanxeo announced a plan for the construction of a world-class rubber facility in Jubail, Saudi Arabia. The plant will produce two high-performance elastomers: ultra-high cis Polybutadiene (NdBR) and Lithium Butadiene Rubber (LiBR).

Covid-19 Impact: 

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in regions such as North America, Europe, Asia Pacific, South & Central America, and the Middle East & Africa hampered the growth of several industries, including the chemicals and materials industry. The shutdown of manufacturing units of companies disturbed global supply chains, manufacturing activities, and delivery schedules. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2021. The negative impact of the pandemic on various industries negatively impacted the synthetic rubber market growth. The negative impact of the pandemic on industries such as automotive, consumer goods, medical, building and construction, and others adversely impacted synthetic rubber consumption. The significant decline in the growth of the automotive industry significantly impacted the demand for synthetic rubber in the global market. Due to the COVID-19 pandemic, the automotive industry for all types of cars was significantly affected. The automotive industry experienced a decline in sales of vehicles. This resulted in reduced demand for tires and different types of synthetic rubber.

However, various industries such as automotive, consumer goods, medical, building, and construction are coming on track after supply constraints affecting these industries are resolving gradually. Moreover, the rising demand for synthetic rubber from various application sectors such as tire, industrial, and others is substantially promoting the growth of the synthetic rubber market.  

Competitive Landscape and Key Companies:

A few players operating in the global synthetic rubber market include BASF SE, Dow, Covestro AG, LANXESS, SABIC, DuPont, Huntsman International LLC, KURARAY CO LTD, ZEON CORPORATION, and Sinopec. Players operating in the market focus on providing high-quality products to fulfill customer demand. Players operating in the market also focus on adopting various strategies such as investment in research and development activities, new product launches, collaborations, and partnerships in order to stay competitive in the market.

REGIONAL FRAMEWORK

Synthetic Rubber Market Report Analysis

MARKET PLAYERS

Synthetic Rubber Market Report Scope