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The global rubber market size was valued at USD 40.77 billion in 2019 and it is projected to reach USD 51.21 billion by 2027, exhibiting a CAGR of 5.3% during the forecast period.
Properties such as heat and abrasion resistance make rubber a highly useful and valuable raw material in various end-use industries. It is mostly used in manufacturing products such as tires, crap tubes, adhesives, hoses, gaskets, and roll coverings. The rising demand from the automotive industry for tire and non-tire applications is one of the key rubber market trends. It is majorly used in the manufacturing of tires due to its strong properties, such as tear resistance and toughness. It also works under low-temperature conditions. It is a perfect material for the manufacturing of tires and hence, accounts for over 40% of the share in the overall tire composition. Additionally, properties, such as weather resistance, insulation property, and flexibility increase the usage in industrial applications including transmission belts, elevators, and non-flat belts.
COVID-19 Outbreak to Negatively Impact the Market
The COVID-19 pandemic has affected the market in the same manner as numerous disrupted industries across the globe. Silicone rubber is majorly used in the automotive industry for the manufacturing of tires and several components. During this pandemic, several countries including China, India, Germany, Italy, Brazil, and Canada declared complete lockdown. This further led to the shutdown of production facilities, and raw material transportation. This epidemic has severely affected the supply chain of numerous manufacturing units. Since, both raw material supply and finished goods distribution is majorly affected, causing a massive drop in revenue. China is a major consumer of materials and an epicenter of coronavirus, thus, inhibiting the development of the market. Restrictions over export and import of products such as tires, general, and industrial goods acts as a factor for the decline of the market.
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Development of Different Products to Provide Growth Opportunities for the Market
Rubber products find applications in various industries such as packaging, manufacturing, engineering, and construction. When combined with various polymers and chemicals, it provides sturdy outcomes in the production of products such as surgical supplies, respirators, pacemakers, and feeding nipples. Some companies operating in the market are specialized in compounding rubber according to the specifications of customers to develop novel products. For instance, reinforced products such as drive belts, air brake diaphragms, and conveyors are built from calendered or coated rubber on a revolving or stationary drum. On the other hand, non-reinforced rubbers are formed and cured for the formation of sponge. Hence, the development of novel products is expected to create immense growth opportunities for the market.
Growing Demand from Various End-Use Industries to Drive Market
Rubber is dominantly used as a raw material in the automotive end-use industry for the production of a wide variety of products, such as tires, crap tubes, adhesives, hoses, pipes, gaskets, and roll coverings. The increasing demand for tire and non-tire automotive parts is expected to influence market growth.
It is further used in various applications, such as footwear, industrial goods, construction, textiles, and other consumer products. The amalgamation of rubber in footwears gives protection from water, chemicals, electricity, impact, and low temperatures. It is also used in a variety of consumer products, such as protective covers, mats, and others. The rising usage in textiles and industrial goods is expected to act as a driving factor for the growth of the market.
Availability of Alternatives with Better Performance Indicators is Impeding Product Adoption
The market is gaining impetus through the demand from industries such as automotive, consumer goods, and clothing & footwear, but it faces considerable competition from materials such as polymers & plastics and vinyl. Polymers & plastics are generally inexpensive as they are produced in massive quantities across the globe. Moreover, polymers such as PET, PP, and ABS have better capabilities such as elasticity, rigidity, anti-slip, and durability, making them superior alternatives. Products such as pipes, seals, and tubes are preferably made of plastics and are significantly replacing rubber-based products in automotive and industrial applications. Vinyl or polyvinyl chloride (PVC) is another substitute material in products such as door and window siding, flooring, pipes, and industrial gloves. Hence, the availability of alternatives is expected to diminish the expansion of the market.
Synthetic Rubber Segment is Expected to Generate the Highest Revenue
The demand for synthetic rubber is increasing from several applications, such as tire, footwear, and industrial goods due to its superior properties including abrasion resistance, high heat resistance, elasticity, and toughness. These properties have caused a large number of consumers to shift from natural to synthetic rubber for a wide range of commercial uses. This type is largely used in the manufacturing of tires. The styrene-butadiene sub-type is majorly used in tire production due to its better abrasion resistance and it is considered as a cost-effective replacement of natural variety.
The increasing demand for natural rubber is due to its automotive applications and latex products. Asia Pacific has been the dominant market for this type. It is because several manufacturers in this region produce and export this type to the other countries in the form of either raw material or as complete products. Thailand is the largest producer of this type globally due to its effective cultivation methods and tropical climate. Natural variety is a preferred choice over high priced synthetic variety in the developing countries.
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Tire Segment is Anticipated to Exhibit a Significant CAGR
Rubber has a high demand from the tire manufacturing companies due to its crucial properties, namely, abrasion resistance, tear resistance, and flexibility. The tire segment would ensure to hold the highest rubber market share owing to the rising production of tires in various regions. This rising production is associated with the growing demand for tires from the automotive industry. Non-tire automotive applications hold the second-largest share in terms of consumptions. These applications include the production of gaskets, floor mats, pads on pedals, crap tubes, adhesives, hoses, bushings, and others.
The demand for the product in the footwear application is increasing owing to its properties, such as lightweight and also offers protection against water, chemicals, electricity,. The rubber used in footwear provides comfort, durability, and traction. These factors increase the consumption of the product in the footwear application.
In industrial applications, rubber is highly used to manufacture various material handling equipment, such as elevator belts, hoses, seismic bearings, and tubes. Additionally, it is used to manufacture pressure bladder, tool sealant, gaskets, and vacuum bags. The other applications of the product include surgical gloves, catheters, and contraceptives.
Asia Pacific Rubber Market Size, 2019 (USD Billion)
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The market size in Asia Pacific stood at USD 22.09 billion in 2019. Asia-Pacific is the largest producer as well as consumer with Thailand being the largest producing country of natural rubber and China being the largest consumer. Asia Pacific is expected to witness the highest growth in the market across the globe. Growth in the automotive and construction industries is a key driver of the market in this region. China, Japan, and India are key countries contributing to the market growth in the region owing to the rising tire production and construction activities in these countries.
North America is anticipated to remain a key region in the market during the forecast period owing to the rising demand in automotive and footwear applications. The market in North America is also driven by factors, such as rising application in chemical and textile industries, and advancements in technologies.
Europe is projected to witness significant growth in the market. The increasing demand for tires in the automotive industry would contribute to the growth of the market in the region. Additionally, the use for non-tire automotive and industrial applications are some of the other key factors driving the market growth in Europe.
Latin America and the Middle East & Africa would showcase lower growth in the market value compared to the other regions due to factors, namely, more dependency on the import of natural rubber, high cost of synthetic type, and less production of tires.
Market Players like ARLANXEO and Kumho Petrochemical are Expected to Strengthen the Market Position by Offering Various Solutions
The major producers of the product are located in Asia leading to a fragmented market. The manufacturers located in North America and Europe are aiming to increase their presence in Asia Pacific in order to strengthen their position in the market and to drive business growth. The key players in the market have, therefore, developed strong regional presence, distribution channels, and product offerings.
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The market research report provides qualitative and quantitative insights on the market and a detailed analysis of this market size & growth rate for all possible segments that exist in the market. The market is segmented by type, application, and geography. Based on type, the market is classified into natural and synthetic. By application, the market is divided into tire, non-tire automotive, footwear, industrial, and others. Geographically, the market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. These regions are further categorized into countries.
Along with this, the report provides an elaborative analysis of the rubber market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in this market, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key rubber industry trends, competitive landscape, and company profiles.
Value (USD Billion) and Volume (Million Tons)
Type; Application; and Geography
Fortune Business Insights says that the global rubber market was valued at USD 40.77 Billion in 2019 and is projected to reach USD 51.21 Billion by 2027.
The market will exhibit steady growth at a CAGR of 5.3% in the forecast period (2020-2027).
The tire segment is expected to be the leading application in the market during the forecast period.
Increasing demand from the automotive sector is driving market growth.
Asia Pacific is expected to hold the highest market share in the market.
Tire and non-tire automotive are the key applications expected to drive the adoption.
Rising demand for tires, growing automotive, consumer goods, and construction industries are the key market trends.
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