"Innovative Market Solutions to Help Businesses Make Informed Decisions"
The global rubber compound market size was valued at USD 32.93 billion in 2022 and is projected to grow from USD 34.11 billion in 2023 to USD 44.24 billion by 2030, exhibiting a CAGR of 3.8% during the forecast period. Asia Pacific dominated the rubber compound market with a market share of 53.75% in 2022.
The rubber compound is a finished material acquired through the processing of raw rubber, fillers, and other chemicals. These chemicals are utilized to optimize the properties of raw rubber, meeting specific performance requirements. Polymers, fillers, antioxidants, curing agents, oil, and accelerators, used in varied concentrations, enhance physical properties and processability, prevent long-term deterioration, and influence rubber vulcanization. Available in different types such as silicone rubber, fluoro rubber, and butyronitrile rubber, the compound finds extensive use in the tire and automotive industries.
The global market is experiencing significant growth owing to increased demand for electric vehicle production in the automotive industry. The rising global demand for automobiles is anticipated to boost product consumption, particularly in the production of various bikes and cars. Additionally, the growing preference for electric vehicles is contributing to the surge in this market. According to the International Energy Agency (IEA), global electric car sales surpassed 2.1 million in 2019, exceeding the 2018 figures, with a total of 7.2 million electric cars on the road. Electric cars constituted 2.6% of worldwide auto sales in 2019 and approximately 1% of the global car stock, signifying a 40% year-over-year growth.
Disruptions in the Supply Chain During COVID-19 Pandemic Hampered Growth
During the COVID-19 pandemic, extended lockdowns slowed production in key industries globally, including automotive, construction, aerospace & defense, electronics, industrial machinery, and consumer appliances. The output of major industries was significantly affected due to disrupted supply chains. However, leading manufacturers and suppliers implemented mitigation strategies and business continuity plans, supported by government initiatives to revive the economy. Consequently, the market is projected to slowly recover in the upcoming years.
Rising Adoption in Footwear Application to Drive Market Growth
The expanding adoption of rubber compounds in footwear applications is expected to drive the market. As demand for diverse types of footwear increases, the need for high-quality rubber compounds grows to meet durability and performance standards for various shoe styles and activities. These factors contribute positively to the overall growth of the industry.
Furthermore, the rising adoption of footwear applications propels the market by generating increased demand for rubber materials tailored to meet the specific requirements of different shoe types. Manufacturers must develop products that offer durability, flexibility, slip resistance, and comfort.
Manufacturers prefer rubber compound products over plastics and leather due to their longer shelf life and enhanced durability. These compounds are used in ski boots and shoe soles. Rubber silicone, mixed with other molecules, is used in shoes. Silicone rubber is flexible and can adapt to various terrains and surfaces, enhancing the customer experience.
Request a Free sample to learn more about this report.
Increasing Demand for Rubber Compound from the Automotive Industry to Aid Market Growth
The market growth is expected to depict significant results during the forecast period due to increasing demand from the automotive industry. The automotive sector stands as the largest consumer of rubber in various components such as car tires, seats, piping, flooring, door and window profiles, hoses, gaskets, and other automotive parts. According to Industrial Rubber Goods, approximately three-quarters of global rubber production is dedicated to tire manufacturing.
The automotive industry's continuous technological advancements to enhance tire sustainability and ongoing research and development activities in automotive parts contribute significantly to the increased product utilization.
The product's properties, including abrasion resistance, hardness, tensile strength, and temperature resistance, make it a preferred choice in the automotive sector. Moreover, its excellent anti-slip properties enhance its usage in vehicle pedals and interior flooring mats.
Hazardous Impacts Caused by Synthetic Rubber Processing to Hinder Market Growth
The adverse impacts of synthetic rubber limit its adoption in various applications due to environmental and health hazards. Processing synthetic rubber can lead to detrimental effects on the environment and human health, stemming from the release of volatile organic compounds (VOCs), air pollutants, and potentially harmful chemicals.
During the vulcanization process of synthetic rubber, carbon particles produce soot. This soot is emitted into the atmosphere in the form of liquid droplets or very fine particles. Sometimes, solid particles of soot are directly released into the air or formed when gases travel long distances from pollution sources and amalgamate with other particles.
As per the American Progress Organization, soot poses a significant risk to public health owing to its minuscule size. The particulate matter is so tiny that it can easily enter the lungs and bloodstream, causing damage in various ways. Inhalation of soot has been linked to severe health issues such as shortness of breath, respiratory problems, bronchitis, stroke, cancer, heart attack, asthma, and premature death.
Styrene Butadiene Rubber Dominates Market Share Driven By Tire Manufacturing Demand
Based on type, the market is segmented into styrene butadiene rubber, nitrile butadiene rubber, silicone rubber, EPDM rubber, and others.
The styrene butadiene rubber (SBR) segment accounts for a prominent market share. The increasing use of styrene butadiene rubber in tire manufacturing propels the demand for the SBR segment. In tire manufacturing, styrene butadiene rubber is considered a key element. Styrene butadiene rubber offers special characteristics, such as high tensile strength, abrasion resistance, good resilience, and perfect impact strength. Such properties are suitable for high-end tire manufacturing. The growing sales of automobiles are creating an opportunity for styrene butadiene rubber demand in the near future.
The others segment is anticipated to register growth during the forecast period. Growing tire industry and footwear industry is propelling the demand for other segment. The segments include butadiene rubber (BR), butyl rubber (IIR), and polyisoprene (IR).
To know how our report can help streamline your business, Speak to Analyst
Tire Segment to Hold Major Share with Increasing Demand from Different Industries
Based on applications, the market is segmented into tires, hose and belts, wire and cable insulation, footwear, and others.
The tires application segment holds a major market share during the forecast period. Compound rubber is majorly used in the production of tires. Rubber compounds provide abrasion resistance, excellent resistance to oil and petroleum, chemical and grease resistance, high tear strength, ozone resistance, and cold and hot temperature sustainability to the automotive rubber parts. The growing developments in automotive tires and the launching of electric vehicles are expected to create lucrative growth in the automotive industry, further propelling its demand.
Based on geography, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Asia Pacific Rubber Compound Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Asia Pacific is anticipated to dominate the global rubber compound market share through 2030. The region is home of several developing economies with major contributors such as China and India, among others.
The rapidly growing automotive industry is propelling the demand for rubber products in the region. Asia Pacific is considered a major producer of rubber globally. Thailand, Indonesia, Vietnam, India, and China are the key countries in rubber production. Moreover, China and India are considered as dominant regions in rubber consumption due to the presence of rubber and automotive manufacturers. Rubber compound has growing demand from the industrial sectors in the region.
To know how our report can help streamline your business, Speak to Analyst
The growth in the North American region can be attributed to the rapid expansion of the industrial and automotive industries. According to the Alliance for Automotive Innovation, the automotive sector contributes USD 1.0 trillion to the U.S. economy with 4.9% of its GDP, and the demand for construction products is rising from both the commercial and residential sectors. Thus, it creates a rise in domestic demand for the product from the major end-use industries to drive the market in the region.
In Europe, high demand for the product is associated with the rapid growth in the automotive sector and increased urban development. The primarily produced rubber compound is utilized for manufacturing automobiles and industrial purposes. Similarly, its larger chunk is used to manufacture tires. The industrial sector is projected to grow positively due to government support during the forecast period. Rubber compounds have a growing demand for sealant, insulation, and several other industrial applications from the industrial sectors.
The Middle East & Africa is expected to grow significantly during the forecast period. The growing demand for tires owing to the development of mega-projects in UAE, Qatar, & Saudi Arabia has witnessed rapid growth over the past few years. Thus, all these factors are expected to boost this trend during the forecast period.
Latin America is one of the rapidly advancing regions in terms of technological advancement and urbanization. Significant manufacturers are expected to promote regional product growth.
Players Focus on Capacity Expansions to Boost Market Growth
In terms of the competitive landscape, the market depicts the presence of established and emerging companies. Apcotex, China Petrochemical Corporation, Exxon Mobil Corporation, KUMHO PETROCHEMICAL, and Reliance Industries Limited are some of the key players in the global market. These players have a significant manufacturing capacity and are engaged in research and development for producing advanced products, such as nano-rubber compounds for industry-specific applications. They are also engaged in expanding their manufacturing capacity and distribution & sales network globally.
An Infographic Representation of Rubber Compound Market
To get information on various segments, share your queries with us
The market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, sources, applications, and products. Also, the market report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.
ATTRIBUTE | DETAILS |
Study Period | 2019-2030 |
Base Year | 2022 |
Estimated Year | 2023 |
Forecast Period | 2023-2030 |
Historical Period | 2019-2021 |
Growth Rate | CAGR of 3.8% from 2023-2030 |
Unit | Value (USD Billion) and Volume (Kiloton) |
Segmentation | By Type
|
By Application
| |
By Geography
|
Fortune Business Insights says that the global market size was USD 32.93 billion in 2022 and is projected to reach USD 44.24 billion by 2030.
Growing at a CAGR of 3.8%, the market will exhibit steady growth in the forecast period (2023-2030).
The tires segment is leading the market share by application.
Consistently rising demand from the automotive industry is a key factor driving market growth.
Apcotex, China Petrochemical Corporation, Exxon Mobil Corporation, Kumho Petrochemical, and Reliance Industries Limited are a few leading players in the global market.
Asia Pacific dominated the global market in terms of share in 2022.
The continuous growth in the automotive industry is expected to drive the product demand.
Related Reports
US +1 833 909 2966 ( Toll Free )