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The global synthetic rubber market size was valued at USD 28.89 billion in 2021 and is projected to grow from USD 29.86 billion in 2022 to USD 41.73 billion by 2029, exhibiting a CAGR of 4.9% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 8.0% in 2020 as compared to 2019.
Synthetic rubber is a manmade rubber or artificial elastomer. It is synthesized using raw materials including coal, oil, natural gas, and acetylene. The product offers numerous advantageous properties, such as recyclability, higher tensile strength, and resistance to swelling and abrasion. The rising research and development and growing product advancement by several manufacturers in the rubber market will surge the product demand. The rapid growth rate in aerospace, automotive, and construction, coupled with the increasing rubber demand from the tire and electronic applications, will contribute to fueling the market growth during the forecast timeline.
Disruption in Automotive Industry Due to Spread of COVID-19 Resulted in Declining Demand
The automotive industry has been severely affected by the COVID-19 pandemic. The movement of man and material alike has been impacted while the supply chain of synthetic rubber was restricted. Also, the pandemic caused the closure of assembly plants in the U.S., large-scale manufacturing interruptions across Europe, and Chinese parts exports. Moreover, after the early disturbances in supply and manufacturing, the automotive industry is undergoing a demand shock with an undefined recovery timeline due to shelter-in-place rules; however, governments in these countries are trying to bring their industries back on track resulting in the recovery of the automotive industry and the global market in the next couple of years.
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Rising Demand for Manmade Rubber over Natural Rubber is a Prominent Trend
The growing demand for manmade rubber over natural rubber will contribute to the market growth. The demand is attributed to its suitability for use in environments exposed to chemicals, greases, oils, high temperatures, oxidizing compounds, and other extreme conditions. Also, many types of this rubber are flame-resistant. Hence, they are utilized as insulation for electrical devices. Moreover, artificial elastomer could provide a myriad of property improvements, which cannot be found in natural rubber. This property improvisation would lead to an increase in rubber production around the world. Hence, these factors will fuel the synthetic rubber market growth.
Increasing Demand from the Automotive Industry to Boost Market Growth
The rising demand for synthetic rubber from the automotive industry will boost the market growth. Properties such as abrasion and temperature resistance make artificial rubber a preferred choice in the automotive industry. The artificial rubber offers excellent anti-slip property that enhances its usage in vehicle pedals and flooring mats inside the vehicle chamber. It is highly utilized in tire applications, such as flooring, door & window profiles, hoses, O-rings & gaskets, and belts. Moreover, the increasing demand for automobiles globally is expected to surge the product consumption, primarily associated with the adoption of rubber products in the manufacture of different bikes and cars. The rapid growth in the automobile industry, coupled with increasing research & development activities, will surge the product demand during the forecast period.
Hazardous Impacts Caused by Artificial Elastomer to Hamper Growth
Hazardous impacts of the product restrict its adoption in various applications. During the vulcanization of synthetic rubber, the soot of carbon particles is produced. It causes several environmental problems, including haze and the acidification of lakes and rivers. Also, soot inhalation can lead to a wide array of serious health issues such as respiratory issues, bronchitis, shortness of breath, stroke, asthma, cancer, heart attack, and premature death. These are some factors that may restrain product adoption and hamper market growth.
Styrene Butadiene Rubber Segment to Hold Largest Share Due to its Preference over Natural Rubber
Based on type, the market is segmented into styrene butadiene rubber, nitrile rubber, polybutadiene rubber, butyl rubber, and others. Styrene butadiene rubber (SBR) is the leading segment and accounted for the largest market share. The growth is attributed to its cost-effective properties and preference over natural rubber. The high product consumption can be seen in the insulation of wire and cabling, belting, roll coverings, cutting board, and haul-off pads. Polybutadiene rubber is the second leading segment in the global market. The product finds its major adoption in tire manufacturing.
Butyl rubber is an important material used in the manufacturing of inner tubes, tubeless tires, and sports-balls due to its low gas and vapor permeability properties.
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Tire is the Dominating Application Segment Owing to Rapidly Growing Automotive Industry
Based on the application, the market is segmented into tire, non-tire automotive, industrial rubber goods, footwear, and others. The tire segment grew at a higher rate and accounted for the largest market share in 2021. The rapid growth in the automotive industry, coupled with advancements in the tire, is one factor that would aid market growth. The non-tire automotive industry is the second-leading segment in the market. In this segment, the rubber consumption can be seen in automotive mats and wire & cables.
The industrial rubber goods segment consists of conveyor belts, industrial mats, gloves, and wires & cables. The rising product demand in these applications will flourish the market growth.
Asia Pacific Synthetic Rubber Market Size, 2021 (USD Billion)
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The market size in Asia Pacific region stood at USD 15.13 billion in 2021. The growth is attributed to the increasing demand for styrene-butadiene rubber and nitrile rubber from the construction industry. Further, the increasing infrastructure development, coupled with product advancement, will fuel the market growth. In this region, China holds the highest synthetic rubber market share, and this is due to the higher production of different grades of tire and non-automotive products.
Europe is the second-leading region in the global market. The rapid growth in the automotive industry and the increasing product demand for the manufacturing of tires, belts, and hoses will fuel the market growth in this region.
The rapid use of nitrile rubber in industrial goods coupled with increasing demand for synthetic rubber caulk, crossword, and adhesives in the leading applications will propel the market growth in North America. Moreover, the rapid growth in the electrical & electronic and tire industries will help surge the market growth in this region.
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The increasing adoption of manmade rubber in industrial rubber mats, which are highly adopted in the oil & gas industry, will drive product adoption in the Middle East & Africa. In Latin America, the growth is owing to the increasing use of butyl rubber in footwear and rubber goods applications.
Capacity Expansion was the Key Strategy Adopted by the Companies to Retain Market Position
Capacity expansion is an important strategy employed by market leaders, such as Reliance Industries Limited and Lanxess to maintain their positions in the market. Reliance Industries Limited is an Indian multinational conglomerate company. It has diversified businesses in energy, petrochemicals, retail, natural resources, textiles, and telecommunications. The company produces manmade rubber through its subsidiaries, Relflex and Reliance Sibur Elastomers Pvt Ltd. LANXESS, on the other hand, is involved in the development, manufacturing, and marketing of additives, chemical intermediates, modern plastics, and specialty chemicals.
An Infographic Representation of Synthetic Rubber Market
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The global synthetic rubber market research report provides detailed industry analysis and focuses on crucial aspects of the market such as leading companies, types, and applications. Also, the report offers insights into key market trends, highlights vital industry developments, and competitive landscape. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.
Value (USD Billion), Volume (Million ton)
By Type, Application, and Geography
Fortune Business Insights says that the global market size USD 28.89 billion in 2021 and is projected to reach USD 41.73 billion by 2029.
In 2021, the market value stood at USD 28.89 billion.
Registering a significant CAGR of 4.9%, the market will exhibit considerable growth over the forecast period (2022-2029).
The styrene butadiene rubber segment is expected to lead this market during the forecast period.
Increasing product demand from the automotive industry is set to be the key factor driving the market.
Reliance Industries Limited and Lanxess are the leading players in the market.
China held the largest share in the Asia Pacific market in 2021.
Increasing product demand over natural rubber owing to its beneficial properties is anticipated to surge the product adoption.
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