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The global synthetic rubber market size was USD 30,396.8 million in 2019 and is projected to reach USD 36,761.9 million by 2027, exhibiting a significant CAGR of 3.2% during the forecast period.
Synthetic rubber is an artificial elastomer or manmade rubber. It is synthesized from various raw materials such as coal, natural gas, oil, and acetylene. The product offers various beneficial properties, including recyclability, resistance to swelling and abrasion, and higher tensile strength. The increasing product advancement by various manufacturers and rising research and development activities in the rubber industry will surge the product demand. The rapid growth in industries such as aerospace, automotive, and construction, coupled with the increasing rubber demand from the tire and electronic applications, will contribute to fueling the key 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 and restricted the supply chain of the product. Also, the pandemic has caused the closure of assembly plants in the U.S., large-scale manufacturing interruptions across Europe, and Chinese parts exports. Moreover, after the initial supply and manufacturing disturbances, the automotive industry is experiencing a demand shock with an uncertain recovery timeline due to shelter-in-place regulations. However, as governments in these countries are trying to bring their industries back on track, the market is expected to regularize in the next couple of years.
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Rising Demand for Synthetic Rubber over Natural Rubber is a Prominent Trend
The increasing product demand over natural rubber will contribute to propelling 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, the product could provide a myriad of property improvements, which cannot be found in natural rubber. This would lead to an increase in production. For instance, according to Economic Times, in 2017, many Indian companies invested in this synthetic type of rubber and added a production capacity of about 270,000 tonnes a year. Hence, these factors will fuel the synthetic rubber market growth.
Increasing Demand from Automotive Industry to Boost Market Growth
The rising product demand from the automotive industry will contribute to boosting the market growth. Properties such as abrasion resistance and temperature resistance make artificial rubber a preferred choice in the automotive industry. It is highly utilized in tire applications, flooring, door & window profiles, hoses, O-rings & gaskets, and belts. Moreover, according to the Malaysian Rubber Council (MRC), global consumption of this type of rubber is increased from 15,280 million tons in 2019 to 15,792 million tons in 2020, with a growth rate of 3.4%. 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 Synthetic Rubber 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, inhalation of soot 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 of the factors that may restrain product adoption and hamper the market growth.
Styrene-butadiene Rubber Segment to Hold Largest Share during the Forecast Period
Based on type, the market is segmented into styrene-butadiene rubber, nitrile rubber, polybutadiene rubber, butyl rubber, and others. Styrene-butadiene rubber is the leading segment and accounted for the largest market share. The growth is attributed to its cost-effective properties and its preference over natural rubber. The high product consumption can be seen in the insulation of wire and cabling, belting, roll coverings, 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 owing to its low gas and vapor permeability properties.
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Tire is the Dominating Application Segment in the Market
Based on the application, this market is segmented into tire, non-tire automotive, industrial rubber goods, footwear, and others. The tire segment was growing at a higher rate and accounted for the largest market share in 2019. 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 product 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, 2019 (USD Million)
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The market size in Asia Pacific stood at USD 15,711.2 million in 2019. 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 rubber goods will propel the market growth in North America. Moreover, the rapid growth in the electrical & electronic industry will help to surge the market growth in this region. The increasing product adoption in industrial rubber mats, which are highly adopted in the oil & gas industry, will drive product adoption in the Middle East & Africa. In South America, the growth is owing to the increasing use of butyl rubber in footwear and rubber goods applications.
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Capacity Expansion to be the Key Strategy of Leading Companies
Capacity expansion is an important strategy employed by market leaders such as Reliance Industries Limited and Laxness to maintain their market positions. Reliance Industries Limited is an Indian multinational conglomerate company. It has diversified businesses in the energy, petrochemicals, retail, natural resources, textiles, and telecommunications. The company produces synthetic 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 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 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 for the synthetic types of rubber over recent years.
Value (USD Million); Volume (Kiloton)
By Type; Application; and Geography
Fortune Business Insights says that the global market size was USD 30,396.8 million in 2019 and is projected to reach USD 36,761.9 million by 2027.
In 2019, the market value stood at USD 30,396.8 million.
Registering a significant CAGR of 3.2%, the market will exhibit considerable growth in the forecast period (2020-2027).
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 Laxness are the leading players in this market.
China held the highest share in the global market in 2019.
Increasing product demand over natural rubber owing to its beneficial properties is anticipated to drive the adoption.
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