Synthetic Rubber Market

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Global Synthetic Rubber Market is valued at USD 41.34 Billion in 2022 and is projected to reach a value of USD 65.89 Billion by 2030 at a CAGR of 6.00% over the forecast period.

Indian Synthetic Rubber Industry Development Association (ISRIDA) has launched a new product line – Synthetic Rubber sheets made from natural rubber latex. This will help to increase the utilization of natural rubber for various applications such as automotive, construction, and electronics. The demand from the automotive industry is primarily driven by the increasing production of vehicles and the rising demand for fuel-efficient tires. The market for fuel-efficient tires is expected to grow at a CAGR of 7.7% from 2021 to 2025. This increase in demand is driven by an increased preference among consumers for environmentally friendly products, as well as governments' efforts to promote energy conservation. The North American market is expected to be the largest in terms of value during 2021-2027, followed by Europe and Asia Pacific. This is due to high growth rates in these regions for advanced industries such as automotive and electronic components. The Synthetic Rubber Market is consolidated, with the top five companies accounting for more than 80% of the global demand. The demand for Synthetic Rubber is driven by the growing automotive industry and the rising production of tires. The automotive industry is the largest end-user of Synthetic Rubber, accounting for more than 65% of the total demand. The production of tires is anticipated to increase at a CAGR of 3%-4% during the forecast period. This will result in increased demand for Synthetic Rubber from the tire industry. The growth can be attributed to the increasing demand for Synthetic Rubber from the automotive and construction industries. The automotive industry is the largest consumer of Synthetic Rubber, accounting for more than 50% of the total demand. The construction industry is also a major consumer of Synthetic Rubber, as it is used in various applications such as adhesives, sealants, and coatings.

Around 70% of all Synthetic Rubber produced is used in tires. The remaining 30% goes to other automotive applications such as hoses, belts, and seals. The construction industry is the second largest consumer of Synthetic Rubber. The Synthetic Rubber Market is expected to grow significantly in the coming years. This is due to the increasing demand for Synthetic Rubber from various industries, such as automotive, construction, and electronics. Several factors are driving the growth of the Synthetic Rubber Market. The first factor is the increasing number of vehicles being sold globally. In 2020, there were approximately 92 million vehicles sold worldwide. This increase in vehicle sales will lead to an increase in demand for Synthetic Rubber, as it is used in tires, hoses, and other automotive parts. Another factor that is driving the growth of the Synthetic Rubber Market is the increasing construction activities around the world. Construction activity is expected to grow by 3.9% in the coming years, which will lead to an increased demand for Synthetic Rubber as it is used in construction products such as pipes and sealants. Lastly, the increasing demand for consumer electronics is also driving the growth of the Synthetic Rubber Market. Consumer electronics such as smartphones and tablets use Synthetic Rubber in their manufacturing process. According to a recent analysis by International Data Corporation (IDC) of mobile device sales in the worldwide market, global smartphone sales are forecasted to reach 1.5 billion units in 2022, which lead to an increased demand for Synthetic Rubber.

The market for Synthetic Rubber is constrained by several issues, including the liability of the costs of the raw materials, the stringency of the environmental rules, and the rivalry from the market for natural rubber. Prices of Synthetic Rubbers are directly influenced by the erratic behavior of the markets for crude oil and natural gas, which are the two primary feedstocks used in the production of Synthetic Rubbers. In addition, environmental rules concerning the utilization of Synthetic Rubbers are becoming increasingly stringent in developed countries. This is the case in developed countries. The expansion of the market for Synthetic Rubber is being hampered as a result of this. Furthermore, natural rubber possesses superior qualities to those Synthetic Rubber in several applications; as a result, the market share of Synthetic Rubber is being held back.

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Approach for the future

The future of Synthetic Rubber looks promising. This growth can be attributed to the increasing demand for automobiles and other rubber products, as well as the growing awareness of the benefits of Synthetic Rubber over natural rubber. As the demand for Synthetic Rubber grows, so does the need for new and innovative ways to produce it. One such innovation is the use of renewable resources, such as plant-based oils, to create Synthetic Rubber. This approach not only reduces dependence on fossil fuels but also has the potential to be more cost-effective in the long run. This is just one example of the many exciting approaches that are being developed for the future of Synthetic Rubber production. With continued research and development, there is no doubt that this market will continue to grow and thrive in the years to come.

Top Market Trends

• The market is driven by the increasing demand for automobiles and the growing construction industry. The rising demand for green tires is also expected to fuel market growth. The automotive industry is the largest end-use sector for Synthetic Rubber. The growing demand for vehicles, particularly in developing countries, is driving market growth. Synthetic Rubber is used in tires, hoses, belts, and other automotive components.
• The construction industry is another major consumer of Synthetic Rubber. The material is used in various applications such as pipes, roofing membranes, sealants, and adhesives. The growing infrastructure investment in developed and emerging economies is fuelling market growth.
• The Asia-Pacific region is the largest market for Synthetic Rubber due to the presence of a large number of manufacturers in the region. China is the leading consumer of Synthetic Rubber due to the rapidly growing automotive and construction industries in the country. Other major markets in the region include India, Japan, South Korea, and Taiwan. North America and Europe are also significant markets for Synthetic Rubber due to the presence of a large number of automobiles.
• The type of Synthetic Rubber that is most popular among consumers is styrene-butadiene rubber (SBR). This type of Synthetic Rubber is used in a variety of applications, including tires, hoses, and belts. SBR is also the most affordable type of Synthetic Rubber. Butadiene rubber (BR) is another type of Synthetic Rubber that is gaining popularity among consumers. BR is more expensive than SBR, but it has better physical properties, such as higher heat resistance and durability. BR is commonly used in car tires and other demanding applications. Prices for Synthetic Rubbers vary depending on the type and grade of Synthetic Rubber. For instance, SBR prices have been relatively stable over the past few years while BR prices have been rising.

Market Segmentation

The Global Synthetic Rubber Market is segmented based On Form Type, Type, End-Use Industry, and Region. Based on the Form Type, the market is classified into Solid and Liquid. Based on Type, the Synthetic Rubber Market has been segmented into Acrylic Rubber (ACM), Butadiene Rubber (BR), Styrene Butadiene Rubber (SBR), Butyl Rubber (IIR), Ethylene Propylene Diene Monomer (EPDM), Fluoroelastomers (FKM)/ Viton, Isoprene Rubber (IR), Nitrile Rubber (NBR), Polychloroprene (CR)/ Neoprene, Polysulfide Rubber (PSR), Silicone Rubber (SiR), and Other Types. Based on the End-Use Industry, the market is segmented into Transportation, Building & Construction, Medical, Textile & Apparel, Food & Beverage, and Other End Use Industries. Region-wise, the Global Synthetic Rubber Market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Form Type

The market for Solid Synthetic Rubber is expected to grow at a higher rate than that of the liquid Synthetic Rubber segment during the forecast period. This is due to the increasing demand for tires, hoses, and other applications that use solid Synthetic Rubber. Moreover, increased focus on green technology and stringent regulations about environmental issues are expected to drive the growth of the solid Synthetic Rubber Market. The Solid form type segment is further sub-segmented into black and non-black. The Liquid form type segment is further sub-segmented into latex and non-latex. The Liquid-form type segment is expected to grow at a moderate rate during the forecast period. The growth of this segment can be attributed to the growing demand for adhesives, sealants, and coatings from various end-use industries.

Based on Type

The Acrylic Rubber segment is expected to exhibit the highest growth rate during the forecast period owing to its wide application range in the automotive and engineering industries. Butadiene rubber has emerged as the most popular type of Synthetic Rubber in recent years owing to its excellent physical properties such as high-temperature resistance and low torque resistance. However, increasing environmental concerns are expected to restrain the growth of this type of Synthetic Rubber in the coming years. The styrene-butadiene rubber segment is also anticipated to witness robust growth owing to increasing demand for this type of Synthetic Rubber in the aerospace and manufacturing sectors. However, the butyl rubber segment is projected to witness modest growth due to stringent environmental regulations in various markets. EPDM is the most commonly used type of Synthetic Rubber owing to its high performance and versatility. FKM/Viton is projected to be the fastest-growing type of Synthetic Rubber due to its improved resistance against oils & chemicals. IR is projected to be the most popular type of Synthetic Rubber among end consumers owing to its good heat resistance and low-friction properties. Nitrile rubber is projected to witness the highest growth rate owing to its superior weathering & abrasion resistance as well as low cost. Nitrile Rubber (NBR) is the largest type of Synthetic Rubber and is estimated to account for around 55% of the global market in 2022. The primary drivers for this market are increasing demand from the automotive and infrastructure segments, along with replacement demand from other types of rubbers. Polychloroprene (PCR/NEP) is expected to grow at a higher rate than NBR during the forecast period owing to its better resistance properties in comparison to NBR. The automotive segment is expected to be the major driver for PCR/NEP growth, while replacement supply from other segments will be a key restraining factor for this market. Polysulfide Rubber (PSR) is projected to grow at a higher rate than PCR/NEP during the forecast period owing to its increasing popularity in applications such as healthcare, construction, and marine engineering. High Growth rates in these sectors are expected to support overall growth. On the contrary, latex esters are expected to account for a greater share of the Global Synthetic Rubber Market in terms of revenue due to their low cost and high flexibility. This segment is expected to grow at a higher rate than other types of Synthetic Rubbers due to increased demand from the automotive and healthcare segments.

Based on End-Use Industry

The Automotive sector is one of the major contributors to the growth of the Synthetic Rubber Market. Growing demand for fuel-efficient and environmentally friendly vehicles is expected to drive the Automotive segment to account for a major share of the Global Synthetic Rubber Market. Other major end-user industries that are expected to witness high growth during this period include the construction sector, which is projected to grow at a CAGR of 6.8% between 2022 and 2028, and the textile & apparel industry, which is projected to grow at a CAGR of 7.2% over the same period. The growth of the Global Synthetic Rubber Market is also supported by rising investments in research and development (R&D) activities by various companies in the industry. The increasing trend of green building initiatives is expected to spur the demand for Synthetic Rubber in this sector. The medical sector is also anticipated to witness significant growth in the coming years owing to rising incidences of diseases such as cancer, which are treated with Synthetic Rubber-based therapies. The textile and apparel industries are also expected to witness growth shortly owing to increasing demand from consumers for affordable and sustainable clothing options. The transportation segment is further classified into passenger cars, commercial vehicles, two-wheelers, aircraft, and others. The building & construction segment is further divided into non-residential and residential construction. The medical segment includes gloves, tubing & catheters, adhesives & sealants, and others. The textile & apparel segment is sub-segmented into tires, hoses, belts & other belting products, and others. The food & beverage segment includes food packaging, beverage packaging, and others. The growing sales of passenger cars and commercial vehicles are expected to drive the demand for Synthetic Rubber over the forecast period.

Based on Region

North America is expected to be the largest market for Synthetic Rubber in the world during 2022-2028. The growth of this market is due to the increasing demand from the automotive and construction industries. Europe is also projected to grow rapidly during this period owing to the increasing demand from the oil and gas sector, among others. Asia Pacific is expected to be the fastest-growing region for Synthetic Rubber during 2022-2028. This growth is mainly driven by the increasing demand from China and other Asian countries. Latin America is projected to grow at a slower rate than other regions, primarily because of the high price of natural rubber in this region. Middle East & Africa is expected to grow at a relatively high rate during 2022-2028 due to rising demand from various industrial sectors, including automotive and construction. Brazil and Mexico are among the major countries contributing to Latin American Synthetic Rubber Market growth. The presence of a large number of automotive manufacturers in this region is expected to drive the demand for Synthetic Rubber over the forecast period. Middle East & Africa: UAE, Saudi Arabia, and Qatar are some of the major countries driving Synthetic Rubber Market growth in the Middle East & Africa region. The rising construction activities in GCC countries are anticipated to fuel the regional market growth over the forecast period.

Competitive Landscape

The key players in the Global Synthetic Rubber Market include- Asahi Kasei Corporation, The Dow Chemical Company, DuPont, LANXESS AG, Exxon Mobil Corporation, Dynasol Elastomers S.A., TSRC Corporation, Versalis S.P.A., Sumitomo Chemical Co. Ltd., KUMHO PETROCHEMICAL, China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (Sinopec Corporation) and others.

Recent Advancements

In recent years, the Synthetic Rubber Market has seen several advancements. The most notable of these is the development of new types of Synthetic Rubber that are more environmentally friendly and have better performance properties than traditional Synthetic Rubbers.

• One such type of Synthetic Rubber is called "thermoplastic elastomer" (TPE). TPEs are made from a variety of polymers, including polypropylene, polystyrene, and polyethylene. They have many advantages over traditional Synthetic Rubbers, including being more durable, less brittle, and having a lower environmental impact.
• Another type of Synthetic Rubber that has seen significant advancements in recent years is "fluoroelastomer" (FE). FEs are made from fluoropolymers, which are a class of materials that contain fluorine atoms. They have many of the same advantages as TPEs, but they also have excellent resistance to chemicals and high temperatures. As the demand for more environmentally friendly and higher-performing Synthetic Rubbers continues to grow, we will likely see even more advances in this field in the years to come.
• The automotive industry is the largest consumer of Synthetic Rubber, accounting for more than 50% of the total demand. The growing demand for fuel-efficient and lightweight vehicles is driving the demand for Synthetic Rubber in the automotive industry. In addition, the rising popularity of Synthetic Rubber in end-use industries such as construction, footwear, and healthcare is another factor driving the market growth. Synthetic Rubber is widely used in these industries due to its superior physical and chemical properties, such as high elasticity, wear resistance, and chemical stability.
• The European Union has published a strategy for a more sustainable rubber industry, which includes setting up a platform to exchange information on best practices and promoting the use of sustainably sourced rubber. The US government has issued a report on the potential uses of Synthetic Rubber in military applications, highlighting its benefits over natural rubber. Key players in the Synthetic Rubber Market such as Bridgestone, Michelin, and Goodyear have invested heavily in research and development to develop new materials and technologies for producing Synthetic Rubber.

Segmentation of the Global Synthetic Rubber Market