Global Synthetic Rubber Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Synthetic Rubber Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Synthetic rubber is a type of man-made rubber, generally synthesized from by-products of petroleum. Synthetic rubber is basically a polymer or man-made polymer, usually derived from additional polymers of polyene monomers, which has the property of elastically stretching or deforming under stress, but also returning to its original dimensions without permanent deformation. In many cases, synthetic rubber can be used as a substitute for natural rubber, especially when improved material properties are required.

Market Overview:

The latest research study on the global Synthetic Rubber market finds that the global Synthetic Rubber market reached a value of USD 29055.29 million in 2022. It’s expected that the market will achieve USD 40398.81 million by 2028, exhibiting a CAGR of 5.65% during the forecast period.

Synthetic Rubber Market Growth Driven by Rising Demand from Automotive Industry

Increasing demand for synthetic rubber in the automotive industry will drive market growth. The growth of the auto accessories and components industry is directly influenced by the expansion of the automotive industry. Properties such as abrasion resistance and temperature resistance make elastomers the preferred choice in the automotive industry for applications such as flat seals, O-rings, adhesives and sealants, suspension systems, vehicle anti-vibration systems and fluid transfer systems, in addition, engine compartments Many parts inside, including engine seals and air conditioning system hoses, are made of high-quality synthetic rubber. Hence, the increasing global demand for automobiles is expected to stimulate the consumption of synthetic rubber products, which is mainly related to the application of rubber products in different bicycles and automobile manufacturing. The rapid development of the automotive industry coupled with increasing R&D activities is expected to further boost the synthetic rubber market.

Rising demand from footwear industry is expected to drive increased demand for synthetic rubber globally

The footwear business uses a wide range of materials to create footwear, from professional products such as protective and safety footwear to casual footwear. The excellent physical properties of synthetic rubber make it an ideal material for shoe soles. These properties include abrasion resistance, durability, tensile resistance, slip resistance, tear strength, oil resistance, and the ability to be made in a variety of colors.

Fluctuation in Raw Material Prices Restrains Synthetic Rubber Market Growth

One of the biggest problems facing synthetic rubber producers is volatile raw material prices. Since the synthetic rubber industry is highly competitive and prices can change significantly depending on the balance of supply and demand, prices can fluctuate significantly even if industry conditions remain stable. For synthetic rubber manufacturers, the cost and availability of raw materials play a crucial role in determining the pricing structure of their products. Since crude oil is the raw material for the manufacture of synthetic rubber, any increase in crude oil price will increase the manufacturing cost of synthetic rubber and reduce the profit margin of synthetic rubber producers, thereby restraining the development of the synthetic rubber market.

Hazardous substances generated during the production of synthetic rubber products limit its market development

Polybutadiene, styrene, acrylonitrile and polymerization catalysts are chemicals used in the production of synthetic rubber. For humans, overexposure can be fatal. In the production process, there have been cases of worker's death from leukemia caused by exposure to SBR. In addition, polybutadiene rubber (BR) exposure has adverse health effects and is considered carcinogenic when it comes into contact with the skin and can irritate the nose, throat and lungs. Overexposure to polybutadiene has negative effects on the central nervous system, causing symptoms such as dizziness, vertigo, fatigue and fainting.

During the vulcanization of synthetic rubber, soot of carbon particles is produced. This soot can cause a number of environmental problems, including smog and the acidification of lakes and rivers. Additionally, inhaling soot can lead to a host of serious health problems such as breathing problems, bronchitis, shortness of breath, stroke, asthma, cancer, heart disease and premature death. These factors are likely to limit the adoption of synthetic rubber products and hamper market growth.

Region Overview:

In 2021, the share of the Synthetic Rubber market in China stood at 35.91%.

Company Overview:

ARLANXEO is one of the major players operating in the Synthetic Rubber market, holding a share of 12.03% in 2022.

ARLANXEO is one of the world's largest synthetic rubber producers and a wholly owned subsidiary of energy and chemical group Saudi Aramco. ARLANXEO develops, produces and sells high-performance rubbers for a wide range of applications: from the automotive and tire industries to the electrical, construction and oil and gas industries.

Established in 1970, Kumho Petrochemical is developing various businesses including synthetic resins, fine chemicals, nanocarbon, energy and construction materials, with a focus on the synthetic rubber business with the world's largest production capacity. Kumho Petrochemical, which has grown together as a partner in Korea's industrial development for more than 50 years, will now become a global petrochemical company developing and delivering the best value at the forefront of material innovation.

Sinopec Group was established in July 1998 on the basis of the former Sinopec Group.

Principal businesses of the Company include industrial investment and investment management; petroleum and natural gas exploration, production, storage and transportation (including pipeline transportation), sales and comprehensive utilization; coal production, sales, storage and transportation; oil refining; storage, transportation, wholesale and retail of oil products; production, sales, storage, transportation of petrochemical products, gas-based chemicals, coal chemical products and other chemical products; production, sales, storage and transportation of new energy products; battery charging and swapping business for new energy vehicles and other related services; design, consulting, construction and installation of petroleum and petrochemical engineering projects; overhaul and maintenance of petroleum and petrochemical equipment; R&D, manufacturing and sales of electrical and mechanical equipment; production and sale of electricity, steam, water and industrial gas; research, development, application and consulting services of technology, e-commerce, information and alternative energy products; import& export, including import and export agency business of self-support products and commodities and technologies; foreign project contracting, bidding and purchasing; international storage and logistics business.

Trinseo Completes Sale of Synthetic Rubber Business to Synthos S.A.

December 1, 2021

Trinseo (TSE), a global materials company and manufacturer of plastic and latex adhesives, announces the completion of the previously announced sale of its synthetic rubber business in Schkopau, Germany, to Synthos SA and its affiliates (collectively Synthos) with an enterprise value of approximately $491 million, including a cash purchase price of $402.4 million, a pension liability assumed by Synthos of approximately $41.6 million, and net working capital (excluding inventory) of $47 million retained by Trinseo. In October, Trinseo and Synthos amended the original purchase agreement, reducing the cash purchase price from $449.4 million to $402.4 million in exchange for an equivalent amount of net working capital to be collected by Trinseo. After Trinseo receives net working capital, the expected net cash proceeds, after transaction-related costs and taxes, are approximately $400 million.

The business includes approximately 440 employees, mostly located in Schkopau, Germany. The transaction also includes the transfer of associated manufacturing and research and development facilities in Schkopau, as well as associated intellectual property.

Segmentation Overview:

By type, Styrene Butadiene Rubber (SBR) segment accounted for the largest share of market in 2021.

Styrene Butadiene Rubber (SBR) is a synthetic rubber produced from a copolymer of styrene and butadiene. SBR has excellent wear resistance, crack resistance and generally better aging characteristics. But SBR swells and weakens with hydrocarbon oils and degrades over time with atmospheric oxygen and ozone. SBR is heavily used in car and truck tires, often as a wear-resistant substitute for natural rubber (produced from polyisoprene).

Nitrile Butadiene Rubber/Acrylonitrile Butadiene Rubber (NBR) is a synthetic rubber made of acrylonitrile (ACN) and butadiene. The physical and chemical properties of NBR vary with the nitrile component of the polymer, for example, the more nitrile component in the polymer, the higher the oil resistance, but the lower the flexibility of the material. NBR is the most widely used elastomer in the sealing industry today and is commonly used in the automotive and aerospace industries to make fuel and oil handling hoses, seals, grommets and self-sealing fuel tanks.

Ethylene-Propylenediene Rubber (EPDM) is a synthetic rubber composed of ethylene, propylene and diene monomers. Its molecular structure has a single-bond, chemically saturated backbone, which makes it extremely resistant to outdoor conditions, such as its weatherproofing ability outdoors. EPDM elastomers have excellent resistance to heat, ozone/weathering and aging. They also exhibit excellent electrical insulation, compression set, and low temperature performance. The largest market for EPDM is the automotive industry. Typical applications include radiator and heater hoses, window and door seals, O-rings and gaskets, accumulator bladders, wire and cable connectors and insulators, diaphragms and weatherstripping, and more.

Chloroprene Rubber (CR) is a synthetic rubber produced by emulsion polymerization of chloroprene. CR has excellent dynamic performance and good flame retardancy, and has moderate oil resistance, and is also resistant to ozone and weathering. The mechanical properties of CR are superior to most other synthetic rubbers. CR with a low to moderate tendency to crystallize is used in chemical engineering for technical rubber products where oil and fat resistance, flame resistance or weather and ozone resistance are required.

Polybutadiene rubber (BP) is a synthetic rubber polymerized from the monomer 1,3-butadiene. Polybutadiene rubber is not resistant to oils, gasoline and hydrocarbon solvents. They are also less heat resistant and are vulnerable to ozone attack due to the presence of double bonds in the polymer backbone that are prone to thermo-oxidative degradation. Degradation typically occurs through oxidative crosslinking and leads to embrittlement. Polybutadiene rubber has excellent abrasion resistance (good tread wear), low hysteresis loss, high elasticity and low rolling resistance. The main use of polybutadiene rubber is to make tires with treads and sidewalls, but also to make golf ball cores, various elastic objects, and to coat or encapsulate electronic components with high electrical resistivity.

There are many types of synthetic rubber, including acrylic rubber (ACM), butyl rubber (IIR), polysulfide rubber (PSR), and silicone rubber (SiR), among others. Acrylic rubber, for example, is a synthetic rubber that contains acrylonitrile. The chemical name for this rubber is alkyl acrylate copolymer. The outstanding properties of this rubber are resistance to hot oils and oxidation. Acrylic rubber is widely used in automotive transmissions and hoses.

Application Overview:

The market's largest segment by application is the segment Tires, with a market share of 51.36% in 2021.

The primary functions of tires include supporting vehicle loads, transmitting traction and braking forces to the road, absorbing road shocks, and changing and maintaining direction of travel. Synthetic rubber elastomers deform under stress and return to their original shape (hysteresis) after the stress is removed. This property is very valuable for making high-grip tires. Synthetic rubber also has other special properties, notably in terms of service life and rolling resistance. Synthetic rubber is mainly used in passenger car and motorcycle tires because of its good grip properties.

Synthetic rubber has certain unique properties that make it suitable for the production of rubber products used in a wide variety of industrial applications. Synthetic rubber is waterproof, it is resistant to alkalis and weak acids. Synthetic rubber has elasticity, toughness, impermeability, adhesion and electrical resistance. These properties make synthetic rubbers useful in industrial goods as adhesives, coating compositions, fibers, molding compounds, and electrical insulators.

Most shoes in the footwear industry are made with rubber soles or plastic soles. The sole is an important part of the shoe and is in direct contact with the ground. So it is also called the outsole. It is made of different materials like leather, rubber, plastic and PVC compounds and many more. Synthetic rubber is widely used in the footwear industry, especially in the manufacture of safety shoes, due to its flexibility and easy folding and cutting properties.

Synthetic rubber is used not only in tires, industrial products and footwear, but also in construction and healthcare. For example, the construction industry uses synthetic rubber in elevator belts, hoses, pipes, and seismic bearings, and the healthcare industry uses synthetic rubber to make surgical gloves, contraceptives, and urinary catheters.

Key Companies in the global Synthetic Rubber market covered in Chapter 3:

Exxon Mobil
Lion Elastomers
SABIC
Goodyear
TOSOH
LG
KUMHO PETROCHEMICAL
Showa Denko KK
Shanxi-Nairit Synthetic Rubber
LCY
Eneos Corp
Dow Chemical Company
Ube Industries
TSRC Corporation
ARLANXEO
Versalis
Dynasol Elastomer
Sinopec
Sumitomo
NKNH
China National Petroleum Corporation (CNPC)
Asahi Kasei
SYNTHOS SA
Zeon

In Chapter 4 and Chapter 14.2, on the basis of types, the Synthetic Rubber market from 2018 to 2029 is primarily split into:

Styrene Butadiene Rubber (SBR)
Nitrile Butadiene Rubber/Acrylonitrile Butadiene Rubber (NBR)
Ethylene-Propylenediene Rubber (EPDM)
Chloroprene Rubber (CR)
Polybutadiene Rubber (BR)
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Synthetic Rubber market from 2018 to 2029 covers:

Tires
Industrial Goods
Footwear
Other

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)