Synthetic Rubber Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Synthetic Rubber Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The synthetic rubber market size was valued at USD 29,320 million in 2021, and the market is projected to register a CAGR of more than 4.5% during the forecast period (2022-2027).

The market was negatively impacted by the COVID-19 pandemic. However, the synthetic rubber market has reached pre-pandemic levels in 2022 and is expected to grow steadily during the forecast period.

• Over the medium term, increasing demand due to rising electric vehicle production and surging demand for athletic footwear may boost the market’s growth.
• The replacement of rubber with PU in some applications is likely to hinder the market’s growth.
• The development of bio-based feedstock for synthetic rubber is likely to act as an opportunity for the market in the future.
• Asia-Pacific has accounted for the highest market share and is likely to dominate the overall market during the forecast period.

• The tire and tire components segment has the highest market share in the synthetic rubber market. Styrene-butadiene rubber is mostly used in the tire industry due to its good aging stability and high abrasion resistance, making it the material of choice in the tire manufacturing industry.
• Around 50% of the car tires are made up of styrene-butadiene rubber, present in a blend with natural rubber.
• For low-end tires, the ratio of SBR to natural rubber is lower to reduce the cost of production. Although this reduces the overall life of tires, it is a cost-effective option.
• According to the US Tire Manufacturers Association, tires used in passenger and light trucks have 24% of synthetic rubber by volume, and tires used in heavy trucks have 11% of synthetic rubber by volume.
• With the automotive growth of about 10% in the nine months of 2021 compared to the same period in 2020, and with growing electric vehicle production, the demand for tires and tire components is expected to increase.
• Thus, such factors are likely to boost the tire and tire components segment during the forecast period.

• Asia-Pacific dominates the synthetic rubber market due to the high demand from India and China.
• China produces the most tires globally, with pneumatic tire output totaling 898.1 million units in 2021. This number is likely to grow further during the forecast period.
• The Chinese automotive manufacturing industry is the largest globally, with a production share of about 32.49% in 2020. The industry witnessed a growth of about 8% from 16,976,248 units in nine months of 2020 to 18,242,588 units during the same period in 2021.
• India is one of the largest producers and consumers of rubber in the Asia-Pacific region, after China. Despite being one of the largest rubber producers, the country imports a noticeable portion of rubber from various countries to meet the local demand.
• There are about 6,000 manufacturing units in India, comprising 30 large-scale manufacturing units, 300 medium manufacturing scale, and around 5,600 small-scale and tiny sector manufacturing units. All these units manufacture more than 35,000 rubber products in the country.
• In India, over 65% of the rubber produced is used for manufacturing automotive (50%) and bicycle tires and tubes (15%), 12% for footwear, 6% for belts and hoses, and 17% for other products. There are almost 66 tire producing plants in the country and about 41 tire producing companies with a turnover of around USD 8.5 billion and exports of about USD 1.28 billion.
• These factors are expected to help Asia-Pacific dominate the overall market during the forecast period.

The synthetic rubber market is fragmented, with the top five companies holding 40% of the market. Major recognized players (in no particular order) include ExxonMobil Corporation, Kumho Petrochemical, Saudi Arabian Oil Co., TSRC, and China Petrochemical Corporation (Sinopec).

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