Global Synthetic Rubber Market 2022-2028

Global Synthetic Rubber Market 2022-2028

Global Synthetic Rubber Market Size, Share & Trends Analysis Report ByProduct(Styrene-Butadiene Rubber (Sbr), Polybutadiene Rubber (Br), Styrene Block Copolymer (Sbc), Ethylene Propylene Diene Monomer (Epdm), Butyl Rubber and Others), and By Application (Automotive, Industrial Application, Footwear And Others) Forecast Period (2021-2028)

The global synthetic rubber market is expected to grow at a CAGR of 3.7% duringthe forecast period (2021-2028). The global synthetic rubber market was valued at nearly $28.7 billion in 2021 and is anticipated to reach around $37.3 billion in 2028. Various pivotal factors that are driving the global synthetic rubber market includes the growing demandfor synthetic rubber in end user industries such as the automobile sector,emergence of new synthetic rubber, and rising demand for lightweight and durable materials. The other key factors such as cohesive government regulations and policies, rising demandfor synthetic rubber in emerging economies such as China, and India are also boosting the global synthetic rubber market. The synthetic rubbers have high mechanical properties and durability,they are artificially produced materials with properties similar to natural rubber. These are obtained from polymerization or polycondensation of unsaturated monomers.Co-polymerization of different monomers allows the material properties to be varied which allows synthetic rubber manufacturers to provide a wide range of variety in different applications.The presence of global chemical giants such as BASF SE, the Dow Chemical Co., Good year Tire, DuPont, ExxonMobil Chemical, and so on are creating considerable scope for the synthetic rubber market. Wide ranges of different synthetic rubbers have emerged due to technological advancement and years of R&D by synthetic rubber market players. As a result, there are a variety of applications and a wide range of end-users contributing significantly to the growth of the market.

MARKET SEGMENT OUTLOOK

The synthetic rubber market is categorized into styrene-butadiene rubber (SBR), polybutadiene rubber (BR/PBR), styrene block copolymer(SBC), ethylene propylene (EPDM), butyl rubber (IIR), and other such as nitrile butadiene rubber (NBR), isoprene rubber (IR), and chloroprene rubber (CR). Styrene-butadiene rubber held the highest market share valued at around $9.6 billion in 2021 which is anticipated to grow at a CAGR of 3.6% during the forecast period. The market for SBR is driven by growing global demand from the new automobile as well as replacement tires. Approximately 70.0% of the SBR that is produced globally is used in the manufacturing of tires. The market for SBR is estimated to reach around $12.4 billion in 2028. Other synthetic rubbers such as NBR, IR, and CR is expected to grow at the highest CAGR of 5.5% during the forecast period. The demand for NBR is driven by its growing applications in industrial areas for making numerous industrial goods, owing to its relatively superior performance and structural attributes. Further, increasing demand for hydrogenated nitrile-butadiene rubber (HNBR) in emerging markets such as China and India,is likely to boost the others segment market growth. The market for others segment was valued at around $2.1 billion in 2021 which is estimated to reach around $3.0 billion in 2028. Further, SBC held a considerable market accounted for around $5.4 billion in 2021 and is growing at a CAGR of 3.2% during the forecast period owing to the increasing demand in the manufacturing and construction sectors. PBR, EPDM, and IIR also held considerable market valued at around $4.8 billion, $3.7 billion, and $3.1 billion in 2021, growing at a CAGR of 2.9%, 4.7%, and 4.0%, respectively.

The synthetic rubber market is segmented based on the application which includes automotive, industrial, footwears, and other (electronics). The automotive application segment is projected to have a significant share in the synthetic rubber market due to key trends observed in the automotive industry such as the push toward hybrid and electric vehicles, as well as increasing safety regulations, these all factors will have an impact on the requirements for passenger tires. Additionally, the rise in the urbanization and continuous growth observed in the automobile sector are some other factors propelling the segmental growth in the market. The automotive segment market was valued at around $18.6 billion in 2021 which is estimated to reach nearly $23.8 billion in 2028, growing at a CAGR of 3.5% during the forecast period. Growing demand for electric vehicles to improve the efficiency of vehicles is also driving the market growth during the forecast period. The industrial segment is growing at the highest CAGR of 5.1% during the forecast period owing to surging demand in various industrial applications such as agriculture, construction, medical, and manufacturing. The industrial segment market was valued at around $4.9 billion in 2021 which is estimated to reach nearly $6.9 billion in 2028.

GEOGRAPHICAL OUTLOOK

The market is also segmented based on geographies. North America (the US and Canada), Europe (Germany, UK, France, Italy, Spain, and the rest of Europe), Asia-Pacific (India, China, Japan, and Asia-Pacific), and rest of the world (Latin America and Middle East and Africa) are major geographies that have been included in this report. Most of the synthetic rubber is produced in the US, China, Japan, South Korea, Russia, and the countries of Western Europe. While the most significant amount of rubber processing occurs in developing countries such as China and India. China is considered among the largest consumer of rubber and is an extensive market for synthetic rubber and its products. The consumption of synthetic rubber in China is primarily driven by the growth in the automobile sector. It is the most crucial end-use application, in terms of value and quantity used. Owing to the significant contribution of China and other Asian economies that include South Korea, Japan, and India, the market in Asia-Pacific held the highest market share of 49.8% and accounted for around $14.3 billion in 2021 and is estimated to reach nearly $19.3 billion in 2028. The market in Asia-Pacific is estimated to grow at the highest CAGR of 4.3% attributed to the rising government initiatives for the expansion of the automotive sector in key Asian economies. Besides, the increasing production of passenger cars, commercial vehicles, and motorcycles are anticipated to propel the consumption of synthetic rubber in the Asia-Pacific region during the forecast period.

The market in Europe was valued at around $6.7 billion in 2021 which is estimated to reach nearly $8.6 billion in 2028. The market in Europe is majorly driven by the significant contribution of Germany, Russia, and UK. The market in Europe is growing at a CAGR of 3.5% owing to a well-developed automobile industry and the presence of major tire manufacturers. The market in North America was valued at nearly $5.5 billion in 2021 which is estimated to reach around $6.8 billion in 2028. The market in North America is growing at a CAGR of 3.1% owing to the increasing awareness towards the health & safety of workers coupled with the increasing demand in industrial applications due to stringent government regulations about occupational hazards.

KEY PLAYERS OUTLOOK

Key companies which are profiled in the report include Exxon Mobil Corp., Goodyear Tire & Rubber Co., LG Chem, Ltd., Saudi Basic Industries Corporation (SABIC), Sumitomo Corp., Tosoh Corp., Trinseo S.A., and ARLANXEO Holding B.V.are available in a wide range and variety to serve varied end-users from across the globe. These players have adopted various effective strategies to sustain and expand in the market. Product offerings for a broad set of customers along with continuous R&D in new technologies have been a major trend observed in this market. Product launchis boosting the market growth and creating significant scope in the synthetic rubber market.

In May 2021, Dynasol Group introduced a new SEBS product Calprene H6182X for high-performance Polypropylene (PP) based nonwovens for medical and hygiene applications. This new SEBS product has a high melt flow ideally suited to nonwovens produced by the melt-blown process.

In September 2019, JSR Corp. announced that it has developed a new styrene-butadiene copolymer rubber (SBR) for automotive tires. The new SBR features significantly improved mechanical strength, wear-resistance, and durability.

In March 2019, Trinseo SA showcased SPRINTAN 918S, at Tire Technology Expo in Hanover, Germany. It is a new grade of multi-functionalized S-SBR. It will be used for the manufacturing of high-performance tires for SUVs and light truck industry.