US Synthetic Rubber Market 2022-2028

US Synthetic Rubber Market 2022-2028

US Synthetic Rubber Market Size, Share & Trends Analysis Report By By Product(Styrene-Butadiene Rubber (Sbr), Polybutadiene Rubber (Br),Ethylene Propylene Diene Monomer (Epdm),Isoprene Rubber (Ir),Butyl Rubber, Chloroprene Rubber (Cr), Fluoro-Elastomer Rubber (Fkm), Chlorinated Polyethylene (Cpe), Chlorobutyl Rubber, Epichlorohydrin Rubber (Eco),Chlorosulfonated Polyethylene (Csm, Cspe) and Others) and By Application(Automotive, Industrial Application, Footwear And Others) Forecast Period (2021-2028)

Synthetic rubbers are artificially produced materials with better resistance to abrasion than natural rubber, as well as superior resistance to heat and the effects of aging. 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 benefits in different applications. The US synthetic rubber market is growing at a CAGR of 2.0% during the forecast period (2021-2028). The market was valued at nearly $5.4 billion in 2021 and is anticipated to reach around $6.3 billion in 2028. Various pivotal factors are driving the market which include significant demand for rubber in the automobile sector, and rising demand for lightweight and durable materials. As per the International Organization of Motor Vehicle Manufacturers, the overall vehicle production in the US stood at nearly 11 million in 2021, a decline of around 3.7% from that of the previous year. Moreover, the presence of 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 in the US. As a result, there are a variety of applications and a wide range of end-users contributing significantly to the growth of the market. Synthetic rubber is produced by four main types of producers that include petroleum and natural gas companies, chemical companies, tire companies, and government entities. Asahi Kasei Corp., Bridgestone Corp., Exxon Mobil Corp., Firestone Polymers, LLC, JSR Corp., LG Chem, Ltd., SABIC, The Dow Chemical Co., The Goodyear Tire & Rubber Co., The Michelin Group, and Ube Industries, Ltd. others are among the major producers of synthetic rubber.

As synthetic rubbers can replace natural rubber, its application in various industries is estimated to witness a rapid rise during the forecast period. Additionally, automakers are drifting towards synthetic rubber due to the increasing demand for light-weight vehicles. In 2011, crude oil prices were at an all-time high, which reflected in butadiene prices that touched $3.0/kilo during the same period. However, the recent dip (2021) in the prices of crude oil has brought butadiene and styrene prices to record lows. These factors have led to a significant impact on synthetic rubber prices during the forecast period. Although, the emergence of bio-based feedstock such as soya can create a huge opportunity for the players involved in the US synthetic rubber market during the forecast period.

IMPACT OF COVID-19 ON THE MARKET

The outbreak of COVID-19 started in December 2021 and with time, the world has witnessed a colossal upsurge in the number of new cases. China was the epicenter of the COVID-19 initially in 2021, Europe which was affirmed as the new epicenter in mid-March (2021), as the number of cases and deaths exceeded China’s. As the situation stands in February 2021, the US has overtaken all the countries with total cases nearing 29.8 million and mortalities of more than 542,000. A sudden outbreak of the COVID-19 in the US has disrupted the supply chain of the US synthetic rubber market in the first quarter of 2021. Further, the declined growth of the automotive and manufacturing industry has also impacted the demand for synthetic rubber. In 2021, the automotive industry was severely hampered as manufacturing facilities were shut down and production came to standstill due to COVID-19. This resulted in a negative impact on growth rates in the US. The manufacturing industry has been leading and contributing to the US economic growth. However, the COVID-19 pandemic has disrupted the supply chain and production facilities by a series of lockdown and social distancing measures. The halt in the manufacturing units in the lockdown period created concerns for the manufacturing sector and is expected to face large economic loss in 2021. Similarly, the industrial equipment and consumer goods industry has also faced declined demand which has impacted the growth of the synthetic rubber market in the US. The US synthetic market is expected to witness a downfall of 20.26% YoY and is estimated to register $4.4 billion in 2021 as compared to $5.6 billion in 2021. However, the demand for PPE kits to fight against the pandemic has contributed to the market value in 2021. The nitrile gloves (synthetic rubber) have been significantly in demand as it acts as a barrier to infection for healthcare workers on the front lines. Health and Human Services (HHS) set a goal to have on hand a 90-day supply in the stockpile, or 4.5 billion gloves. Though as of October 2021, it had 2 million. The department estimates the current demand to be at 8.7 billion a month, or 104 billion gloves per year. Such high demand for nitrile gloves to protect frontline healthcare workers has contributed to the market value in 2021.

MARKET SEGMENT OUTLOOK

The US synthetic rubber market is categorized based on product, and application. Based on product, the market is further segmented into styrene-butadiene rubber (SBR), polybutadiene (BR), isoprene rubber (IR), ethylene propylene (EPDM), butyl rubber (IIR), Chloroprene Rubber (CR), Fluro-Elastomer (FKM), Chloropolyethylene Elastomers (CPE), Chloro Butyl Rubber (CIIR), Epichlorohydrin Rubber (ECO), Chloro Sulfonated Polyethylene (CSM), and other (nitrile butadiene rubber, Polysulfide Rubber (PSR), Silicone Rubber (SiR), other). The two key synthetic rubber polymers used in tire manufacturing include butadiene rubber (BR) and styrene-butadiene rubber (SBR). SBR held the highest market share of 28.2% accounted for around $1.5 billion in 2021 and is estimated to reach around $1.6 billion in 2028, growing at a CAGR of 0.6%. SBR has similar chemical and physical properties to natural rubber, with generally better abrasion resistance however poorer fatigue resistance. SBR is widely used in car and light vehicle tires. Additionally, it used to manufacturer conveyor belts, molded rubber goods, shoe soles, and roll coverings. The market for SBR was hard hit due to the outbreak of COVID-19. Low demand from automotive and suspension of manufacturing plants has declined the value of the market to around $1.2 billion in 2021. Polybutadiene (BR) held the second highest market share with 15.5% accounted for $830 million in 2021 and is anticipated to reach $911 million in 2028, growing at a CAGR of 1.0% during the forecast period. BR is used in blends with natural rubber and SBR for tires, where it reduces heat buildup and improves abrasion resistance. It is also used in shoes, conveyors, and transmission belts.

The ethylene Propylene (EPDM) segment was valued at $698 million in 2021 and is estimated to reach $867 million in 2028. EPDM has excellent ozone/weathering resistance, excellent hot water and steam resistance, good resistance to inorganic and polar organic chemicals. Isoprene Rubber (IR) segment was valued at $303 million in 2021 and is estimated to reach $363 million in 2028. It has a similar chemical structure to natural rubber, however less easy to process and can have lower tensile and tear strength. Butyl Rubber (IIR) segment was valued at $337 million in 2021 and is estimated to reach $406 million in 2028. Butyl rubber increases adhesion to other rubbers and metals and has properties similar tochlorobutyl. Chloroprene Rubber (CR) segment was valued at $248 million in 2021 and is estimated to reach $318 million in 2028. It has good weather and ozone resistance, and fair resistance to inorganics. It is useful in pneumatic applications. Fluro-Elastomer (FKM) segment was valued at $195 million in 2021 and is estimated to reach $271 million in 2028. It has ultimate in performance regarding heat and chemical resistance and is very expensive. The market for FKM in the US is expected to grow at the highest CAGR of 4.8% attributed to significant expansion plans to increase the annual capacity in the country. Chloropolyethylene Elastomers (CPE) segment was valued at $92 million in 2021 and is estimated to reach $110 million in 2028. It has good chemical resistance to hydrocarbon fluids and elevated temperatures and has its application in the wire and cable industry, as well as for pond liners. Chloro Butyl Rubber (CIIR) segment was valued at $331 million in 2021 and is estimated to reach $406 million in 2028. Epichlorohydrin Rubber (ECO) segment was valued at $264 million in 2021 and is estimated to reach $295 million in 2028. It has its application in the automotive sector for seals, hoses, gaskets, and ‘O’ rings. Chlorosulfonated Polyethylene (CSM) segment was valued at $27 million in 2021 and is estimated to reach $31 million in 2028. It is used in industrial application wire and cable applications coated fabrics and hoses. The other segment was valued at $520 million in 2021 and is estimated to reach $670 million in 2028. In other segment, NBR holds the highest market share and is growing attributed to the growing demand in industrial applications.

The US synthetic rubber market is segmented based on the application which includes automotive, industrial, footwear, and other (electronics and consumer goods). The automotive application segment held a significant share of 82.2% in 2021 in the US synthetic rubber market attributed to key trends observed in the automotive industry such as the push toward hybrid and electric vehicles that has impacted on the demand for passenger tires. Additionally, the rise in urbanization and continuous growth observed in the automobile sector are some other factors propelling the segmental growth in the market. The automotive application segment was valued at nearly $4.4 billion in 2021 and is anticipated to reach around $5.2 billion in 2028. The industrial segment is growing at the highest CAGR of 2.7% 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 $571 million in 2021 which is estimated to reach $700 million in 2028. The footwear segment market was valued at $273 million in 2021 which is estimated to reach $289 million in 2028.

KEY PLAYERS OUTLOOK

Key companies which are profiled in the report include Lianda Corp., Exxon Mobil Corp., DuPont de Nemours, Inc., Goodyear Tire & Rubber Co., LG Chem, Ltd., Saudi Basic Industries Corporation (SABIC), Tosoh Corp., and Trinseo S.A., among others. 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. Merger and acquisition are boosting the market growth and creating significant scope in the synthetic rubber market. Further, the key synthetic rubber manufacturers have increased their production capacity to fulfill the demand from the US automotive tire industry. For instance, in July 2016, ExxonMobil has expanded its Specialty Elastomers Capacity at Newport, Wales Plant. The project will expand the company’s global Santoprene elastomers capacity by 25%. Now, the company can produce up to 400,000 metric tons of rubber per year. Moreover, in March 2016, Parker Hannifin has launched a new high-performance PU-cover rubber hose range 462PU, 692PU, and 837PU-Plus, which employs a combination of synthetic rubber and polyurethane for low and medium pressure applications. Owing to its manufacturing process and the fusion of the two materials, the hose range will reach new possibilities in terms of quality and product properties. The production capacity of synthetic rubber in the US is dominated by SBR, followed by butadiene and ethylene-propylene.