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The rubber market size is estimated to grow at a CAGR of 5.28% between 2022 and 2027. The rubber market size is forecast to increase by 8,795.35 MT. The growth of the market depends on several factors, including increasing demand from the automotive industry, the rising rate of industrialization, and increased production of PBD-based plastic.
This rubber market report extensively covers market segmentation by application (tires and non-tires), type (synthetic rubber and natural rubber), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing demand from the automotive industry is notably driving the market growth, although factors such as stringent regulations for rubber manufacturing may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing demand from the automotive industry is notably driving market growth. In terms of consumption, the automotive industry has the largest share of the global market. Tires are made with it in the industry. PBD rubber is an ideal elastomer for making tires due to its high resilience, improved abrasion resistance, and increased cut growth resistance. Treads and sidewalls are made with about 70% of the PBD rubber that is produced. Tire manufacturers had to switch to synthetic rubber, such as PBD rubber, one of the least expensive products, due to fluctuations in the price of natural rubber. When making tires, PBD rubber is typically combined with other elastomers like SBR or natural rubber.
Due to PBD rubber's high resistance to cold temperatures, the automotive industry uses it for non-tire applications like hoses, belts, gaskets, and other automotive components. During the forecast period, it is anticipated that the growing demand for PBD rubber for a variety of applications, including both tires and non-tires, will drive the growth of the global market.
The gaining popularity of bio-adhesives is an emerging trend in the market. Natural polymeric substances known as bio-adhesives are used as adhesives to join two materials. During the forecast period, the market for bio-adhesives is anticipated to expand at a CAGR of more than 13%. Bio-adhesives are made entirely of renewable plant or animal resources and are formaldehyde-free. During the forecast period, the low VOC content of bio-adhesives relative to other petrochemical-based adhesives is anticipated to boost adoption.
A growing number of packaging applications, including printed sheet lamination, flexible packaging, cigarettes, fitters, cases, and cartons, use bio-adhesives. Bio-adhesives are increasingly used in the frozen food and beverage industries for packaging purposes because they contain mineral oil in the adhesive composition, which has no negative health effects. Therefore, the market for bio-adhesives will be driven by the rising demand for flexible packaging and corrugated boxes from the food and beverage industry and retail chains. Furthermore, in the medical industry, bio-adhesives are widely used, particularly in the production of plasters, bandages, poultices, and surgical tapes. Hence, these factors will boost the growth of the market during the forecast period.
Stringent regulations for rubber manufacturing are major challenges impeding market growth. Regulations imposed on the emission of toxic fumes from rubber factories have an effect on the market. The base petrochemical products are transformed into PBD rubber in the petrochemical plants. Propylene, ethylene, butylene, and butadiene are among the fundamental petrochemicals produced by cracking and other processing techniques. The formation of extremely toxic oxides would result from the release of ethylene and propylene into the atmosphere, so their emissions are a major concern.
Different regulatory bodies have issued specific guidelines and regulatory controls regarding the production of BR, including the US Environmental Protection Agency (EPA). For instance, at rubber tire manufacturing facilities, the EPA has issued the National Emission Standards for Hazardous Air Pollutants (NESHAP) for new and existing sources. The EPA had determined that 33 of the 188 toxic air pollutants, including 1,3 butadiene, posed a risk to the public's health by causing both chronic and sudden illnesses. Hence, strict regulations imposed by certain authorities would certainly impede the growth of the global during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Rubber Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
NISHIKAWA RUBBER CO. LTD. - The company is involved in manufacturing and selling various kinds of rubber products for industrial uses. The key offerings of the company include synthetic rubber which is used for the production of automobile tires, clutches, engine bearings, conveyor belts, and industrial goods.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the tire segment will be significant during the forecast period. Rubber is used to make tires for automobiles. Due to the extensive use of rubber products in the automotive industry, the tire segment of the global market is anticipated to experience significant growth in terms of market revenue during the forecast period. This is a result of an increase in automobile demand worldwide.
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The tires segment was valued at USD 16,887.01 MT in 2017 and continued to grow until 2021. High-performance tire applications for bicycles and motorcycles use polybutadiene rubber. Tire manufacturers are encouraged to use polybutadiene as a raw material because tires must meet stringent safety standards in order to deliver precision and control in a variety of weather and road conditions. High-performance tires are frequently made from high-cis butadiene, a polybutadiene rubber variant. Demand for polybutadiene rubber, particularly neodymium-catalyzed polybutadiene rubber (Nd-BR), has increased due to the rise in popularity of high-performance tires. High rolling resistance and low emissions make high-performance tires environmentally friendly. As a result, more people are using high-performance tires as environmental awareness grows. Such factors are expected to drive the growth of the tire segment of the global market during the forecast period.
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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC was the largest producer of rubber compared with other regions in 2022. In 2022, China, India, and Japan were the three countries that contributed the most revenue to the regional market. This is a result of the increasing demand for rubber from industries that process rubber and use it, such as automotive, construction, oil and gas, and aerospace, in developing nations like China, Japan, and India. During the forecast period, this demand is anticipated to propel rubber demand in APAC. For instance, 0.9 million metric tons of auto tires and tubes were produced in India in 2022 using natural rubber. Hence, such factors will boost regional market growth during the forecast period.
In 2020-2021, the market in APAC witnessed slow growth due to the outbreak of COVID-19. However, the initiation of vaccination drives led to the lifting of lockdown restrictions in 2021. This resulted in the resumption of production operations in major rubber companies. Similarly, the end-user industries, such as automotive, resumed their manufacturing and business operations. Thus, the increase in demand for rubber from end-user industries propelled the growth of the regional market during 2021-2022. An increase in demand for EVs and the emergence of new automotive companies are also expected to drive the demand for rubber. Such factors are expected to drive the growth of the market in APAC during the forecast period.
The rubber market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global rubber market as a part of the global commodity chemicals market within the global chemicals market. The global commodity chemicals market covers companies that primarily produce industrial and basic chemicals, including, but not limited to, plastics, synthetic fibers, films, commodity-based paints and pigments, explosives, and petrochemicals. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Rubber Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.28% |
Market growth 2023-2027 |
8,795.35 MT |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.85 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, India, Japan, and Malaysia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advance Multitech Ltd., Asahi Kasei Corp., Bridgestone Corp., Dow Inc., Exxon Mobil Corp., Kumho Petrochemical Co Ltd, Lanxess AG, LG Electronics Inc., Michelin Group, NISHIKAWA RUBBER CO. LTD., Saudi Arabian Oil Company, Southland Holding Co., Sri Trang Agro-Industry Plc, Synthos SA, Thai Rubber Latex Group Public Co. Ltd., TSRC Corp., Eni S.p.A., Von Bundit Co. Ltd., Ansell Ltd., and China National Petroleum Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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