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The synthetic rubber market size is estimated to increase by USD 12.76 billion and grow at a CAGR of 5.67% between 2022 and 2027. Market growth hinges on several factors, including the heightened demand for tires propelled by the surging sales of electric vehicles, the rising need across diverse end-user sectors, and ongoing technological advancements and innovations in manufacturing processes. However, challenges loom, such as the displacement of rubber by polyurethanes in select applications, fluctuations in raw material prices impacting synthetic rubber production costs, and the stringent environmental regulations and health risks associated with the synthetic rubber manufacturing industry. Navigating these hurdles requires a strategic approach involving adaptation to changing market dynamics, proactive management of supply chain risks, and continued investment in research and development to foster sustainable solutions and ensure long-term viability in the competitive synthetic rubber market landscape.
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The industry is deeply influenced by various factors, such as the availability of raw materials like crude oil, coal, natural gas, and acetylene, which are crucial for the production of manmade rubber and artificial elastomers. Tensile strength, a key property, is essential for applications across industries, including passenger vehicles, heavy-duty vehicles, aerospace, construction, and electronic applications. Polymerization catalysts play a pivotal role in the synthesis of rubber compounds like butadiene rubber (BR) and styrene, used in tire manufacturing, hoses, and other applications. Additionally, advancements in technology have led to innovations like low rolling resistance tires aimed at reducing CO2 emissions and improving fuel efficiency in the rapidly growing electric vehicle (EV) market. Despite these advancements, challenges remain, such as the need for solutions like devulcanization to manage end-of-life tires and reduce environmental impact while ensuring high mileage and noise reduction in tire applications.
The burgeoning demand for tires, driven by the escalating sales of electric vehicles (EVs), stands as the primary catalyst propelling the market growth. The surge in EV adoption presents a significant opportunity for tire manufacturers, as electric vehicles necessitate specialized tire formulations to cater to their distinct efficiency and performance requirements compared to traditional internal combustion engine (ICE) vehicles. This trend fosters innovation in tire production, with manufacturers investing in optimizing neoprene compounds to engineer tires tailored to the unique characteristics of EVs. Furthermore, the continuous evolution of EV technology spurs research and development efforts across the automotive sector, including tire manufacturing. Consequently, the market is poised for expansion as tire manufacturers capitalize on the growing demand from the rapidly expanding EV market, driving advancements in tire technology to meet the evolving needs of electric vehicle owners.
Growing demand for high-performance and eco-friendly tires is the primary trend shaping the growth of the market. The specialized tire requires the use of specific compounds that can provide desired performance, safety, and environmental properties. High-performance tires are designed for outstanding traction, handling, braking, and cornering. These tires require an advanced synthetic rubber compound that can provide enhanced grip and response in various road and weather conditions.
In addition, the formulation can be adjusted to achieve low rolling resistance, improving the vehicle's overall fuel efficiency. This is in line with global efforts to reduce carbon emissions and promote sustainability. As a result, the demand for eco-friendly and performance tires is encouraging tire manufacturers to work with suppliers to develop custom compounds that meet these criteria, which will further drive the growth of the market during the forecast period.
The replacement of rubber with polyurethanes in some applications is a challenge that affects the growth of the market. The manufacturers may need to adjust their strategies to remain competitive and maintain market share. Competition from the polyurethane sector may encourage players to innovate and develop new formulations with improved properties and cost efficiency to remain relevant in certain applications such as automotive tires.
Additionally, polyurethane competes in different markets, mainly in applications where both materials offer similar properties. As polyurethane technology advances and becomes cheaper, it may attract customers who have traditionally used synthetic rubber. As a result, this impedes the growth of the global market during the forecast period.
The market research 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.
Market Customer Landscape
Companies 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
This market report extensively covers market segmentation by type (solid and liquid), application (tire, automotive components, footwear, industrial goods, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The solid segment is estimated to witness significant growth during the forecast period. Factors such as economic growth and raised manufacturing and industrial activities often lead to high demand for solid synthetic rubber. Solid synthetic rubber is widely used in industries such as automotive, construction, electronics, manufacturing, and consumer goods.
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The solid segment was the largest segment and was valued at USD 17.83 billion in 2017. Market players such as Exxon Mobil offer products such as butyl rubber and halo butyl rubber used in seals and gaskets that require good resistance to moisture, heat, and chemicals. Due to the wide range of products that are mainly used in many applications across all industries, this segment is expected to drive the growth of the global market during the forecast period.
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APAC is estimated to contribute 50% 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. Investment by car manufacturers in economies such as South Korea, Japan, China, and India and the establishment of production plants by Western manufacturers in emerging economies in this region, especially in India and China countries, is driving the growth of the market in the region.
Furthermore, infrastructure and construction development in the region and China's emergence as a global manufacturing hub are the driving factors for consumption in the region. Several market participants have made significant investments to meet end-user requirements, such as the automotive, construction, textile, and footwear sectors. The rapid growth of the footwear and construction industry in the APAC region also contributes to the growth of the market in the region. Hence, such factors are expected to drive market growth in this region during the forecast period.
The 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.
The market is experiencing substantial growth, driven by the increasing demand for electric vehicles (EV) and the automotive sector's transition towards low rolling resistance tires to reduce CO2 emissions. Key synthetic rubber types like Butadiene rubber (BR), Acrylonitrile, and Nitrile rubber play vital roles in producing various automotive components such as engine seals, dashboards, and vehicle pedals. Polymerization catalysts facilitate the production of synthetic rubbers, while additives like mastic adhesives and coatings enhance performance in extreme conditions. Concerns over environmental problems, including air pollution and hazardous impacts from incomplete combustion and fine particles like soot, drive the demand for solutions like Solution Styrene Butadiene Rubber (S-SBR) and Ethylene Propylene Diene Monomer (EPDM) with improved flame resistance and high mileage. Recycling programs are increasingly important for managing end-of-life tires and reducing environmental impacts.
Furthermore, the market is reshaping the automotive industry landscape, driving innovations in materials and technologies to reduce greenhouse gas emissions. With a focus on sustainability, manufacturers are increasingly utilizing synthetic materials like polybutadiene rubber and artificial elastomers for exterior filler panels, body seals, and vibration-damping pads to enhance durability and reduce greenhouse gas emissions. Adhesives used in brakes and spot sealers ensure reliable performance and safety in electronic applications, while abrasion resistance and temperature resistance are vital for tire applications and aerospace components. By incorporating anti-slip properties and insulation features into flooring mats and O-rings, EV manufacturers prioritize safety and comfort for passengers. As the EV market continues to expand, the demand for advanced materials and technologies like polybutadiene rubber and synthetic elastomers will rise to meet evolving industry standards and consumer expectations.
Synthetic Rubber Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.67% |
Market growth 2023-2027 |
USD 12.76 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.35 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Asahi Kasei Corp., Bridgestone Corp., China Petrochemical Corp., Dow Chemical Co., Eni SpA, Exxon Mobil Corp., JSR Corp., Lanxess AG, LG Electronics Inc., Michelin Group, Saudi Arabian Oil Co., Saudi Basic Industries Corp., Southland Holdings Inc., Sri Trang Agro Industry Plc, Sumitomo Chemical Co. Ltd., Synthos SA, Ube Corp., Von Bundit Co. Ltd., Kumho Tire Co. Inc., and Reliance Industries Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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