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The synthetic rubber market size is estimated to grow at a CAGR of 5.67% between 2022 and 2027. The market size is forecast to increase by USD 12,757.69 million. The growth of the market depends on several factors such as the increasing demand for tires from rising sales of electric vehicles, the increasing demand for synthetic rubber from end-user industries, and the advancements in technology and innovations in synthetic rubber production.
This synthetic rubber 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.
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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.
Increasing demand for tires from rising sales of electric vehicles is the key factor for the growth of the market. Growing demand for electric vehicles (EVs) can positively impact the growth of the global synthetic rubber market, especially in the context of tire production. Electric vehicles have different efficiency and performance requirements than traditional internal combustion engine (ICE) vehicles. Synthetic rubber formulations can be tailored to meet these specific needs, leading to the development of tires specifically for electric vehicles.
In addition, the steady development of electric vehicle (EV) technology has led to raised research and development efforts in various automotive parts, including tires. In the coming years, synthetic rubber manufacturers are expected to invest in optimizing neoprene compounds to create tires that complement the unique characteristics of electric vehicles, which fuels the market growth during the forecast period.
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 rubber 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 synthetic rubber 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 synthetic rubber suppliers to develop custom rubber 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. Synthetic rubber manufacturers may need to adjust their strategies to remain competitive and maintain market share. Competition from the polyurethane sector may encourage synthetic rubber 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 with synthetic rubber 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 synthetic rubber 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.
Global Synthetic Rubber 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.
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 17,831.58 million 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 synthetic rubber 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 synthetic rubber 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 synthetic rubber 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 synthetic rubber market in the region. Hence, such factors are expected to drive market growth in this region during the forecast period.
The outbreak of COVID-19 in 2020, forced the regional governments to impose lockdowns. The implementation of lockdowns led to the closure of manufacturing units of synthetic rubber. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown restrictions, which led to the resumption of supply chain activities and cross-border trade activities and stabilized the growth of the market in the region. Such factors are expected to fuel market growth in the region during the forecast period.
The synthetic 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.
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 12,757.69 million |
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 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. |
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