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The liquid synthetic rubber market size is estimated to increase by USD 5.18 billion between 2022 and 2027. The market size is forecast to grow at a CAGR of 4.36%. Market growth hinges on various factors, including heightened demand from the tire industry, rapid industrialization in emerging markets, and rising requirements from the medical and healthcare sectors. Challenges facing the market encompass the revival of the natural rubber industry, strict regulations governing rubber product manufacturing, and the instability of prices linked to essential raw materials.
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The tyre segment is estimated to witness significant growth during the forecast period. Liquid synthetic variant is widely used in tire production around the world. It is used in high-performance applications for the bicycle and motorcycle tire industry. Tires manufactured with strict safety requirements provide precision and controllability in various weather and surface conditions, leading manufacturers to use them as their base material in tire production.
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The tyre segment was the largest segment and valued at USD 9.90 billion in 2017. The increase in demand for high-performance tires has raised the demand for liquid styrene-butadiene, a product variant. The demand for a greener world and increasing consumer awareness about it has driven the consumption of high-performance tires. Considering the large amount used in the manufacture of tires and tire-related products, the market relies on the automotive industry and the tire sector for growth. Hence, the growing adoption from the auto industry is expected to drive the growth of the tyre segment of the 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. In APAC, countries such as South Korea, Japan, China, and India are the key contributing countries in terms of revenue. Infrastructure and construction development in the region and China's emergence as a global manufacturing hub are the factors driving consumption in the region.
Furthermore, the demand is expected to increase mainly as end-user industries from developed countries move their bases to emerging regions of APAC, due to factors such as ease of obtaining land, presence of a cost-effective workforce, strategic location, accessibility, strong power grid, reliable transportation infrastructure, tolerant regulations and standards for chemicals and plastics. Hence, such factors will drive the growth of the market in this region during the forecast period.
The market is witnessing significant growth, fueled by rising demand from various industries such as automotive, construction, and adhesive manufacturing. Liquid synthetic rubber finds applications in automotive parts, tires, drive belts, seals, gaskets, hoses, and tank linings, among others. The market is influenced by factors like raw material prices, the availability of bio-based feedstock, and regulations governing tire labeling. Key segments driving market growth include the tire segment, particularly for passenger and light trucks, and heavy trucks. Styrene-butadiene rubber (SBR) and polyurethane are among the prominent types of liquid synthetic rubber used in industrial rubber manufacturing and tire production. However, challenges persist due to volatility in petroleum prices and concerns over volatile organic compounds (VOCs) in rubber production processes. 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 market for liquid synthetic rubber experiences significant growth, propelled primarily by escalating demand from the tire industry. Particularly in the automotive sector, this market holds a predominant share in consumption. Liquid synthetic variant finds extensive application in tire manufacturing across various automotive segments, including passenger vehicles, light trucks, and heavy trucks, as well as in bicycle and airplane tires. Rising natural rubber prices have encouraged tire manufacturers to shift towards synthetic alternatives, offering enhanced durability and rolling resistance properties. Moreover, stringent quality standards in developed nations drive the adoption of liquid synthetic rubber fillers, especially in high-performance tires, further stimulating market expansion. Additionally, the focus on low rolling resistance tires to enhance fuel efficiency augments demand, contributing to market growth.
The use of bio-based feedstock in the production is one of the rising trends. The development of renewable chemicals for production is growing rapidly for sustainability reasons. High prices and an endless supply of petroleum and natural rubber raw materials have stimulated the use of renewable raw materials for production. The major players in the global market are focusing on producing this from biological raw materials.
Moreover, sugar, glycerin, and other plant-based raw materials are evolving into economically viable alternatives to conventional raw materials, including butadiene and isoprene. The discontinuous concentration of major market participants to achieve profitability and sustainability through the development of bio-based raw materials will certainly impact the growth of the market during the forecast period.
Recovery of the natural rubber industry is the challenge that affects the growth of the market. The decision to cut crude oil supply by the Organization of the Petroleum Exporting Countries (OPEC) is one of the main factors contributing to the recovery of natural variant prices. The reduced supply led to an increase in crude oil prices, affecting the price of liquid synthetic variants. Liquid synthetic variant is a major substitute for natural variant and has increased production costs for manufacturers. this has led to speculation about the possibility of replacing the synthetic variant with the natural variant.
In addition, other factors behind the recovery of natural variant prices include renewed expectations for a rapid global economic recovery and high speculation about lower supply. The growth of the natural industry from the recovery in prices will negatively affect the demand in various applications, which will hamper 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.
Global 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 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 significant growth, driven by various factors such as the demand surge from the automotive parts sector, including drive belts, seals, gaskets, and hoses. The adhesive segment is also witnessing traction due to increased usage in various industries. However, challenges like volatile raw material prices and stringent tire labeling regulations persist. With rising disposable income and the expansion of the tire manufacturing sector, there's an uptick in demand in industrial applications. Moreover, environmental concerns are leading to the adoption of environmentally friendly methods, especially with the increasing production of electric vehicles. This market offers growth opportunities, particularly in tire manufacturing and adhesive industries, despite price fluctuations and regulatory constraints.
The global market is witnessing significant growth, driven by various factors and trends across the tire manufacturing and automotive industries. Liquid synthetic rubber, including liquid isoprene rubber (LR), liquid butadiene rubber, and liquid styrene-butadiene rubber, plays a crucial role in tire production, offering enhanced performance, durability, and flexibility. As the demand for passenger and light trucks tires continues to rise alongside increasing global car production, the market experiences a corresponding surge. Additionally, advancements in tire manufacturing technologies and the utilization of liquid synthetic rubber contribute to improved sidewall and tread performance, reducing fatigue and enhancing product penetration in the market. However, challenges such as regulatory constraints and the volatility of raw material prices require careful navigation for sustained market attractiveness analysis and growth in the liquid synthetic rubber sector.
Moreover, the market is driven by various factors such as its widespread use in tank linings, tire segments, and industrial rubber manufacturing. Polybutadiene, styrene-butadiene rubber (SBR), and polyurethane are among the key components contributing to its growth, particularly in tire manufacturing for passenger, light, and heavy trucks. This market also plays a crucial role in adhesive manufacturing and construction materials due to its versatility and durability. However, challenges such as regulations on VOC emissions, tire labeling rules, and the recovery of the natural rubber industry pose obstacles. Nonetheless, with increasing vehicle production patterns globally and the demand for environmentally friendly alternatives, the Market remains attractive for investors and manufacturers alike.
Liquid Synthetic Rubber Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market growth 2023-2027 |
USD 5.18 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.81 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Chevron Phillips Chemical Co. LLC, CSRC Investment Holdings Co. Ltd., ENEOS Holdings Inc, Eni SpA, Evonik Industries AG, Exxon Mobil Corp., H.B. Fuller Co., KURARAY Co. Ltd., Lanxess AG, LG Chem Ltd., Michelin Group, MITSUI and CO. LTD., PJSC SIBUR Holding, Saudi Arabian Oil Co., SK Innovation Co. Ltd., Sumitomo Chemical Co. Ltd., Synthomer Plc, Ter Group, The Goodyear Tire and Rubber Co., and Zeon Corp. |
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 Application
7 Market Segmentation by Product Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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