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The rubber process oil market size is estimated to grow by USD 424.8 million at a CAGR of 3.27% between 2023 and 2028. The tire manufacturing industry is experiencing significant growth, driven by the increasing demand for automobiles worldwide. One key material used in tire production is solution styrene-butadiene rubber (S-SBR), which offers several advantages over traditional materials. S-SBR reduces production costs by improving tire manufacturing efficiency and enhancing tire performance. Its unique properties, such as better wet grip and durability, make it an essential component in tire production. The growing demand for fuel-efficient and high-performance tires is further fueling the adoption of S-SBR in the tire industry. As a result, S-SBR is becoming an indispensable ingredient in tire manufacturing, ensuring the production of superior quality tires that meet the evolving needs of consumers.
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The Market is driven by the increasing demand for tires and automotive components. Manufacturing facilities and plants produce rubber process oils, which are essential in the production of rubber compounds. These oils act as dispersants, improving the flow characteristics and physical properties of rubber during the mixing and vulcanization process. The supply chain of rubber process oil is susceptible to transportation disruptions, leading to increased costs for manufacturers. The automotive industry is a significant end user of rubber process oil, with tires being the largest application. The population, living standards, and spending power are key factors influencing the demand for automobiles, and subsequently, the market. Bio-based rubber process oils are gaining popularity due to their eco-friendly nature and similar mechanical properties to those derived from petroleum. Rubber process oils are also used in the production of rubber footwear and other end products. The usage of rubber process oils varies depending on the elastomer types and their specific applications. The cost of rubber process oil is a crucial factor in determining the overall cost of the end product. The market for rubber process oil is expected to grow due to the increasing demand for tires and automotive components, as well as the development of new elastomer types and applications. Our researchers analyzed the data with 2023 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.
Reduces production cost is notably driving market growth. Rubber process oils play a crucial role in the manufacturing of various end products using elastomer types, including automotive tires, footwear, wire and cable coverings, and flooring materials. These oils act as processing aids, enhancing processability and reducing production costs by increasing the volume of rubber. The choice of oil type, such as aromatic, naphthenic, or paraffinic, depends on the specific product requirements. Process aids are gaining significance in the rubber industry due to their efficiency in increasing production while decreasing energy usage and improving product quality.
Furthermore, the automotive tire sector, in particular, is a major consumer of rubber process oils. Emerging economies, driven by increasing disposable income and urbanization, are expected to boost sales in this sector. Regulations regarding the use of non-biodegradable materials in manufacturing are a concern for the industry. However, formulation implementation of regulations, such as TDAE, MES, DAE, RAE, and TRAE, is driving the industry towards sustainable manufacturing practices. Strategies like expansions and the establishment of new manufacturing facilities are being adopted by key players to meet the growing demand. Thus, such factors are driving the growth of the market during the forecast period.
Growing demand for electric vehicles (EVs) is the key trend in the market. The market is experiencing significant growth due to the increasing usage of elastomer types in various end products, particularly in the automotive industry for manufacturing tires, and in footwear, wire, cable coverings, and flooring materials. The shift towards electric vehicles (EVs) in both developed and emerging economies, including India, Brazil, China, the US, and Germany, is driving the market's expansion. According to the International Energy Agency (IEA), China, Norway, the Netherlands, and Japan are leading the EVs segment.
Furthermore, regulations and implementation of regulations, such as TDAE, MES, DAE, RAE, and TRAE, are also contributing to the market's growth. The formulation and usage of aromatic, naphthenic, and paraffinic oils in the manufacturing of these elastomer types are essential for their performance and cost-effectiveness. Sales in the rubber market are expected to increase as a result of these strategies and expansions, including the construction of new manufacturing facilities. Thus, such trends will shape the growth of the market during the forecast period.
Fluctuating prices of crude oil is the major challenge that affects the growth of the market. The market is influenced by the volatility in crude oil prices, which significantly impact production costs. As crude oil is a primary feedstock for the manufacture of rubber process oils, price fluctuations can pose challenges for producers in terms of maintaining consistent pricing and profit margins. The unpredictability of crude oil prices, driven by geopolitical and economic factors, can squeeze profit margins during price spikes, compelling producers to transfer increased costs to their customers. C
Conversely, periods of low crude oil prices can lead to heightened competition and pressure on profitability. Rubber process oils are utilized in various end products, including automotive tires, footwear, wire and cable coverings, flooring materials, and elastomer types such as TDAE, MES, DAE, RAE, and TRAE. Manufacturers employ formulation and implementation strategies, expansions, and the establishment of manufacturing facilities to meet growing demand in emerging economies. Regulations play a crucial role in the market, with producers adhering to guidelines related to the use of non-biodegradable, aromatic, naphthenic, and paraffinic oils. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting 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 market growth analysis strategies.
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.
BRENNTAG SE- The company offers rubber process oil such as Poweroil Process Oils.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key 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 share growth of the Automotive segment will be significant during the forecast period. The market is an essential segment of the rubber industry, supplying key ingredients for the production of rubber compounds used in various applications, including tires, automotive components, and rubber footwear. The supply chain of process oil involves the extraction from plants, refining, and transportation.
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The Automotive segment was valued at USD 824.80 million in 2018. Disruptions in transportation can significantly impact the market, as process oil is a critical raw material. Bio-based rubber and fillers are increasingly used to enhance the mechanical properties, braking efficiency, and fuel consumption of tires in passenger cars and light commercial vehicles. These trends align with population growth, rising living standards, and increasing spending power, leading to favorable market conditions. Process oil plays a crucial role in the production of rubber compounds, influencing their dispersion, flow characteristics, and physical properties during vulcanization. In the automotive sector, it is used in tire manufacturing, as well as in the production of electrical contacts, semiconductors, and other automotive components. Worker safety is a significant concern in the rubber industry, with potential hazards from falling objects, moving machinery, and harmful chemicals. Process oil must meet stringent safety standards, including those set by the Worldwide Harmonized System (WHS) and regulatory bodies. In summary, the market is a vital component of the rubber industry, supplying essential ingredients for the production of rubber compounds used in tires, automotive components, and other applications. Its role in enhancing the performance and safety of rubber products, as well as its impact on fuel consumption and CO2 emissions, make it a key focus for research and development in the automotive and rubber industries.
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Europe is estimated to contribute 40% 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.
The market is a significant component of the global rubber industry, playing a crucial role in the production of rubber compounds used in various applications, including tires for automobiles and automotive components, bio-based rubber, and rubber footwear. The supply chain of this market involves the transportation of raw materials, such as natural rubber and synthetic rubber, from plants to processing facilities. Disruptions in transportation can impact the availability and cost of these raw materials, subsequently affecting the production of process oil and the final products. The automotive sector is a major consumer of rubber process oil, with applications in tire manufacturing and the production of automotive components. The increasing population, rising living standards, and growing spending power have led to a surge in vehicle sales, particularly in emerging economies. This trend is expected to continue, driving the demand for rubber process oil. Moreover, the shift towards light-duty vehicles, including passenger cars and light commercial vehicles (LCVs), and the increasing focus on reducing CO2 emissions have created favorable trends for the market. The market is also witnessing advancements in rubber compounds, with improvements in mechanical properties, braking efficiency, fuel consumption, and dispersion and flow characteristics. Rubber process oil is also used in various industrial applications, including electrical contacts, moving machinery, and protection against falling objects and harmful chemicals. Its physical properties, such as viscosity and vulcanization behavior, make it an essential ingredient in these applications. Eagle Petrochemicals, Total, Holding, and other key players dominate the market. The market is subject to regulations, including those related to worker safety and the Worldwide Harmonized System of Classification and Labelling of Chemicals (WHS), which impact the production and transportation of rubber process oil.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Rubber Market: Rubber Market by Application, Type, and Geography - Forecast and Analysis
Re-Refined Base Oils Market: Re-Refined Base Oils Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, Germany, France, UK - Size and Forecast
Lubricants Market: Lubricants Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, US, India, Japan, Russia - Size and Forecast
The market is a vital segment of the global rubber industry, playing a crucial role in the production of rubber compounds used in various applications. These oils are derived from the distillation of crude oil or produced from bio-based sources. The supply chain of rubber process oil involves extraction, refining, and transportation. Disruptions in transportation can significantly impact the market due to the perishable nature of the product. Rubber process oils are essential in the manufacturing of tires, automotive components, and other rubber products. Their mechanical properties, such as braking efficiency and fuel consumption, are critical factors in the automotive industry. In recent years, there has been a growing demand for rubber process oils due to the increasing production of passenger cars, LCVs, and semiconductors.
Furthermore, population growth, rising living standards, and spending power have fueled the demand for vehicles, leading to an increase in tire sales. However, the market is also influenced by factors such as CO2 emissions and regulatory compliance. Favorable trends, such as the development of eco-friendly rubber compounds, are driving innovation in the market. Key players in the market include Eagle Petrochem, Total, Holding, and others. The market is characterized by the use of various raw materials, including fillers, dispersion agents, and flow characteristics, to enhance the physical properties of rubber compounds. Worker safety, electrical contacts, and protection against falling objects and harmful chemicals are also important considerations in the market. Vulcanization, a critical process in rubber production, is essential to ensure the desired mechanical properties and durability of the final product.
Market Scope |
|
Report Coverage |
Details |
Page number |
143 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Decelerate at a CAGR of 3.27% |
Market growth 2024-2028 |
USD 424.8 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.13 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
Europe at 40% |
Key countries |
China, US, India, Russia, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Apar Industries Ltd., BRENNTAG SE, Chevron Corp., CPC Corp., Cross Oil, Ergon Inc., Gandhar Oil Refinery India Ltd., HollyFrontier Corp., Indian Oil Corp. Ltd., Lodha Petro, Nynas AB, Oil and Natural Gas Corp. Ltd., ORGKHIM Biochemical Holding Management Co., Panama Petrochem Ltd., PETRONAS Chemicals Group Berhad, Repsol SA, Shell plc, TotalEnergies SE, Vintrol Lubes Pvt. Ltd., and WBF Pte Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market 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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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