Pharmaceutical industry is rapidly growing, owing to the growing investments in R&D, increasing incidence in chronic diseases, which include diabetes and cancer, as well as increasing focus of manufacturers on launching various branded as well as generic medicines. These factors, in turn, create demand for pharmaceutical packaging, thereby driving market growth. According to the data published by the European Federation of Pharmaceutical Industries and Associations, in 2017, the world pharmaceutical market at ex-factory prices was estimated to be USD 852 billion. Moreover, manufacturers have to comply with stringent regulations relating to the contact of rubber articles with pharmaceuticals. Butyl rubber ensures appropriate protection against external contamination during storage and use of sterile pharmaceutical products, thereby meeting with the stringent government regulation and sterilization requirements. This factor is in turn expected to surge the growth of the market.

Type Segment

Based on the type segment, the market is bifurcated into halobutyl rubber and regular butyl rubber. Halobutyl rubber dominated the global butyl rubber market and is projected to show a similar trend over the forecast period. Companies like ExxonMobil and Lanxess are expanding their production of halobutyl rubber. Additionally, decline in the production of regular butyl rubber is anticipated to uplift the demand for halobutyl rubber, especially in the emerging economies.

Application Segment

Tire and tire products segment generated maximum revenue in 2020 and is likely to maintain its dominance over the forecast period. Passenger car lead the tire consumption followed by heavy commercial vehicles. Adhesives and sealant application segment of butyl rubber is also projected to grow at a significant pace owing to the demand for quality proofing products in the construction industry. Demand for static and dynamic seals is another factor anticipated to support the uptake of butyl rubber in the automotive and industrial sector.

End User Segment

The automotive sector clearly dominated the global butyl rubber market owing to strong demand from the tire sector. Also, the increasing use of O-rings, seals, and hoses in the automotive sector is another aspect which is driving the current need for butyl rubber. Hoses are primarily used to transfer fuel in automotive, whereas these are also used to transfer chemicals and gases in the industrial sector. Use of moulded and extruded butyl products to manufacture rubber stoppers for medical vials, protective masks, and hand gloves is expected to aid in the growth of pharmaceutical & healthcare segment.

Pharmaceutical industry is rapidly growing, owing to the growing investments in R&D, increasing incidence in chronic diseases, which include diabetes and cancer, as well as increasing focus of manufacturers on launching various branded as well as generic medicines. These factors, in turn, create demand for pharmaceutical packaging, thereby driving market growth.

The Asia Pacific region is likely to account for the maximum market contribution during the forecast years. The usage of the product in the manufacture of different automotive goods like as tyres, wipers, and brakes has increased due to the increasing automotive sector in Asia Pacific, which is expected to fuel industry growth.

Western Europe is projected to show sluggish growth in butyl rubber market over the forecast period. Western Europe's tire industry has been affected by manufacturers moving activities outside its region, which will restrict the region's capacity to rescue tire factories from the latest financial turmoil by permanently closing down tire factories. UK, France, Russia, and Italy are projected to show optimistic growth over the forecast period, among which the UK and Russia are projected to witness the fastest growth. Germany and Russia show exactly opposite traits when it comes to import and export of butyl rubber.

In the robustly increasing synthetic rubber sector, Sibur and Reliance Industries Ltd have established a conglomerate to grab chances, creating a joint venture with the name Reliance Sibur Elastomers Private Limited. Additionally, Strong import and export network across the U.S and Canada are anticipated to aid in the growth of butyl rubber across North America.

The major players of the global butyl rubber market are ExxonMobil Corporation, ARLANXEO, JSR Corporation, JAPAN BUTYL Co., Ltd (Nippon Butyl Co., Ltd.), SIBUR INTERNATIONAL, PJSC Nizhnekamskneftekhim, Reliance Industries Limited, Sinopec Corporation (China Petrochemical Corporation), Formosa Plastics Rubber Industry Co., Ltd, Goodyear Rubber Company of Southern California, and LANXESS.