Synthetic rubber is an artificial elastomer or manmade rubber. It is synthesized from various raw materials such as coal, natural gas, oil, and acetylene. The product offers various beneficial properties, including recyclability, resistance to swelling and abrasion, higher tensile strength. The increasing product advancement by various manufacturers and rising research and development activities in the rubber industry will surge the product demand. Moreover, growing demand for sports shoes is also driving the market of synthetic rubber.
The global synthetic rubber market size is predicted to reach over USD 24.5 Billion by 2028. This can be ascribed to the increasing demand for tires in the automobile sector, which represents the largest use of synthetic rubber by far. Increasing construction of automotive manufacturing bases in developing countries, especially in the ASEAN countries, will support gains in the production and use of motor vehicles, fuel demand for tires, and, in turn, stimulate the demand for synthetic rubber. Besides, rising demand for synthetic rubber in non-tire applications such as automotive components, industrial rubber products, medical products, and footwear is also likely to stimulate the market demand.
However, stringent environmental regulations and possible health risks due to soot produced during the vulcanization of rubber is hampering the market growth. Soot is a toxic combination of metals and chemicals, which results in cardiovascular diseases and cancer. Furthermore, the development of bio-based feedstock for synthetic rubber is likely to provide lucrative development opportunities for the synthetic rubber market in the forthcoming years.
Synthetic Rubber Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 24.5 Billion|
|Growth Rate||CAGR of 5.2% during 2021-2028|
|Segment Covered||Type, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Sinopec, DuPont, The Dow Chemical Company, ExxonMobil, Kumho Petrochemical Company Ltd., Trinseo, Zeon Corporation, Nizhnekamskneftekhim, The Goodyear Tire and Rubber Company, SIBUR, Mitsui Chemical Inc. Moreover,|
Key Segments of the Global Synthetic Rubber Market
Type Overview, 2019-2028 (USD Million)
- Styrene-butadiene rubber (SBR)
- Polybutadiene Rubber (BR)
- Styrene block copolymer (SBC)
- Ethylene-propylene-diene rubber (EPDM)
- Butyl rubber (IIR)
- Acrylonitrile-butadiene rubber (NBR)
Application Overview, 2019-2028 (USD Million)
- Automotive (Non-tire)
- Industrial Goods
- Consumer Goods
Regional Overview, 2019-2028 (USD Million)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global synthetic rubber market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global synthetic rubber market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the synthetic rubber industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on type, and application. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global synthetic rubber market. The report will benefit every stakeholder involved in the synthetic rubber market.
- Managers within the synthetic rubber industry looking to publish recent and forecasted statistics about the global synthetic rubber market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global synthetic rubber market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Over the past few decades, the growing concern about the worsening environmental conditions has increased the demand for eco-friendly products such as green tires. European and North American countries are adopting stringent regulations, such as Euro VI and CAFE, which make tire manufacturers focus on developing green and high-performance tires.
However, in 2020, the synthetic rubber market declined by 11.2% in terms of volume, compared to 2019, due to COVID-19 pandemic. The supply chain disruption and decline in end-use industries impacted the synthetic rubber market in 2020, amid pandemic. The end-use industries like automotive also showed a reduction in production by 26% for first three quarters of 2020 compared to similar period in 2019. The decline in demand from end-use industries further impacted synthetic rubber production.
Furthermore, Synthetic rubber is used in electric vehicles due to its high-performance characteristics compared to traditional metals and other materials. The changing regulatory scenario and government policies to support EVs support the growth of the synthetic rubber market. During the COVID-19 pandemic, the sale of EVs in Europe increased by 137%, mainly driven by incentives offered under green recovery funds. Europe has outpaced China in terms of sales and is expected to grow substantially in the coming years. Thus, with the recovery of the automotive industry and increasing penetration of EVs worldwide, the demand for synthetic rubber is expected to increase during the forecast period.
The market is consolidated as several major market players currently hold the major market share. However, the market is expected to become fragmented in the forthcoming years as several new market players are emerging from developing countries such as India, Japan, China, and other countries.
Based on the Type segment, the market is bifurcated into Styrene-butadiene rubber (SBR), Polybutadiene Rubber (BR), Styrene block copolymer (SBC), Ethylene-propylene-diene rubber (EPDM), Butyl rubber (IIR), and Acrylonitrile-butadiene rubber (NBR). In 2020, the Styrene-butadiene rubber (SBR) segment accumulated the maximum market share and it is likely to continue its dominance throughout the forecast years. It is also projected to attain major growth throughout the forecast years owing to its cost-effective properties and its preference over natural rubber. The high product consumption can be seen in the insulation of wire and cabling.
Based on the Application segment, the market is segmented into Tire, Automotive (Non-tire), Footwear, Industrial Goods, Consumer Goods, Textile, and Others. The Tire and tire components segment seized the maximum market share in 2020 and it is likely to maintain its place throughout the forecast years. The growth of this segment is largely ascribed to the expansion of the EV industry and an increase in the need to provide better services to the customers. Synthetic rubber offers various extraordinary features to tires, such as safety, control, grip, and comfort. Likewise, it provides the tire with various other features, such as directional stability, rolling resistance, wet traction, puncture resistance, steering response, speed and run-flat capability, impact resistance, high fuel efficiency, and weather resistance, to function in challenging conditions.
The Asia-Pacific region is likely to account for the maximum market contribution during the forecast years. The domination of this region is largely ascribed to the increasing demand for styrene-butadiene rubber and nitrile rubber from the construction industry. Further, the increasing infrastructure development, coupled with product advancement, will fuel the market growth. China holds the highest synthetic rubber market share, and this is due to the higher production of different grades of tire and non-automotive products.
However, Europe is likely to gather noteworthy growth through the forecast years 2021-2028. The growth of the synthetic rubber market in this region is mostly ascribed to the rapid growth in the automotive industry and increasing product demand for the manufacturing of tires, belts, and hoses. The rapid use of nitrile rubber in industrial rubber goods will propel the market growth in North America.
The major players of the global synthetic rubber market are Sinopec, DuPont, The Dow Chemical Company, ExxonMobil, Kumho Petrochemical Company Ltd., Trinseo, Zeon Corporation, Nizhnekamskneftekhim, The Goodyear Tire and Rubber Company, SIBUR, Mitsui Chemical Inc. Moreover, the additional prospective market players in the synthetic rubber market are LG Chemical, LANXESS, and JSR Corporation. Renowned companies are offering new and modern synthetic rubber solutions. Besides, the previously recognized as well as new market players are approaching the market with advanced and new strategic services and solutions and to remain competitive in the global market.