The global synthetic rubber market was estimated to reach a valuation of USD 43.52 Billion in the year 2022. With a steady CAGR of 5.1% from 2023 to 2033, this market is expected to reach USD 45.74 Billion by 2023 and USD 75.22 Billion by 2033.
Some of the key developments that are supposed to take place in the global synthetic rubber market during the forecast period are:
The primary market driver is the automobile industry, which employs synthetic rubber for both tire as well as non-tire applications. The tire and other tire component category has the greatest market share within the synthetic rubber industry. As a result of its great abrasion resistance and excellent aging stability, styrene-butadiene rubber is the preferred material within the sector of ire manufacturing. Styrene-butadiene rubber, which is mixed with natural one, makes up around 50% of tire material for automobiles.
The USA Tire Manufacturers Association states that the amount of synthetic rubber in tires used for passenger vehicles and light vehicles is 24%, while the percentage of synthetic rubber in tires used for large trucks is 11%. The demand for tires and tire parts is anticipated to rise as a result of the automotive industry's 10% growth in 2021's first nine months in contrast to the same in 2020 and the rising output of electric vehicles. As a result, during the forecast period, these variables are projected to favor the tire as well as tire component industry and boost the market for synthetic rubber.
Natural rubber is rapidly becoming expensive because of the worldwide decline of plantations, which will boost the demand for synthetic rubber. The least-priced synthetic rubbers have proven to be the ideal replacement for natural rubber in the building and automobile industries. Also, The market's growth will be propelled by a rise in athletic activities such as motor racing contests and rigorous research into tire longevity and demand. The sports footwear sector has benefited from the growing middle class and rising industrialization, which will promote market growth.
Due to the significant demand from China and India, the Asia-Pacific region leads the synthetic rubber industry. In the Asia-Pacific area, India is second behind China in terms of both synthetic rubber production and consumption. In India, there are around 6,000 industrial facilities, of which 30 are large-scale, 300 are medium-scale, and 5,600 are small-scale sectors. Over 35,000 different synthetic rubber products are produced in the nation by all of these factories. During the projected period, Asia-Pacific is anticipated to lead the market due to these factors.
Some of the notable advancements by the key players in this market are:
Hence, such strong steps would bolster the demand in the market during the forecast period and hence trigger the revenues too.
Synthetic rubber is a type of artificial polymer and made form petroleum products as by-products. Synthetic rubber is an alternative to natural rubbers owing to its advantages and easy production process. While natural rubber required tropical climate as well as many precautions for cropping. Therefore, many countries such as China, Russia, USA, and among others are preferring synthetic rubber to various rubber products.
According to synthetic rubber experts: synthetic rubber can be stiff like a bowling ball or as elastic as a rubber band or even soft like a sponge. Therefore, the application purview of synthetic rubber is broader.
Tire manufacturing companies have made huge strides in the use of synthetic rubber market as a vital ingredient in the manufacturing of tires and its accessories. Buna rubbers are commonly used for tire manufacturing. While, Butyl rubber, since it is gas- impenetrable, is usually used for inner tubes. To make rubber products, nearly 70% of industries are preferring to use synthetic rubber as raw material due to its low-cost and other advantages over natural rubber.
Synthetic rubber is manufactured by four key types of producers: chemical companies, government entities, petroleum and natural gas companies, and tire companies. Upstream producers and downstream producers are also playing a crucial role in the market as these producers provide the required raw materials for synthetic rubber i.e. monomer, crude petroleum, and natural gas extraction.
The rising application of synthetic rubber coupled with growing penetration of synthetic rubber in the automotive industry is projected to provide a fillip to the demand of synthetic rubber market over the coming decades. Furthermore, rapid industrialization, growth in personal income & manufacturing output, among others, are also expected to impact the demand of synthetic rubber market in the future.
Moreover, growing production and demand for consumer goods and industrial goods are also estimated to shape up the global demand of the synthetic rubber market over the coming years.
Fluctuations in the price of crude oil which provides the raw material to make synthetic rubber, may hamper the future demand of synthetic rubber market over the stipulated time period. Furthermore, trade tensions between large economies such as China and the USA could also create headwinds for the global synthetic rubber market in the coming decades.
Leading automotive tire manufacturers are making hefty investments in research and development to make eclectic rubber which will be more resilient and stiff as compared to synthetic rubbers.
Europe is expected to command a significant share of the global synthetic rubber market due to the presence of numerous automotive tire manufacturing companies in the region. However, Brexit may affect the synthetic supply-demand scenario between the European Union and Britain in the future.
North America region is projected to grow with a considerable growth rate in the global market as a consequence of rising demand form sport and consumer goods over the forecast period. The Asia Pacific region is projected to grow with an high growth rate in the global synthetic rubber market owing to rapid growth in industrial sectors coupled with healthy growth in on-road vehicle population which in turn is expected to boom the sales of synthetic rubber by the end of the forecast period.
Additionally, countries such as India, Indonesia, Thailand and Malaysia are creating a new opportunity avenues in the market due to healthy growth in industrial sectors and aftermarket automotive sectors over the last five to ten years.
Some of the market participants in the Synthetic Rubber market identified across the value chain:
The research report on the Synthetic Rubber market presents a comprehensive assessment, and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. The Synthetic Rubber market report also contains projections using a suitable set of assumptions and methodologies. The report provides analysis and information according to mentioned market segments.
The global Synthetic Rubber market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with market attractiveness as per segment. The report also maps the qualitative impact of various market factors on market segments and geographies.
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Synthetic Rubber Market
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