Market Overview
As per DMI analysis the global Synthetic Rubber market was US$ XX million in 2023 and expected to reach up to US$ XX million in 2031 growing at a CAGR of 3.2% during the forecasting period (2024-2031).
The increasing research and development, together with advancements in products by various producers in the rubber market, will elevate product demand.
The accelerated expansion in aerospace, automotive, and construction sectors, together with the rising need for rubber in tire and electrical applications, will drive market growth. In April 2023, Sinopec declared an augmentation of its styrene butadiene (SBC) manufacturing capacity of 170,000 tons annually. The augmentation occurred at manufacturing facilities situated in Hainan, China. The objective of the capacity expansion was to establish a foothold in China.
The increasing demand for synthetic rubber in lieu of natural rubber will drive market expansion. The demand is ascribed to its appropriateness for settings subjected to chemicals, greases, lubricants, elevated temperatures, oxidizing agents, and other severe circumstances. Additionally, numerous varieties of this rubber possess flame-resistant properties. Consequently, they are employed as insulation for electrical apparatus.
Furthermore, artificial elastomers can offer numerous enhancements in properties that are absent in natural rubber. This enhancement of property would result in a global increase in rubber production.
The APAC region is expected to have the most significant increase in synthetic rubber consumption. The resurgence of the vehicle (non-tire) and tire industries in China and Southeast Asian countries is propelling this sector. As the electric vehicle sector accelerates, global automobile manufacturers are investing in Asia-Pacific countries to establish manufacturing facilities and enhance their market position in the region.
Market Scope
| Metrics | Details |
| Market CAGR | 3.2% |
| Segments Covered | By Application, By Type, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | Asia Pacific |
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Market Dynamics
The Rapid Growth In The Automobile Industry
The increasing demand for synthetic rubber from the automotive sector will enhance market growth. The characteristics of abrasion and temperature resistance render artificial rubber a favored option in the automobile sector. The synthetic rubber has superior anti-slip characteristics, improving its application in car pedals and interior flooring mats. It is extensively employed in numerous applications, including flooring, door and window profiles, hoses, O-rings and gaskets, and belts. The rising global demand for autos is anticipated to elevate product consumption, particularly linked to the utilization of rubber products in the production of various motorcycles and automobiles.
In the foreseeable future, an increased demand for electric vehicles is expected. By 2027, the global automotive sector is projected to yield USD 300 billion. Synthetic rubber is utilized in electric vehicles owing to its superior performance attributes relative to conventional metals and other materials. The government's support for electric vehicle policies and the evolving regulatory landscape both facilitate the growth of the synthetic rubber business. Due to incentives offered through green recovery funds, electric vehicle sales in Europe surged by 137% during the COVID-19 pandemic. Europe has outperformed China in sales and is projected to experience substantial growth in the next years.
Over 50% of global vehicle production occurs in the Asia-Pacific area. South Asian nations, together with China, India, and Japan, are significantly engaged in production. The technical breakthroughs and innovations in the automobile industry will significantly broaden the market for synthetic rubber in these nations.
Market Segmentation – By Type
Styrene Butadiene Rubber (SBR)
Styrene Butadiene Rubber (SBR) in the global synthetic rubber market was valued at US$ XX million in 2023 and is estimated to reach US$ XX million by 2031, growing at a CAGR of XX% during the forecast period from 2024-2031.
Styrene butadiene rubber (SBR) is the predominant segment, with the highest market share. The expansion is ascribed to its economical attributes and preference for synthetic over natural rubber. The elevated product usage is seen in wire and cable insulation, belting, roll covers, cutting boards, and haul-off pads.
It is a copolymer synthesized from styrene and butadiene, generally in a 1:3 ratio, providing a combination of strength, flexibility, and abrasion resistance. SBR is recognized for its superior wear resistance and aging stability, rendering it an optimal material for high-performance tires. It can be produced by two main processes: solution polymerization and emulsion polymerization, both of which influence its characteristics and uses.
The tire sector is the primary user of styrene butadiene rubber, representing a significant share of the total demand. The market is poised for substantial growth in the near future, driven by the ongoing expansion of the global automobile fleet and a consistent rise in the need for replacement tires.
SBR is extensively utilized in the automotive sector for its resilience and economic efficiency, particularly in tire treads. In addition to tires, it is employed in applications like conveyor belts, adhesives, and coatings. The need for SBR is propelled by industrial expansion, especially in areas with significant automobile production, such as Asia-Pacific and North America. The material's adaptability and moderate expense render it a crucial element in numerous rubber products, significantly impacting its considerable market share in the worldwide synthetic rubber sector.
In April 2023, Sinopec declared an augmentation of its styrene butadiene (SBC) production capacity by 170,000 tons annually. The augmentation occurred at manufacturing facilities situated in Hainan, China. The objective of the capacity expansion was to establish a foothold in China.
Companies and Competitive Landscape
The Synthetic Rubber market is competitive with existing players in the market.
Some of the major players include Kumho Petrochemical, JSR Corporation, LANXESS, Sinopec, ZEON Corporation, Nizhnekamskneftekhim, LG Chem, TSRC Corporation, The Goodyear Tire and Rubber Company, Versalis S.P.A.
The key players are adopting various key strategies such as product launches, collaborations, mergers & acquisitions, contributing to the growth of the Synthetic Rubber Market.
In June 2019, China’s Commerce Ministry announced that it is launching an anti-dumping investigation import of a synthetic rubber product from the United States, South Korea, and the European Union following a request from major petrochemical producers.
In May 2018, ARLANXEO, a leading synthetic elastomers company, signed an agreement with Saudi Aramco Products Trading Company, headquartered in Dhahran, Saudi Arabia, about the marketing and sales of EPDM (Ethylene Propylene Diene Monomer) rubber.
