Synthetic Rubber Market

Synthetic Rubber Market Size:

The global synthetic rubber market size reached US$ 33.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 44.2 Billion by 2032, exhibiting a growth rate (CAGR) of 3.2% during 2024-2032. The market is propelled by diverse factors, such as rapid technological advancements, implementation of stringent environmental regulations, expanding product applications across industries, the emergence of the electric vehicle (EV) market, and the positive impact of global economic growth.

Synthetic Rubber Market Analysis:

• Market Growth and Size: The market is witnessing stable growth, driven by the increasing product demand across various sectors, such as automotive, construction, and consumer goods. Moreover, ongoing advancements in material properties and production technologies are favoring the market growth.
• Major Market Drivers: Key drivers influencing the market growth include the growing automotive industry, advancements in synthetic rubber technology, and stringent environmental regulations pushing for sustainable products.
• Key Market Trends: The key market trends involve the ongoing shift towards the development of eco-friendly and sustainable synthetic rubber products in response to rising environmental concerns and regulatory policies. Additionally, rapid technological innovations, such as improved compounding techniques and the use of bio-based materials, are bolstering the market growth.
• Geographical Trends: Asia Pacific leads the market due to rapid industrialization, growing automotive sectors, and the availability of raw materials. Other regions are also showing significant growth, fueled by the rising focus on high-quality, technologically advanced synthetic rubber products.
• Competitive Landscape: The market is characterized by the active involvement of key players who are engaged in research and development (R&D), global expansion, and strategic partnerships to enhance their market position. Furthermore, companies are focusing on innovation, sustainable practices, and expanding their global footprint to meet the increasing demand.
• Challenges and Opportunities: The market faces various challenges, such as economic volatility, fluctuating raw material prices, and stringent environmental regulations. However, the increasing demand for eco-friendly synthetic rubber, the potential in emerging markets, and the ongoing evolution of industries like electric vehicles are creating new opportunities for the market growth.
   

Synthetic Rubber Market Trends:

Increasing product demand in the automotive industry

The growing utilization of synthetic rubber in the automotive sector for the production of tires, hoses, belts, and other components is one of the major factors boosting the market growth. Moreover, the growing vehicle production and ownership prompting the demand for efficient automotive parts is creating a positive outlook for the market growth. In line with this, the ongoing expansion of the automotive industry, fueled by rising income levels and urbanization, is favoring the market growth. Additionally, the sudden shift towards electric vehicles (EVs) and the need for specialized rubber components compatible with EV designs are also contributing to the market growth. Furthermore, synthetic rubber offers superior properties, such as heat resistance, durability, and flexibility, making it an ideal material for automotive applications.

Rapid advancements in synthetic rubber technology

The rising technological innovations in the production and processing of synthetic rubber are providing a thrust to the market growth. In line with this, the development of new synthetic rubber types with enhanced properties like improved heat resistance, lower rolling resistance in tires, and better overall performance is anticipated to drive the market growth. Moreover, the implementation of several stringent government regulations in various end-use industries, such as automotive, construction, and manufacturing, leading to efficient and cost-effective production methods, is favoring the market growth. Additionally, rapid advancements in rubber compounding, allowing for enhanced elasticity, toughness, and resistance to environmental factors, are supporting the market growth.

Rising regulatory and environmental concerns

The implementation of various environmental regulations and increasing awareness about sustainability are major drivers contributing to the market growth. In line with this, the introduction of various regulations imposed by governments and environmental organizations on emissions and waste, prompting the adoption of eco-friendly production processes and products, is creating a positive outlook for the market growth. Additionally, the rising popularity of recycling of synthetic rubber products is driving the market growth. In addition to this, the growing demand for green certifications and eco-labels, as they serve as indicators of environmental compliance and sustainability, is fostering the market growth. Moreover, the increasing public awareness about environmental issues, leading to heightened consumer demand for sustainable and ethically produced goods is fueling the market growth.

Widespread diversification of product applications 

The widespread utilization of synthetic rubber in various industries, such as automotive, construction, footwear, adhesives, and aerospace, is providing a considerable boost to the market growth. Moreover, the growing versatility and ability of synthetic rubbers to be customized for specific applications is acting as a growth-inducing factor. In line with this, the increasing product demand in the construction industry for waterproofing, sealants, and insulation is favoring the market growth. In addition to this, the rising adoption of synthetic rubbers in the healthcare sector for gloves and other medical devices is broadening the market growth. Along with this, the growing product utilization in the footwear and apparel industries for manufacturing soles for sports and outdoor shoes, waterproof clothing, and protective gear is enhancing the market growth.

Rising economic growth across the globe

The rising economic growth in various regions, leading to increased industrial activity, construction, and consumer spending, is boosting the market growth. Moreover, the ongoing expansion of global trade, leading to reduced tariff rates and increased trade agreements to facilitate easier and more cost-effective import and export of synthetic rubber and its raw materials, is positively impacting the market growth. In addition to this, the positive economic climate leading to improvements in supply chain and logistics infrastructure to enhance the efficiency of raw material procurement and distribution of finished products, is creating a positive outlook for the market growth. 

Synthetic Rubber Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, form, and application.

Breakup by Type:

• Styrene Butadiene Rubber
• Ethylene Propylene Diene Rubber
• Polyisoprene
• Polybutadiene Rubber
• Isobutylene Isoprene Rubber
• Others
   

Styrene butadiene rubber accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes styrene butadiene rubber, ethylene propylene diene rubber, polyisoprene, polybutadiene rubber, isobutylene isoprene rubber, and others. According to the report, styrene butadiene rubber represented the largest segment.

Styrene butadiene rubber holds the largest market share due to its excellent abrasion resistance and aging stability. It is also favored for its versatility and cost-effectiveness, making it a popular choice in various applications, such as conveyor belts, shoe soles, and industrial goods. Moreover, styrene butadiene rubber is known for its balanced properties, which include good heat resistance and wet grip, making it suitable for a wide range of environments. Besides this, the ongoing innovation in SBR formulations for enhanced performance characteristics, coupled with the growing automotive industry, is driving the market growth.

Ethylene propylene diene monomer (EPDM) is highly valued for its excellent weather, ozone, and aging resistance, making it ideal for outdoor applications. It is widely used in automotive weather-stripping and seals, roofing membranes, and electrical insulation. The versatility of EPDM in terms of temperature and chemical resistance, enabling its use in industrial hoses and gaskets and as a modifier for plastics and asphalt, is favoring the market growth.

Polyisoprene closely mimics natural rubber in terms of its properties and is utilized in applications that require a high degree of resilience, wear and tear resistance, and flexibility. It is employed in medical products such as gloves and catheters, as well as in tires, footwear, and non-tire automotive parts.

Polybutadiene rubber is characterized by its high resistance to wear and is extensively utilized in the manufacturing of tires. It offers high resilience and low-temperature properties, making it suitable for golf balls and footwear soles and as an additive to improve the toughness of plastics like polystyrene.

Isobutylene isoprene rubber is valued for its low permeability to gases and excellent resistance to heat, weathering, and chemical attack. It is extensively utilized in tire inner linings, window sealants, and as a protective material in chemical and pharmaceutical industries. Its impermeability to gases also makes it ideal for inner tubes and high-pressure or vacuum-sealed applications.  

Breakup by Form:

• Liquid Synthetic Rubber
• Solid Synthetic Rubber
   

Solid synthetic rubber holds the largest share in the industry

A detailed breakup and analysis of the market based on the form have also been provided in the report. This includes liquid synthetic rubber and solid synthetic rubber. According to the report, solid synthetic rubber accounted for the largest market share.

Solid synthetic rubber holds the largest market share due to its versatility and ease of processing. It is employed in the automotive sector for tire manufacturing, offering excellent mechanical properties, such as abrasion resistance, durability, and flexibility. Solid synthetic rubber is also crucial in the production of industrial goods like hoses, belts, gaskets, and various molded products. It is lauded for its wide range of applications, including consumer goods like footwear, sporting goods, and toys. Additionally, solid synthetic rubber is preferred for its ease of storage and handling and its ability to be tailored through various compounding techniques to meet specific application needs.

Liquid synthetic rubber is valued for its ability to improve the performance of adhesives, sealants, and coatings. It is an ideal additive for enhancing flexibility, adhesion, and chemical resistance in various applications. Liquid synthetic rubber is also used in the modification of plastics and resins, contributing to the production of materials with improved toughness and impact resistance.

Breakup by Application:

• Tire and Tire Component
• Non-Tire Automobile Application
• Footwear
• Industrial Goods
• Others
   

Tire and tire component represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the application. This includes tire and tire component, non-tire automobile application, footwear, industrial goods, and others. According to the report, tire and tire component represented the largest segment.

Tire and tire components are dominating the market as synthetic rubber is integral to tire manufacturing due to its durability, resistance to wear, and flexibility. It is used in various tire components, such as the tread, sidewall, and inner liner. Moreover, the growth of the automotive sector across the globe and the increasing demand for high-performance tires are key factors contributing to the market growth. Along with this, rapid innovations in synthetic rubber to improve tire efficiency, longevity, and environmental footprint are bolstering the market growth.

Non-tire automobile applications utilize synthetic rubber for hoses, belts, gaskets, and seals. It offers excellent resistance to heat, chemicals, and abrasion, making it ideal for under-the-hood applications, as well as parts of the suspension, braking, and fuel systems. Moreover, the rising demand for synthetic rubber in automobile manufacturing due to the growing innovation and improvement in vehicle performance and safety is propelling the market growth.

The footwear industry utilizes synthetic rubber for the production of soles for sports and outdoor shoes. It provides the necessary properties like flexibility, durability, and slip resistance. Moreover, the versatility of synthetic rubber, allowing for innovation in footwear design and functionality while catering to evolving consumer preferences and trends in fashion and sportswear, is fostering the market growth.

Industrial goods cover a wide range of products, including conveyor belts, industrial hoses, rubber rollers, and various molded goods. Synthetic rubber's properties, like resistance to extreme temperatures, chemicals, and physical wear, make it an essential material for many industrial applications. Moreover, the rising demand for synthetic rubber in industrial and manufacturing activities due to the global expansion of industries and the need for durable and efficient materials is favoring the market growth.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest synthetic rubber market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The Asia Pacific region stands as the largest segment in the synthetic rubber market, driven by rapid industrialization, significant growth in the automotive sector, and the presence of key manufacturing hubs in various countries. Moreover, the region is characterized by high demand for automotive tires, industrial goods, and consumer products, prompting the adoption of synthetic rubber. Additionally, the widespread availability of raw materials, lower production costs, and a large workforce contribute to the region's dominance. In addition to this, the growing focus on infrastructure development and increasing consumer spending power in this region, is providing a thrust to the market growth.

North America is characterized by the advanced automotive industry, prompting the demand for synthetic rubber in tire manufacturing, automotive parts, and industrial applications. Furthermore, the region is at the forefront of technological advancements and environmental regulations, which influence the development of new synthetic rubber formulations, particularly sustainable and eco-friendly variations.

Europe's synthetic rubber market is characterized by a well-established automotive industry, stringent environmental regulations, and a focus on high-quality and technologically advanced products. The region shows a strong inclination towards sustainable and eco-friendly materials, influencing the type of synthetic rubber products in demand.

The Latin American market for synthetic rubber is rising due to the rapidly growing automotive and industrial sectors. The region also presents potential for market expansion due to its developing infrastructure and increasing investment in industrialization. Moreover, Latin America's strategic initiatives to enhance its manufacturing capabilities and increase foreign investments are creating new opportunities for the market growth.

The Middle East and Africa are driven by the growth in infrastructure projects and an increase in automotive sales. The region's expanding industrial activities and investments in sectors like construction and automotive are favoring the market growth. Additionally, the Middle East's position as a key supplier of petrochemicals, a primary raw material for synthetic rubber, is providing a thrust to the market growth.

Leading Key Players in the Synthetic Rubber Industry:

The key players in the market are actively engaging in a variety of strategic initiatives to strengthen their market positions and respond to the evolving industry demands. Companies are heavily investing in research and development (R&D) to innovate and improve the quality and properties of synthetic rubber to create products that are more durable, efficient, and environmentally friendly. Additionally, major players are engaging in strategic partnerships, mergers, and acquisitions and establishing new production facilities for accessing emerging markets, optimizing supply chains, and reducing operational costs. Moreover, they are also adopting advanced manufacturing technologies and automation to increase production efficiency and reduce their environmental footprint.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Apcotex Industries Limited
• Asahi Kasei Corporation
• China Petrochemical Corporation
• Denka Company Limited
• Exxon Mobil Corporation
• JSR Corporation
• Kumho Petrochemical Co. Ltd.
• Lanxess AG
• LG Chem Ltd.
• PJSC Nizhnekamskneftekhim
• Reliance Industries Limited
• Saudi Basic Industries Corporation (Saudi Arabian Oil Co.)
• The Goodyear Tire & Rubber Company
• TSRC Corporation
• Zeon Corporation
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News: 

• In December 2022, Korea Kumho Petrochemical Co. (KKPC) announced elaborate plans for a series of synthetic rubber expansions at its production facilities in South Korea, along with the expansion of its Solution Styrene-Butadiene Rubber (SSBR) capacity to 123 Kilo-Tonnes Per Annum by the end of 2023.
• In August 2023, LG Chem Ltd. (Seoul, South Korea) announced the expansion of its manufacturing facility in Cheongju and will spend $94.1 million on the project over the next two years.
• In December 2021, Asahi Kasei Corporation announced a joint venture with Shell Eastern Petroleum (Pte) Ltd. to manufacture Solution-Polymerized Styrene-Butadiene Rubber (S-SBR) derived from plastic waste and biomass.

Synthetic Rubber Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the synthetic rubber market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global synthetic rubber market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the synthetic rubber industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.