Summary

Synthetic rubber is a man-made or artificial elastomer. It is made from a variety of basic materials, including coal, natural gas, oil, and acetylene. The product has a number of advantageous features, including recyclability, resistance to swelling and abrasion, and increased tensile strength. Product demand will rise as a result of increased product innovation by various manufacturers and increased research and development activities in the rubber sector. Furthermore, rising demand for sports shoes is propelling the synthetic rubber industry. This can be attributed to the growing demand for tires in the automobile industry, which is by far the greatest user of synthetic rubber. Increased construction of automotive manufacturing bases in developing countries, particularly in ASEAN countries, will promote gains in vehicle production and use, fuel demand for tires, and, as a result, synthetic rubber demand. Furthermore, increased need for synthetic rubber in non-tire applications such as automotive components, industrial rubber products, medical items, and footwear is expected to drive market demand. Demand for the product would rise throughout the projected period due to the rapid growth of the automotive industry and rising R&D activities. The COVID-19 outbreak harmed the market by imposing restrictions on the production of tires, footwear, and other industrial items, which are the primary end-user industries for synthetic rubber. The synthetic rubber market, on the other hand, returned to pre-pandemic levels in 2022 as a result of increased production and the resumption of end-user businesses.

According to the research report, “Global Synthetic Rubber Market Overview, 2023-28” published by Bonafide Research, the market is anticipated to cross USD 55 Billion by 2028, increasing from USD 42.52 Billion in 2022. The market is expected to grow with 5.98% CAGR by 2023-28. The growing preference for synthetic rubber over natural rubber due to its greater abrasion and heat resistance is expected to drive demand for synthetic rubber goods over the forecast period. Furthermore, the increasing use of styrene butadiene rubber, neoprene, chloroprene, nitrile rubber, and other materials in numerous applications has boosted industry growth. Furthermore, the availability of a wide range of synthetic rubber types is pushing the need for synthetic rubber in every core industry, further boosting market growth. The market is expanding due to increased demand from the automobile industry. Furthermore, the growing popularity of electric vehicles is driving up demand for synthetic rubber. The market will grow due to rising demand for synthetic rubber from the automotive industry. Because of its abrasion and temperature resilience, synthetic rubber is popular in the automotive industry. Because of its excellent anti-slip qualities, artificial rubber is ideal for use in vehicle pedals and interior flooring mats. Furthermore, because rubber products are used to build a variety of motorcycles and automobiles, increased global demand for cars is expected to boost product consumption.

The Middle East and Africa are anticipated to witness high growth in the synthetic rubber market due to several key factors. First, these regions have been experiencing robust economic growth and rapid industrialization, resulting in increased demand for various products that incorporate synthetic rubber, such as tires, automotive parts, and construction materials. Additionally, the Middle East is a significant producer of petrochemical feedstocks, which are essential for synthetic rubber production. The proximity to these feedstock sources provides a competitive advantage for synthetic rubber manufacturing in the region. Furthermore, the emphasis on infrastructure development and construction projects in various African countries is boosting the need for synthetic rubber-based products like asphalt modifiers and seals. As these regions continue to expand their industrial and construction sectors, the demand for synthetic rubber is expected to rise, driving high growth in the market. Solid synthetic rubber is anticipated to witness high growth in the synthetic rubber market for several reasons. First, solid synthetic rubber offers excellent durability, resistance to environmental factors, and versatility, making it a preferred choice in various industries. In particular, the demand for solid synthetic rubber in the automotive sector is increasing due to its application in tire manufacturing, as it helps improve fuel efficiency and performance. The growth of the automotive industry, especially in emerging markets, is a significant driver for solid synthetic rubber. Furthermore, the focus on sustainability and the development of eco-friendly alternatives in the rubber industry is expected to benefit solid synthetic rubber, as it can be produced with reduced environmental impact and tailored to meet specific performance requirements. As industries continue to seek reliable and sustainable solutions, solid synthetic rubber's versatile properties position it for high growth and broader adoption in the synthetic rubber market.

Polybutadiene Rubber (BR) and Ethylene Propylene Diene Rubber (EPDM) are anticipated to witness high growth in the synthetic rubber market for distinct reasons. Polybutadiene Rubber is sought after due to its exceptional abrasion resistance, low-temperature flexibility, and high resilience, making it an ideal choice for tire manufacturing, especially in the context of eco-friendly and fuel-efficient tire technologies. As the global automotive industry continues to evolve and emphasize sustainability, BR's characteristics are well-suited to meet the demands of advanced tire designs. On the other hand, Ethylene Propylene Diene Rubber, known for its excellent weather resistance, heat resistance, and electrical insulation properties, is witnessing increased demand across diverse industries. EPDM is commonly used in automotive seals, gaskets, roofing materials, and electrical cable insulation. The growth in infrastructure development, automotive manufacturing, and construction activities, particularly in regions with extreme weather conditions, drives the demand for EPDM. Furthermore, the global emphasis on energy efficiency and sustainability supports the adoption of EPDM in applications such as green roofing, where it provides superior performance.

The industrial goods application is anticipated to witness high growth in the synthetic rubber market due to several compelling factors. Synthetic rubber offers a range of advantageous properties, including durability, resistance to environmental factors, and flexibility, making it an ideal choice for various industrial applications. Industrial goods such as seals, gaskets, hoses, and conveyor belts often require materials that can withstand harsh conditions and provide long-term reliability. Synthetic rubber fulfills these requirements, ensuring that machinery and equipment can function efficiently and without frequent maintenance. Moreover, the growth of manufacturing and industrial activities, especially in emerging economies, is driving the demand for synthetic rubber in the production of industrial goods. This expansion is coupled with increasing awareness of workplace safety and environmental regulations, which further necessitate the use of high-quality, compliant materials like synthetic rubber. As industries strive to enhance operational efficiency and reduce downtime, the versatile and dependable characteristics of synthetic rubber position it for high growth in the industrial goods segment. Additionally, the ongoing emphasis on sustainability is encouraging the development of eco-friendly synthetic rubber products for industrial use, contributing to the anticipated growth in this application.

Governments often impose strict environmental regulations to control emissions, waste disposal, and the use of hazardous materials in the synthetic rubber manufacturing process. These regulations aim to minimize the environmental impact of the industry and promote sustainable practices. Government agencies regulate the handling and transportation of hazardous chemicals used in synthetic rubber production. Regulations require manufacturers to follow specific safety protocols, labelling, and reporting requirements for such chemicals. Governments set quality and performance standards for synthetic rubber products to ensure they meet safety and performance requirements. These standards cover various attributes like tensile strength, durability, and resistance to heat, chemicals, and weather conditions. Regulations require clear and accurate labelling of synthetic rubber products to inform consumers and industrial users about their properties, potential hazards, and recommended usage. Documentation requirements ensure traceability and compliance with safety and quality standards. Governments establish regulations to safeguard the health and safety of workers in the synthetic rubber industry. This includes guidelines on workplace conditions, protective equipment, and training to prevent accidents and chemical exposures. International trade in synthetic rubber is subject to trade agreements and tariffs imposed by governments. Trade regulations can impact the import and export of synthetic rubber materials and products. Regulations related to waste management dictate how synthetic rubber waste, including scrap and byproducts, should be handled, treated, and disposed of. Compliance with waste management regulations is crucial to minimize the environmental impact of the industry. Governments protect intellectual property rights, including patents and trademarks, which can be particularly important in the synthetic rubber industry where proprietary formulas and manufacturing processes are developed and utilized.

Market Drivers

• Economic Growth in Developing Countries: Economic growth in developing countries, especially in regions like Asia and Africa, has led to increased industrialization and urbanization. This growth drives the demand for various products that use synthetic rubber, such as consumer goods, footwear, and industrial equipment. The rising middle-class population in these regions increases the consumption of products that incorporate synthetic rubber, boosting market growth.

• Expanding Applications: Synthetic rubber is finding applications in diverse industries beyond automotive and construction. It is increasingly being used in the aerospace, medical, and sports equipment sectors. For example, synthetic rubber is used in aircraft seals, medical devices, and sports gear due to its flexibility and resistance to extreme conditions. The expanding range of applications is driving demand for synthetic rubber in non-traditional sectors.

Market Challenges

• Trade Disputes and Tariffs: Trade tensions and tariffs can significantly impact the global synthetic rubber market. These disruptions can lead to higher production costs, reduced market access, and uncertainty for manufacturers. Navigating these trade challenges and ensuring a stable supply chain is a significant concern for businesses operating in this market.

• Competition from Natural Rubber: While synthetic rubber has its advantages, it faces competition from natural rubber, which is derived from rubber trees. Natural rubber is considered more sustainable and environmentally friendly. The synthetic rubber industry must contend with the challenge of differentiating itself and maintaining market share in the face of growing interest in natural rubber.

Market Trends

• Customized Rubber Compounds: There is a trend towards the development of customized rubber compounds tailored to specific applications. Manufacturers are investing in research and development to create rubber formulations with precise performance characteristics, including enhanced durability, heat resistance, or chemical resistance. Customization allows industries to optimize the performance of synthetic rubber in their products.

• Digitalization and Industry 4.0: The adoption of digital technologies and Industry 4.0 concepts is becoming more prevalent in the synthetic rubber manufacturing process. This includes the use of data analytics, automation, and the Internet of Things (IoT) to optimize production, improve quality control, and reduce energy consumption. This trend is expected to enhance efficiency and sustainability in the industry.

Covid-19 Impacts

Lockdowns, factory closures, and restrictions on movement hindered the production and transportation of synthetic rubber raw materials and finished products. This led to supply chain disruptions and shortages of synthetic rubber in some regions. The automotive industry is a major consumer of synthetic rubber, primarily in tire manufacturing. During the pandemic, there was a sharp decline in automotive production and sales, leading to reduced demand for synthetic rubber. This had a negative impact on synthetic rubber producers. Economic uncertainty and reduced consumer spending during the pandemic led to a decline in demand for a wide range of goods, including those made with synthetic rubber. This affected various industries like construction, manufacturing, and consumer goods, further reducing the need for synthetic rubber. The pandemic also caused volatility in oil prices, which directly impacted the cost of raw materials for synthetic rubber production. Manufacturers faced uncertainty in terms of production costs, which could fluctuate significantly. The pandemic led to disruptions in international trade, affecting the import and export of synthetic rubber. Lockdowns and restrictions on movement made it challenging for businesses to transport goods, impacting the global distribution of synthetic rubber. The pandemic accelerated existing trends towards e-commerce and contactless shopping. This shift in consumer preferences affected the types of products that were in demand, potentially impacting the composition and requirements of synthetic rubber in consumer goods.

Competitive Landscape

The worldwide synthetic rubber market's competitive landscape is characterized by a variety of characteristics that impact industry players. Market participants must contend with a complex interplay of elements that influences their strategy and operations. Technological improvements, product development innovation, and research into sustainable alternatives all drive organizations to differentiate their services. Pricing strategies are critical for navigating the market's sensitivity to cost changes. Furthermore, given the market's vulnerability to supply chain disruptions and variations in demand patterns, robust risk management methods are required. Regulatory compliance, particularly in the context of environmental and safety requirements, is critical in shaping market dynamics. Collaborations, partnerships, and mergers continue to be strategic options for firms looking to extend their reach and capabilities. Adaptability to changing trends and preferences becomes increasingly important as the sector evolves. To ensure sustained growth and relevance in a dynamic market context, the competitive landscape necessitates a thorough awareness of these elements. Some of the major players are Asahi Kasei Corporation, The Yokohama Rubber Company, Exxon Mobil Corporation, The Dow Chemical Company, Kumho Petrochemical Co., Ltd., Zeon Corporation, LG Chem, TSRC Corporation, Sumitomo Chemical Co., Ltd., JSR Corporation, Mitsubishi Chemical Group Corporation, The Goodyear Tire & Rubber Company, Reliance Industries Limited, Apcotex Industries Ltd, Denka Company Limited, Sibur holding pjsc ,Michelin, Saudi Arabia's Basic Industries Corporation, Arlanxeo Company and Arkema group.

Key Developments

• In November 2022, CHIMEI Corporation, a Taiwanese performance materials company that designs and manufactures advanced polymer materials, synthetic rubbers, and specialty chemicals, plans to introduce Ecologue bio-ABS products with ISCC PLUS approval in 2023.

• In November 2022, Radic Performance introduced New Zealand Boutique Brakeset.

• In October 2022, Raj Petro Specialities Pvt Ltd, a Brenntag Group company, introduced the 'Everyday Forward' global brand platform.

• December 2022: Korea Kumho Petrochemical Co. (KKPC) announced plans for a series of synthetic rubber expansions at its production facilities in South Korea, including its plan to expand its Solution Styrene-Butadiene Rubber (SSBR) capacity to 123 Kilo-Tonnes Per Annum by the end of 2023.

Considered in this report:

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Global Synthetic Rubber market Outlook with its value and forecast along with its segments
• Region-wise Synthetic Rubber market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report

• North America
• Europe
• Asia-Pacific
• South America
• Middle-East & Africa

By Form Type:

• Solid
• Liquid

By Type:

• Styrene Butadiene Rubber
• Polybutadiene Rubber
• Ethylene Propylenediene Rubber
• Poly-isoprene Rubber
• Neoprene Rubber
• Nitrile Rubber
• Butyl Rubber
• Others

By End User Industry:

• Automotive
• Consumer Goods
• Industrial Goods
• Chemical
• Medical
• Pulp & Paper
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Synthetic Rubber industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.





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