Synthetic Rubber Market Size to Surpass Around USD 69.2 Bn

2022-11-10 16:51:52 By : Mr. David Chen

October 06, 2022 17:00 ET | Source: Precedence Research Precedence Research

Tokyo, Oct. 06, 2022 (GLOBE NEWSWIRE) -- The global synthetic rubber market was valued at USD 39.8 billion in 2021. The basic elements used to create synthetic rubber, which is an artificial rubber, include butadiene, styrene, isoprene, chloroprene, isobutylene, acrylonitrile, ethylene, and propylene. This elastic polymer is mostly made from petroleum waste. Automobile items have a sizable market and are crucial to consistently driving industry growth.

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The automotive sector, which uses synthetic rubber in both tyre and non-tire applications, is the main market driver. Resilience, hardness, and elasticity are the qualities that give the product its high score, making it a key component in the production of tyres for the vehicle sector. More over half of all rubber use is accounted for by bicycles, automobiles, and aircraft. Additionally, the expansion of the market will be accelerated by an increase in athletic activities like auto racing competitions and thorough study into tyre durability and demand. The expansion of the middle class and ongoing industrialisation have given the footwear industry a boost, which will support market expansion.

Due to the withering plantations throughout the world, natural rubber is expensive, which will help the market for synthetic rubbers increase. In the construction and automotive industries, the inexpensive synthetic rubbers have shown to be the best substitute for natural rubber. Rubber products made from synthetic materials include tyres, gaskets, conveyor belt coverings tubes, and polymer concrete for waterproofing.

Tires, adhesives, asphalt overlay, industrial products, and footwear all use synthetic rubber. The market's highest levels of demand and praise are for tyres. The tyre industry will generate the most revenue and continue to lead in driving demand.

Because of its strong demand in automotive applications, the nitrile butadiene rubber is also making a promising entry into this sector. The need for synthetic rubber is on the rise as the global vehicle industry continues to develop at an extremely rapid rate. The mainstreaming of electric vehicles has shaken up the whole automotive sector. The government's initiative to replace its fleet of internal combustion cars with electric vehicle types provides a timely boost to the development of the synthetic rubber sector. Because they use clean energy, electric cars have changed how consumers see alternative energy sources to gasoline-powered cars. This, together with non-tire uses, has turned the vehicle industry into the market's primary driver. The value chain of the global synthetic rubber business has been rationalised and consolidated, and there is still space for efficiency gains, which keeps the sector moving forward. However, market expansion may be slowed by crude oil price volatility and a trend to replace synthetic rubber with natural rubber.

In terms of volume and value, APAC dominated the synthetic rubber market in 2021, closely followed by Europe and North America. The resurgence of the automobile sector in China and other Asian nations is the driving force behind the market in APAC. Automobile manufacturers from around the world invest in APAC nations to build production facilities and increase their market share. China is a significant vehicle market and the biggest user of synthetic rubber worldwide. In China, the automotive industry will be driven by the growth of New Energy Vehicles (NEVs), which will increase demand for synthetic rubber in the near future.

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The market for synthetic rubber is seeing rising demand due to the increasing adoption of EVs and the anticipated rebound from the effects of COVID-19. Since 2019, sales have been dropping, affecting conventional vehicle production. Shifts in normative situations, a movement in consumer preferences toward electric vehicles (EVs), a move toward auto rentals and ridesharing, a decline in per-capita expenditure, and a recession in many nations. The demand for motor vehicles also decreased in 2020 as a result of the COVID-19 epidemic and the accompanying halt of production activities.

The COVID-19 pandemic, according to OICA, caused a further reduction in vehicle manufacturing in 2020, which was down 5.19% in 2019. 2020 saw a 15.79% decrease in global vehicle manufacturing compared to 2019.

More than half of the world's automotive production takes place in the Asia-Pacific area. The majority of vehicle production has been concentrated in China, Japan, India, and South Asian nations. The synthetic rubber market in these nations will become even more robust as a result of technological advancements and innovation in the automobile sector. With a consistent uptick in the Chinese automobile industry, the region's automotive sector is anticipated to recover by 2022.

As a result, the demand for synthetic rubber is expected to increase throughout the projected period due to the growing penetration of electric vehicles and the global automotive industry's recovery.

The development of the synthetic rubber market is being hampered by environmental regulations and health hazards in the synthetic rubber production sector. The manufacture of synthetic rubber has been constrained as a result of stringent environmental regulations. The primary sources of hazardous pollutants, according to the Environmental Protection Agency (EPA), are rubber processing, sealant manufacture, and tyre manufacturing facilities. For instance, the production of butadiene rubber (BR), a form of synthetic rubber, results in the production of hazardous materials including carbon dioxide, carbon monoxide, and other harmful fumes and vapours.

There are several laws that apply to the synthetic rubber sector. For instance, the Canadian Environmental Protection Act of 1999 lists butadiene as a dangerous material (CEPA 1999). The expansion of the world market for synthetic rubber has been constrained by such regulations.

The market for synthetic rubber will rise due to the need for high-performance, environmentally friendly tyres. Growing concern over the state of the environment has increased demand for eco-friendly goods like green tyres. The severe requirements implemented by North American and European nations, such as Euro VI and CAFE, force tyre manufacturers to concentrate on creating environmentally friendly and high-performing tyres.

One of the biggest problems facing producers of synthetic rubber is fluctuating raw material prices. Due to the intense competition in the synthetic rubber industry, prices might move significantly even while circumstances remain stable. For makers of synthetic rubber, the cost and accessibility of raw materials play a crucial role in determining the pricing structure of their goods. Since crude oil is used to make the raw material for synthetic rubber, any increase in crude oil prices raises the cost of manufacturing and lowers the profit margins for synthetic rubber producers.

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