In 2022, the global synthetic rubber market reached a valuation of USD 43.52 billion. With a steady compound annual growth rate (CAGR) of 5.1% anticipated from 2023 to 2033, the market is poised to hit USD 45.74 billion by 2023 and USD 75.22 billion by 2033.
The automotive industry acts as the primary market driver, utilizing synthetic rubber in both tire and non-tire applications. Within the synthetic rubber sector, tires and tire components hold the largest market share. Styrene-butadiene rubber stands out as the preferred material in tire manufacturing due to its exceptional abrasion resistance and aging stability. When combined with natural rubber, styrene-butadiene rubber constitutes approximately 50% of tire materials for automobiles.
According to the USA Tire Manufacturers Association, synthetic rubber accounts for 24% of tires used in passenger vehicles and light trucks, while large trucks use 11% synthetic rubber in their tires. The demand for tires and tire components is expected to increase, driven by a 10% growth in the automotive industry during the first nine months of 2021 compared to the same period in 2020, along with the rising production of electric vehicles. These factors are projected to support the tire and tire component industry and bolster the synthetic rubber market during the forecast period.
The cost of natural rubber is escalating due to the global decline in plantations, which will drive up the demand for synthetic rubber. Economically priced synthetic rubbers have proven to be an ideal substitute for natural rubber in the construction and automotive sectors. Additionally, market growth will be fueled by increased athletic activities such as motor racing events and extensive research into tire longevity and demand. The sports footwear sector, benefiting from a growing middle class and increasing industrialization, will further promote market expansion.
The Asia-Pacific region leads the synthetic rubber industry, driven by significant demand from China and India. India, ranking second behind China in both synthetic rubber production and consumption, boasts approximately 6,000 industrial facilities, including 30 large-scale, 300 medium-scale, and 5,600 small-scale sectors. These facilities produce over 35,000 different synthetic rubber products in the country. With these factors in play, Asia-Pacific is expected to maintain its market leadership during the projected period.
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Market Dynamics
- The increasing utilization of synthetic rubber, particularly in the automotive sector, is expected to drive demand for the synthetic rubber market in the years ahead. Factors such as rapid industrialization, rising personal incomes, and increased manufacturing output are also anticipated to contribute to this growth trajectory.
- Furthermore, the expanding production and demand for both consumer and industrial goods are forecasted to influence the global demand for synthetic rubber in the foreseeable future.
- However, fluctuations in crude oil prices, the primary raw material for synthetic rubber production, pose a potential challenge to the market’s future demand. Additionally, trade tensions between major economies like China and the USA could create obstacles for the global synthetic rubber market in the coming decades.
- To meet evolving market demands, leading automotive tire manufacturers are investing heavily in research and development aimed at creating innovative rubber formulations that offer enhanced resilience and stiffness compared to traditional synthetic rubbers.
Market Overview
Synthetic rubber, an artificial polymer derived from petroleum by-products, has emerged as a preferred alternative to natural rubber due to its inherent advantages and simpler production process. Unlike natural rubber, which necessitates specific climatic conditions and meticulous cultivation, synthetic rubber offers versatility and ease of manufacturing. Consequently, countries like China, Russia, and the USA are increasingly favoring synthetic rubber for various applications.
The versatility of synthetic rubber is exemplified by its ability to exhibit a wide range of properties, from stiffness to elasticity and softness, making it suitable for diverse applications across industries. Tire manufacturers, in particular, have capitalized on synthetic rubber’s properties, utilizing it as a vital ingredient in tire production. Buna rubbers are commonly employed in tire manufacturing, while Butyl rubber, renowned for its gas-impermeability, finds application in inner tubes.
With approximately 70% of industries preferring synthetic rubber over natural rubber due to its cost-effectiveness and other advantages, the market for synthetic rubber is experiencing steady growth. The synthetic rubber market is primarily driven by key producers including chemical companies, government entities, petroleum and natural gas companies, and tire manufacturers. Both upstream and downstream producers play pivotal roles by providing essential raw materials such as monomers, crude petroleum, and natural gas for synthetic rubber production.
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Synthetic Rubber Market: Key Participants
- Arlamxeo
- China Petroleum & Chemical Corporation
- Kumho Petrochemical Co., Ltd.
- TSRC
- Exxon Mobil Corporation
- The Goodyear Tire & Rubber Company
- Nizhnekamskneftekhim
- JSR Corporation
- SIBUR
- LG Chem
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