Synthetic Rubber Market Size to Reach USD 24.90 Billion in 2028 | Increasing Use of Synthetic Rubber in Footwear and Rising Demand for Consumer Goods Are Some Key Factors Driving Industry Demand, says Emergen Research
VANCOUVER, BC, Sept. 16, 2021 /PRNewswire/ -- The global synthetic rubber market size was USD 18.40 Billion in 2020. Increasing sales of vehicles, rising demand for rubber seals in consumer goods, increasing use of synthetic rubber moulded components and parts in the textile industry globally, and higher price of natural rubber are some key factors driving market revenue growth.
Drivers:Increasing use of synthetic rubber in footwear
Increasing use of synthetic rubber in footwear is a significant factor driving market revenue growth. Synthetic rubber footwear generally encompasses boots and shoes extensively used in various industries for safety purposes and others. These footwear are designed for use in highly corrosive and hazardous conditions, particularly in mining and chemical industries. Toe and heel of a shoes reinforced with synthetic rubber can endure wear caused due to day-to-day activities and protect the wearer. Also, synthetic rubber is used in bottom and shaft of industrial safety boots to decrease weight and enhance durability.
Restraints: Limitations of synthetic rubber and availability of substitutes
Characteristic limitations of synthetic rubber is a major factor hampering market revenue growth. Due to poorer resistance to heat, styrene butadiene rubber is used in decreasing proportions in automotive tires up to heavy-duty tires or tires requiring high performance materials. Also, heavy duty applications, including tires used in airplanes, are totally made of natural rubber. Synthetic rubber further has lower tensile strength and poor tear resistance.
Some major companies operating in the synthetic rubber market include:
DuPont, SABIC, SIBUR International, Exxon Mobil Corporation, Asahi Kasei Corporation, LG Chem Ltd., Goodyear Tire & Rubber Company, Lanxess AG, Mitsui Chemicals Inc., and JSR Corporation.
The global synthetic rubber market size is expected to reach USD 24.90 Billion at a revenue CAGR of 3.8% in 2028, attributed to rising use of synthetic rubber in electric passenger vehicles. Increasing price of fossil fuel and supportive legislative regulation and policies for EV adoption is driving market revenue growth.
COVID-19 Direct Impacts
Coronavirus (SARS-CoV-2) pandemic has a significant influence on synthetic rubber market revenue growth, due to imposed lockdown measures and supply chain disruption that have severely impacted raw material procurement, along with supply of raw materials. Also, production halt in automotive & transportation sector, which are the leading application areas for synthetic rubber and decrease in production or shutdown in several other end-use industries has led to decrease in synthetic rubber demand.
Current Trends and Innovations
Increasing per capita income, particularly in developing economies, rapid industrialization and urbanization, and increasing investment in research and development activities for production of synthetic rubber for use in specific and high-performance applications are some of the major trends observed in the synthetic rubber market. Also, rising demand for rubber with low Volatile Organic Compound (VOC) concentration is fueling market growth.
Market in Europe contributed significant revenue share to the global market in 2020, attributed to rapid growth of the automotive sector and increasing demand for rubber products in industrial and consumer goods in countries in the region. In addition, steady growth of the textiles and clothing industry, which is a key contributor to economic growth in countries in Europe, is fueling demand for synthetic rubber molded components used in production processes.
In February 2021, SIBUR made an announcement about the completion of halobutyl rubber manufacturing facility in India (Jamnagar). The output capacity of this production facility will be 60 kilotons annually.
Among the product type segments, revenue from the butyl rubber segment is expected to expand at a significantly rapid rate over the forecast period. Butyl rubber displays excellent resistance to ozone, aging, and chemicals, along with having good insulation, excellent abrasion resistance, and improved mechanical features. Also, this product type possesses low permeability to gases and finds application in automotive hoses, membranes, seals, inner liners of tires, rubberized fabrics, and in cable insulation.
Acrylonitrile butadiene rubber is resistant to oil and fuels, possesses better temperature properties, and resistance to abrasion. It is widely used in oil hoses, automotive parts, technical products, plates, rollers, and for sealing packages for products and fluids such as oils.
Among the application segments, the industrial goods segment accounted for a significantly large revenue share in 2020. Industrial goods produced from synthetic rubber find extensive application in outdoor uses due to high resistive power and ability to endure harsh weather conditions. Synthetic rubber is not impacted by ozone, heavy wind, UV rays, and rain, and thus are used in various industries and in a the manufacture of a variety of end-use products.
Regional Outlook (Revenue, USD Billion; 2018–2028)
h. Rest of Europe
d. South Korea
e. Rest of APAC
b. Rest of LATAM
Middle East & Africa
a. Saudi Arabia
c. South Africa
e. Rest of MEA
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