Isoprene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Isoprene Market is Segmented by Application (Tires, Healthcare, Apparel and Footwear, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for Isoprene in revenue (USD Million) for all the above segments.

Market Snapshot

Isoprene Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >5 %
Isoprene Market Key Players

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Market Overview

The Global Isoprene Market is projected to register a CAGR of more than 5% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. The global tire industry was hard hit in 2020 as the COVID-19 pandemic led to a sharp decline in demand for replacement tires and original equipment, forcing automakers to halt production. Isoprene is majorly consumed in rubber production, which is further used in tire production of tires. But currently, due to the pandemic, the shutdown of manufacturing facilities has declined the production of rubber, and thus a shrink can be experienced in the demand graph of the isoprene market globally. Whereas in the healthcare industry, the manufacturing level of ventilators and their system was at a high peak during the pandemic, and with the sudden growth in the healthcare ventilators market, the demand for polyisoprene has increased. Due to such factors, the isoprene market has resulted in significant growth, which had somehow created the stability of isoprene in the COVID-19 pandemic situation.

  • Over the medium term, rising demand for tires in the automotive industry leads to an increase in the growth of the market.
  • Even after the sudden decline, the industry experts expect a rebound in auto demand in 2021. The growing trends of electric mobility and autonomous driving are propelling the demand for innovative tire design and production, which tends to upsurge the growth of the isoprene market globally.
  • However, the stringent regulation on synthetic chemicals to manufacture rubbers tends to increase growth opportunities of alternative materials, which may constrain the demand for isoprene in the upcoming years.
  • The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Scope of the Report

Isoprene is a volatile liquid hydrocarbon produced from petroleum. Isoprene forms a basic structural unit capable of manufacturing synthetic rubbers. The market is segmented by application and geography. By application, the market is segmented into Tires, Healthcare, Apparel and Footwear, and Other Applications. The report also covers the market size and forecasts for the Isoprene Market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of value (USD Million).

By Application
Tires
Healthcare
Apparel and Footwear
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand for Tires

  • Isoprene is widely used in the manufacturing of tires, owing to its properties, such as flexibility, tensile strength, tear strength, and so on.
  • According to the Bridgestone report 2020, the global tire sales in 2019 were valued at approximately USD 166.96 billion, with the production of 1,840,000 ton. The key player in this market is Michelin, holding 15% of the market share, followed by Bridgestone and Goodyear, with 14.6% and 8.2%, respectively. The other top companies in the tires market are Continental, Sumitomo, Pirelli, Hankook, Yokohama, Cheng Shin, Zhongce Rubber, Giti, and Toyo, among others.
  • Additionally, according to the French tire manufacturer Michelin, the automotive and light truck tire demand declined by about 15-20% in 2020. The continuous shutdown of automotive manufacturing facilities is the major reason constraining the demand globally.
  • In April 2019, Sumitomo Rubber Industries Ltd initiated production of truck and bus tires at its plant in Fazenda, Brazil, following a USD 133 million three-year expansion project. With the start of this expansion, the firm is better able to ensure a steady supply of truck and bus tires in Brazil, where the domestic demand is expected to grow by 2-3% per year for the foreseeable future.
  • Pyramids Tires, a new tire manufacturer based in Port Said, northeast Egypt, USD 350 million Egyptian factory, started its first tire roll production line in May 2020. However, the factory currently manufactures motorcycle, forklift, and agricultural tires as part of the first phase of the plant’s development. The second phase, which is scheduled to be completed by the end of 2022, is expected to add passenger car, truck, and off-the-road (OTR) tires to the company's portfolio.
  • However, the tire industries are all set for a comeback, and the upsurge in the growth rate will get visualized in mid-2021, which will increase the demand for isoprene.
  • Owing to all these factors, the market for isoprene is likely to grow globally during the forecast period.
Isoprene Market Key Trends

The Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the global market share, as Asia-Pacific is the largest manufacturer of tires. In the Asia-Pacific region, countries such as India, China, Japan, etc., are the largest producers of the automotive industry, including cars and commercial vehicles.
  • China is projected to produce 704 million tires per year by 2025, including 527 million passenger radial tires, 148 million truck/bus radial tires, 29 million bias truck tires, 20,000 extra-large industrial tires, 12 million agricultural tires, and 54,000 aircraft tires. In addition, China will produce 120.7 million motorcycle tires and 420 million bicycle tires annually by 2025.
  • Japan possesses one of the largest rubber industries in the world, with a production volume of over 1.53 million metric tons of synthetic rubber in 2019. Furthermore, the country is ranked third in the world, only behind China and the United States, in terms of the total amount of rubber material consumed.
  • Whereas in India, according to the Automotive Tyre Manufacturers Association (ATMA), tire production was calculated at about 1,919.81 lakh units, and about 106.28 lakhs units were exported during 2018-19.
  • Furthermore, growing electric car production is propelling the demand for tires in countries such as China, Japan, and others.
  • According to the International Energy Agency (IEA), the electric vehicles in China and Japan reached about 1.1 million units, and 0.04 million units, respectively, in 2019, whereas in 2020, IEA stated a global production of about 2.3 million units.
  • The growing demand for innovative tires to provide enough support to autonomous and electric vehicles tends to increase the demand for isoprene.
  • China has one of the largest healthcare sectors in the world. In 2019, the medical market reached CNY 7.82 trillion (USD 1.1 trillion), an increase of 10% compared to the previous year. Moreover, the country’s 13th five-year plan prioritized health and innovation, which is expected to increase investments in the medical device manufacturing sector during the forecast period. This, in turn, is expected to raise the production of high-tech medical equipment to treat chronic and age-related diseases in the country, which may increase the demand for isoprene in the coming years.
  • Also, the medical device market in China is considered to be one of the fastest-growing market sectors, and it was estimated to cross over USD 95 billion by the end of 2020. The number of private hospitals in the country is relatively small, and the healthcare product procurement is majorly driven by large public hospitals, which has led to the increasing usage of medical devices in public hospitals and thus has stimulated the demand for isoprene in the sector.
  • The medical sector in the country is expected to reach USD 372 billion by 2022, mainly driven by increasing health awareness, access to insurance, rising income, and diseases. Currently, India has 750-800 medical device manufacturers, with an average investment of INR 170-200 million and an average turnover of INR 450-500 million. The Niti Aayog and ‘Made in India’ initiatives are further expected to increase the number of local medical device manufacturers in the future.
  • The Indian government has started initiatives to decrease the imports of medical devices and increase the local production of medical devices, particularly higher-end products that include cancer diagnostics, ventilator systems, breathing separators, medical imaging, catheter, ultrasonic scans, and PCR technologies.
  • Due to all such factors, the market for isoprene in the region is expected to have a steady growth during the forecast period.
Isoprene Market Growth Rate

Competitive Landscape

The Isoprene market is partially consolidated in nature. Some major players in the market include Chevron Phillips Chemical Company LLC, China Petrochemical Corporation, LyondellBasell Industries Holdings BV, KURARAY CO. LTD, and LOTTE Chemical CORPORATION.

Recent Developments

  • In July 2018, Zeon Corporation produced an advanced technology for processing isoprene from biofuel in a robust and capable manner. Isoprene is primarily used as a crude portion of Polyisoprene rubber. The advancement of this technology would alleviate the planned reliance on petroleum, resulting in environmental sustainability.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand for Electric Vehicles

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Substitution of Alternative Chemicals

      2. 4.2.2 Impact of the COVID-19 Outbreak

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Application

      1. 5.1.1 Tires

      2. 5.1.2 Healthcare

      3. 5.1.3 Apparel and Footwear

      4. 5.1.4 Other Applications

    2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 India

        3. 5.2.1.3 Japan

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 Rest of Asia-Pacific

      2. 5.2.2 North America

        1. 5.2.2.1 United States

        2. 5.2.2.2 Canada

        3. 5.2.2.3 Mexico

      3. 5.2.3 Europe

        1. 5.2.3.1 Germany

        2. 5.2.3.2 United Kingdom

        3. 5.2.3.3 Italy

        4. 5.2.3.4 France

        5. 5.2.3.5 Rest of Europe

      4. 5.2.4 South America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Argentina

        3. 5.2.4.3 Rest of South America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 South Africa

        3. 5.2.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Chevron Phillips Chemical Company LLC

      2. 6.4.2 China Petrochemical Corporation (SINOPEC)

      3. 6.4.3 Dow

      4. 6.4.4 JSR Corporation

      5. 6.4.5 KURARAY CO. LTD

      6. 6.4.6 LOTTE Chemical CORPORATION

      7. 6.4.7 LyondellBasell Industries Holdings BV

      8. 6.4.8 Pon Pure Chemicals Group

      9. 6.4.9 Royal Dutch Shell PLC

      10. 6.4.10 Zibo Luhua Hongjin New Material Co. Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Gradually Decreasing Demand for Natural Rubber

**Subject to Availability

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Frequently Asked Questions

The Isoprene Market market is studied from 2016 - 2026.

The Isoprene Market is growing at a CAGR of >5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

KURARAY CO., LTD, LyondellBasell Industries Holdings B.V., China Petrochemical Corporation , LOTTE Chemical CORPORATION, Chevron Phillips Chemical Company LLC are the major companies operating in Isoprene Market.

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