|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Nitrile Butadiene Rubber (NBR) Market is projected to register a CAGR of over 6% during the forecast period (2021-2026).
The market was negatively impacted due to COVID-19 in 2020. The disruption in the global supply chain, coupled with a decrease in demand from various end-user industries, has negatively impacted the demand for nitrile butadiene rubber (NBR). The global automotive industry witnessed a decline in sales in 2020, which was approximately 78 million units, much below 90.4 million units sold in 2019. Additionally, reduced demand from the construction industry, owing to work stoppages and labor shortages, has impacted the demand for nitrile butadiene rubber (NBR). However, the condition is expected to recover in 2021, which will restore the growth trajectory of the market studied over the forecast period.
- Over the short term, the major factors driving the market studied are the growing safety concerns in healthcare and increasing industrial activities.
- On the flipside, restrictions on the use of phthalates in NBR formulations and other environmental regulations on rubber manufacturing, along with declining automotive production, are expected to hinder the growth of the market studied.
- Asia-Pacific dominated the market across the globe with the largest consumption from the countries such as China, India, and ASEAN Countries.
Scope of the Report
Nitrile butadiene rubber (NBR) is an oil-resistant synthetic rubber manufactured from a copolymer of acrylonitrile and butadiene. The major applications of NBR are in fuel hoses, gaskets, rollers, and other products in which oil resistance is required. The nitrile butadiene rubber (NBR) market is segmented by application, end-user industry, and geography. By application, the market is segmented into Seals and O-Rings, Hoses, Belts and Cables, Adhesives and Sealants, Gloves, and Other Applications. By end-user industry, the market is segmented into Automotive and Transportation, Oil and Gas, Building and Construction, Metallurgy and Mining, Medical, Industrial, and Other End-user Industries. The report also offers market size and forecasts for 15 countries across major regions. For each segment, market sizing and forecasts have been done on the basis of revenue (USD million).
|Adhesives and Sealants|
|Belts and Cables|
|Seals and O-Rings|
|Automotive and Transportation|
|Building and Construction|
|Metallurgy and Mining|
|Oil and Gas|
|Other End-user Industries|
Key Market Trends
Increasing Demand from the Automotive and Transportation Sector
- Unlike most other synthetic rubbers, nitrile rubbers can be vulcanized with several cross-linking systems. The vulcanization can take place at room temperature or at high temperatures to accelerate the reactions.
- Nitrile rubbers are used in applications which demand good mechanical properties and oil and fuel resistance. NBR can be blended with other rubbers. For instance, the increasing of IIR (infinite impulse response) to NBR improves weather properties and thermal stability and decreases the gas permeability of NBR.
- NBR is used in tires and non-tire applications in the automotive & transportation industry. Tires are expected to maintain performance in different weather and surface conditions while meeting the stringent safety norms of various countries. The increasing demand for tires offering a smoother and quieter ride with better fuel efficiency has compelled manufacturers to use NBR.
- The tires made from NBR are widely used in military vehicles and heavy-duty vehicles. It is also used in coated tire cord fabrics providing fundamental properties such as controlled deformation, high strength, high affinity, and abrasion resistance.
- Despite an encouraging term of growth in the automotive sector during the past decade, the momentum slowed down in recent years. The sales and production of new vehicles are going down in various parts of the world, including Europe, Asia-Pacific, and the United States. This affected the previously growing automotive production in most nations. Business models, the markets, and the competitive landscape are undergoing changes. This is slowing the demand for nitrile butadiene rubber (NBR).
- According to the OICA data, global automotive production declined by around 5% and reached 92,175,805 million in 2019. The car sales declined by more than 3 million in 2019. In the first six months of 2020, automobile production witnessed a huge downfall across the globe owing to the impact of COVID-19. According to OICA, in 2020, global automotive production reached 77,621,582 vehicles, declining by about 15.8% the previous year.
- However, with growing concerns related to environmental pollution from petrol and diesel-based vehicles, the production of electric vehicles is expected to pick up pace over the next five years. This is likely to drive the demand for the market studied over the forecast period.
- According to IEA, in 2030, global electric vehicle sales are expected to reach 125 million per the New Policies Scenario (excluding two/three-wheelers). In the [email protected] Scenario, in 2030, around 70% of the vehicle sales in China are expected to be EVs. Also, half of the vehicles sold in Europe are EVs, 37% in Japan, 30% in Canada and the United States, and 29% in India.
- Nitrile rubber is also used where high oil resistance is required, like automotive seals, gaskets, or other items subject to contact with hot oils.
- All the aforementioned factors are expected to affect the demand for nitrile butadiene rubber (NBR) over the forecast period.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region dominated the global market share of nitrile butadiene rubber (NBR). With the growing construction activities and rapid urbanization in countries such as China and India, the usage of NBR is increasing in the region.
- The construction sector in India has been growing rapidly with increased investment by the government. The Indian government's ‘Housing for All by 2022’ is a major game-changer for the industry.
- Smart cities mission is another major project undertaken by the government which will construct more than 100 smart cities all over the country to achieve rapid urbanization in the country. In the 2021-22 budget, the smart cities mission has been given INR 6,450 crore against INR 3,400 crore in the 2020-21 revised estimates.
- In India, the automotive industry produced a total of 3,394,446 vehicles (including passenger and commercial vehicles) in 2020, compared to 4,524,366 vehicles in 2019, registering a negative growth of about 25%. At the same time, the sales of new vehicles declined by about 23% during 2020 compared to 2019. The automotive industry is already facing a critical situation and is hard hit by the pandemic. However, the government's reforms such as “Aatma Nirbhar Bharat” and “Make in India” programs are likely to boost the automotive industry.
- China is one of the largest countries in the world, where the construction sector dominates almost all other sectors in growth .The Chinese government rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities, over the next 10 years.
- According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), China is the largest producer of automobiles in the world. However, automotive production in the country has been witnessing a huge decline for the past three years. The country produced 2,57,20,665 vehicles in 2019. In 2020, the country produced 25,225,242 vehicles, which declined by about 2% from 2019.
- The appliance market in China is expected to grow as the middle-class population grows, thereby driving the NBR market in the country. Moreover, the increase in mining activities in China over the years has resulted in increased NBR demand in the country.
- All such factors, coupled with the increasing consumption from other emerging economies of Asia-Pacific, are driving the growth of the market in the region.
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The nitrile butadiene rubber market is partially fragmented. Some of the major players include ARLANXEO, KUMHO PETROCHEMICAL, TSRC, JSR Corporation, and LG Chem.
- In September 2019, SIBUR and Sinopec signed an MoU to set up a second nitrile rubber joint venture. The parties have agreed to set up a joint venture (JV) for the production of nitrile butadiene rubber with a capacity of 50 ktpa in China. SIBUR’s share in the joint venture is about 40% and Sinopec’s is 60%.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Increasing Safety Concerns in Healthcare
4.1.2 Growing Industrial Activities
4.1.3 Other Drivers
4.2.1 Restrictions on Use of Phthalates in NBR Formulations and Other Environmental Regulations on Rubber Manufacturing
4.2.2 Negative Impact of the COVID-19 Pandemic
4.2.3 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1.1 Adhesives and Sealants
5.1.2 Belts and Cables
5.1.5 Seals and O-Rings
5.1.6 Other Applications
5.2 End-user Industry
5.2.1 Automotive and Transportation
5.2.2 Building and Construction
5.2.5 Metallurgy and Mining
5.2.6 Oil and Gas
5.2.7 Other End-user Industries
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.3.2 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
5.3.4 South America
220.127.116.11 Rest of South America
5.3.5 Middle-East and Africa
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Apcotex Industries Limited
6.4.3 China Petroleum & Chemical Corporation (Sinopec)
6.4.4 JSR Corporation
6.4.5 KUMHO PETROCHEMICAL
6.4.7 LG Chem
6.4.10 Versalis SpA
6.4.11 ZEON CORPORATION
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Nitrile Butadiene Rubber (NBR) Market market is studied from 2016 - 2026.
What is the growth rate of Nitrile Butadiene Rubber (NBR) Market?
The Nitrile Butadiene Rubber (NBR) Market is growing at a CAGR of >6% over the next 5 years.
Which region has highest growth rate in Nitrile Butadiene Rubber (NBR) Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Nitrile Butadiene Rubber (NBR) Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Nitrile Butadiene Rubber (NBR) Market?
ARLANXEO, KUMHO PETROCHEMICAL , LG Chem , TSRC, JSR Corporation are the major companies operating in Nitrile Butadiene Rubber (NBR) Market.