Market Trends of Styrenic Block Copolymers (SBCs) Industry
This section covers the major market trends shaping the Styrenic Block Copolymers Market according to our research experts:
Styrene-butadiene-styrene (SBS) Segment to Dominate the Market
- SBS accounts for the largest share, in terms of production and demand, among the different types of styrene block copolymers. It is basically a thermoplastic elastomer consisting of styrene and butadiene monomers.
- SBS holds the advantages of properties achieved from both polystyrene and butadiene. The polybutadiene chains in the structure allow the material to be stretched and get back to its normal state. On the other hand, the polystyrene composition in the structure gives it the required durability. SBS elastomers are not suitable for continuous usage in the ultraviolet (UV) and ozone conditions.
- These properties make SBS ideal for usage in applications, such as road pavement, plastic modification, adhesives, and footwear.
- Asphalt modification applications involve the addition of small amounts of SBS, approximately 2-6% by weight to asphalt used in road paving and around 11% by weight in roofing felts and shingles, to enhance the properties of the end product. The increased cost of installing SBS-enhanced asphalt is offset by future maintenance savings and the benefit of less disruption due to the increased durability.
- In 2019, the new highway and street construction put in place was valued at about USD 97.56 billion in the United States, and it is estimated to reach about USD 107.74 billion by 2024, registering a CAGR of about 2%. Thus, this is expected to enhance the demand for SBS from the highway and street construction sector.
- Furthermore, the expenditure of airport runway construction in the United States was valued at about USD 4.7 billion in 2019 and reached about USD 5.7 billion in 2020, with a growth rate of about 21%, thus enhanced the demand for the market studied.
- Moreover, the total value of new construction in the United States was about USD 1,365 billion in 2019 and reached about USD 1,430 billion in 2020, with a growth rate of about 4.5%, increasing the demand for SBS in roofing felt and shingle applications.
- The consumption of SBS might witness a slight decline for polymer modification applications, owing to the increasing usage of PET in food packaging and other applications in the current scenario.
- Despite having higher tensile strength than SBR rubber, SBS materials possess lower heat resistance on a relative scale. Oil extended SBS is witnessing an increase in terms of production as compared to dry SBS in recent times.
- Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
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China to Dominate the Asia-Pacific Market
- In the Asia-Pacific region, China is the largest economy in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the trade disturbance caused due to its trade war with the United States. The economic growth rate of China in 2020 was initially expected to be moderate as compared to the previous year. However, due to the onset of COVID-19, in 2020, the economic growth of China was estimated to contract to 1.90%, and it is expected to witness recovery at a rate of 8.20% in 2021.
- The construction industry grew at a strong pace in 2019, even though the growth slowed down during the year compared to 2018. The construction sector supported the economic growth in the country, while the US-China trade war affected the performance in other industries, such as automotive.
- China's 13th Five Year Plan started in 2016 (2016-2021), and it was an important year for the country's engineering, procurement, and construction (EPC) industries. In addition, the country ventured into new business models domestically and internationally during the year. Although the construction sector slowed down after 2013, it is still a major contributor to the GDP of the country.
- According to the National Bureau of Statistics of China, the revenue generated by the Chinese construction industry increased from CNY 17.67 trillion in 2014 to CNY 24.84 trillion in 2019. The Chinese construction industry was valued at about USD 1,049.2 billion in 2020, and it is estimated to reach about USD 1,117.4 billion by 2021, with a growth rate of about 6.5%.
- Furthermore, China planned to invest about USD 21.43 billion for the construction of 30 new expressway links with a total length of 2,109 km in Guangxi Province, which will be completed by the end of 2021. Thus, this is expected to enhance the demand for the market studied.
- Owing to the huge footwear manufacturing industry, China accounts for over 45% of the total SBS produced around the world. India and Thailand are other key footwear markets in the region, where the demand for SBC is expected to witness positive growth.
- The Chinese footwear industry was valued at about USD 64.78 billion in 2019, and it is estimated to reach about USD 86.05 billion by 2024, with a CAGR of about 6%. Thus, this is expected to enhance the demand for the SBC.
- Therefore, the aforementioned factors are expected to show a significant impact on the styrenic block copolymers (SBCs) market in the coming years.
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