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

The Synthetic Rubber Market is segmented by Type (Styrene Butadiene Rubber, Ethylene Propylene diene Rubber, Polyisoprene Rubber, Polybutadiene Rubber, Isobutylene Isoprene Rubber, and Other Types), Application (Tire and Tire Component, Non-tire Automobile Application, Footwear, Industrial Goods, 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 synthetic rubber in terms of revenue (USD million) for all the above segments.

Market Snapshot

Synthetic Rubber Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >4.5 %
Synthetic Rubber Market Major Players

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Market Overview

The synthetic rubber market size was valued at USD 28,173.06 million in 2020, and the market is projected to register a CAGR of more than 4.5% during the forecast period (2021-2026).

Synthetic rubber market growth is hampered by the COVID-19 pandemic, as lockdowns, social distances, and trade sanctions have triggered massive disruptions to global supply chain networks. A delay in farming operations and latex collection, on the other hand, further compounded the problem. Crucial inputs such as carbon black and rubber chemicals were in short supply due to disruption of global economic activities and import restrictions. Major tire manufacturers were forced to shut down their manufacturing units amid the pandemic scenario, which has led to a decrease in demand for synthetic rubber. The world's biggest tiremaker Bridgestone has shut eight tire plants between April and May 2020, including its main passenger vehicle tire factory in Hikone, western Japan, and its main truck and bus tire manufacturing plant in Amagi, southern Japan. In August 2020, the company also finalized the closure of its South African plant that is the agri tire manufacturing plant in Port Elizabeth, Eastern Cape, South Africa. Furthermore, in January 2021, the company announced the closure of its Béthune tire plant in France.

  • Over the medium term, increasing demand due to rising electric vehicles’ production, and surging demand for athletic footwear are the major factors to stimulate the market demand.
  • Stringent environmental regulations and possible health risks due to soot produced during the vulcanization of rubber are likely to hinder the market’s growth. Soot is a toxic combination of metals and chemicals, which results in cardiovascular diseases and cancer.
  • The development of bio-based feedstock for synthetic rubber is likely to act as an opportunity for market growth in the future.
  • Asia-Pacific has accounted for the highest market share and is likely to dominate the market during the forecast period.

Scope of the Report

Synthetic rubber, like other polymers, is made from various petroleum-based monomers. The most prevalent synthetic rubber is styrene-butadiene rubbers (SBR), derived from the copolymerization of styrene and 1,3-butadiene. The synthetic rubber market is segmented by type, application, and region. By type, the market is segmented into styrene-butadiene rubber, ethylene propylene diene rubber, polyisoprene rubber, polybutadiene rubber, isobutylene isoprene rubber, and other types. By application, the market is segmented into tire and tire components, non-tire automobile applications, footwear, industrial goods, and other applications. The report also covers the market size and forecasts for the synthetic rubber market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

Type
Styrene Butadiene Rubber (SBR)
Ethylene Propylenediene Rubber (EPDM)
Polyisoprene (IR)
Polybutadiene Rubber (BR)
Isobutylene Isoprene Rubber (IIR)
Other Types
Application
Tire and Tire Component
Non-tire Automobile Application
Footwear
Industrial Goods
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
France
United Kingdom
Italy
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

Tire and Tire Component to Dominate the Market

  • The tire and tire components segment has the highest market share in the synthetic rubber market. Styrene-butadiene rubber is mostly used in the tire industry owing to its good aging stability and high abrasion resistance, making it the material of choice for use in the tire manufacturing industry.
  • Around 50% of the car tires are made up of styrene-butadiene rubber, present in a blend with natural rubber.
  • For low-end tires, the ratio of SBR to natural rubber is lower in order to reduce the cost of production. Although this reduces the overall life of tires, it is a cost-effective option.
  • According to U.S. Tire Manufacturers Association, tires used in passenger and light trucks have 24% of synthetic rubber by volume, and tires used in heavy trucks have 11% of synthetic rubber by volume.
  • According to European Tire & Rubber Manufacturers' Association (ETRMA), tire production had increased from 4.89 million metric tons to 5.10 million metric tons in 2018. However, production declined through 2019 and further through 2020. Tire shipments further declined in Europe through 2019 and 2020. Passenger tire shipments fell in both the replacement and original equipment segments, while replacement market truck tire shipments were on par with 2018, but original equipment shipments dropped 10.3%.
  • Thus, from the factors mentioned above, the consumption of rubber in tire and tire components is expected to increase during the forecast period post COIVD-19 recovery.
Synthetic Rubber Market Key Trends

Asia-Pacific Region to Dominate the Market

  • Asia-Pacific has dominated the synthetic rubber market owing to the high demand from countries like India and China.
  • China is one of the largest producers and consumers of rubber in the world. Two advanced synthetic rubber projects were approved in China in October 2020. Petrochemical Research Institute of CNPC and Shandong Yulong Petrochemical Co. Ltd. formally signed the "Technical License Contract for TBIR and Integrated Rubber.“ TBIR is a copolymer rubber of butadiene and isoprene. It is a synthetic rubber that has not yet been industrialized in China. It will be widely used in high-performance tires, low-temperature components and sealing materials required by the military industry, and broad industrial application prospects. Integrated rubber is the third-generation SSBR, which has combined advantages of Natural Rubber, Butadiene Rubber, and SBR.
  • According to the National Bureau of Statistics China, the country produced 844.45 million units of tires in 2019 which declined by 886.09 million units produced in 2018. In the first eleven months of 2020, it reached ~394 million units, which increased by 1% compared to the same period in 2019. Despite the shutdown of production in the first quarter, the automotive tire production registered growth compared to the previous year 2019, which is likely to drive the market during the forecast period.
  • The Chinese automotive manufacturing industry is the largest in the world, with a production share of about 32.49% in 2020. The industry witnessed a slowdown in 2018, wherein the production and sales declined. A similar trend continued in 2019, with the production declined to 25.7 million vehicles by dropped by about 7.5% year-on-year.
  • India is one of the largest producers and consumers of rubber after China in the Asia-Pacific region. Despite being one of the largest producers of rubber, the country imports a noticeable portion of the rubber from various countries to meet the local demand. There are about 6000 manufacturing units in India comprising 30 large-scale manufacturing units, 300 medium manufacturing scale, and around 5,600 small scale and tiny sector manufacturing units. All these units are manufacturing more than 35,000 rubber products in the country.
  • In India, over 65% of the rubber produced is used for manufacturing automotive (50%) and bicycle tires and tubes (15%), 12% for footwear, 6% for belts and hoses, and 17% for other products. Moreover, there are almost 66 tire producing plants in the country and about 41 tire producing companies with a turnover of around USD 8.5 billion and exports of about USD 1.28 billion.
  • According to OICA, the country produced a total of 3.394 million vehicles in 2020, which declined by 25% compared to 4.516 million vehicles in 2019. The automotive industry is already facing a critical situation and is hard hit by the corona virus's spread. However, the government's reforms such as “Aatma Nirbhar Bharat” and “Make in India” programs are likely to boost the automotive industry.
  • The aforementioned factors are expected to show significant impact on the growth of the synthetic rubber market in the region during the forecast period.
Synthetic Rubber Market Growth Rate

Competitive Landscape

The global synthetic rubber market is fragmented in nature, where top five companies hold ~40% of the market. Major recognized players of the market include ExxonMobil Corporation, Kumho Petrochemical, Saudi Arabian Oil Co., TSRC, and China Petrochemical Corporation (Sinopec), among others.

Recent Developments

  • In May 2021, SynthosS.A. announced the signing of an agreement with Trinseo, to acquire its synthetic rubber operations based in Schkopau, Germany.
  • In April 2021, Azelisestablished a new partnership with SIBUR, which will see Azelisdistribute SIBUR’s powder acrylonitrile-butadiene rubber (powder NBR) products for the PVC industry in France, Iberia and Italy, and its butyl/halobutylrange in France.
  • In August 2020, LG Chem and Petronas Chemicals Group Berhad(PCG) are collaborating to build a Nitrile Butadiene Latex (NBL) manufacturing plant at Pengerang Integrated Complex (PIC) in Johor. Construction of the plant is scheduled to begin in 2021 while production will start in 2023. The plant will have an annual NBL production capacity of 200,000 tons, once completed.

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 from Rising Sales of Electric Vehicles

      2. 4.1.2 Surging Demand for Athletic Footwear

      3. 4.1.3 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Replacement of Rubber by PU in Some Applications

      2. 4.2.2 Business Impact of COVID-19 Pandemic

      3. 4.2.3 Other Restraints

    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 Type

      1. 5.1.1 Styrene Butadiene Rubber (SBR)

      2. 5.1.2 Ethylene Propylenediene Rubber (EPDM)

      3. 5.1.3 Polyisoprene (IR)

      4. 5.1.4 Polybutadiene Rubber (BR)

      5. 5.1.5 Isobutylene Isoprene Rubber (IIR)

      6. 5.1.6 Other Types

    2. 5.2 Application

      1. 5.2.1 Tire and Tire Component

      2. 5.2.2 Non-tire Automobile Application

      3. 5.2.3 Footwear

      4. 5.2.4 Industrial Goods

      5. 5.2.5 Other Applications

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 ASEAN Countries

        6. 5.3.1.6 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 France

        3. 5.3.3.3 United Kingdom

        4. 5.3.3.4 Italy

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 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 Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Apcotex Industries Limited

      2. 6.4.2 China Petrochemical Corporation (SINOPEC)

      3. 6.4.3 Exxon Mobil Corporation

      4. 6.4.4 JSR Corporation

      5. 6.4.5 Kumho Petrochemical

      6. 6.4.6 Lanxess

      7. 6.4.7 LG Chem

      8. 6.4.8 Mitsubishi Chemical Corporation

      9. 6.4.9 Nizhnekamskneftekhim

      10. 6.4.10 Reliance Industries Limited

      11. 6.4.11 SABIC

      12. 6.4.12 Saudi Arabian Oil Co.

      13. 6.4.13 The Goodyear Tire & Rubber Company

      14. 6.4.14 Trinseo

      15. 6.4.15 TSRC

      16. 6.4.16 Versalis SPA

      17. 6.4.17 Synthos

      18. 6.4.18 SIBUR

      19. 6.4.19 LLC Tolyattikauchuk

      20. 6.4.20 Synthez-Kauchuk (Sterlitamak)

      21. 6.4.21 АО Omsky Kauchuk (Titan Group of Companies)

      22. 6.4.22 Dynasol Group

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

    1. 7.1 Development of Bio-based Feedstock for Synthetic Rubber

    2. 7.2 Emerging Demand for Healthcare Gloves

**Subject to Availability

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Frequently Asked Questions

The Synthetic Rubber Market market is studied from 2016 - 2026.

The Synthetic Rubber Market is growing at a CAGR of >4.5% over the next 5 years.

The Synthetic Rubber Market is valued at 28173 Million USD in 2016.

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

Asia Pacific holds highest share in 2020.

Kumho Petrochemical, China Petrochemical Corporation (Sinopec), Exxon Mobil Corporation, Saudi Arabian Oil Co., TSRC are the major companies operating in Synthetic Rubber Market.

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