ID: MRFR/CnM/2041-CR | December 2018 | Region: Global | 128 pages
According to MRFR, the Global Butyl Rubber Market is projected to exhibit a CAGR of 4.66% during the forecast period (2018-2023). Superior commodity properties in terms of tear strength, ageing and heat resistance relative to natural rubber are projected to offer a positive scope for market growth over the forecast period.
Although the COVID-19 pandemic aims to transform the development of multiple sectors, the outbreak's immediate effect is varied. Although a few sectors will report a reduction in demand, many others will continue to stay unscathed and present exciting growth prospects. The prospect for global vehicle sales for 2020 is getting more complicated in the COVID-19 sense. The butyl rubber sector has recently been impacted by the COVID-19 pandemic, where much of the manufacturing production has been shut down temporarily. In effect, the market and supply chain have also been affected, limiting growth.
Growing Adoption from the Automotive Sector to Fuel Market Growth
The rising demand for vehicle tyres and tubing is favourably mirrored in the global market for butyl rubber. Growing demand for OEM tyres is projected to expand market growth over the coming years due to the increasing automotive industry. Demand for raw materials, including butyl rubber, has risen dramatically with the continuing growth of the automotive industry in developing economies. In countries such as China, Mexico, and India, sales of passenger and commercial vehicles are spiralling due to increased buying power in these countries. In these countries, the emergence of an existing tire-recycling industry also provides an incentive for marketing. In the coming years, the increasing demand for butyl rubber for damp proofing and roof repair is expected to fuel this market's growth. In addition, demand is expected to be propelled by the use of food-grade butyl rubber in food applications.
Growing Exploration of Untapped Markets to Create Growth Avenues for the Key Players
In addition, as part of corporate social responsibility, industry players are seeking to find new ways to reduce/mitigate the ecological harm caused by butyl rubber production and this is expected to encourage market growth patterns in the near future.
Fluctuating Raw Material Costs to Impede Market Growth
Factors such as fluctuating raw material costs, volatile organic compound (VOC) pollution regulations due to rubber processing and the availability of alternatives are, however, likely to threaten the development of the industry in the future. The price volatility of raw materials and government policies impacting the price of butyl rubber are threatening the butyl rubber industry. The rubber content was improved by the anti-dumping duty levy on carbon black rubber goods. It is difficult to treat butyl rubber during processing, owing to its ability to catch air and creep. Environmental concerns are another challenge for the industry, so exposure to contaminants in the manufacture of rubber remains a big health problem. It has poor tolerance to aliphatic sugars, and aromatic hydrocarbons.
The segmental analysis of the Butyl Rubber Market is based on Type and Application.
On the basis of type, the market has been segmented into bromobutyl, intoregular butyl, and chlorobutyl. The class of bromobutyl accounted for a comparatively greater market share in 2017. During the forecast period, the segment is expected to experience a CAGR of 5.21 percent and surpass a USD 2.2 billion market valuation. The growing use of bromo butyl in large-scale industries such as the automotive and pharmaceutical industries can be due to this.
The industry has been segmented into tyres and tubing, adhesives and sealants, industrial and medical gloves, pharmaceuticals, and others, based on application. The highest market share is actually in the hands of tyres and tubes and the trend is expected to persist during the measurement period. The segment is expected to reach a value of USD 4 billion by the end of 2023. The growth of the segment is supported by the growing development of automobiles coupled with the expansion of the aerospace industry. Currently, the market for butyl rubber is concentrated in the supply field of tyres and tubing. During the prediction era, the tyres and tubes segment is projected to remain incredibly lucrative.
Four main areas, including the Asia Pacific, North America, Europe, and the rest of the world, have been given a geographical description of the global economy.
APAC to account as Fastest Growing Region
The highest market share is accounted for by Asia-Pacific (APAC). The industry in the region stood at over USD 1.5 billion in 2017. During the prognosis period, the region is expected to remain highly lucrative for butyl rubber. Rapid industrial development is one of the key factors driving the growth of the region's economy. In terms of automobile production, China leads globally, which is substantially positive for the country's butyl rubber industry. Moreover, in countries such as India and China, the increasing demand for passenger and commercial vehicles is also giving impetus to the butyl rubber market in the region. The continued growth of APAC industries such as automobile, aerospace, pharmaceuticals and construction is growing its position as a significant business destination for industry players.
North America leads the Americas with established end-use Sectors
One of the main markets for butyl rubber has been North America. The new U.S. reforms have accelerated industrialization rate across the country, which over the projected horizon is expected to provide a favourable scope for business growth. As of 2016, the U.S. accounted for the highest market share in North America. It is anticipated that the presence of various hospitals, medical institutions, and clinics combined with customer healthcare awareness would boost the market for goods in the application of medical gloves. Industries like pharmaceuticals, manufacturing, and automobile have been greatly impacted by tight government restrictions combined with an economic downturn. The area's growth rate is projected to be poor relative to Asia Pacific and North America because of a downturn in the application industry.
Key Players focus on Product Development to Expand their Business Standing
The butyl rubber industry has now been a very competitive industry, and this aspect is helpful to the studied market as businesses obtain opportunities to expand their presence. Furthermore, major industry players are focused on expanding their geographic footprint. In order to build a standout image in the global market, all of these market leaders are aggressively focused on product creativity. At the same time, by participating in strategic growth operations, focus is placed on capturing untapped markets. These industry players are introducing different tactics such as growth, supply deals, and product releases to achieve full sales.
Frequently Asked Questions (FAQ) :
The butyl rubber market would cross a mark of USD 5,916.6 million by 2023.
The butyl rubber market has the opportunity to score a CAGR of 4.66% during the forecast period of 2018 to 2023.
The increasing demand for automotive components like tires and tubes would ensure growth for the butyl rubber segment.
The bromobutyl segment would have the reins of the butyl rubber market.
The tires and tubes segment would dominate the global butyl rubber market.
Butyl rubber is a synthetic rubber, which finds a wide-range of industrial application. Some of its properties include excellent shock absorbency and exceptionally low gas and moisture permeability. The global butyl rubber market is projected to exhibit a compound annual growth rate of 4.66% during the forecast period (2018-2023).
It is an important raw material for manufacturing rubber-based products. Butyl rubber is widely used in manufacturing inner tubes, tubeless tire liners, tires, shock mounts. The tire manufacturing industry is one of the leading consumers of butyl rubber. More than 80% of the global supply of butyl rubber cater to the tire manufacturing industry. The material is durable and offers heat, aging, weather, chemical, tearing and abrasion resistance, which are primary requirements of tire.
The growing demand for automotive tires and tubes is reflecting favorably on the global butyl rubber market. With the ongoing expansion of the automotive industry in emerging economies, demand for raw materials including butyl rubber has increased significantly. Sales of passenger and commercial vehicles are spiraling up in countries such as China, Mexico, and India owing the improving purchasing power in these countries. Also, presence of an established tire-recycling industry provides an impetus to market in these countries.
The segmental analysis of the butyl rubber market is based on type and application.
On the basis of type, the market has been segmented intoregular butyl, bromobutyl, and chlorobutyl. In 2017, the bromobutyl segment accounted for a relatively higher market share. The segment is projected to witness a CAGR of 5.21% during the forecast period and surpass a market valuation of USD 2,200 Mn. This can be attributed to the increasing use of bromo butyl in large-scale sectors such as automotive and pharmaceuticals. Bromo butyl rubber is a derivative of regular butyl rubber and is produced by reacting butyl rubber with bromine. The process leads to development of a highly high endurance rubber material with high cure reactivity and better compatibility with unsaturated polymers. In addition, bromo butyl rubber has better adhesion then regular butyl rubber.
On the basis of application, the market has been segmented into tires and tubes, adhesive and sealants, industrial and medical gloves, pharmaceuticals, and others. The tire and tubes currently commands the largest market share and the trend is likely to continue throughout the assessment period. Towards the end of 2023, the segment is expected to surpass a valuation of USD 4,000 Mn. Tires and tubes are important components in any vehicular system. The increasing production of vehicles coupled with the expansion of the aerospace industry is supporting the growth of the segment. Currently, butyl rubber demand is concentrated in the tire and tube manufacturing sector. The tires and tubes segment is expected to remain highly lucrative during the projection period.
The regional outlook for butyl rubber market includes analysis of the market in North America, Latin America, Europe, Asia Pacific (APAC) and the Middle East & Africa (MAE). Currently, Asia-Pacific (APAC) accounts for the largest market share. In 2017, the region’s market stood at over USD 1,500 Mn. The region is expected to remain highly lucrative for butyl rubber during the projection period. The rapid industrial growth is one of the major forces that are driving the growth of the market in the region. China leads globally in terms of automotive production, which is major positive for region’s butyl rubber industry. In addition, growing demand for passenger and commercial vehicles in countries such as India and China is also providing an impetus to the butyl rubber market in the region. The ongoing expansion of industries such as automotive, aerospace, pharmaceuticals, and construction in APAC is lifting its position as an important business destination for market players.
Some of the notable companies operating in the global butyl rubber market include Arlanxeo, JSR Corporation, China Petrochemical Corporation, Sibur International GmbH, Reliance Industries Limited, PJSC Nizhnekamskneftekhim, Exxon Mobile Corporation, Zhejiang Cenway New Synthetic Materials Co., Ltd. Many of these market players are actively focusing of product innovation in order to create a standout image in the global market. At the same time, emphasis is being placed on capturing untapped markets by engaging in strategic expansion activities.
Global Butyl Rubber Market: Competitive Landscape
The major players operating in the global butyl rubber are Arlanxeo, JSR Corporation, China Petrochemical Corporation, Sibur International GmbH, Reliance Industries Limited, PJSC Nizhnekamskneftekhim, Exxon Mobil Corporation, and Zhejiang Cenway New Synthetic Materials Co., Ltd,
Exxon Mobil Corporation, Reliance Industries Limited, Sibur International GmbH, Arlanxeo, and JSR Corporation are the manufacturing companies which collectively account for the majority share of the butyl rubber market. The market is fragmented and comprises of players which are operational in China, Japan, India, the Netherlands, Austria, and the US. Different strategies such as expansion, supply agreements, and product launches are implemented by these market players to gain maximum revenue. There is a growing demand from various end-use applications such as tires & tubes adhesives & sealants, industrial & medical gloves, and pharmaceuticals which attributes to the growth of the market. There is a strong competition between companies as there is a surging demand for butyl rubber in growing automotive industry.
In August 2018, Lanxess AG announced plans to sell 50% of its stake in Arlanxeo to its joint venture partner Saudi Arabian Oil Co. The total joint venture was valued at USD 3.55 billion. LANXESS expects to receive approximately USD 1.65 billion in cash after deducting debt and other financial liabilities for its 50% stake.
In the same month, Reliance Sibur Elastomers Private Limited (RSEPL), a joint venture between Sibur International and Reliance Industries Limited, announced its plans for setting up South Asia’s first halogenated butyl rubber unit at Reliance India Limited’s integrated petrochemicals site in Jamnagar, Gujarat, India. This production site will have a 120 KT per annum butyl rubber production capacity and is currently under construction.
In December 2017, PJSC Nizhnekamskneftekhim and Pirelli, the global manufacturer of automotive tires, entered into a cooperation agreement to produce synthetic rubber. With this, both parties agreed to strengthen their business relations in the future. In June 2017, PJSC Nizhnekamskneftekhim and Michelin, the French tire manufacturer, signed a supply agreement to develop and supply new brands of synthetic rubber.
In June 2018, Exxon Mobil has begun production at its newly constructed halobutyl rubber plant in Singapore. This new integrated facility has added 140,000 metric tons of butyl rubber capacity to the company’s overall production.
JSR is focused on strengthening its competitiveness with the launch of JSR20i9, a new medium-term business plan, in April 2017. To achieve JSR20i9, the company is expanding its three business segments.