Hydrogenated Nitrile Butadiene Rubber Market Analysis

Market OverviewGlobal Hydrogenated Nitrile Butadiene Rubber (HNBR) Market, according to MRFR, is projected to mature at a healthy CAGR of 9.7% to reach USD 21.3 Billion by 2030. Increased HNBR consumption in industrial and medical gloves is projected to be the primary driver of global market development.

COVID-19 Analysis

The outbreak of coronavirus disease (COVID-19) and consequent lockdowns levied by governments of many countries have temporarily halted the activity of large end-use polyamide industries. As a result, the industry is undergoing a downturn. Movement limitations tend to have a clear and immediate effect, and after the obligatory social gap has finished, it is assumed that things will return to normal circumstances. In addition, harmful effects on human health can create obstacles to the growth of the market during the forecast period.

Market Dynamics

Drivers

Growing Adoption from Oil & Gas Sector to Drive Market Growth

Rising demand from various end-use industries such as automobile, medical, manufacturing, oil & gas, and machinery are the key factors influencing the growth of the global hydrogenated nitrile butadiene rubber industry. Due to improvements in nitrile butadiene (NBR) choice for hydrogenated nitrile butadiene rubber (HNBR), HNBR has become one of the increasingly growing raw materials for the manufacture of rubber goods. Consumers' ever-increasing desire for high-quality rubber demands a transition in the process of rubber manufacture. Synthetic rubbers are commonly used in high-performance goods, directly contributing to the rise of the market for hydrogenated butadiene nitrile rubber. Growing demand for HNBR in Enhanced Oil Recovery (EOR) and increasing offshore drilling operations are projected to accelerate market development. Furthermore, they are used as rolls for steel and paper mills, further pushing the development of the industry. In recent times, there has been an increasing tendency to use high-quality rubber from a wide market pool from all over the globe. In the years ahead, this trend is projected to raise the revenue of the global demand for hydrogenated nitrile butadiene rubber (HNBR).

Opportunities

Growing R&D Investments to Create Growth Avenues for Market Players

Elastomer companies are investing extensively in R&D activities to develop novel HBNR grades that can survive harsh application conditions and are expected to present the global market for hydrogenated nitrile butadiene rubber with growth opportunities. The ability to maintain properties even after exposure to gasoline, chemicals, and heat for a long time is one of the main reasons attributed to the increased use of this substance. This scenario shows that the global market for hydrogenated nitrile butadiene rubber (HNBR) will face major growth prospects over the next few years.

Restraints

High cost of manufacturing to Impede Market Growth

On the downside, in contrast to their conventional counterparts, the growth of the global market for hydrogenated nitrile butadiene rubber could be dampened by their high price. Not only are the products used for HNBR manufacturing costly, its processing often entails considerable costs.

Segmental Analysis

By Product

The HNBR solid segment accounted for the largest market share of 67 percent in 2018, based on the product, and the highest CAGR of 8.6 percent is expected to be registered during the review period. This is due to its excellent resistance to heat and fuel and is ideal for use in the automotive industry. HNBR solid also sees uses in the manufacturing of automotive goods resistant to grease, such as hoses, wiper seals, pipes, and static and rotary seals. Furthermore, it decreases the total weight and price of the vehicle, which is an additional bonus which stimulates the growth of the market.

By End-Use

The automotive sector led the end-use industry with the highest market share of 52 percent in 2018. This is primarily due to the rising consumption of HNBR for producing belts, seals and hoses in the automotive industry. In addition, the numerous advantages associated with the use of HNBR, such as excellent heat and oxidation stability, coolants and oils, high mechanical strength and superior resistance to fuels, enhance the adoption of HNBR in the automotive industry.

Regional Analysis

The geographical overview of the global market has been conducted in four major regions, including the North America, Asia Pacific, Europe, and the rest of the world.

APAC to Lead with Expansion of End-use Sectors

In 2018, the Asia-Pacific industry dominated the global market, accounting for the largest share of 42 percent, and the highest CAGR of 9.30 percent is expected to be registered by the end of 2025. This is due to the increasing urbanisation in various end-use industries such as manufacturing, oil & gas and building, the convenient availability of raw materials and increasing consumption. China is the region's leading nation and was estimated at USD 1,665.2 million in 2018 due to the automotive & transportation and construction industries' large customer base and stable expansion. Governments in a range of leading rubber production countries, such as Thailand, India, Indonesia and Sri Lanka, provide rubber farmers with economic assistance in the form of discounts, tax cuts and customs duty exemptions. For example, through numerous efforts such as trade fairs and buyer-seller meetings, the Indian government has aided rubber farmers and producers. Likewise, in Thailand, by forming a free trade deal with rubber importing countries such as New Zealand and Australia, the government funded the rubber industry. These initiatives stem from increasing exports of rubber from these countries to various parts of the world, and from building demand to improve rubber production. In a move to lower the shipping costs for raw materials and raise sales results, leading tyre producers in North America and Europe are exporting their activities to rubber manufacturing countries such as China and India.

Growing R&D Investments to Drive Europe

Owing to the high consumption of HNBR in automotive parts, the European industry accounted for the second-largest market share of 26 percent in 2018 and is likely to show a steady CAGR of 8.07 percent during the evaluation period. Leading automotive makers, such as Volkswagen, BMW, Mercedes-Benz and Audi, are found in Europe. Because of its large automotive base, Germany is the leading customer in the region and is followed by Germany, Russia, the UK, France and Italy.

Competitive Landscape

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  Arlanxeo (The Netherlands)

  
  


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  Zeon Corporation (US)

  
  


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  Polycomp (The Netherlands)

  
  


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  Eriks NV (The Netherlands)

  
  


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  Rahco Rubber, Inc. (US)

  
  


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  Mantaline (US)

  
  


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  Trelleborg Sealing Solutions (US)

  
  


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  MCM SpA (Italy)

  
  

Recent Development

September 2020: In deep blue and red, Apple launched two new braided Solo Loop Apple Watch Bands. "A patent application from Apple was published by the US Patent & Trademark Office covering the production of this new band, which Apple describes as "Stretchable recycled yarn interwoven with silicone threads, made of different elastic materials, including hydrogenated nitrile butadiene rubber, designed for ultra comfort without buckles or clasps.

July 2020: Arlanxeo held a 24-hour synthetic rubber multimedia scientific marathon, featuring "world-class" lectures with more than 2,000 professionals participating. EPDM crosslinking chemistry and Arlanxeo's Therban HT, a plastic re-enforced hydrogenated nitrile butadiene rubber (HNBR) with enhanced high-temperature properties, were addressed in some of the main fields.

Report Overview

By Product

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  HNBR Solid

  
  


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  HNBR Latex

  
  


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  Others

  
  

By End-Use Industry

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  Automotive

  
  


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  Machinery

  
  


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  Oil & Gas

  
  


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  Medical

  
  


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  Construction

  
  


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  Others