The synthetic rubber market size is projected to be worth USD 28.87 billion by 2030, registering a CAGR of 4.77% during the forecast period (2022–2030). The market was valued at USD 19.10 billion in 2021.
The prime driver of the global synthetic rubber market is its extensive use in tire manufacturing for passenger and heavy-duty vehicles. Synthetic rubber is used for manufacturing low rolling resistance tires, which consume less energy, have lower fuel consumption, and reduce CO2 emissions. Moreover, the increasing adoption of these tires in electric vehicles (EVs) and the rising sales of EVs promote market growth. In addition to this, the use of synthetic rubber in the construction industry is another prime driver of the global market.
However, stringent regulations regarding the production and processing of rubber are expected to act as restraints for global market growth. On the other hand, the price volatility of crude oil, a key raw material, is a challenge faced by the players in the synthetic rubber market. Nevertheless, the devulcanization of synthetic rubber and the use of end-of-life tires for energy carriers and fuel is likely to open up growth opportunities for players in this market.
According to the United Nations, a 3.5% contraction in GDP was witnessed by the COVID-19 pandemic in 2020. However, global economic activity has gained significant momentum in 2021 and is set to expand 5.6% in 2021, according to World Bank. However, this recovery is uneven and largely reflects sharp rebounds in some major economies. The recovery is envisioned to continue into 2022, with global growth moderating to 4.3%. However, yet the global GDP is expected to remain 1.8% below pre-pandemic projections. In response, for protecting workers from the spread of the COVID-19, the companies in the market have restricted travel and face-to-face meetings for the employees.
The COVID-19 pandemic continues to expand rapidly and has severely disrupted supply chains, created significant volatility in global financial markets and changed the communication and business landscape.
The supply chain for synthetic rubber witnessed interruptions around the globe due to restrictions on transportation, lack of working staff, and bans by government. The shutting of factories and production in China created imbalance in the supply chain, leading to a sharp increase in the prices of various rubber items. The global rubber industry is interdependent with many other industries such as automotive & transportation, construction, healthcare, electronics, consumer goods, among many others. The decreased demand of products from these end use industries led to the manufacturers cutting down their production capacities, thus affecting the rubber prices. The dip in the production and manufacturing of rubber-based products has hit these industries as well.
The growing demand for automobiles due to the consumers' rising per capita disposable income and the rapid adoption of electric vehicles are expected to boost the need for synthetic rubber in automobile tire production. The advancements in the automotive and heavy-duty industries to fulfill the current demands and future requirements of consumers have led to the development of innovative and safe components for use in automobiles. The key requirements for a tire for an electric vehicle are high rolling resistance, lightweight, less noise, and the ability to offer high mileage and fuel efficiency. SSBR has a high rolling resistance and promotes lower fuel consumption, which is why the demand for synthetic rubber in tire manufacturing of EVs is expected to increase during the review period. Synthetic rubber, similar to natural rubber, has many uses in the automotive industry for tires, door and window profiles, seals such as O-rings and gaskets, hoses, belts, matting, and flooring. Thus, the increasing use of synthetic rubber in tire manufacturing is expected to drive the growth of the global synthetic rubber market during the forecast period.
Soot is produced during the vulcanization of synthetic rubber. It consists of fine black particles, mainly composed of carbon, produced by incomplete combustion of coal, oil, wood, and other fuels. The compounds of soot such as sulfur dioxide and nitrogen oxide combine with the moisture, resulting in the formation of acid rain. This worsens the water quality, damages soil and crops, and changes the nutrient balance in the ecosystem, and results in nitrogen pollution. Inhalation of these particles leads to respiratory diseases, causing coronary heart diseases, asthma, and bronchitis, among others. Fine particles of less than 3 microns can penetrate easily into the air passage, causing cancer and bronchial problems. In contrast, larger particles trapped in the nose may result in breathing problems and irritation. Furthermore, the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) has imposed strict policies regarding the use of hazardous chemicals and disposal of polluted wastewater from rubber processing. Thus, the adverse effects associated with rubber production and stringent regulations are factors expected to hamper the global market growth during the study period.
The lack of recycling programs for vulcanized elastomers, such as scrap tire rubber, is an environmental, social, and economic problem due to their low degradability and large volume. These scrap tires are responsible for the proliferation of mosquitoes and other disease-carrying vectors, along with potential soil contamination due to the presence of stabilizers, plasticizers, and other chemical substances leached from rubber. However, there are methods that can be used to obtain recycled materials with enhanced properties so that the rubber becomes processable and mouldable. Once the rubber can flow, it can be re-vulcanized as virgin rubber and incorporated into thermoplastics to produce high toughness materials. The technique known as devulcanization is used for regaining this fluidity. Devulcanized rubber is specifically intended to substitute virgin polymer or as an extender in rubber compounds and can be used in applications such as tires, conveyor belts, mill linings, anti-vibration products, and noise attenuation.
Synthetic rubber, which is consumed extensively as compared to natural rubber, used in the manufacturing of high-performance seals is produced from crude oil. Thus, the fluctuations in the crude oil prices are likely to have a corresponding impact on the cost of synthetic rubber. In addition, the price of rubber is highly volatile and can be influenced by many other factors such as climatic conditions, policy changes in the countries that are the major consumers, fluctuations in currency exchange rates, and supply and consumption. In addition to this, oil prices are particularly the decisions about output made by producers such as the Organization of Petroleum Exporting Countries (OPEC), independent petro-states such as Russia, and private oil-producing firms such as ExxonMobil. Geopolitical events and severe weather that disrupt the supply of crude oil and petroleum products can affect crude oil and petroleum product prices and create uncertainty about future supply or demand, which could lead to higher volatility in prices. The volatility of oil prices is tied to the low responsiveness, or inelasticity, of the supply and demand to price changes in the short term.
Based on region, the global synthetic rubbers market has been divided into Asia-Pacific, Europe, North America, Latin America, and the Middle East & Africa. Asia-Pacific accounted for the largest market share of 35.44% in 2021. Asia-Pacific has been segmented into China, India, Japan, South Korea, Australia & New Zealand, and the rest of Asia-Pacific. The high growth in the region is attributed to rapid population growth, urbanization, and factors such as the presence of a large number of producers, cheap labor costs, and growing application segments in the region. China remains the largest producer and consumer of synthetic rubber in 2021. India has also witnessed a rapid increase in consumption over the past few years. Moreover, increasing capacity addition in Southeast Asia, including Singapore and Thailand, South Korea, and China, is likely to project a positive outlook for the growth of Asia-Pacific region.
North America accounted for the second-largest market share of 25.48% in 2021 and is expected to register a CAGR of 5.27% during the forecast period. The North American market has been divided into the US and Canada. The US is the second-largest consumer of synthetic rubber, followed by China. The growth in the US is due to the presence of large-scale end-use industries, extensive technological and R&D capabilities, and widespread production facilities. Henceforth, the US is expected to drive regional growth during the assessment period. The European market has been segmented into Germany, the UK, France, Spain, Italy, Russia, and the rest of Europe. The growth in this region is attributed to the large-scale production of motor vehicles, and the sector represents the largest private investor in research and development (R&D). Moreover, Latin America and Middle East & Africa accounted for merely a single-digit market share of around 7.84% and 5.82%, respectively.
The global synthetic rubber market is expected to showcase healthy growth throughout the forecast period. The global market represents strong numbers in terms of consumption and is expected to grow year on year. The global synthetic rubber market is fragmented in nature with several organized and unorganized players operating in the market.
The key players operating in the global market have large production bases and advanced manufacturing facilities at the domestic and international levels. This helps them supply the product to various end users globally in less time than small-scale manufacturers, providing a competitive edge in the global market. These players compete on the basis of technological capabilities, production output, sales network, pricing, and product differentiation.
Some of the key players operating in the global synthetic rubber manufacture are LANXESS (Germany), Kumho Petrochemical Co., Ltd (South Korea), LG Chem Ltd (South Korea), Sinopec (China), Versalis S.p.A. (Italy), TSRC Corporation (Taiwan), ZEON CORPORATION (Saudi Arabia), Group Dynasol (Europe), Kraton Corporation (US), JSR Corporation (Japan), PJSC Nizhnekamskneftekhim (Russia), SIBUR (Russia), The Goodyear Tire & Rubber Company (US), Trinseo (US), and PetroChina (China). The market is highly fragmented, with the presence of many global, regional, and various unorganized players.
The synthetic rubber market is segmented by type, application, and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global synthetic rubber emerging and fast-growing segments, regions, and countries.
| Report Attribute/Metric | Details |
| Â Â Market Size | Â Â 2030: USD 25.87 Billion |
| Â Â CAGR | Â Â 4.77% CAGR (2022-2030) |
| Â Â Base Year | Â Â 2021 |
| Â Â Forecast Period | Â Â 2022-2030 |
| Â Â Historical Data | Â Â 2019 & 2020 |
| Â Â Forecast Units | Â Â Value (USD Million) & Volume (Kilotons) |
| Â Â Report Coverage | Â Â Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Â Â Segments Covered | Â Â Type, and Application |
| Â Â Geographies Covered | Â Â North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa |
| Â Â Key Vendors | Â Â LANXESS (Germany), Kumho Petrochemical Co., Ltd (South Korea), LG Chem Ltd (South Korea), Sinopec (China), Versalis S.p.A. (Italy), TSRC Corporation (Taiwan), ZEON CORPORATION (Saudi Arabia), Group Dynasol (Europe), Kraton Corporation (US), JSR Corporation (Japan), PJSC Nizhnekamskneftekhim (Russia), SIBUR (Russia), The Goodyear Tire & Rubber Company (US), Trinseo (US), and PetroChina (China). |
|   Key Market Opportunities |   • Devulcanization Of Synthetic Rubber • Use Of End-Of-Life Tires For Storable Energy Carriers And Tire-Derived Fuel |
|   Key Market Drivers |   • Increasing Use Of Synthetic Rubber In Tire Manufacturing • Use Of Synthetic Rubber For Construction Purposes |
Frequently Asked Questions (FAQ) :
The global synthetic rubber market would register a growth of 4.77%.
The automotive & transportation industry will play a prominent role in taking the market forward.
Increasing environmental concerns and stringent regulations imposed by the government surrounding usage of synthetic rubber.
Asia-Pacific would enjoy the upper hand in the synthetic rubber market, and it is poised to grow at a rapid rate.
China is poised to set the trend for demand growth in the synthetic rubber market.
Asia Pacific is the leading regional market for synthetic rubber due to the growing automotive industry in the region.
Leading players in the synthetic rubber market include ZEON Corporation, Lanxess, LG Chem, Dow, Asahi Kasei Corporation, and JSR Corporation.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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