The global synthetic rubber market revenue stood at $31.0 billion in 2020, and the market is expected to exhibit huge expansion in the coming years. The market is being propelled by the rising demand for automotive tires, mushrooming requirement for long-lasting rubber, ballooning production capacity of many rubber manufacturers, and surging investments being made by them. Additionally, the booming automotive industry and the implementation of initiatives by several governments for increasing disposable income of citizens, facilitating industrialization, and fueling economic progress are also driving the market.
The soaring manufacturing and sales of automobiles, especially in developing nations, such as India and China, is fueling the expansion of the automotive industry. For instance, as per the India Brand Equity Foundation (IBEF), the automotive industry in India is predicted to reach a revenue of INR 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. As rubber and rubber products are extensively used in the automobile industry in various applications, such as body sealing systems, vehicle anti-vibration systems, suspension systems, fluid transport systems, fused components, flat seals, O rings, and adhesives and sealants, the surge in the industry is positively impacting their demand.
In addition, many components in the engine compartment, such as engine seals and hoses in air conditioning systems, are produced from high-grade synthetic rubber. Owing to these factors, the expansion of the automotive industry is propelling the synthetic rubber market across the globe. Depending on product type, the market is divided into polybutadiene rubber (BR), butyl rubber (IIR), acrylonitrile-butadiene rubber (NBR), styrene-butadiene rubber (SBR), ethylene-propylene-diene rubber (EPDM), and styrene block copolymer (SBC).
This is ascribed to the ballooning requirement for replacement tires, owing to the soaring sales of two-wheelers and four-wheelers all over the world. Geographically, the Asia-Pacific (APAC) region contributed the highest revenue to the synthetic rubber market in the years gone by. This was because of the high requirement for synthetic rubber in the tire and construction industries. Moreover, leading automakers are rapidly setting up their manufacturing facilities in the APAC countries in order to strengthen their position in the industry. Currently, the automotive industry is surging in China, on account of the growing demand for clean automobiles, which is also fueling the expansion of the regional market.
Hence, the market will exhibit rapid expansion in the forthcoming years, mainly because of the booming sales of automobiles all over the world.
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