Global Synthetic Rubber Market: Overview
Both fragmented and competitive, the global synthetic rubbers market is choc-o-bloc with large, medium, and small players. To beat competition in such a cutthroat environment, the deep-pocketed players are seen upping spends on research and development to launch better products. They are also banking heavily on an agile supply chain and proactive marketing and advertising. In order to grow, they are looking to foray into high growth markets in developing economies of the world through carefully-considered mergers and acquisitions.
All such initiatives by players is expected to have a positive impact on the global synthetic rubber market. Besides, high cost of natural rubbers owing to their depleting plantations across the world is another factor providing tailwinds to the global synthetic rubber market. To satisfy the rising demand from the automobiles and construction sector, the cheaper synthetic rubbers have emerged as a viable alternative.
The global synthetic rubber market is predicted to rise at a 5.1% CAGR over the course of the forecast period starting from 2015 and ending in 2023. At this pace, the market is predicted to attain a value of US$45,767.1 mn by 2023.
Tires Serve to Drive Maximum Demand in Global Synthetic Rubber Market
Synthetic rubber finds usage in making footwear, industrial goods, asphalt overlay, tires, and adhesives. Of them, the tires segment generates most of the demand in the market and going forward is predicted to maintain its lead in generating demand. Players are also coming up with eco-friendly versions since that contain silica which reduces roll resistance. This in turn helps to consume lesser amounts of fuel.
Currently, styrene butadiene rubber (SBR), a type of synthetic rubber, accounts for most of the share in the market. This is because, it can be processed easily and offers heat aging. It is also resistant to abrasion. Used mainly for car tire manufacture, where it is mixed with natural rubber at times, SBR also finds application in making gaskets, conveyor belts, floor tiles, hoses, adhesives, and footwear.
Meanwhile, nitrile butadiene rubber (NBR) – another product type – is making a compelling bid for dominant share in the global synthetic rubber market. Reason behind it is the increasing demand for NBR in automotive applications.
Prominent participants in the global synthetic rubber market are Versalis S.p.A., Asahi Kasei Corporation, DuPont, KUMHO PETROCHEMICAL, The Dow Chemical Company, and Sumitomo Chemical Co.