Rubber Market Size, Challenges & Industry Growth Forecast 2032

The global rubber market is projected to reach USD 51.21 billion by 2027, growing at a CAGR of 5.3% during the forecast period. This growth is primarily driven by the increasing demand from the automotive industry, particularly due to rubber’s excellent insulation properties. According to a report by Fortune Business Insights titled “Rubber Market Size, Share & Industry Analysis, By Type (Natural and Synthetic), By Application (Tire, Non-Tire Automotive, Footwear, Industrial Goods, and Others), and Regional Forecast, 2020-2027,” the market was valued at USD 40.77 billion in 2019.

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The Report lists the Main Companies in the Rubber Market:

• ARLANXEO (Netherlands)
• Kumho Petrochemical Co., Ltd. (South Korea)
• PetroChina (China)
• TSRC Corporation (Taiwan)
• LG Chem (South Korea)
• Versalis (Italy)
• Dow Chemicals (U.S.)
• Von Bundit (Thailand)
• Sri Trang Agro-Industry (Thailand)
• Southland Holding Lonza (Thailand)
• Vietnam Rubber Group (Vietnam)

Market Driver:

Rising Application of Rubber in Numerous Industries to Boost Market

The growing demand for tire and other automotive parts will simultaneously spur opportunities during the forecast period. The growing utilization of rubber in wide-ranging automotive products such as tires, crap tubes, adhesives, hoses, pipes, gaskets, and roll coverings will further enhance the scope of the market. Moreover, the increasing application in footwear, industrial goods, construction, textiles, and other consumer products will aid the expansion of the market. For instance, the use of latex offers substantial protection against water, chemicals, electricity, impact, and low temperatures. Additionally, its use in a variety of textiles, and consumer products, such as bands, protective covers, mats, and others will further foster the growth of the market.

Properties such as heat and abrasion resistance make rubber a highly useful and valuable raw material in various end-use industries. It is mostly used in manufacturing products such as tires, crap tubes, adhesives, hoses, gaskets, and roll coverings. The rising demand from the automotive industry for tire and non-tire applications is one of the key rubber industry trends. It is majorly used in the manufacturing of tires due to its strong properties, such as tear resistance and toughness. It also works under low-temperature conditions. It is a perfect material for the manufacturing of tires and hence, accounts for over 40% of the share in the overall tire composition. Additionally, properties, such as weather resistance, insulation property, and flexibility increase the usage in industrial applications including transmission belts, elevators, and non-flat belts.

Disturbed Supply Chain to Dwindle Business Amid Coronavirus

Rubber is dominantly used as a raw material in the automotive end-use industry for the production of a wide variety of products, such as tires, crap tubes, adhesives, hoses, pipes, gaskets, and roll coverings. The increasing demand for tire and non-tire automotive parts is expected to influence market growth.

The coronavirus incident has resulted in the shutdown of production facilities, and restrictions on transportation. The disruption in the supply and distribution can further limit the scope of the market. The major impacted countries include China, India, Germany, Italy, Brazil, and Canada. China is a major consumer of rubber. The constraint on export and import activities of industrial rubber goods and tires will act as an inhibiting factor for the development of the global market.

The report on the rubber market incorporates:

• All-embracing evaluation of the Industry
• Latest developments
• Emerging trends and drivers
• Controlling regions in the global market
• COVID-19 impact on the industry

Information Source: https://www.fortunebusinessinsights.com/industry-reports/rubber-market-101612

Regional Analysis:

Rising Construction Activities to Bolster Growth in Asia Pacific

The market size in Asia Pacific stood at USD 22.09 billion in 2019 and is expected to witness an exponential growth rate during the forecast period. The growth in the region is attributed to the rising production and consumption in India and China. Thailand is the largest producing country of natural rubber. The flourishing automotive and construction industry is predicted to enable speedy expansion of the market in the region. The market in North America is expected to rise tremendously owing to the rising demand in footwear applications. The growing automotive, chemical, and textile industries are expected to create opportunities for the market in North America.

Key Development:

June 2018:  Kumho Petrochemical announced that it has extended its NB Latex production capacity by 400 KT to 550 KT per annum at its manufacturing plant in Ulsan.