Global Rubber Market 2017-2021
Natural rubber is used to manufacture various products such as erasers, electrical insulation, and elastic bands. Synthetic rubber is also an elastic material that is manufactured by the fractional distillation of naphtha, a crude oil derivative. Synthetic rubber is of diverse types such as acrylic rubber (ACM), butadiene rubber (BR), chlorosulfonated polyethylene (CSM)/Hypalon, ethylene propylene diene monomer (EPDM), fluoroelastomers (FKM)/Viton, nitrile rubber (NBR), perfluoroelastomer (FFKM), isoprene rubber (IR), polychloroprene (CR)/neoprene, polysulfide rubber (PSR), silicone rubber (SiR), and styrene-butadiene rubber (SBR).
Technavio’s analysts forecast the global rubber market to grow at a CAGR of 4.66% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global rubber market for 2017-2021. To calculate the market size, the report considers the retail selling price as the average selling price of the product.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Rubber Market 2017-2021
Technavio recognizes the following companies as the key players in the global rubber market: Bridgestone, ExxonMobil, MICHELIN, Sri Trang Agro-Industry, and The Dow Chemical Company
Other Prominent Vendors in the market are: Advanced Multitech, Ansell, Asahi Kasei Advance Corporation, China National Petroleum Corporation, LANXESS, LG Chem, Nishikawa Rubber, THAI RUBBER CORPORATION (THAILAND), Tianjin Lugang Petroleum Rubber, Trinseo, and Versalis.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Bio-based tires helping market growth. The tires used in automotive vehicles are going to be bio-based during the forecast period. There is a great turmoil in the rubber industry to manufacture automotive vehicle tires made from renewable raw materials. Companies such as DuPont have been working on the use of renewable raw materials, which can be used to manufacture tires. DuPont Industrial Biosciences is working to develop a product known as BioIsoprene, which is a bio-based alternative for petroleum-derived isoprene. BioIsoprene can be used to produce synthetic rubber, which is regarded as an alternative for natural rubber and other elastomers.”
According to the report, one of the major drivers for this market is Growing demand for rubber in APAC. APAC accounted for the largest market for rubber consumption in 2016 and is expected to be the fastest growing market for rubber consumption during the forecast period. Countries such as Indonesia, India, Vietnam, Thailand, and China will also witness a high rubber consumption. China was the world’s largest rubber market in 2016. China will continue to be the largest consumer of natural rubber in the world, accounting a 36%-39% of the natural rubber consumption by 2021. China uses 80% of its natural rubber to manufacture tires. Indonesia and Malaysia are the major markets for natural and synthetic rubbers. The high production of natural rubber in these countries is expected to increase the growth of the rubber market. The rising demand for tires in the automotive sector is a major factor that is encouraging the growth of the rubber market in APAC.
Further, the report states that one of the major factors hindering the growth of this market is Fluctuating raw material prices for synthetic rubber. Synthetic rubber is manufactured by refining crude oil to naphtha and natural gas. These are derived from the fractional distillation of petroleum products. Petrochemical prices are heavily dependent on crude oil prices. Fluctuating crude oil prices have affected the prices of raw materials, thereby affecting the costs to produce synthetic rubber. As per the US Energy Information Administration (EIA), the crude oil price for Brent was around $48.67 per barrel in 2015, but the price decreased by 10.97% in 2016. However, in 2017, it is estimated that the price of crude oil per barrel will increase at a rate of nearly 15%. These prices are expected to fluctuate during the forecast period.
Bridgestone, ExxonMobil, MICHELIN, Sri Trang Agro-Industry, The Dow Chemical Company, Advanced Multitech, Ansell, Asahi Kasei Advance Corporation, China National Petroleum Corporation, LANXESS, LG Chem, Nishikawa Rubber, THAI RUBBER CORPORATION (THAILAND), Tianjin Lugang Petroleum Rubber, Trinseo, and Versalis.