Global Automotive Rubber-molded Components Market - Growth, Trends, and Forecast (2018 - 2023)
The Global Automotive Rubber-molded Components Market is expected to grow at a CAGR of 6.3% during the forecast period 2018-2023. Innovation in the automobile and automobile components manufacturing industry is set to revolutionize the automobile rubber component industry around the world. The increase in the production of cars around the world has had a very positive impact on the sellers of the automotive rubber-molded components, which include Bohra Rubber Pvt. Ltd, Continental AG, Hutchison SA, DANA Holding Corporation, and Trelleborg AB. With the growing demand for fuel-efficient and less polluting vehicles, the market for lightweight automotive components of higher durability is on the rise, which is also dependent on the rubber components. Further, with chemical companies such as Chem-Trend coming up with better release agents and molding process aids, the market for automotive rubber molded parts is expected to touch around USD 46 billion by 2023. Technological advancements have been the primary push for this growth. Innovations such as Ford’s eco-friendly rubber parts using soy oil, and research labs trying to come up with better and durable rubber materials like EPDM, are expected to drive the market at a CAGR of 6.26% by 2023.
Growing automotive emission lead to pressure on automakers to produce fuel-efficient vehicles. Rigid standards set by regulatory authorities are expected to significantly drive the market for lightweight materials such as rubber molded components in the automotive sector. Rubber components, if used in place of conventional metal or plastic structures, are expected to impact the weight of the automobile to quite an extent. This growing automotive industry is expected to provoke the demand for rubber-molded components globally. However, on the downside, crunch in raw materials and swinging raw material prices are expected to act as friction factors for the market growth.
As of 2016-17, Ethylene Propylene Diene Monomers (EPDM) accounted for most of the market share by raw material type, with natural rubber following closely. However, growing innovations in durability and life of the EPDM-based compounds is expected to propel the market for EPDM in automotive applications over the coming five years. EPDM materials were proved fit for high-pressure conditions and boasted of impact resistance and stiffness. These technical advantages over other raw materials will encourage automakers to prefer EPDM-based molded components to synthetic or natural rubber.
The Asia-Pacific region was the largest market for automotive rubber-molded components, both in terms production and consumption. This can be attributed to India and China emerging as major automotive components manufacture hubs, sourcing to the western auto giants. Further, government support for FDIs in these countries has encouraged small and medium scale regional players to enter the rubber molding market, with Bohra Rubber Pvt. Ltd as the top company producing rubber components. As of 2016, China has emerged as the leader in both Asia-Pacific and global rubber-molded automotive components markets. Growing economy and rising disposable incomes have resulted in greater demand for automotive in India and China, in turn, opening new opportunities for the dependent rubber-molding sector. North America, in the light of EPA regulations and CAFÉ standards, is expected to witness a higher CAGR over the coming five years in the market.Major Players: BOHRA RUBBER PVT. LTD, CONTINENTAL AG, DANA HOLDING CORPORATION, HUTCHISON SA,TRELLEBORG AB, amongst others
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