The synthetic rubber market is expected to reach US$37.82 billion by 2022, registering a CAGR of 5.5% between 2017 and 2022.
Synthetic rubber is mostly produced from crude oil and natural gas, by the polymerization of monomers. Although used in a wide range of applications, its major application is in tyres. There has been a growing demand for synthetic rubber from applications, such as tyre, non-tyre automotive, footwear, industrial, and others. Environmental regulations related to synthetic rubber may act as a restraint for the synthetic rubber market.
Based on type, the NBR (nitrile butadiene rubber) segment is projected to witness the highest growth during the forecast period. NBR is mostly used in applications where high oil resistance is required. Increasing demand for hoses, belts, and cables in the manufacturing and automotive industries in APAC, is likely to fuel the growth of the NBR segment over the forecast period. Rapid industrialization in China and India is anticipated to drive the demand for NBR in APAC over the next six years.
The IIR (isobutylene-isoprene rubber) segment is estimated to be the second-fastest growing type segment of the synthetic rubber market during the forecast period. IIR is used in inner linings of tyres and in linings of tubeless tyres. Due to its property of high resistance, IIR is mainly used in hoses and curing bags used in tyre vulcanization.
Based on application, the tyre segment accounted for the major share of the overall synthetic rubber market in 2016. This large share is attributed to the high demand for synthetic rubber in tyre manufacturing due to the ideal features provided by synthetic rubber, such as directional stability, rolling resistance, wet traction, puncture resistance, steering response, speed and run-flat capability, impact resistance, high fuel efficiency, and weather resistance to function in challenging conditions.