REPLACEMENT motor vehicle tyres will continue to fuel rubber consumption worldwide. Estimates from Freedonia Group show that global rubber consumption will rise to 4.3% per year through 2015 to million metric tonnes. Growth in motor vehicle production will also support demand for rubber utilized in tyres, as well as in various automotive components, such as hoses and gaskets. Moreover, a pickup in global manufacturing activity through 2015 will spur rubber demand in non-tyre applications.
Tyre rubber, which accounts for about two-thirds of all rubber demand, is expected to register slower gains than non-tire rubber sales through 2015. Production of non-motor vehicle tyres, including bicycle, motorcycle and industrial vehicle tires, will significantly outpace motor vehicle tire output in certain areas of the world, especially developing nations in the Asia/Pacific region. Rubber utilized in non-tyre applications will register stronger gains through 2015, but will remain the much smaller segment of the rubber market.
Asia Pacific is by far the largest regional market for rubber, accounting for 60% of global demand in 2010. In addition, the region will register the fastest growth in rubber consumption through 2015.
The massive Chinese rubber market, which alone accounted for nearly one-third of global rubber demand in 2010, will record the strongest gains of any major nation through 2015. The large amount of motorcycle and bicycle production in the country supports significant demand for rubber utilized in non-motor vehicle tires.
The rubber markets in North America and Western Europe will rebound somewhat from the sales declines recorded during the 2005 to 2010 period. Rubber markets in Eastern Europe and Central and South America will also see accelerating growth through 2015, while gains in the small Africa/Mideast market will match the global pace. (PRA)
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