According to the latest report of Technavio, a leading global technology research and advisory company, the global rubber processing equipment market is expected grow at a CAGR of nearly 10% during 2016 to 2020. The report covers the market outlook and growth prospects of the global rubber processing equipment market during the forecast period.
The market is further categorised into two end-user segments, including tyre manufacturing and non-tyre manufacturing, of which the tyre manufacturing segment dominated the market with approximately 75% of the overall market share in 2015.
The automotive sector is linked to various sub-sectors like tyres, plastics, and metals. The tyre manufacturing industry has witnessed steady growth due to the increasing sales in automobiles. “Since the global recession of 2008, many automobile companies and second-hand car owners are investing in new sets of tyres. The growth in income levels and disposable income will lead to car ownership and will spur demand in the original equipment manufacturing sector. The demand for light vehicles is also expected to be on the rise to curb carbon dioxide emissions,” says Gaurav Mohindru, lead analyst at Technavio for unit operations research.
Technavio heavy industry research study segments the global rubber processing equipment market into the following regions: Americas, APAC, and EMEA.
In 2015, with a market share of over 62%, APAC dominated the global rubber processing equipment market, followed by EMEA with over 19% and the Americas with nearly 18%.
The rising disposable income of consumers in the APAC region will boost the demand for motor vehicle manufacturing, which will create greater demand for natural rubber. The automotive industry will majorly drive the demand for tyres in the region, as countries like China and India are popular for lightweight automobile production.
Gaurav says, “The progress in manufacturing activities will support augmented demand for rubber in non-tyre applications such as automotive components, medical products, industrial rubber products, and footwear. Indonesia is anticipated to experience the fastest growth during the forecast period due to the rapid improvements in manufacturing activities across the region.”
The rubber processing equipment market in EMEA is driven by growth of the tyre industry in regions like Africa and the Middle-East. The European automotive industry is a pioneer in technological advances and innovations. The government in Europe has imposed strict regulations to reduce automotive CO? emissions. This agenda has led to the manufacturing of lightweight vehicles by the automotive OEMs in the region.
Additionally, passenger car manufacturing is significantly on the rise in Germany, creating a potential market for tyre manufacturers. This will, in turn, raise the demand for rubber, which will impact the demand for rubber processing equipment.
The rubber processing equipment market in the Americas witnessed sales of over 733 million units in 2015 and is expected to surpass 1 billion units by 2020, growing at a CAGR of approximately 7%. The Americas is a significant importer of natural rubber from Southeast Asian countries. Canada, Mexico, and Brazil are the key rubber producers in the Americas, as demand in these regions is fueled by the increase in automotive manufacturing. This has encouraged several rubber processing facilities to be opened in Mexico, which is becoming an important base for the region’s automotive manufacturing industry.
In North America, the US is a leading market for automotive manufacturers. The country has a huge consumer base with high disposable income that drives the demand for automobiles, which pushed the OEMs to increase their manufacturing capabilities.
Mexico closely follows the US in automotive production in North America. The availability of cheap labor and land and close proximity to major export destinations have attracted major automotive OEMs like Toyota, General Motors, Chrysler, Ford, Nissan, BMW, Honda, Volkswagen, Audi, and Mazda to the country. In 2014, Mexico produced a record 3 million light vehicles. It is estimated that the production figures will reach the 5 million mark by 2020.
The top vendors in the global rubber processing equipment market highlighted in the report are: Bosch Rexroth, BUZULUK, Guilin Rubber Machinery (GRM), Kobe Steel, and Wuxi Double Elephant.