The global market for SBR is expected to reach USD 23,144.3 billion by 2020, according to a new study by Grand View Research, Inc. Increasing demand for SBR in tire manufacturing is expected to support the growth of this market over forecast period. The automobile industry has witnessed significant growth over the past couple of years, resulting in increased demand for tires which in turn has boosted the demand for synthetic rubbers such as SBR. Tire was the single largest application segment for SBR market accounting for 73.5% of global consumption in 2013. Footwear was a small application segment in 2013, however is expected to witness significant growth over the forecast period on account of superior performance offered by SBR in sport shoe soles. In addition, the increasing price of natural rubber has created a crossover opportunity for synthetic rubbers such as SBR.
The implementation of tire labeling regulation in countries of EU, Japan and Korea, which is a prerequisite for manufacturing of high grade ‘Green Tires’, is expected to augment S-SBR demand,. EU regulations have made it mandatory for all manufacturers to label their tire for wet grip and rolling resistance. In order to have high grade of tire, S-SBR along with Nd-PBR filler is a key requirement. Certain SBR manufacturers such as Lanxess have converted their E-SBR plants to S-SBR in order to meet the growing demand from the tire manufacturers.
The report “SBR Market Analysis And Segment Forecasts To 2020,” is available now to Grand View Research customers and can also be purchased directly at http://www.grandviewresearch.com/industry-analysis/styrene-butaidene-rubber-industry
Further key findings from the study suggest:
– The global SBR market was 5,122.4 kilo tons in 2013 and is expected to grow at a CAGR of 6.1% from 2014 to 2020.
– Asia Pacific was the largest consumer of SBR in 2013, accounting for over 46% of global demand. The growing automobile industry in China, India and Japan is expected to boost the demand for tires which in turn is expected to drive the SBR market over the forecast period. In addition, it is expected that China and India would implement tire labeling regulations in line with the EU regulations by 2015, which is expected to have a positive impact on S-SBR sales in near future.
– Europe was the second largest consumer of SBR in 2013, with consumption exceeding 1,000 kilo tons. EU labeling regulations which came into effect from 2012 are expected to augment the demand for S-SBR over the forecast period. Germany, Italy and France are expected to witness increased tire production in the next couple of years in light of the new regulations.
– The global market is fragmented, with top ten companies accounting for less than 65% of the market in 2013. Major companies have been focusing on integration in order to offset the effect of variable raw material prices. Lanxess, Sinopec and CNPC are some of the company’s manufacturing E-SBR and S-SBR.
Source: MENAFN
Published: 03 Mar 2014