A new market report by The Business Research Company has forecast an optimistic growth trajectory for the rubber products market from this year towards 2025. The report, released in January this year, estimated a US$359.77 billion growth this year for the global rubber products market, from 74 billion in 2020 at a CAGR of 9.8%. According to the report, businesses that have strategically reorganised their operations and are recovering from the impact of COVID-19 are supporting growth in the sector. The report pointed out the “restrictive containment measures” such as social distancing, remote working, and the closure of commercial activities that led to operational challenges. The market is expected to reach US$442.58 billion in 2025 at a CAGR of 5%.
The Asia Pacific accounts for nearly half or 48% of the global rubber products market in 2020, followed by North America, accounting for 20%. Africa was the smallest region in the global rubber products market.
Technology is a key driver of growth, with computer simulation and 3D printing technology having a significant impact on the rubber manufacturing industry, according to the report. It notes that more companies are embracing 3D technology to design and develop rubber products.
The “green tyres” segment, meanwhile, is also expected to drive the development of technology in the rubber product sector. Green tyres offer wet grip, durability, and low rolling resistance, reducing fuel consumption by 5-7%, the report furthered. The increasing push for fuel consumption, where tyres are responsible for up to 30% of a vehicle’s fuel consumption – also contributes to the growth of the green tyre segment.