LONDON--(BUSINESS WIRE)--The global rubber market is expected to grow at a CAGR of close to 5% during the period 2017-2021, according to a new market research study by Technavio.
The report categorizes the global rubber market by type (synthetic rubber and natural rubber) and by application (tires and non-tires). The report also determines the geographic breakdown of the market in terms of detailed analysis and impact, which includes key geographies such as APAC, the Americas, and EMEA.
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Market driver: growing demand for rubber in APAC
APAC accounted for the largest market for rubber consumption in 2016 and is expected to be the fastest growing market for rubber consumption during the forecast period. Countries such as Indonesia, India, Vietnam, Thailand, and China will also witness a high rubber consumption. Indonesia and Malaysia are the major markets for natural and synthetic rubbers. The high production of natural rubber in these countries is expected to increase the growth of the rubber market. The rising demand for tires in the automotive sector is a major factor that is encouraging the growth of the rubber market in APAC.
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Market trend: bio-based tires helping market growth
The tires used in automotive vehicles are going to be bio-based during the forecast period. There is a great turmoil in the rubber industry to manufacture automotive vehicle tires made from renewable raw materials.
According to Hitesh Bhatia, a lead analyst at Technavio for plastics, polymers, and elastomers research, “Companies such as DuPont have been working on the use of renewable raw materials, which can be used to manufacture tires. DuPont Industrial Biosciences is working to develop a product known as BioIsoprene, which is a bio-based alternative for petroleum-derived isoprene. BioIsoprene can be used to produce synthetic rubber, which is regarded as an alternative for natural rubber and other elastomers.”
Market challenge: fluctuating raw material prices for synthetic rubber
Synthetic rubber is manufactured by refining crude oil to naphtha and natural gas. These are derived from the fractional distillation of petroleum products. With price fluctuations in the crude oil market, the manufacturing cost of synthetic rubber will fluctuate and have a significant impact on the price of rubber in the global market. The decline in the oil prices has compelled the vendors operating in the market to implement various strategies in the form of cost-cutting measures and other implications.
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Key vendors in the market
- Bridgestone
- ExxonMobil
- MICHELIN
- Sri Trang Agro-Industry
- The Dow Chemical Company
The major vendors in the global rubber market have a global presence. Their products are used in various applications, such as automotive industry. Vendors focus on manufacturing products that comply with the fluctuation of crude prices. These vendors have manufacturing facilities located around the world and have operational capacities through strategic partnerships.
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