Pune, India – The global synthetic rubber market size is estimated to be $19.1 billion in 2021, and is projected to reach $23.2 billion by 2026, at a CAGR of 4.0 percent between 2021 and 2026. The recovery of the automotive sector across the world is driving the synthetic rubber market during the forecast period, according to ReportLinker.
Subsequent developments have introduced other monomers such as ethylene and propylene, which are used in the production of EPDM.The synthetic rubber market is driven by the demand from the tire industry.
Tires and non-tire automotive applications are the largest segments of the market. The only restraints faced by the synthetic rubber industry are the health hazards associated with it and the environmental regulations imposed on its manufacturing.
Tires are the largest application in the synthetic rubber market. Synthetic rubber offers various extraordinary features to tires, such as safety, control, grip and comfort.
Likewise, it provides the tire with various other features, such as directional stability, rolling resistance, wet traction, puncture resistance, steering response, speed and run-flat capability, impact resistance, high fuel efficiency and weather resistance to function in challenging conditions. The impact of COVID-19 on the global tire business is detrimental.
Some manufacturing units were shut down because of the impact of COVID-19 on the companies. The demand for synthetic rubber slumped significantly in 2020 due to supply chain disruption and reduced demand from end-use industries.
APAC is estimated to be the fastest growing market for synthetic rubber.
APAC accounted for the largest share in terms of volume and value of the synthetic rubber market in 2020, followed by Europe and North America. The use of synthetic rubber is expected to witness the highest growth in the APAC region during the forecast period.
The market in this region is driven by the recovery of the automotive sector in China and Southeast Asian countries. Global automobile manufacturers are investing in APAC countries to establish their production plants to enhance their market presence in the region.
China is the significant market for automobiles and the largest consumer of synthetic rubber in the world. The focus towards the development of new energy vehicles (NEVs) to reduce the carbon footprint will drive the automotive applications in China, which will further enhance the demand for synthetic rubber during the forecast period.