India’s rubber compound market forecast with at CAGR of 5.8 percent through 2029
Dublin, Ireland – According to Research and Markets, India’s rubber compound market revenue size is projected to grow at a CAGR of 5.8% during 2023-2029. India’s rubber compound market is further expected to grow in the coming years as India expects thriving growth in the tire as well as in the automotive sector it is estimated that the tire industry’s turnover would increase to 3.4% of India’s Manufacturing GDP by fiscal 2032 compared with 2.2% in fiscal 2022 along with India’s automotive industry is set for an upward trajectory as India is aiming to double its automotive industry size to approx. INR 15 lakh crore by the end of 2024 with strong growth potential in production, sales, and exports. Also, the government has increased the budget allocation of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) II by 78% in the Union Budget 2023, and from today’s level of 0.7% market share in India for EVs it is expected to increase to 3.8% by 2027, that would further propel the demand for tires in India in return paving a significant growth trajectory for India rubber compound industry in coming years.
EPDM garnered a major revenue share in the India Rubber Compound Market as it offers a diverse range of applications in different industries. Its versatility is evident in its resistance to various chemicals, acids, and alkalis, rendering it suitable for chemical processing, automotive, and industrial applications hence furthering its dominance in revenue generation.
In 2022, tires acquired a major revenue share. Also, owing to escalating vehicle demand and sustained government investments in infrastructure development. India’s tire industry is poised to achieve substantial growth, with its revenue projected to surpass $22 billion by FY32, marking a significant increase from the $9 billion recorded in FY22.
The southern region of India, especially Kerala and Tamil Nadu, boasts extensive natural rubber plantations. Leveraging their production capabilities, these states cater to both domestic and international markets. Cities like Chennai and Bengaluru serve as significant hubs for automotive and electronics manufacturing, driving demand for rubber compounds and contributing to increased revenue in the region.