+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

Liquid Synthetic Rubber Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

  • PDF Icon


  • 194 Pages
  • August 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 5332881
The Global Liquid Synthetic Rubber Market size is expected to grow from USD 15.87 billion in 2023 to USD 19.99 billion by 2028, at a CAGR of 4.72% during the forecast period (2023-2028).

COVID-19 negatively impacted the market in 2020-2021. Considering the pandemic scenario, automotive manufacturing activities were temporarily stopped during the government-imposed lockdown to curb the spread of new COVID-19 cases, thereby reducing the demand for liquid synthetic rubber-based automotive parts such as tires, drive belts, seals, gaskets, hoses, tank linings, and others. However, the market is expected to regain its growth trajectory in 2023 and is likely to follow a similar trajectory during the forecast period.

Key Highlights

  • Over the short term, the rising demand from the adhesive segment is expected to drive the market's growth.
  • On the flip side, fluctuating raw material prices are expected to hinder the market growth.
  • Developing bio-based feedstock for synthetic rubber will likely act as an opportunity during the forecast period.
  • The Asia-Pacific region dominated the liquid synthetic rubber market, with the largest consumption from countries such as China, India, and Japan.

Liquid Synthetic Rubber Market Trends

Increasing Demand from the Tire Segment

  • Liquid synthetic rubber has wide applications in the manufacturing of tires because it provides enhanced durability and superior performance, along with the adoption of tire labeling regulations.
  • The primary product used in the manufacturing of tires is polybutadiene. It is primarily used as a sidewall in tires to improve fatigue caused by continuous flexing during the run. Besides, butadiene has various applications in other automobile parts.
  • According to the US Tire Manufacturers Association, tires used in passenger and light trucks have 24% synthetic rubber by volume, and tires used in heavy trucks have 11% synthetic rubber by volume. Furthermore, around 50% of car tires are made of styrene-butadiene rubber, which blends with natural rubber.
  • According to the International Tyre and Rubber Association (ITRA), China and the United States are the two largest tire-producing countries in the world. According to data from the General Administration of Customs of the PRC, 3.77 million tons of rubber tires were cumulatively exported from China in the first half of 2022, up 7.2% from the same period last year.
  • The US Tire Manufacturers Association also stated that tires used in passenger and light trucks use 24% synthetic rubber (such as SBR), and heavy trucks use 11% synthetic rubber by volume.
  • According to the Organisation Internationale Des Constructeurs d'Automobiles (OICA), in 2022, around 85.01 million vehicles were produced across the globe, witnessing a growth rate of 5.99% compared to 80.205 million vehicles in 2021, thereby indicating an increased demand for tires from the automotive industry. In 2022, around 60 million passenger cars were manufactured worldwide, up nearly 7.35% compared to 2021.
  • However, in several Asian and European countries, production of tires has been witnessing a gradual yet consistent decline due to reduced demand in both the replacement and original equipment manufacturer (OEM) segments. For instance, the total tire production in India declined by 4% to 169.07 million in FY 2021-2022, compared to the previous year, as per the data released from ATMA.
  • Overall, all the factors above have impacted tire production, which is further expected to affect the liquid synthetic rubber market.

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region is expected to dominate the market for liquid synthetic rubber during the forecast period. In countries like China, India, and Japan, owing to the increasing demand from applications such as tire manufacturing, industrial rubber manufacturing, adhesives, sealants, coatings, and polymer modification.
  • China is the largest producer and consumer of automotive vehicles. The China Association of Automobile Manufacturers reports that, compared to the prior year, China's automobile sales increased by about 2.1% in 2022. Compared to the 26.27 million automobiles sold in 2021, around 26.86 million were sold in 2022.
  • Liquid synthetic rubber also finds application in the construction industry. According to the National Development and Reform Commission, the Chinese government approved 26 infrastructure projects at an estimated investment of about USD 142 billion, estimated to be completed by the end of 2023 and ongoing. The increase in the construction of tall buildings and hotels is driving the market study.
  • India is the fourth-largest consumer of rubber in the world as of 2022. Rubber usage per capita in India is currently 1.2 kg, compared to 3.2 kg globally. India's rubber industry generates approximately INR 12,000 crore (USD 1.45 billion). The tire sector consumes most of India's rubber production, accounting for over half of the country's total output.
  • The Indian rubber industry exhibits the co-existence of the rubber production sector and the fast-growing rubber product manufacturing and consumption sectors. Factors driving the rubber industry in the country include the positive intervention of institutional agencies that aim at self-sufficiency and import substitution.
  • With the ever-increasing demand for tires, industrial rubber, adhesives, and sealants in the region and the expansion of production plants by several major players in the industry, the market for liquid synthetic rubber is also expected to grow steadily during the forecast period.

Liquid Synthetic Rubber Industry Overview

The liquid synthetic rubber market is fragmented in nature, with the presence of a wide range of players worldwide. Some of the players that maintain a significant share in the global market include (not in particular order) China National Petroleum Corporation, ENEOS Corporation, Evonik Industries AG, Kumho Petrochemical, and Saudi Arabian Oil Co. (Arlanxeo).

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Drivers
4.1.1 Rising Demand from the Adhesive Segment
4.1.2 Growth in Tire Production Worldwide
4.2 Restraints
4.2.1 Fluctuating Raw Material Prices
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5 MARKET SEGMENTATION (Market Size in Value)
5.1 Product Type
5.1.1 Liquid Isoprene
5.1.2 Liquid Butadiene
5.1.3 Liquid Styrene Butadiene
5.1.4 Other Product Types (Liquid EPDM and Liquid NBR)
5.2 Application
5.2.1 Adhesives
5.2.2 Industrial Rubber
5.2.3 Tire
5.2.4 Polymer Modification
5.2.5 Other Applications (Waterproofing Coatings and Footwear)
5.3 Geography
5.3.1 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
5.3.2 North America United States Canada Mexico
5.3.3 Europe Germany France United Kingdom Italy Rest of Europe
5.3.4 South America Brazil Argentina Rest of South America
5.3.5 Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Asahi Kasei Advance Corporation
6.4.2 China National Petroleum Corporation
6.4.3 ENEOS Corporation
6.4.4 Evonik Industries AG
6.4.5 H.B. Fuller Company
6.4.7 Kuraray Co. Ltd
6.4.8 Linshi Chem (Puyang) Advanced Material Co. Ltd.
6.4.9 Lion Elastomers
6.4.11 Saudi Arabian Oil Co. (Arlanxeo)
6.4.12 SIBUR Holding PJSC
6.4.13 Synthomer PLC
6.4.14 TER Group
7.1 Development of Bio-based Feedstock for Synthetic Rubber

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Asahi Kasei Advance Corporation
  • China National Petroleum Corporation
  • ENEOS Corporation
  • Evonik Industries AG
  • H.B. Fuller Company
  • Kuraray Co. Ltd
  • Linshi Chem (Puyang) Advanced Material Co. Ltd.
  • Lion Elastomers
  • Saudi Arabian Oil Co. (Arlanxeo)
  • SIBUR Holding PJSC
  • Synthomer PLC
  • TER Group