Synthetic Rubber Market Size, Share, Forecast, & Trends Analysis by Type (SBR, EPDM, BR, SBC, IIR, NBR, IR, CR), Application (Tires, Textiles & Apparel, Electronic, Packaging), Industry (Construction, Automotive, Industrial) - Global Forecast to 2031

Synthetic Rubber Market Size & Forecast

The Synthetic Rubber Market is expected to reach $42.3 billion by 2031, at a CAGR of 4.4% from 2024 to 2031.The growth of this market is driven by increasing construction activities and infrastructure development, increasing vehicle production and sales, and growth in industrial sectors, including manufacturing, machinery, and equipment. Additionally, the growing demand for eco-friendly synthetic rubber alternatives is expected to create market growth opportunities. However, issues related to waste disposal, pollution, and carbon emissions may restrain the growth of this market. However, stringent environmental regulations, quality standards, and compliance policies by governments pose a major challenge for the players operating in this market.

Additionally, the increasing demand for high-performance synthetic rubber materials is a key market trend.

Synthetic Rubber Market Growth Drivers

Increasing Vehicle Production and Sales

The automotive sector is a major consumer of synthetic rubber, with tires alone representing a substantial portion of the market. Synthetic rubber plays a pivotal role in vehicle manufacturing. It is used to manufacture various automotive components such as seals, gaskets, hoses, belts, and vibration isolators and is primarily used in tire production. According to the World Economic Forum (Switzerland), the global sales of electric cars will increase by 60.0% in 2022, exceeding 10 million for the first time, as per the Net Zero Emissions (NZE) by 2050 scenario. In 2030, electric car fleets are expected to account for nearly 60.0% of new car sales, with a volume of 300 million units. As a result, the rise of electric vehicles is a key driver in increasing vehicle production and sales, thereby supporting the demand for synthetic rubber in the coming years.

Growth in Industrial Sectors, Including Manufacturing, Machinery, and Equipment

Synthetic rubber plays a crucial role in various industrial sectors for a wide range of applications due to its favorable properties such as durability, resilience, and chemical resistance. It is used in the production of hoses, belts, seals, gaskets, O-rings, and vibration-dampening components. Also, it is used for components such as bushings, seals, gaskets, and conveyor belts to ensure optimal performance and longevity. According to the National Institute of Standards and Technology (NIST)(U.S.), in 2022, the U.S. manufacturing contributed more than $2.3 trillion to the U.S. GDP amounting to 11.4 % of total U.S. GDP, measured in chained 2012 dollars. According to the India Brand Equity Foundation (India) report 2024, manufacturing exports have registered the highest annual exports of $447.46 billion with 6.03% growth during 2023 surpassing the previous year (2022) record exports of $422 billion. This growth underscores the importance of synthetic rubber in supporting industrial activities and meeting the demand for various rubber components in manufacturing processes and equipment. All such factors, along with increasing demand for manufactured goods, Industry 4.0, and infrastructure development are supporting the demand for synthetic rubber during the forecast period.

Click here to: Get Free Sample Pages of this Report

Synthetic Rubber Market Trends

Increasing Demand for High-performance Synthetic Rubber Materials

The growing need for superior properties and diverse applications across various industries, including automotive, aerospace, construction, and industrial manufacturing, is driving the demand for high-performance synthetic rubber materials. It refers to advanced rubber formulations that offer enhanced characteristics, such as durability, abrasion resistance, weather resistance, chemical resistance, and thermal stability compared to conventional rubber compounds. Companies are focusing on high-performance synthetic rubber materials to meet stringent requirements and address demanding operating conditions in their applications in automotive tires, seals, gaskets, hoses, conveyor belts, adhesives, and specialty industrial products. Increasing advancements in rubber technology, evolving industry standards and regulations, and growing emphasis on product quality and durability are further supporting innovation and investment in the synthetic rubber market during the forecast period.

Synthetic Rubber Market Opportunity

Growing Demand for Eco-friendly Synthetic Rubber Alternatives

Eco-friendly synthetic rubber alternatives refer to rubber compounds that are manufactured through processes that minimize environmental impact and carbon footprint or use sustainable and renewable resources. These alternatives offer several benefits, including reduced dependence on fossil fuels, lower greenhouse gas emissions, and improved energy efficiency during manufacturing. Companies are focusing on eco-friendly synthetic rubber alternatives to address concerns regarding environmental pollution, resource depletion, and carbon emissions associated with traditional rubber production methods. In June 2023, Continental AG (Germany) launched a series of tire “UltraContact NXT” with up to 65% renewable, recycled and mass balance certified materials. It combines a high share of sustainable materials with maximum safety and performance. Such initiative demonstrates the industry's focus on developing eco-friendly synthetic rubber alternatives and meet the growing demand for sustainable products. All such factors along with the increasing environmental awareness and sustainability initiatives across industries are creating significant growth opportunities for the market growth.

Synthetic Rubber Market Analysis: Key Findings

By Type: In 2024, The Styrene butadiene rubber (SBR) Segment to Dominate the Synthetic Rubber Market

Based on type, the synthetic rubber market is broadly segmented into styrene butadiene rubber (SBR), polybutadiene rubber (BR), styrene block copolymer (SBC), ethylene propylene diene rubber (EPDM), butyl rubber (IIR), acrylonitrile-butadiene rubber (NBR), isoprene rubber (IR), chloroprene rubber (CR), and other types. In 2024, the styrene butadiene rubber (SBR) segment is expected to account for the largest share of above 29.0% of the synthetic rubber market. The large market share of this segment is attributed to the increasing demand for tires, the growing use of SBR in tire manufacturing due to its high abrasion resistance and good aging properties, and the growing shift toward green tire technologies that incorporate higher proportions of bio-based and recycled materials including SBR.

However, the ethylene propylene diene rubber (EPDM) segment is projected to record the highest CAGR during the forecast period of 2024–2031. This growth is driven by the increasing use of EPDM in construction applications, automotive seals, gaskets, weatherstripping, and hoses due to its high weather resistance and durability; growing focus on renewable energy sources as EPDM is used in seals & gaskets for renewable energy technologies.

By Application: In 2024, The Tires Segment to Dominate the Synthetic Rubber Market

Based on application, the synthetic rubber market is broadly segmented into tires, automotive (non-tire), footwear components, textiles & apparel, seals & gaskets, hoses & belts, electronic devices, lubrications, packaging, and other applications. In 2024, the tires segment is expected to account for the largest share of above 72.0% of the synthetic rubber market. The large market share of this segment is attributed to the expansion of the automotive industry, driven by increasing vehicle production and sales globally, increasing vehicle maintenance, rising demand for tires, and growing need for tire replacement due to wear and tear.

However, the electronic devices segment is projected to witness the highest growth rate during the forecast period of 2024–2031. This growth is driven by the growth of the consumer electronics market, the growing popularity of wearable devices such as smartwatches, fitness trackers, and earbuds, the expansion of telecommunication infrastructure, including the deployment of 5G networks and increased connectivity, and the increasing use of synthetic rubber in various electronic components such as keypads, gaskets, vibration dampening materials, and seals.

By End-use Industry: In 2024, The Automotive Segment to Dominate the Synthetic Rubber Market

Based on end-use industry, the global synthetic rubber market is broadly segmented into construction, automotive, industrial manufacturing, footwear, aerospace, consumer electronics, and other end-use Industries. In 2024, the automotive segment is expected to account for the largest share of above 76.0% of the synthetic rubber market. The large market share of this segment can be attributed to the growth of the automotive industry, the growing use of synthetic rubber in automotive applications such as tires, seals, gaskets, automotive interiors, exteriors, and chassis systems, and increasing demand for high-performance synthetic rubber materials with enhanced properties.

However, the consumer electronics segment is projected to record the highest CAGR during the forecast period of 2024–2031. This growth is driven by the continuous technological advancement in the consumer electronics industry, the growing popularity of wearable devices, the expansion of telecommunication infrastructure, the growing demand for water- and dust-resistant devices, and the proliferation of IoT devices, including smart home appliances, connected wearables, and industrial sensors.

Geographical Analysis

Based on geography, the global synthetic rubber market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of above 54.0% of the synthetic rubber market, followed by Europe, North America, Latin America, and the Middle East & Africa. Asia-Pacific's significant market share can be attributed to several key factors, including the increasing demand for synthetic rubber in various industries, including automotive, construction, manufacturing, and consumer goods, increasing urbanization and infrastructure development, increasing government initiatives and policies promoting industrial growth, and growing automotive and consumer electronics industry in countries including China, Japan, South Korea, and India. The region is also slated to register the highest growth rate of above 6.0% during the forecast period.

Synthetic Rubber Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the synthetic rubber market are China Petrochemical Corporation (a subsidiary of Sinopec Corp.) (China), ERIKS N.V.(Netherlands), The Dow Chemical Company (U.S), Exxon Mobil Corporation (U.S.), Kumho Petrochemical Co., Ltd. (KKPC) (South Korea), Zeon Corporation (Japan), Nizhnekamskneftekhim (NKNK) (Russian), Mitsui Chemicals, Inc. (Japan), JSR Corporation (Japan), SABIC (Saudi Arabia), Denka Company Limited (Japan), Asahi Kasei Corporation (Japan), Indian Synthetic Rubber Private Limited (India), Apcotex (India), Reliance Industries Limited (India), Trinseo PLC (U.S.), TSRC Corporation (Taiwan), Michelin Group (France), and LANXESS (Germany).

Synthetic Rubber Industry Overview: Latest Developments from Key Industry Players

• In January 2024, Michelin Group (France), IFP Energies nouvelles (IFPEN) (France), and Axens (France) unveiled an industrial-scale demonstrator for producing bio-based butadiene, a key ingredient in synthetic rubber production. The demonstrator was built within the framework of the BioButterfly project, which aims to develop and commercialize butadiene from ethanol derived from biomass (plants) to replace butadiene from petrochemicals.

• In May 2023, ARLANXEO (Netherlands) announced to build of a rubber production plant in Jubail, Saudi Arabia, with an annual capacity of 140,000 metric tons. This plant will be part of the USD 11 billion Amiral complex planned by Saudi Aramco and Total Energies to produce two elastomers, including ultra-high cis polybutadiene (NdBR) and lithium butadiene rubber (LiBR).

• In May 2023, Hankook Tire & Technology Co., Ltd. (South Korea) and Kumho Petrochemical Co., Ltd. (South Korea) entered into a memorandum of understanding (MoU) to collaborate on advancing environmentally friendly tires by utilizing eco-solution-polymerized styrene-butadiene rubber (eco-SSBR). Under this agreement, Hankook Tire will secure synthetic rubber certified by the International Sustainability & Carbon Certification (ISCC) PLUS – an international certification system for environmentally friendly materials.
• In April 2023, Hainan Baling Chemical New Material Co., Ltd. China (a subsidiary of Sinopec Corp. (China)) launched its latest project focused on the production of Styrene-Butadiene Copolymer (SBC) in Hainan, China. The annual production capacity of 170,000 tons will make Sinopec the world's largest producer of SBC plants.

Synthetic Rubber Market Research Summary:

Key questions answered in the synthetic rubber market report: