Neoprene Market Statistics - 2030
The global neoprene market was valued at $1.9 billion in 2020, and is projected to reach $2.4 billion by 2030, growing at a CAGR of 2.5% from 2021 to 2030.
Neoprene is a type of a synthetic rubber that is formed by the polymerization of chloroprene and is resistant to aging and oil. It is extensively used in waterproof products such as wet suits and gloves. It exhibits the ability to maintain flexibility to a wide temperature range and has high chemical stability. It is extensively used in industries such as automotive, electrical & electronics, building & construction, and textiles.
The global neoprene market growth is driven by surge in demand from building & construction and automotive industries. Moreover, rise in government initiatives in private and public infrastructure development in Asia-Pacific is one of the key factors propelling the product demand. This is attributed to the fact that. In addition, surge in demand for neoprene from automotive industry to be used the manufacturing of power transmission belts, braking & steering system components, oil seals, shock absorber seals, and tires is expected to notably contribute toward the growth of the neoprene market.
However, volatility in crude oil prices and presence of efficient substitutes are expected to hamper the growth of the neoprene market. On the contrary, increase in popularity of neoprene gloves is expected to provide growth opportunities for the market during the forecast period.
The global neoprene market size is segmented into product, end user, and region. By product, the market is categorized into neoprene sponge/foam, neoprene sheet, and neoprene latex. Depending on end-user, it is categorized into automotive, electrical & electronics, building & construction, textiles, and others. Region wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global neoprene market include Sundow Polymers Co., Ltd, Covestro AG, Lanxess, TOSOH Corporation, Zenith Rubber, BGK GmbH Endlosband, Pidilite Industries, The 3M Company, Denka Company Limited, and TuHuang Chemical Co. Other players operating in this market include Shanxi Synthetic Rubber Group Co Ltd., Canada Rubber Group, and ACRO Industries.
Neoprene Market, By Region
Asia-Pacific accounted for a major market share in 2020. Owing to rapid urbanization across the region, the demand for new homes has been escalated significantly, which, in turn, has propelled the growth of the construction industry. In addition, government-initiated housing projects, such as “Housing for All” for poor people living in urban and rural areas as well as the “Smart City Project” to provide smart homes with modern amenities, which is expected to create high demand for neoprene across the region. Furthermore, India has recorded a 13.0% growth in FDI investment during 2020 as compared to the previous year, despite the COVID-19 scenario, with large investments in the real estate and infrastructure sectors. This is likely to boost the construction and infrastructure development across the country, which is expected to further drive the growth of neoprene market across the region.
LAMEA would exhibit an CAGR of 2.9% during 2021-2030
Global Neoprene Market, By Product
The neoprene rubber sheet segment garnered a major share in the neoprene market in 2020, as neoprene rubber sheet exhibits properties such as low compression set, superior resilience, high abrasion resistance, and enhanced resistance to ultraviolet & ozone radiations. These properties make them ideal for their use in seals, gaskets, building insulations, and liners in the automotive, electrical and construction industries.
Neoprene Sheet is projected as the most lucrative segment.
Global Neoprene Market, By End-user
The automotive industry exhibited the highest neoprene market share in 2020. Neoprene is widely used in the automotive industry, owing to its thermal resistance, tensile strength, and prolonged durability. Neoprene rubber is highly employed in hose covers, constant velocity joint (CVJ) boots, power transmission belts, vibration mounts, shock absorber seals, and steering system components. To curb the carbon emission and reduce the dependency on fossil fuels, the demand for electric vehicles has escalated significantly across the globe, which has propelled the demand for neoprene, thereby contributing toward the growth of the global market.
Automotive is projected as the most lucrative segment.
The market was negatively impacted by the outbreak of the COVID-19 in 2020. Neoprene is widely used in automotive products, including rubber gaskets, O-rings, seals, and hoses, and in the construction industry's products, including fire doors, electrical insulation, and waterproofing membranes. The declining automotive industry along with a temporary halt on construction and automotive activities due to the pandemic lockdown, negatively impacted the demand of the neoprene market. However, the demand for neoprene products such as medical gloves has significantly increased, which, in turn, escalated the growth of the neoprene market.
Key benefits for stakeholders
- The global neoprene market analysis covers in-depth information of major industry participants.
- Porter’s five forces analysis help analyze potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Major countries have been mapped according to their individual revenue contribution to the regional market.
- The report provides in-depth analysis of the global neoprene market forecast for the period 2021–2030.
- The report outlines the current global neoprene market trends and future scenario of the global neoprene market from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
- Key drivers, restraints, & opportunities and their detailed impact analysis are explained in the global neoprene market study.
Key market segments
- Neoprene Sponge/Foam
- Neoprene Sheet
- Neoprene Latex
- Electrical & Electronics
- Building & Construction
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Neoprene Market Report Highlights
Key Market Players
SUNDOW POLYMERS CO., LTD., LANXESS, PIDILITE INDUSTRIES, BGK GmbH Endlosband, TUHUANG CHEMICAL CO., COVESTRO AG, TOSOH CORPORATION, .ZENITH RUBBER, DENKA COMPANY LIMITED, THE 3M COMPANY
The global neoprene market is anticipated to witness growth during the forecast period driven by rise in demand from automotive and building & construction industries. Increase in demand for neoprene in the building & construction sector for applications such as window gaskets, cable coverings, and roof waterproofing membranes due to excellent durability, waterproofing, and resilience properties. The building & construction industry is growing globally at a rapid pace, and thus is one of the key drivers for the neoprene market. In addition, surge in automobile production, especially the electric vehicles has led to increase in demand for neoprene from the automotive industry for manufacturing of hose covers, constant velocity joint (CVJ) boots, power transmission belts, vibration mounts, shock absorber seals, and steering system components. These factors are projected to drive the growth of neoprene market during the forecast period.
However, volatility in crude oil prices and presence of substitutes are expected to hamper the growth of the neoprene market during the forecast period. Furthermore, increase in popularity of neoprene gloves is expected to provide growth opportunities for the neoprene market during the forecast period.