According to a new report published by Allied Market Research, titled, "Industrial rubber Market by Material Type, Application, and End-user: Global Opportunity Analysis and Industry Forecast, 2019-2026," the market was valued at $29.8 billion in 2018 and is projected to reach $44.6 billion by 2026, growing at a CAGR of 5.2% from 2019 to 2026. Factors driving the growth of the market include rise in vehicle sales and infrastructure investments in the Asia-Pacific region.
Industrial rubber market is an elastomer, made synthetically or naturally from the latex of a tropical plant. It is of two types that is natural and synthetic rubber. The synthetic segment was the highest contributor to the market and is estimated to grow with a CAGR of 5.7% during the forecast period. Natural rubber is the elastic material derived from the latex sap of trees. Natural rubber undergoes the process of vulcanization to convert into finished product. The natural rubber market is estimated to grow with a CAGR of 4.4% during the forecast period.
The industrial rubber market is expected to grow significantly due to the advancements in rubber and rubber products. As of now, leading tire OEMs are using nanotechnology and other technology or software to manufacture tubeless tires. For instance, Bridgestone Tires, one of the leading tire and rubber company, utilizes Contact Area Information Sensing (CAIS) that senses the road conditions by collecting and analyzing the tire contact area. All these factors are expected to unfold various opportunities for the growth of the market.
By end-use industry, the market is divided into automotive, construction, manufacturing, electrical & electronics, and others. The automotive segment was the highest contributor and is estimated to grow at a CAGR of 6.0% during the forecast period. The automotive and manufacturing segments collectively accounted for about 62.9% share in 2018, with the former constituting around 35.2% share.
Rubber is present in antivibration, fluid transfer systems, adhesives & coatings, body sealing systems, molded parts, flat seals, foam and converting products, transmission systems, sealants, O-Rings, spare parts among others. The demand for rubber is expected to increase owing to the growth of the automotive and manufacturing industry. Region-wise, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
The key players involved in the global industrial rubber market are Sinopec Corporation, LG Chem Ltd., The Goodyear Tire & Rubber Company, Toyo Tire & Rubber Co., Ltd., Bridgestone Corporation, Lotte Chemical Corporation, Arkema S.A., Braskem S.A., Celanese Corporation, and United Rubber Industries India private Limited. Among these Sinopec Corporation, LG Chem Ltd., the Goodyear Tire & Rubber Company, Toyo Tire & Rubber Co., Ltd., and Bridgestone Corporation are the key players of the industrial rubber market. The market dominance of these companies is characterized by their vast product portfolio of industrial rubber, and high investment in R&D activities for industrial rubber, revenue, capital expenditure, employee strength, and geographical presence of companies.
Key Findings of the Study:
- In terms of revenue, Asia-Pacific market is predicted to hold a share of over 34% in 2018.
- The synthetic rubber segment is expected to hold a dominant share in the industrial rubber market size, over the projected period.
- The automotive segment is projected to grow with a CAGR of 7.2% by 2026.
- The qualitative data in the report aims on the industrial rubber market trends, dynamics, and developments in the industrial rubber industry while the quantitative data provides information about the industrial rubber market share in terms of revenue and volume.