According to a new report published by Allied Market Research, titled, “Global Neoprene Market: Opportunity Analysis and Industry Forecast, 2021–2030,” 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 synthetic rubber, which is produced by the polymerization of chloroprene. Neoprene is formed by cross-linking carbon, hydrogen, and chlorine polymers. It possesses exhibits superior chemical stability and remains flexible under a wide range of temperatures. Neoprene is wear, weather, aging, heat, tearing, oils, water, and chemical resistant. In addition, it has low oxidation rate and ozone resistance, which increase the shelf life of neoprene-based products.
The demand for neoprene has increased considerably tremendous growth driven by surge in demand from automotive, electrical & electronics, building & construction, and textile industries. All industry players are investing heavily to find new commercial avenues for their product segments via strategic production and business expansion. Some of the major factors that drive the demand for neoprene include increase in adoption of neoprene rubber in the automobile industry and rapidly expansion of the construction and electronic industries the developing economies such China and India. However, volatility in crude oil prices and presence of efficient substitutes are expected to hamper the growth of the neoprene market during the forecast period. Furthermore, rise in popularity of neoprene gloves is expected to provide growth opportunities for the neoprene market during the forecast period.
By product, the global neoprene market size is segregated into neoprene sponge/foam, neoprene sheet, and neoprene latex. The neoprene sheet segment accounted garnered the largest share in 2020, owing to surge in its usage in seals, gaskets, building insulations and liners in the automotive, electrical, and construction industries.
On the basis of end-user, the market is fragmented into automotive, electrical & electronics, building & construction, textiles, and others. The automotive segment emerged as the leader in 2020, owing to surge in demand for neoprene for the manufacturing of hose covers, constant velocity joint (CVJ) boots, power transmission belts, vibration mounts, shock absorber seals, and steering system components due to its properties such as thermal resistance, tensile strength, and prolonged durability.
Region wise, the global neoprene market is studied across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for a major neoprene market share in 2020, owing to rapid expansion of the building & construction and automotive industries across the region.
The major players studied and profiled in the global neoprene market are 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.
The market was negatively impacted by COVID-19 in 2020. Neoprene is widely used in automotive products, including rubber gaskets, O-rings, seals, and hoses as well as and in the construction industry 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 been significantly increased during this situation, which, in turn, stimulates the growth of the neoprene market.
Key findings of the study
- In 2020, Asia-Pacific dominated the global neoprene market with around 34.0% share, in terms of revenue.
- LAMEA is projected to grow at the highest CAGR of 2.9% in terms of revenue.
- The neoprene sheet segment dominated the global neoprene market with around 55.63% of the share in terms of revenue.
- Neoprene latex segment is projected to grow at the highest CAGR of 2.9% in terms of revenue.
- The automotive segment dominated the global neoprene market with around 40.0% of the share in terms of revenue.
- The building & construction segment is projected to grow at the highest CAGR of 3.1% in terms of revenue.