The rubber chemical market is nothing but converting the natural or synthetic rubber to finished products to meet the demands of various industries.
Though these are used in various industrial goods, majorly the rubber chemical is used in automotive sector to produce tyres and molded components for vehicles.
The rising demand for vehicles, heavy and light may accelerate the demand in the rubber chemical market.
In 2019, the tyre production stood around 2,240 million units and as per the market projection the production is expected to grow at a moderate pace
Rapid Urbanization to Bolster the Sales
As per UN Department of Economics and Social Affairs, 55% of total world’s population live in the urban areas, and this number is anticipated to increase up to 68% by 2050. Therefore, the increasing urbanization and need for easy transportation is anticipated to drive the demand for tyres, owing to the surge in demand for rubber chemical market.
The improving infrastructure and globalization are rising the number of industries, thus owing to the boost in the opportunities for global rubber chemical market.
However, due to the toxicity of rubber, the European Unions and Environment Protection Act in the USA have placed stringent regulations on rubber industries, which may hinder the growth opportunities for the rubber chemical market.
Despite the market challenge, the major growth potential lies in the Asia Pacific region due to developing economies and ever-growing automotive sector, which is expected to strengthen the demand for automotive parts and tyres.
Anti-degradant Segment Strengthens the Growth Opportunities
The rubber chemical market is bifurcated into various categories such as anti- degradants, flame retardants, accelerators, processing aids, promoters.
It is the anti-degradant category that has witnessed a significant growth over the years and projected to hold the largest share.
During the vulcanization process, the natural rubber and anti-degradant gets mixed up in order to get high heat resistance, high tensile strength, and better finishing.
These anti- degradants include, antioxidants and antiozonants, further these anti degradants are classified into staining and non-staining antioxidants, depending on if the rubber is plain or colored (stained)
It is imperative to note that, in 2019, an explosion in rubber chemical plant situated in Xiangshui resulted in panic purchase of these antioxidants, thus resulting staggering price for the same.
Since the market for rubber chemical is highly volatile due to everchanging market dynamics and government regulations, the intensive ongoing research to better the performance of rubber chemicals to meet the market needs.
The increasing demand from construction companies for the rubber chemical products is further likely to intensify the global rubber chemical market in the next few years.
The abundantly available raw materials in developing economies such as China is likely to intensify the manufacturing facilities for the rubber chemicals, thus, the Asia Pacific region is seemingly a growing market for the rubber chemical market.
Further, the region is also an exporter of natural rubber to other regions, which makes them take up the dominant position in the global market.