A new report by Global Industry Analysts suggests that the synthetic rubber market will climb to 13.4 metric tons by 2015, “particularly” on increased usage in the tire and automotive industry. The consumption and production of synthetic rubber was significantly affected by the global economic recession, says a statement by GIA announcing its new publication, “Synthetic Rubber: A Global Strategic Business Report.”
The recession “led to a steep fall in demand from various end-use markets, particularly automotive sector,” continues the statement. “As the growth prospects of the global synthetic rubber industry are closely linked to the dynamics in the motor vehicle market, the steep decline in the auto industry significantly dented consumption of synthetic rubber. While the automotive industry in developed countries has been hit by the global economic recession, potential growth opportunities are anticipated from the rapidly expanding motor vehicle market in developing countries of Asia, specifically China and India, Latin America, and Eastern Europe.”
The world’s leading consumers are – somewhat unsurprisingly – China, the USA and Japan. “With the global economic recession crippling automotive and construction sectors, impact is also evident on traditionally strong growth sectors of acrylonitrile butadiene styrene (ABS), styrene-butadiene rubber (SBR), and expandable polystyrene (EPS)…” New vehicle sales, particularly in developed regions, “severely affected the growth prospects in ABS and SBR sectors”, while replacement tire markets’ decline also affected their performance. Developing countries, predominantly in Asia, were also affected, with automotive component players that manufacture products for export as well as domestic consumption located in these regions.
“Recovery in the global styrene butadiene rubber market, the largest segment in the synthetic rubber market, is likely to be spearheaded by Asian countries, particularly China,” continues GIA. “Growth in the global SBR consumption is anticipated from the rising demand from Asian countries, particularly China and India, Russia, Central and Eastern Europe, and Central and South America. China’s predominance in SBR consumption is attributed to increasing demand from domestic automobile industry, rising demand for tires, and widespread capacity additions in the SBR sector.
“Ethylene Propylene Rubber, a category of synthetic rubber characterized by high resistance to weather conditions, ozone, high temperature and aging, is the third largest segment in the overall global market for synthetic rubbers, after styrene butadiene and polybutadiene rubbers. Of the total EP elastomer consumption, North America, Western Europe and Asia account for a predominant share. The demand scenario in the EP elastomers is heavily dependent on the dynamics in the automotive industry, and hence was significantly impacted by the recession.”
The research report “provides a strategic review of the industry, key market trends, recent product launches, strategic corporate initiatives, and profiles of key market participants”, alongside annual sales estimates and projections for the USA, Canada, Japan, Europe, Asia-Pacific, Latin America, and the Middle East. (Tyres & Accessories)
