Rubber Compound Market Size, Share, & Industry Analysis, By Type (EPDM Compounding, SBR Compounding, BR Compounding, Natural Rubber Compounding, NBR Compounding, and Others), By Application (Automotive Industry, Construction and Building Industry, Footwear, Wire & Cable, and Others), Regional Forecast To 2032

Updated On: 01 April 2024

Rubber Compound Market REPORT OVERVIEW

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The global rubber compound market size was USD 10470 million in 2023 and market is projected to touch USD 12124 million by 2032, exhibiting a CAGR of 2.1% during the forecast period.

The rubber compound is an elastomer compound with thousands of formations and a combination of 3- 15 elements. It is a material used to create rubber products such as car tires, rubber molded parts, O-rings, flat seals, automotive body parts, and others. It is used extensively in the automotive industry because of its sustainability, longer shelf-life, and resistance against harsh environments and damages. It reduces vibrations in an automobile and upgrades the driving experience. It insulates the car and increases the resistance of automotive parts against damages. It is also used as a rubber mat thatcan be cleaned easily. It is made up of materials such as polymer, filler, and others. 

The automotive industry also finds its applications in footwear, adhesives, construction, and wire & cable applications. It is an extremely material used in wire insulation because of its excellent heat absorption and resistance against environmental conditions. It is used in construction applications because of its rigidity, longer shelf-life, and insulation. It is used in the footwear industry to create shoes with excellent grip and rigidity against friction and damages. Therefore, these factors shall positively influence the growth of the market in the upcoming years. 

COVID-19 Impact: Production Restraints and Supply Chain Disruptions to Impede Industry Growth

COVID-19 has affected several markets across the globe in a negative manner. The stringent lockdown regulations, restrictions on transport, travel, and lack of essential materials are responsible for the market's downfall. The number of COVID-19 cases is rising at an alarming rate, leading to strict regulations. As per the data published by the World Health Organization (WHO), as of July 2021, the number of confirmed cases has reached 187,519,798, and the number of deaths has touched 4,049,372. Governments globally have incorporated certain measures to ensure the survival of manufacturing industries. Manufacturers are adopting safety measures such as sanitization, social distancing, adoption of safety gears such as masks, gloves, safety suits, and shields to prevent the spread of the virus and ensure employee safety. Further, the adoption of advanced production machinery enhances their operational efficiency and improves the elastomer's quality. These factors are estimated to enable manufacturers to reduce costs and regain their market position. 

LATEST TRENDS

"Rising Demand for High-Quality Rubber across the Automobile Industry to Propel Market Growth"

The rubber compound is used extensively in the automotive sector because of its rigidity and temperature deflation properties. It is extremely useful to revamp vehicle vibration absorption and guarantees a smooth driving experience to the drivers. It is used throughout an automobile because of its excellent rigidity, durability, and heat and vibration absorption. It is used in rubber mats, tires, sealing, and other applications in an automobile. Its rigidity against impacts, excellent grip, friction resistance, sustenance, and provides optimal safety to drivers.

The rising consumer awareness regarding road fatalities fuels the demand for advanced safety features in an automobile. Elastomer products provide excellent resistance against impacts and reinforce the vehicle strength. Furthermore, elastomers are used in sealing applications in automobiles. It is used in engines, fuel caps, and other components for sealing purposes. Rubber compound gaskets are extremely useful for preventing fuel evaporation and contamination. It possesses better resistance and rigidity than normal rubbers or plastic material and lasts for prolonged periods. Therefore, its rising adoption in the automotive sector is estimated to boost the market growth. 

Rubber Compound Market SEGMENTATION

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• By Type Analysis

By type, the market is classified into EPDM compounding, SBR compounding, BR compounding, natural rubber compounding, NBR compounding, and others. 

SBR compounding is expected to lead the market because of its adoption in footwear and tires. The rising demand for styrene butadiene from the automotive sector is expected to bolster its demand. The rising demand for high grip and strong tires is increasing rapidly because of its performance. Further, the increasing spending capacity leads to the adoption of rubber compound footwear. SBR based rubbers are used in the sole of the boots because of their longer shelf-life and resistance. 

• By Application Analysis

Based on application, the market is segmented into automotive industry , construction and building industry, footwear, wire & cable, and others. 

The footwear industry is expected to lead the market because of the rising preference towards exercise and health. Sports shoes use rubber compounds extensively because of their demand from show manufacturers. Footwear created from the elastomers possesses superior durability and excellent resistance and increases footwear comfort. It absorbs the impacts and improves the consumer's walking experience. 

DRIVING FACTORS

"Strong Demand from Industrial Sector to Foster Growth"

Rubber compounds are used in industrial sectors for sealing, insulation, and other applications. It is used in wires because of its strength and resistance against heat and electricity. It is used extensively in the insulation of wire and cables because of its durability against damages and harsh environmental conditions. It effectively absorbs heat and electricity inside and prevents short circuits. Rubber compounds are used in industrial machinery to protect the machine from heat generalization. It tweaks the functioning of the machinery and dissipates heat effectively. Butyl rubber is extensively used in gloves to protect the workers against electric currents and other damages in an industry. 

"Rising Adoption in Footwear Applications to Bolster Market Growth"

A variety of elastomers named styrene-butadiene is used to produce footwear products because of its grip and strength. Evolving consumer preferences and rising per-capita income would boost footwear sales. Manufacturers prefer rubber compound products over plastic and leather because of their quality and longer shelf-life. It is used in shoe soles, sky boats, wedges and offers excellent sturdiness and grip. Rubber compounds that are used in shoes comprise rubber silicone that is mixed with other molecules. It is extremely flexible and adapts to any terrain and surface, which, in turn, shall enhance the consumer experience. Therefore, these factors shall drive the rubber compound market growth. 

RESTRAINING FACTORS

"Availability of Alternative Resources to Hinder Industry Progress"

The availability of cheaper and low-quality alternatives is expected to hinder the industry's growth. The adoption of low-quality products is increasing among small-scale industries because of their cost-effectiveness. The higher adoption cost and processing of the product increase investment costs, which, in turn, may hamper product sales. Moreover, the lack of awareness regarding the product's benefits may impede the product's demand. Therefore, these factors shall hamper the rubber compound industry growth exponentially. 

Rubber Compound Market REGIONAL INSIGHTS

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"Rising Demand for Better Quality Materials in China to Bolster Market Growth in Asia Pacific"

Asia Pacific is expected to lead the rubber compound market share because of the rising demand for high-quality materials from industrial sectors in China. Further, evolving consumer preferences and rising spending habits will bolster the demand for the product. Additionally, the emergence of several manufacturing industries and development is estimated to augment the growth of the rubber compound industry. 

In North America, the emergence of several industries and increasing car sales would boost rubber compound's adoption. The developed economy and manufacturing infrastructure shall foster the rubber compound market growth. Additionally, heavy government backing for industrial sectors and manufacturing is estimated to develop the industry. 

In Europe, rapid urbanization and advanced research and development infrastructure may propel market growth. Increasing applications in industries, cars, footwear, machinery, and others can enhance the market growth. 

In Latin America and the Middle East & Africa, developing purchasing power and the demand for better quality components and raw materials may foster the growth of the rubber compound market. 

KEY INDUSTRY PLAYERS

"Key Players Devise Acquisition Strategies to Expand Market Reach"

Prominent companies operating in the market devise acquisition strategies to increase their resources and improve their operations. Companies are able to access resources that may help them to enter new markets and expand their operations. Thus, this strategy will expand their market reach. Investments in research and development enable companies to improve their material strength. The adoption of better processes and materials enables companies to develop efficient, strong, and high-quality rubber compound products that garner consumer demand, which, in turn, boosts their sales. In addition, the adoption of technologically advanced production equipment enables companies to improve their operations, reduce labor cost and resource consumption, reduce time consumption and enable the companies to achieve their goals. 

List of Market Players Profiled

• Hexpol Compounding
• PHOENIX Compounding
• Cooper Standard
• Hutchinson
• Polymer-Technik Elbe
• Elastomix
• AirBoss of America
• Chunghe Compounding
• Dongjue Silicone Group
• KRAIBURG Holding GmbH
• Dongguan New Orient Technology
• Guanlian
• American Phoenix
• Haiyu Rubber
• Dyna-Mix
• Katosansho
• TSRC
• Shin-Etsu
• Condor Compounds GmbH
• Siamnavakam

Industry Development

• July 2021: Minnesota Rubber and Plastics (MRP) announced the acquisition of a New York-based manufacturer known as Pawling Engineered Products. Pawling Engineered Products produces extrude and custom elastomeric inflatable seal products. 

REPORT COVERAGE

This report analyzes the leading segments and the latest trends. It comprehensively studies the impact of COVID-19 on the global market and the driving and restraining factors. Additionally, it examines the regional developments and the strategies devised by the major players.