The market for rubber additives is expected to grow at a CAGR of over 3% during the forecast period. Major factors driving the rubber additives market are rapidly increasing demand from the tire manufacturing industry and growing application in enhancing structural and mechanical properties. Stringent environmental regulations are expected to hinder the growth of the market studied.
- Application in the manufacture of tires dominated the market and is expected to grow during the forecast period owing to the increasing demand for more durable and long-lasting products from consumers.
- The development of new additives to produce high-performance rubbers that increase the durability of the end product is likely to act as an opportunity in the future.
- Asia-Pacific region dominated the market for rubber additives with India, China, Japan as major countries in the consumption.
Key Market Trends
Increasing Demand from Tires Application
- Additives are ingredients added to both natural and synthetic rubber in order to obtain certain desirable properties. By convention and mixed formulations, the desired elastomers are obtained, thereby helping in producing the desired product.
- In the tire manufacturing industry, rubber additives are used as accelerators, curing agents, vulcanizing inhibitors, plasticizers and others.
- Rubber additives enhance the properties of rubber, such as improved resistance to heat, sunlight, mechanical stress and also increases the durability of the product.
- In the United States, Nokian tires company has announced its decision to invest about USD 200 million in 2020 with a tire manufacturing capacity of 4 million.
- The global automotive industry has declined in the recent past. However, the demand for tire applications from electric vehicles has increased. The manufacturing of BEV and PHEV vehicles in China, the United States, and Europe is contributing to the growth of tires used and, in turn, is expected to drive the demand for rubber additives market.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the Rubber Additives Market during the forecast period. In countries like China, India and Japan because of the high demand application in manufacturing tyres, conveyor belts and others, the demand for rubber additives has been increasing.
- The largest producers of rubber additives are located in Asia-Pacific region. Some of the leading companies in the production of rubber additives are Toray Industries.Inc, China Petrochemical Corporation, Sumitomo Chemical Co. Ltd, BASF SE, BEHN MEYER.
- In Asia-Pacific region, China represents the largest country accounting for about 17% of worlds share in mining industry using high volume of conveyor belts followed by India.
- In 2019, CEAT Ltd. has invested INR 4000 crores (~USD 556.42 million) to start a new tire manufacturing unit near Sriperumbudur on the outskirts of Chennai.
- The aforementioned factors coupled with government support are contributing to the increasing demand for rubber additives market during the forecast period.
The global rubber additives market is fragmented, with players accounting for a marginal share of the market. Few companies include Toray Industries Inc, China Petrochemical Corporation, Sumitomo Chemical Co. Ltd, BASF SE, and Behn Meyer.
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