The industrial rubber market is observing growth due to various factors such as an expansion in its industrial application, technological advancements, sophistication in the natural rubber industry, and finally because of the growing demand in the Asia Pacific regions. One of the more versatile materials used in most of the industries is natural rubber, making it one of the most preferred insulants and safety material across a broad spectrum of industries. Natural rubber is increasingly finding applications in industrial manufacturing, automotive sector, electrical & electronics industries, building & construction, sealant, & adhesive, polymer modification, coating, wire & cable, bitumen modification, medical & healthcare, and in other sectors.
Segmentation of the Natural Rubber Market
The global natural rubber market is positioned to expand and develop with a huge margin in the coming years. Few of the significant trends that the natural rubber market is witnessing include a characteristic shift in tire production facilities being targeting in low-cost production countries, an increase in the popularity of natural rubber derived from guayule and finally a rising demand and trade in the automotive sector.
According to the type of industry, the natural rubber market can be segregated into the downstream industry and upstream industry. The downstream industry of natural rubber can further be segmented into the industry for tyres alongside other downstream industries. However, categorization on the basis of the type of rubber divides the natural rubber market into crepe rubber, reclaimed rubber, latex, technically specified rubber (TSR), ribbed smoked sheet (RSS), a block of solid rubber, etc alongside various other types. Its market can also be segmented according to its application. As a trend, Carbon Black of the variety N375 is getting industrially added to natural rubber manufacturing processes as it enhances the rubber’s treading and tensile capacity. Natural rubber finds uses in the manufacturing of gloves, general rubber goods, industrial, consumer goods, automotive, footwear, latex products, medical auto-tire sector, and other applications.
Global Market Condition and Trends of The Natural Rubber Industry
The natural rubber market has been under comprehensive market assessment by the experts. The key market region is spread across major geographies such as Europe, North America, Asia Pacific, Latin America, Middle East, and the rest of the world. The Asia Pacific region and Latin America is expected to grow their rubber industry by a significant margin in the near future. Natural rubber industries with influential players can be found in top countries such as U.K, China, Saudi Arabia, the U.S., Canada, Germany, Brazil, and South Africa, to name a few.
Market giants with an influential hold on the global industrial rubber industry include Nizhnekamskneftekhim (Russia), Kumho Petrochemical (South Korea), TSRC Corporation (Taiwan), JSR Corporation (Japan), Goodyear Tire and Rubber Company (US), and ZEON Corporation (Japan).
Factors Attributing To The Growth Of The Natural Rubber Market
The expansion of the natural rubber market is owed to the rapid industrialization in the Asia Pacific region and an increase in the production activities of motor vehicles across the globe. Developing countries such as India, Thailand, Brazil, and Malaysia are foreseeing a heightened increase in the natural rubber end-user market however, developed regions of the US, Germany, and Japan are identified to experience a relatively lower rate of growth in this industry. This is because the developed nations like these are witnessing a rather sluggish demand for durable consumer goods that involve natural rubber as the key element, as well as relatively lower demand for automobiles as well.
Mechanical rubber is a segment that is also in demand both in developing and developed countries. Mechanical rubber industry (derived from the natural rubber) is expected to witness steady growth due to the global output of motor vehicles and industrial machinery equipment.
Applications of Natural Rubber In Various Industries
Natural rubber is used as industrial rubber in the automotive sector, the building and construction industries to name a few. Its demand is further expected to increase in the Asia Pacific region, followed by South America, the Middle East, and the African regions over the next decade. Reasons such as increasing population and a growth in the disposable income in developing regions have caused a growth in the global natural rubber industry.
Natural rubber industry includes stakeholders such as the governmental bodies, manufacturers, end-users in the developing countries primarily and feedstock suppliers that engage in the procurement activities of natural rubber. The value chain of the industrial rubber market incorporate elements such as distributors, raw material suppliers, and manufacturers. In spite of observing an average high rate of growth, the global industry is expected to witness some hurdles on the environmental front. Because natural rubber procurement is causing deforestation in developing countries such as Thailand and Malaysia, governments in such countries are facing some pressure from the developed countries to reduce their natural rubber industrial activities in order to actively contribute in reducing the global carbon footprint.