The growing automotive and construction industry will play a vital role in the growth of the rubber processing chemicals market while APAC will witness maximum opportunities through to 2025
With the growth of the global automotive and aerospace industry, the tires and tubes market is making strides worldwide, which is creating a demand influx for rubber. On the other hand, the healthcare industry is creating opportunities for the rubber industry, because it is used in medical devices and wearable such as hand gloves. The mining industry also creates prospects for the rubber industry as it is a primary material used in conveyor belts. Furthermore, the oil & gas industry is a hefty consumer of rubber, because of its usage in making gaskets, seals, brushes, O-ring, tubes, and articles thereof. Rubber is a prominent product used for playground surfacing as it induces aesthetics and safety. The rapid urbanization is creating an economic boom across the globe, and it has been spurring a gamut of the industry that also includes rubber and its products. Apart from the aforementioned end-use industries, the defense, agriculture, power generation, and textile industries are also considerable consumers of rubber and its products. The construction industry also happens to be a massive consumer of rubber as it is prevalently used for mounting, sheeting, and flooring. Predominantly due to the expansion of the construction and automotive industries, the rubber industry is poised to flourish, and subsequently, the rubber processing chemicals (additives) market is going to gain significant traction. This is because rubber processing chemicals such as accelerators, activators, vulcanizing agents, anti-degradants, and stabilizers play an indispensable role in the production of rubber. The Rubber Processing Chemicals Market was evaluated at $4 billion in 2018, and the demand for these additives is going to increase at a CAGR 4.3% during the forecast period 2019-2025.
The growth prospects in the rubber processing additives market can be understood by the increasing trade of rubber worldwide, which is making a direct impact on the associated markets. In 2018, the trade value of rubber and articles thereof was gauged to be $198.12 trillion, according to the findings by the International Trade Centre (ITC). The rubber industry is observing a moderate yet steady growth since 2014 at a CAGR of 1%. However, the year 2017-2018 witnessed a slight increment in growth, which was measured to be 3%. This is the main reason attributable to the growth of the rubber processing additives market.
The Future of the Booming Rubber Processing Chemicals Market in APAC –
In 2018, APAC offered maximum opportunities to the rubber processing chemicals market players, and the region had a substantial share of 49%. The growth of the automotive and construction industries along with a demand influx from the mining and agriculture industries of China, India, Japan, Indonesia, and other emerging economies are attributed as the major causes of the impressive APAC rubber processing additives market size. The market is poised to witness growth in the future; something which can be further fathomed by the following facts –
· The Demand of Rubber from the China Automotive Industry Creating a Stir in the Rubber Processing Additives Market –
The China automotive industry boasts of being the world’s largest vehicle market with sales of over 28 million units in 2016, according to the findings by the International Trade Administration (ITA). Furthermore, the Chinese government anticipates the production to reach 30 million units by 2020 and 35 million by 2025. This growth in the production of vehicles in China will imbue a perceptible demand for rubber in order to manufacture tires and tubes. The demand influx for tire and tubes will create revenue sources for the vendors in the APAC rubber processing chemicals market.
· The China Construction Industry to Speed Up the Sales in the Rubber Processing Chemicals Market –
According to the State Council of China, the value-added output of China’s construction industry is growing, and the figure translated to $816.6 billion in 2017 with 16.6% annual growth rate and 6.7% contribution to the country’s GDP. Additionally, the Global Construction Perspective and Oxford Economics projected that the growth of the global construction industry, which is poised to breach $8 trillion by 2030, will be majorly driven by China, India, and the US. The growing Chinese construction industry will create a requirement for rubber hose, belt, rollers, mountings, and other rubber materials that are an integral part of the construction projects. This augmented demand for rubber products from the Chinese construction industry will create lucrative opportunities in the rubber processing additives market.
· The Burgeoning Mining Activities in India Driving the APAC Rubber Processing Additives Market –
The mining industry in India is witnessing continuous growth, and the Ministry of Steel, Government of India envisions to catapult the steel production capacity to 300 million tons by 2030-31, according to the findings by India Brand Equity Foundation (IBEF). This will further drive the Indian mining industry during the forecast period, and it will reflect in enhanced sales in the conveyor belts market in India. The production of conveyor belts will require rubber, which will create a demand influx in the rubber processing chemicals market.
· Indian Agricultural Sector: A Flourishing Rubber Marketplace Leading to A Demand for Rubber Processing Additives
The rising population in the urban and rural areas is driving a definite demand in the Indian agriculture sector. Other factors such as the country’s economic growth, diverse agro-climatic conditions, and rising initiatives by the government towards farmer’s welfare are leading to an increase in the agricultural sector revenues. Agricultural sector utilizes rubber mainly for tires, which are used for a gamut of chores such as gardening, moving, terrain vehicles, snow groomers, and others. This is further driving the rubber processing chemicals market.
· India, Malaysia, and Indonesia Automotive Industry Driving the Rubber Processing Chemicals Market –
According to the International Organization of Motor Vehicle Manufacturers (OICA), India, Malaysia, and Indonesia had witnessed production of 5.17M, 564,800, and 1.34M number of vehicles respectively in 2018 with a year on year growth rate of 8%, 12.2%, and 10.3%. Due to the growing economy and greater demand for vehicles from the urban population, vehicle production in these countries is poised to experience an increment, which will drive the APAC rubber processing additives market.
· The APAC Chemical Industry Generating Revenue Sources for the Rubber Processing Chemicals Market –
The APAC chemical industry is observing a perpetual boom since a few years now, and Oxford Economics assessed that the industry contributed $2.6 trillion to APAC’s GDP in 2017. Rubber products are used in chemical industries for a myriad of purposes such as paint spraying, protective garments, adhesive dispensing, crack filling, vacuum filtration, and others that require hoses, tires, injection parts, rubber coating, and ducts. The booming APAC chemical industry created growth prospects for the rubber processing additives market.
· The Japan Automotive Industry’s Growth to Create Revenue Avenue for the Vendors in the APAC Rubber Processing Chemicals Market –
The Japan automotive industry observed a continuous growth in 2018 with 4.88 million vehicles manufactured, and the production grew 1.5% year on year. Electric and autonomous vehicles are going to make a penetration in Japan, which will drive the market for tires and tubes. This will create a lot of opportunities in the APAC rubber processing additives market.
Rubber industry, including industrial rubber products and chloroprene rubber market will keep gaining traction in APAC, which will lead to lucrative opportunities in the rubber processing chemicals market.
Rubber Processing Chemicals Market: The Global Scenario and Growth Drivers –
· The Booming Global Automotive Industry: The Key End-User for the Rubber Processing Chemicals Market –
The automotive industry is found to be the key the end-use industry for the rubber processing chemicals market, and the application will grow at a healthy CAGR of 4% through to 2025. According to the European Automobile Manufacturer Association (ACEA), 98.1 million motor vehicles were produced globally in 2018. With rapid urbanization and a perceptible rise in disposable income, the demand for vehicles will be growing during the forecast period. Furthermore, the global automotive industry is poised to observe a revolution with the emergence of electric vehicles (EVs), semi-autonomous and autonomous vehicles, and self-driving cars & trucks, which will further drive the automotive tire market. This boom in the automotive industry will create many opportunities in the rubber industry, which will create revenue sources for the players in the rubber processing chemicals market.
· The Global Construction Industry to Create Demand Influx in the Rubber Processing Additives Market –
As mentioned above, the global construction industry is poised to breach $8 trillion by 2030. Already, the industry contributes 25.396% to the world’s GDP, according to the World Bank. The upcoming years will witness an upsurge in construction activities, which will be fulfilling the sustainable development goals (SDGs) of the United Nations (UN). Furthermore, the Global Infrastructure Outlook projects that the worldwide infrastructure investment needs to reach $94 trillion by 2040, and the figure will translate to at least $79 trillion as per the current trends. This hefty investment in infrastructure will lead to a demand for rubber products that are used in the construction industry, which will lead to a growth of the rubber processing chemicals market.
· The Envisioned Growth of the Global Aerospace Industry: A Prospective Rubber Processing Chemicals Marketplace –
According to the International Air Transport Association (IATA), 4.1 billion passengers flew on a scheduled airline in 2017, and the figure underwent growth at 7.3% as compared to 2016. The increasing number of people traveling by airplane is leading to an enhanced need for airplanes, and the organization also projects production of 39,000 airplanes by 2027.The aerospace industry is one of the major consumers of rubber as it is used in auxiliary power units, hydraulic actuators, bleed air valves & fittings, T-seals, cap-seals, manifold gaskets, and firewall seals. Hence, the projected growth of the aerospace industry will lead to a demand influx in the rubber processing additives market.
Apart from the aforementioned industries, the petrochemical, food & beverages, power generation, general machinery, and semiconductor industries also utilize rubber, and therefore, these industries also contribute to the expanding rubber processing chemicals market size.
Iron & Steel Market: Competitive Landscape
The major players crusading for the rubber processing chemicals or additives market share and positioning themselves ahead of the curve are BASF SE, Solvay S.A., Lanxess Aktiengesellschaft, Akzo Nobel N.V., R.T. Vanderbilt Holding Company, Inc., Eastman Chemicals Company, Arkema Inc., Sumitomo Chemical Company Limited, China Petroleum & Chemical Corporation or Sinopec, LINKWELL, Merichem Company, and Emerald Performance Materials LLC.
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