Global Synthetic Rubber Market
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1 Global Synthetic Rubber Market
2 Executive Summary Synthetic rubber is chemically manufactured elastomer which is produced by the polymerization of two or more petroleum-derived monomers. Synthetic rubber plants were built after 1945 and since then it has maintained the lead over natural rubber. Polybutadiene rubber (BR) and Styrene Butadiene Rubber (SBR) are the two most important types of synthetic rubber and Butadiene is the primary feedstock for its production. Industrial players of synthetic rubber operate in the marketplace on the basis of low manufacturing cost, quality, technology and most importantly price to stay ahead. The synthetic rubber industry produces a variety of products that are used by the fabrication industries. Most of the output of synthetic rubber industry is taken up by tire industries thus categorizing this industry as one of the predominant users of synthetic rubber. Apart from tires, synthetic rubber has applications in various segments like shoes soles, high-speed railway, aviation etc. The key factors driving the growth of the synthetic rubber industry include accelerating automotive industry, technological advancement and slump in raw material prices. Some of the noteworthy trends and developments in this industry are increasing demand for high performance material, declining prices, rigorous competition and improved supply. However, the expansion of global synthetic rubber industry is hindered by rising environmental concerns and depletion of fossil fuels. The report Global Synthetic Rubber Market provides an in-depth analysis of the production, consumption and capacity of global synthetic rubber market with focus on its segments including: Polybutadiene rubber and Styrene Butadiene Rubber. The major trends, growth drivers as well as issues being faced by the industry are being presented in this report. The four major players in the industry, Lanxess, Good Year, Kumho Petrochemical Co. and Exxon Mobil Corp are being profiled. By combining SPSS Inc. s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.
3 Major use of synthetic rubber is in the manufacturing of tires for most of the vehicles. Other uses include shoe soles, rubber gloves, orthopedic braces, etcetera. Global Synthetic Rubber Production (2007-) From.. million tons in year 2007, the production has grown to. million tons in year, depicting growth of %. After representing a constant production volume of. million tons in and, the production volume of synthetic rubber inclined by % to reach million tons at the end of. The top six players accounted for about.% of the market in. KKPC was the leading market participant with a market share of.% at the end of. Goodyear represented modest.% share, followed by Lanxess and LG Chem with market share of.% and % respectively Moving in line with the production trend, the consumption of the synthetic rubber has also increased considerably during the last decade. The global synthetic rubber consumption has increased by % to million tons in, from million tons in. BR Market Share by Production Capacity () Global Synthetic Rubber Consumption (2007-) Kumho Petrochemical Lanxess Bridg/Firestn Others Goodyear LG Chem Sahnding Yuhuang
4 Asia- Pacific The US EMEA (EU-27) EMEA (excl EU- 27) 2008 Polybutadiene Rubber (BR) and Styrene Butadiene Rubber (SBR), which includes ESBR and SSBR, are the key synthetic rubbers as they are largely used for the manufacturing of automotive tires. China s Synthetic Rubber Capacity (2008-) China s synthetic rubber capacity has expanded rapidly in recent years, with CAGR reaching % in In, China s synthetic rubber production capacity reached million tons, accounting for % of the global synthetic rubber capacity. Bridg/Firestn, accounting for % of the total market, was leading in SSBR segment of Styrene Butadiene Rubber market in. Bridg/Firestn is immediately followed by Michelin which held a market share of roughly %. Other key players of SSBR are Styron, PetroChina Dushanzi PC and Kumho Petrochemical. Asia-Pacific produced more than half of the world s synthetic rubber accounting for. million tons in, followed by the US with million tons. EMEA together produced. million tons of synthetic rubber during the mentioned period. SSBR Market Share by Production Capacity () Synthetic Rubber Production by Region by Volume () Bridg/Firestn Styron Kumho Petrochemical Others Michelin PetroChina Dushanzi PC Asahi Kasei Chem.
5 E 2015E Butadiene is the most important feedstock to produce a wide variety of synthetic rubber and polymer resins. The demand of butadiene is chiefly driven by BR and SBR. Global Butadiene Production ( E) The global production of butadiene increased by million ton to reach million tons in compared to million ton production in thereby representing an increase of %. The production is expected to expand to million tons by the end of 2015, up by %, compared to. High demand and low operating cost has led the increase in production of butadiene. In ESBR segment of SBR, KKPC accounted for.% of the global capacity in thereby leading the market. ISP Elastomers, on the second position, represented % share. Other major players of this category include Goodyear, Qilu PC, Fushun PC and Lanxess. The global butadiene capacity of million tons was reported at the end of year. This represented an incline of %, compared to million tons in the previous year. The capacity is further anticipated to grow by % to reach million tons by the end of 2015, compared to. ESBR Market Share by Production Capacity () Global Butadiene Capacity ( E) Kumho Petrochemical Goodyear Fushun PC Others ISP Elastomers Qilu PC Lanxess Elastomeros do Brasil E 2015E
6 E 2015E 2014F 2015F 2016F 2017F 000 Tons The key factors driving growth of the global synthetic rubber industry include accelerating automotive industry, technological advancement and slump in the raw material prices. Total Synthetic Rubber Capacity Addition ( E) Global Synthetic Rubber Consumption Forecast (-2017F) An escalating trend has been observed in the global capacity addition of synthetic rubber since. In, tons of additional capacity has been recorded, representing an incline of %, compared to tons capacity addition in. However, the capacity addition is projected to reduce by % in 2015, compared to. In 2014 and 2015, the synthetic rubber industry is anticipated to add tons and tons of additional capacity respectively. The consumption of synthetic rubber is poised to grow at a compounded annual growth rate of % from million tons in 2014 to million tons in The future growth would mainly be driven by the strengthening fundamentals in the tire industry, oil demand and butadiene production. Among the synthetic rubber types, BR and SBR are the major ones, together constituting % of the China s Synthetic rubber capacity in. Out of the total SBR capacity, ESBR accounted for % of China s SBR capacity and SSBR for %. BR claimed % of the total synthetic rubber capacity of China as the trend of high-performance flat and tubeless radial tires became inevitable. NBR, IIR and EPR represented %, and % share, respectively, of the total capacity in. Note: Market attractiveness is inverse of penetration. Low penetration means high attractiveness and vice-versa
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