Global Rubber Processing Chemicals Market, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Global Rubber Processing Chemicals Market


The global rubber processing chemicals market size was valued at USD 4.8 billion in 2018, driven by ascending demand from end-use industries including automotive and building and construction. Rubber is used to manufacture a variety of products such as gloves, tires, mats, flooring, pipes, and belts. Its improved resistance against the effects to heat, sunlight, oxygen, mechanical stress, and ozone is leading the global market growth.
These end-use products are broadly categorized into two end-use segments, including tire and non-tire. The growth of the market for rubber processing chemicals majorly depends on the tire industry which includes both, synthetic and natural rubber. The consumption, majorly in emerging economics, has increased owing to the fact that the number of vehicles purchased along with sales of replacement tires has increased considerably. In 2017, the global car sales crossed a mark of 96 million units and is projected to drive the market for rubber processing chemicals over the forecast period.

Owing to growing domestic demand for automobiles and extensive network of automotive manufacturers, the rubber processing chemical market in U.S. is witnessing a surge. Overall, the U.S. stands second in the list of the worlds market for vehicle sales and production. The countrys automotive industry is forefront of innovation. According to the Auto Alliance, the U.S. has spent almost a fifth of the global R&D spending in the automotive industry.
Rubber processing generates large amount of wastewater, which if released untreated, may cause severe health problems. In addition, manufacturing processes, such as extrusion and molding, result in excess deaths from hematopoietic, lung, stomach, bladder, and other cancers. Hence, several regulatory bodies such as the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) and New Source Performance Standards (NSPS) have stringent regulations regarding usage and disposal of wastewater from rubber processing plants.

The growing concern over health and environment has resulted in usage of alternatives such as toughened natural rubbers and fibers, which are made up of plant cellulose and vegetable-based oil processing. For example, Yokohama Tire Corporation of Japan uses oil derived from modified natural rubber and orange peels to manufacture tires. These eco-friendly tires also show better grips in braking and cornering.

Product Insights of Global Rubber Processing Chemicals Market

Rubber processing chemicals play an important role in improving the overall performance of a tire and non-tire rubber products. The rubber processing chemicals are categorized in different product segments such as anti-degradants, flame retardants, accelerators, processing aid/promoters, and others. Anti-degradant was the largest segment with a market share of 54.7% in 2018. During vulcanization process, anti-degradants are mixed with natural rubber to get better results, increased tensile strength, better finishing, and high resistance from heat. The major anti-degradants used in the vulcanization process differs according to the requirement of the product along with different formulation.

Accelerators are the chemical agents used to effectively cause vulcanization. In vulcanization, accelerators are extensively used in combination with sulfur, zinc oxide, and stearic acid. Accelerators are classified into two types, primary and secondary/ultra-accelerators. Primary accelerators are majorly used in tire manufacturing while secondary accelerators are used to boost the speed and state of cure in the vulcanization.
Flame retardants are generally used to prevent rubber from flaming incidents and heat. In addition, the flame retardants are also used for proofing purposes to prevent rubber from moisture, dust, and heat. Various formulations have been developed over the years, which meet performance specifications established by industry standards, as well as the specific requirements from the end-users.

Application Insights of Global Rubber Processing Chemicals Market

Different types of rubber are used for different purposes. Tire manufacturing is the largest application segment. The main functions of automotive tires are to provide grip, resist abrasion, and transport loads with reasonable safety and performance. One of the major factors driving the rubber processing chemicals market is the significant increase in the number of vehicles, especially in the Asia Pacific region.

Need for improved resistance against effects of heat, sunlight, oxygen, mechanical stress, and ozone are driving demand for rubber processing chemicals globally.The widespread end-use application requires rubber processing chemicals to produce high quality and performance rubber products. End-use industries are segregated into two segments including tire and non-tire rubber industries. Tire end-use industry includes Bridgestone Corp., Michelin, Goodyear Tire and Rubber Co., and MRF Ltd.

Though the market is dominated by tire application, non-tire is also a key application driving the growth of rubber processing chemicals. The non-tire applications mainly include industrial rubber, along with polymer modification, building and construction, and automotive (non-tire). Emerging economies such as China, India, and South Korea are expected to have a major share, owing to recent boom in the manufacturing sector.

Regional Insights of Global Rubber Processing Chemicals Market

Asia Pacific was the largest market for rubber processing chemicals in terms of volume share in 2018 owing to rising demand from automotive and construction industries. The region is also a significant exporter of natural rubber to other regional markets. China led the market in terms of production and consumption. Further, other dominant producers in the region includes Indonesia, Malaysia, Thailand, and India.

Abundant availability of raw materials in countries such as China is expected to boost the production facilities and may result in shifting of production facilities in the Asia Pacific region. However, stringent environmental regulations are forcing the manufacturers to find alternatives to the existing products, which are restricted by regulatory bodies such as REACH.

The Europe market was valued at USD 798.8 million in 2018. Widespread automotive industry and continuous R&D activities is fueling the growth of the market over the forecast period. In Europe, Germany is estimated to be largest market while U.K. is expected to witness a volume-based CAGR of 4.1% from 2019 to 2025, due to its increasing demand for high quality and performance products.

Rubber Processing Chemicals Market Share Insights

The competitive factors that have a deep impact on market growth include manufacturing technology, product portfolio, and pricing. Major companies in the global market for rubber processing chemicals include Lanxess AG; BASF SE; Solvay SA; AkzoNobel N.V.; Arkema S.A.; and R.T. Vanderbilt Holding Company, Inc. Most of the manufacturers being multinational companies have indulged in R&D activities, new product launches, and expansions for innovative and sustainable production methods.

For instant, in June 2019, Eastman Chemical Company successfully completed de-bottlenecking of its St. Gabriel Diethyl hydroxylamine (DEHA) production facility. DEHA is mostly used in the production of styrene-butadiene rubber (SBR) and the new development is expected to meet the growing needs of the customers in the western hemisphere.

The Netherlands-based AkzoNobel N.V. is engaged in the development, manufacturing, and supply of rubber processing chemicals such as adhesion promoters and blowing agents. The company has various business units in various countries such as Poland, U.S., Australia, Germany, Denmark, Sweden, Brazil, Lithuania, Latvia, Uruguay, Turkey, India, Singapore, Greece, Ireland, U.K., China, and Estonia.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Global Rubber Processing Chemicals Market Research Report

This report forecasts revenue growth at global, regional, and country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global rubber processing chemicals market report on the basis of product, application, and region:

Product Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Anti-degradants
  
Accelerators
  
Flame Retardants
  
Processing aids/Promoters
  
Others

Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Tire
  
Non-Tire