The solution styrene butadiene rubber market globally is forecast to reach US$3.7 billion by 2027 growing at a CAGR of 4% during 2022-2027. Tire application is projected to drive the market’s growth in the forecast period owing to massive growth in automobile production. The excellent wear and abrasion resistance of solution styrene butadiene rubber (SSBR) makes them a suitable choice in the manufacturing of tires. Furthermore, market players produce synthetic rubber through polymerization of butadiene, styrene, phenyl lithium, etc., which makes the solution styrene butadiene rubber cost-effective, providing another reason for the high usage of SSBR in the tire manufacturing application. Polymer modification is another application that is anticipated to drive the market’s growth robustly as solution styrene butadiene rubber is extensively used in the modification of asphalt and cement, improving the quality of roads and pavements construction. However, the hazardous effect of butadiene which is widely used in the target market might hinder the growth of solution styrene butadiene rubber market in the forecast period.
COVID-19 Impact
The solution styrene butadiene rubber market was badly hit by the COVID-19 pandemic. Government guidelines like social distancing and remote working norms lead to various operational challenges that include disturbances in the supply chain, factory shutdown, procurement of raw materials. Furthermore, the reduced demand for automobiles owing to factory shutdowns lowered the demand for tire manufacturing during the pandemic which affected the market’s growth severely. Market players adjusted their working strategies and shutdown many plants due to the pandemic. For instance, France-based tire manufacturing company Michelin mentioned in their COVID-19 response report that the company multiple Michelin’s plant operated with reduced capacity and many were idled. The company avoided a complete shutdown of its manufacturing operations as it had the responsibility of providing tires to vehicles that were part of essential services like ambulances, fire trucks, etc. The solution styrene butadiene rubber market came back on track post COVID-19 market opening as demand in automobile sales increased and inventories continued to build up.
Solution Styrene Butadiene Rubber Market – By Application
The tire segment dominated the solution styrene butadiene rubber market in 2021 and is growing at a CAGR of 4.4% in the forecast period. The solution styrene butadiene rubber is immensely used in the manufacturing of tires and the growth in automobile sales globally is propelling the requirement for more tire production. The wear and abrasion resistance of solution styrene butadiene rubber (SSBR) makes them a desirable choice in the tire manufacturing process. Moreover, the production of synthetic rubber with the polymerization of styrene, butadiene, phenyl lithium, etc, minimizes the overall manufacturing cost, making solution styrene butadiene rubber cost-effective. This propels higher uses of SSBR in tire manufacturing applications. As per the statistics by the India Brand Equity Foundation (IBEF), in 2020, India ranked fifth in the largest automotive market with a combined 3.49 million units of commercial and passenger vehicles sold. Similarly, as per the data by European Automobile Manufacturers Association (ACEA), in 2020, the hybrid electric vehicles segment accounted for 11.9% of total car sales as compared to the 5.7% in 2019. This increase in automobile sales amplifies the production of tires, thereby augmenting the growth of the solution styrene butadiene rubber market. Polymer modification application is expected to drive the target market’s growth significantly in the forecast period. The solution styrene butadiene rubber is often used for the modification of asphalt and cement in the construction industry. The solution styrene butadiene rubber is added in the polymer modification process to enhance the quality of the end-product which ultimately enhances the quality of roads and pavements. According to the data by the International Trade Administration (ITA), the Ukrainian government announced the road reconstruction plan worth $117 million in 2020. The amount was allocated to the State Agency of Automobile Roads of Ukraine. Such high investment in road construction will increase the demand for higher implementation of solution styrene butadiene rubber for polymer modification of asphalt which helps in the improvement of road quality. This way, the solution styrene butadiene rubber market will witness growth in the forecast period. Footwear application will drive the use of solution styrene butadiene rubber decently in the coming years as the footwear products are witnessing healthy growth in the market.
For More Information About Solution Styrene Butadiene Rubber Market @
https://www.industryarc.com/Research/Solution-Styrene-Butadiene-Rubber-Market-Research-503562
Report Price: $ 4500 (Single User License)
Solution Styrene Butadiene Rubber Market – By Geography
The Asia-Pacific region dominated the solution styrene butadiene rubber market in 2021 with a market share of up to 32%. Development in the automotive and road construction sector is driving the usage of solution styrene butadiene rubber. Solution styrene butadiene rubber is one of the key elements in the manufacturing of automotive tires. The China Association of Automobile Manufacturers (CAAM) reported in August 2020 that the Chinese automotive sector will stay on a progressive track and NEV (New Energy Vehicle) is projected to witness high demand in the coming years. Similarly, as per the data by India Brand Equity Foundation (IBEF), the electric vehicle segment is projected to become a US$ 7.09 billion market opportunity by 2025. Such high demand for automotive in these countries will augment the demand for solution styrene butadiene rubber in tire manufacturing, thereby propelling the market’s growth in the forecast period. Furthermore, the increased activity in the road construction sector will contribute to the market’s growth. The solution styrene butadiene rubber is used for polymer modification of asphalt and cement which helps in enhances the quality of roads and pavements. As per the data by the International Trade Administration (ITA), the government of India announced an amount worth US$ 17.7 billion for roads and highways under the 2021-2022 Union Budget. Such increasing activity in road construction will demand higher incorporation of solution styrene butadiene rubber, thereby driving the market’s growth in the forecast period.
Solution Styrene Butadiene Rubber Market Drivers
Tire labeling regulation in Europe will drive the market’s growth
The solution styrene butadiene rubber is an integral element that is widely used in tire manufacturing. It offers high-performance tires with improved wet grip, low rolling resistance, and fuel efficiency. Recently, the European Union incorporated a new rule for tire labeling. The new EU rules were implemented from May 2021 which deals with the performance of the tire on issues about fuel efficiency, safety, wet grip resistance, rolling resistance, etc. As per the European Union, this rule will help the consumers to make an informed purchase decision every time they change their tires. As the solution styrene butadiene rubber comes with the properties of fuel efficiency, wet grip, and low rolling resistance, this tire labeling rule in Europe will amplify the usage of solution styrene butadiene rubber in tire manufacturing, ultimately contributing to the growth of the target market during the forecast period.
Growing automotive sector will drive the market’s growth
The automotive industry is witnessing huge growth globally and in the coming years, this sector will continue to develop rapidly. Higher automobiles production leads to higher manufacturing of tires, thereby increasing the demand for more usage of solution styrene butadiene rubber in tires. As per the data by the China Association of Automobile Manufacturers (CAAM), the new energy vehicles (NEVs) segment is poised to dominate the automotive market in China in the forecast period. The annual sales volume of new energy vehicles (NEVs) in China is likely to touch 3 million units, which is a huge increase in sales compared to the 1.2 million NEV units sold in 2019. Similarly, as per the 2020 data by European Automobile Manufacturers Association (ACEA), hybrid electric vehicles accounted for 11.9% of total car sales which was 5.7% in the previous year. Such high growth in the automobile sector will increase the production rate of tires, which, in turn, will increase the usage of solution styrene butadiene rubber, ultimately driving the market’s growth in the forecast period.
Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=503562
Solution Styrene Butadiene Rubber Market Challenges
Hazardous effects of butadiene might hinder the market’s growth
Butadiene is used extensively in solution styrene butadiene rubber applications. However, the harmful effects caused by getting exposed to butadiene in the work environment have been a concern in the solution styrene butadiene rubber market. Butadiene affects humans through different acute and chronic health effects. Acute exposure irritates to eyes and lungs, can cause damage to the central nervous system, headache, decreased blood pressure, fainting, etc. Chronic effects caused by getting exposed to butadiene can lead to cardiovascular diseases and cancer. Owing to such severe effects on human health, many regulations are being implemented to keep this in check. For instance, The Occupational Safety and Health Administration (OSHA) in the US implements safe levels of exposure with a permissible exposure limit (PEL) of 1000 parts per million (ppm). Such health concerns related to butadiene might affect the solution styrene butadiene rubber market’s growth in the forecast period.
Solution Styrene Butadiene Rubber Market Industry Outlook
Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the solution styrene butadiene rubber market. Major players in the solution styrene butadiene rubber market are:
Michelin
PJSC Nizhnekamskneftekhim
Goodyear Tire
Rubber Company
Sumitomo Chemical
LG Chemicals
Taiwan Synthetic Rubber Corporation
Sinopec
China National Petroleum Corporation
Lanxess
Sibur
Others
Recent Developments
In May 2021, PJSC Nizhnekamskneftekhim opened its new solution styrene butadiene synthetic rubber (SSBR) plant in Nizhnekamskneftekhim. This new facility will amplify the solution styrene butadiene synthetic rubber production which will help the market’s growth in the forecast period.
Key Takeaways:
Tire manufacturing is projected to drive the solution styrene butadiene rubber market’s growth in the forecast period due to increasing demand for automobiles globally.
As per the data by European Automobile Manufacturers’ Association (ACEA), the passenger cars segment is witnessing robust demand in 2021 as the passenger car registrations jumped by +10.4% in June compared to the June 2020.
The Asia Pacific region dominated the solution styrene butadiene rubber market with factors like increasing activity in the construction and automotive sector. As per the data by the India Brand Equity Foundation (IBEF), a road project in Gujarat worth Rs. 25,370 crore (US$ 3.4 billion) was announced by the Union Minister of Road Transport Highways in August 2021.
Relevant Reports
Styrene Butadiene Rubber Market
https://www.industryarc.com/Research/Styrene-Butadiene-Rubber-Market-Research-502939
For more Chemicals and Materials related reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.
Media ContactCompany Name: IndustryARCContact Person: Mr. Venkat ReddyEmail: Send EmailPhone: (+1) 970-236-3677Address:Madhapur City: HyderabadCountry: IndiaWebsite: https://www.industryarc.com/
