|
Forecast
Period
|
2024-2028
|
|
Market
Size (2023)
|
USD
30.16 billion
|
|
CAGR
(2023-2028)
|
3.31%
|
|
Fastest
Growing Segment
|
Styrene
Butadiene Rubber (SBR)
|
|
Largest
Market
|
South-Central
|
Market Overview
China Synthetic Rubber
Market has valued at USD 30.16 billion in 2022 and is anticipated to project
robust growth in the forecast period with a CAGR of 3.31% through 2028. China
is a leading global producer and exporter of synthetic rubber. The country's
synthetic rubber market is primarily driven by its automobile sector and
exports to foreign countries. China holds the position of the largest
automobile manufacturer worldwide. The stable development of the automobile and
tire industries significantly contributes to the growth of the synthetic rubber
market. According to the International Organization of Motor Vehicle
Manufacturers, around 27.8 million vehicles were manufactured in China in 2018.
Additionally, China boasts one of the largest two-wheeler markets globally.
Furthermore, notable market growth in the medical application sector can be
observed in the country. Factors such as increasing insurance coverage, a
rising number of health workers, improvements in living standards, more
stringent infection controls, and a growing elderly population contribute to the
expansion of the medical industry, indirectly driving the demand for synthetic
rubber products. Vinyl gloves account for over 70% of the total consumption of
medical gloves, followed by latex medical gloves and nitrile gloves. New
entrants in the synthetic rubber industry are focusing on medium and low-end
styrene-butadiene rubber and cis-polybutadiene rubber (BR) products. With the
introduction of new production capacity, China faces a critical structural
overcapacity of synthetic rubber. In the coming years, China's trend of
capacity reduction will become more apparent, with new capacity focusing on SBS
and environmentally friendly rubber.
Key Market Drivers
Growing
Demand of Synthetic Rubber from Transportation Industry
The demand for synthetic rubber
is experiencing a substantial increase, primarily driven by the transportation
industry. In China, the synthetic rubber market is expanding due to the growing
requirement for durable and high-performance rubber materials in various
transportation applications. This article examines how the rising demand from
the transportation sector acts as a key driver for the growth of China's
synthetic rubber market. China's robust transportation sector plays a
significant role in driving the demand for synthetic rubber in the country. As
the largest automotive market globally, China has witnessed a constant rise in
automobile production, leading to an increased need for quality rubber
components such as tires, hoses, belts, and seals. Synthetic rubber offers superior
performance characteristics, including durability, wear resistance, and
enhanced fuel efficiency, making it an ideal choice for the transportation
industry. Tire manufacturing is one of the primary applications that drive the
demand for synthetic rubber in the transportation sector. With the increasing
number of vehicles on Chinese roads, tire manufacturers require high-quality
rubber materials to meet the growing demand. Synthetic rubber provides better
tread life, grip, and rolling resistance compared to natural rubber, making it
the preferred choice for tire production. This trend has resulted in the
establishment of synthetic rubber manufacturing facilities in China, catering
to both domestic and global tire markets. In addition to tires, synthetic rubber
finds extensive use in various automotive components. The transportation
industry depends on rubber materials for the manufacturing of hoses, gaskets,
seals, belts, and other critical parts. Synthetic rubber offers improved
resistance to heat, chemicals, and aging, ensuring the longevity and
reliability of these components under harsh operating conditions. The expanding
automotive industry in China has driven the demand for synthetic rubber,
creating opportunities for both domestic and international synthetic rubber
manufacturers. The increasing focus on green mobility and electric vehicles
(EVs) has further contributed to the demand for synthetic rubber in China's
transportation sector. EVs require specialized rubber materials that can
withstand high voltages, extreme temperatures, and offer excellent insulation
properties. Synthetic rubber, with its ability to meet these stringent
requirements, plays a vital role in the production of EV components such as
battery seals, electrical insulation, and charging cables. As China continues
to promote sustainable transportation solutions, the demand for synthetic
rubber in the EV sector is expected to witness significant growth.
Growing
Demand of Synthetic Rubber from Medical Industry
In China, the increasing
demand for specialized rubber materials in medical applications has emerged as
a significant catalyst for the expansion of the synthetic rubber market. This
article explores how the rising needs of the medical industry act as a key
driver for the growth of China's synthetic rubber market. The thriving
healthcare sector in China has generated a substantial requirement for
synthetic rubber in the manufacturing of medical equipment and devices.
Synthetic rubber possesses desirable properties such as chemical resistance,
flexibility, and durability, which make it highly suitable for producing
essential components like medical gloves, surgical seals, gaskets, tubing, and
more. With advancements in medical technology and the growing demand for
reliable and safe healthcare products, the need for high-quality synthetic
rubber has witnessed a surge. Synthetic rubber plays a crucial role in
pharmaceutical packaging by ensuring the preservation and integrity of
medications. The flourishing pharmaceutical industry in China necessitates
packaging materials that offer excellent barrier properties, moisture
resistance, and stability. Synthetic rubber-based closures, stoppers, and seals
help maintain the quality and effectiveness of pharmaceutical products,
safeguarding them from external contaminants. As China's pharmaceutical market
continues to expand, the demand for synthetic rubber for packaging purposes is
expected to experience significant growth. In the medical field, adhesives and
sealants are indispensable for wound closure, surgical procedures, and the
assembly of medical devices. Synthetic rubber-based adhesives exhibit strong
bonding capabilities, flexibility, and biocompatibility, making them ideal for
medical applications. The growing healthcare infrastructure in China, coupled
with a focus on advanced medical treatments, has propelled the demand for
medical adhesives and sealants. The utilization of synthetic rubber in these
applications is poised to contribute to the growth of the synthetic rubber
market in China. Medical devices often require elastomeric components that can
withstand sterilization processes, prolonged use, and exposure to various
chemicals. Synthetic rubber materials demonstrate excellent resilience,
biocompatibility, and resistance to degradation, making them suitable for
manufacturing elastomeric components such as diaphragms, gaskets, valves, and
seals. As China's medical device industry continues to expand, the demand for
synthetic rubber-based elastomeric components is expected to rise, thereby
driving the growth of the synthetic rubber market.
Growing
Demand of Synthetic Rubber from Food & Beverage Industry
In recent years, the food
and beverage industry has emerged as a significant driver of China's synthetic
rubber market. The food and beverage industry heavily relies on synthetic
rubber for packaging applications due to its excellent barrier properties,
which ensure the preservation and freshness of food and beverages. Synthetic
rubber also provides enhanced sealing capabilities, effectively preventing
leakage, spoilage, and contamination. The expanding food and beverage sector in
China, coupled with increasing consumer demand for packaged products, has led
to a substantial growth in the demand for high-quality synthetic rubber
materials for food packaging. Consequently, the demand for synthetic rubber in
this sector is experiencing significant growth. Conveyor belts and hoses play a
vital role in food processing and beverage manufacturing facilities,
facilitating the efficient movement of raw materials, ingredients, and finished
products throughout the production process. Synthetic rubber, known for its
durability, resistance to chemicals, and flexibility, is widely used in the
production of conveyor belts and hoses. These materials ensure smooth
operations, maintain hygiene standards, and comply with food safety
regulations. The growth of China's food and beverage industry has resulted in
an increased demand for synthetic rubber-based conveyor belts and hoses. Seals and
gaskets are crucial components in food and beverage processing equipment, as
they prevent leaks and ensure airtight seals, thereby maintaining product
integrity and preventing contamination. Synthetic rubber materials offer
excellent sealing properties, resistance to temperature extremes, and
compatibility with food-grade requirements. China's thriving food and beverage
industry, characterized by the establishment of new processing plants and the
modernization of existing facilities, has led to a surge in demand for
synthetic rubber-based seals and gaskets. The beverage industry, including soft
drinks, juices, and alcoholic beverages, extensively utilizes synthetic rubber
in dispensing systems. Synthetic rubber-based tubing and hoses are resistant to
chemicals, maintain the taste and quality of beverages, and ensure hygienic
dispensing. As China's beverage market continues to grow, driven by changing
consumer preferences and an increasing number of beverage outlets, the demand
for synthetic rubber used in dispensing systems is also on the rise.
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Key Market Challenges
Volatility
in Prices for Raw Materials
The synthetic rubber
market in China has witnessed significant growth in recent years, driven by the
expansion of industries such as automotive, construction, and consumer goods.
However, amidst this growth, the market faces a major challenge in the form of
price volatility for raw materials. This article examines the impact of price
fluctuations in raw materials on China's synthetic rubber market and analyzes
the strategies employed to tackle this challenge. Raw materials like styrene,
butadiene, and isoprene play a fundamental role in synthetic rubber production.
These materials are derived from petroleum refineries and are subject to
various factors that influence their prices, including global supply and demand
dynamics, geopolitical tensions, natural disasters, and changes in government
policies. Any fluctuations in the prices of these raw materials directly affect
the overall cost of synthetic rubber production. The volatility in raw material
prices poses significant challenges for manufacturers in the synthetic rubber
market. Price fluctuations can cause uncertainty in the supply chain and
disrupt production schedules. Manufacturers face increased input costs when raw
material prices rise sharply, leading to reduced profit margins or the need to
pass on the additional costs to consumers. Conversely, manufacturers may
struggle to quickly adjust their selling prices when raw material prices
decline, resulting in potential losses. The fluctuating prices of raw materials
also impact the competitiveness of China's synthetic rubber market. Such price
volatility creates an unpredictable business environment, making it challenging
for manufacturers to plan and invest in long-term strategies. In a highly
competitive market where cost efficiency plays a crucial role, sudden increases
in raw material prices can put some manufacturers at a disadvantage compared to
their competitors. This can lead to market share erosion and hinder the overall
growth potential of the industry.
Key Market Trends
Growth
in Technological Advancements
Technological advancements
have emerged as a key driver propelling the growth and development of various
industries, including the synthetic rubber market in China. As the demand for
synthetic rubber continues to surge, manufacturers are embracing advanced
technologies to enhance production processes, elevate product quality, and meet
the evolving needs of consumers. This article delves into the significance of
technological advancements as a prevailing trend in China's synthetic rubber
market, analyzing their profound impact on industry growth. Technological
advancements have irrevocably transformed production processes in the synthetic
rubber industry. The deployment of automation, robotics, and
computer-controlled systems has optimized manufacturing operations, bolstered
efficiency, minimized waste, and ensured consistent product quality. These
advancements empower manufacturers to streamline their processes, boost output,
and meet stringent industry standards. Moreover, advanced technologies have
paved the way for the development of novel synthetic rubber compounds boasting
enhanced characteristics. Research and development efforts primarily focus on
creating materials that embody superior durability, heightened performance,
enhanced resistance to chemicals, and reduced environmental impact. Leveraging
cutting-edge disciplines such as nanotechnology and polymer science, innovative
synthetic rubber formulations are engineered to cater to specific application
requirements. In the realm of synthetic rubber production, technological
advancements play a pivotal role in guaranteeing the quality and reliability of
products. By employing state-of-the-art testing equipment and techniques,
manufacturers conduct comprehensive quality control checks, assess material
properties, and meet regulatory standards. Real-time monitoring systems, data
analytics, and machine learning algorithms facilitate prompt identification and
resolution of production issues, thereby minimizing defects and optimizing
overall product performance.
Segmental Insights
Type Insights
In 2022, the Synthetic Rubber market was dominated by
the Styrene Butadiene Rubber (SBR) and is predicted to continue expanding over
the coming years. Rubber composed of
styrene-butadiene offers numerous advantages. Due to its comparable properties
and lower cost, it is commonly utilized as a direct substitute for natural
rubber. Styrene-butadiene rubber exhibits excellent resistance to abrasion and
endurance against cracking. Moreover, it demonstrates remarkable longevity,
strong compression set, and water resistance. The favorable strength, abrasion,
wear, and bonding capabilities of SBR, coupled with its affordability, can be
attributed to the incorporation of the chemical molecule styrene (a derivative
of benzene). However, it is important to note that natural rubber outperforms
styrene-butadiene rubber in terms of heat-aging qualities and abrasion
resistance.
Application Insights
In 2022, the Phosphoric Acid market was dominated by water
treatment segment and is predicted to continue expanding over the coming years. The transportation sector is the primary
consumer of synthetic rubber, particularly for tire production. Synthetic
rubber is highly favored in the creation of transportation-related products due
to its exceptional durability, elasticity, and flexibility. With increasing
investments in industries such as automotive, aerospace, and marine, the demand
for synthetic rubber is expected to grow.
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Regional Insights
The South-Central
region has established itself as the leader in the China Synthetic Rubber
Market. The growth of the footwear industry and the increasing
infrastructure projects indicate a promising future for the region. With the
rising manufacturing of different grades of non-automotive items and tires, the
China synthetic rubber industry is expected to witness significant expansion.
Recent
Developments
- On March
10th, 2023, Ecombine Advanced Materials Co., Ltd., EVE Rubber Institute,
and ARLANXEO High Performance Elastomer (Changzhou) Co., Ltd. established
strategic partnerships in Shanghai. Leveraging their respective
technological and marketing advantages, the three parties aim to enhance
innovation in Liquid-phase Mixing Technology, downstream applications, and
market development for BIIR, SSBR, EPDM, and CR rubber products. The
collaboration also includes a mechanism for exchanging visits to foster
further cooperation between Ecombine and ARLANXEO China, thus expanding
the application of Liquid-phase Mixing Technology and driving the
high-quality development and green transformation of the rubber and tire
industry.
Key Market
Players
·
Sinopec Corporation
·
PetroChina Company Limited
·
Shen Hua Chemical Industrial Co. Ltd.
·
Huizhou LCY Elastomers Corp.
·
Hangzhou Zhechen Rubber Co., Ltd.
·
Ningbo Shunze Rubber Co., Ltd.
·
Panjin Heyun Industrial Group Co., Ltd.
·
Chi Mei Corporation
|
By Type
|
By Application
|
By Region
|
|
•
Styrene Butadiene Rubber (SBR)
•
Poly Butadiene Rubber (PBR)
•
Styrene Butadiene Copolymer (SBC)
•
Isoprene Rubber (IR)
•
Others
|
•
Transportation
•
Construction
•
Textile
•
Medical
•
Food & Beverage
•
Others
|
• East
• North & North-East
• Southwest
• South-Central
• Northwest
|
Report
Scope:
In this report, the China
Synthetic Rubber Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
·
China Synthetic
Rubber Market, By Type:
o Styrene
Butadiene Rubber (SBR)
o Poly
Butadiene Rubber (PBR)
o Styrene
Butadiene Copolymer (SBC)
o Isoprene
Rubber (IR)
o Others
·
China Synthetic
Rubber Market, By Application:
o Transportation
o Construction
o Textile
o Medical
o Food
& Beverage
o Others
·
China Synthetic
Rubber Market, By Region:
o East
o North
& North-East
o Southwest
o South-Central
o Northwest
Competitive
Landscape
Company
Profiles: Detailed analysis of the major companies present in
the China Synthetic Rubber Market.
Available
Customizations:
China Synthetic Rubber
Market report with the given market data, Tech Sci Research offers
customizations according to a company's specific needs. The following
customization options are available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
China Synthetic Rubber Market is an upcoming report to
be released soon. If you wish an early delivery of this report or want to
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