Synthetic Rubber Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Styrene Butadiene Rubber, Ethylene Propylene Diene Monomer, Polybutadiene Rubber, Nitrile Butadiene Rubber, Butyl Rubber, Ethylene Propylene Diene Monomer and Others), By Application (Tire, Non-Tire, Industrial, Footwear and Others), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 37.59 Billion
CAGR (2026-2031)	5.05%
Fastest Growing Segment	Styrene Butadiene Rubber
Largest Market	Asia Pacific
Market Size (2031)	USD 50.52 Billion

Market Overview

The Global Synthetic Rubber Market will grow from USD 37.59 Billion in 2025 to USD 50.52 Billion by 2031 at a 5.05% CAGR. Synthetic rubber is an artificial elastomer synthesized from petroleum by-products through the polymerization of monomers, offering enhanced durability and resistance to chemicals, heat, and aging compared to natural rubber. The primary driver supporting market growth is the sustained demand from the automotive sector for tire manufacturing, which relies heavily on the material’s abrasion resistance and thermal stability. Additionally, the expansion of the construction and industrial manufacturing sectors necessitates these elastomers for critical components such as seals, gaskets, and hoses, providing a stable foundation for demand independent of temporary consumption trends.

However, the market confronts a significant challenge regarding the volatility of raw material prices, particularly for butadiene and styrene, which fluctuate in correlation with global crude oil markets and can impede profit stability for manufacturers. Despite these economic pressures, the industry has maintained a trajectory of growth. According to the International Rubber Study Group, in the first half of 2025, global synthetic rubber consumption increased by 2.2% year-on-year. This statistic illustrates that the fundamental industrial requirement for these materials continues to drive expansion even amidst supply chain and cost uncertainties.

Key Market Drivers

The accelerating adoption of electric vehicles and the broader expansion of the global automotive industry serve as the primary catalysts for synthetic rubber demand, necessitating materials that can withstand higher torque and heavier vehicle loads. As manufacturers transition away from internal combustion engines, the specific requirement for elastomers that offer superior abrasion resistance and thermal stability, such as Styrene Butadiene Rubber, has intensified to ensure tire longevity and safety. This shift is quantitatively supported by the surge in vehicle manufacturing outputs which directly correlates to raw material consumption. According to the China Association of Automobile Manufacturers, November 2024, in the 'October 2024 Economic Operation of the Automobile Industry', the production of new energy vehicles reached 1.46 million units, illustrating the scale at which the automotive sector is driving the requirement for specialized synthetic components.

Simultaneously, the rising demand for high-performance and eco-friendly tires compels manufacturers to utilize advanced synthetic elastomers to meet strict rolling resistance standards and fuel efficiency regulations. This driver focuses on the technical superiority of synthetic grades like Solution Styrene Butadiene Rubber, which are essential for producing tires that reduce carbon emissions while maintaining grip on diverse road surfaces. This sustained need for advanced tire technology ensures a steady volume of shipments in major markets. According to the U.S. Tire Manufacturers Association, August 2024, in the 'Updated 2024 Tire Shipment Outlook', total U.S. tire shipments were projected to reach 337.4 million units, reflecting the robust end-user activity supporting the market. To meet such extensive industrial requirements, major producers maintain significant output capabilities; according to Reliance Industries Limited, in 2024, the company maintained a consistent annual production volume of 385,000 metric tonnes of elastomers to service these growing sectors.

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Key Market Challenges

The volatility of raw material prices, specifically regarding butadiene and styrene, constitutes a formidable barrier to the stable expansion of the global synthetic rubber market. These feedstocks are intrinsically linked to crude oil valuations, meaning that geopolitical shifts or supply chain disruptions cause immediate and unpredictable cost spikes. This instability forces manufacturers to operate in a reactive state, often absorbing increased costs to remain competitive or continuously adjusting product pricing, which strains relationships with automotive and industrial clients. Such financial unpredictability erodes profit margins and creates a hesitant business environment, discouraging long-term capital investment in new production capacity.

The direct impact of this difficult operating environment is evident in the contraction of output within key manufacturing hubs, where producers are compelled to rationalize operations to preserve financial stability. According to the Japan Automobile Tyre Manufacturers Association, in 2024, the production volume of automobile tires decreased by 5.8% compared to the previous year. This decline highlights how persistent cost pressures and the resulting market instability can force producers to scale back manufacturing activities despite broader demand trends. Consequently, the inability to forecast raw material expenditures accurately hampers the industry’s ability to maximize its growth potential and maintain consistent value generation.

Key Market Trends

The increasing adoption of bio-based feedstocks for sustainable manufacturing is fundamentally altering the global synthetic rubber market as producers seek to mitigate the environmental impact of fossil-fuel dependence. This trend involves the substitution of conventional petroleum-derived monomers with renewable alternatives sourced from biomass, enabling manufacturers to reduce Scope 3 emissions while maintaining the mechanical integrity of high-performance elastomers. Industry leaders are actively validating these supply chains through mass balance certifications to meet the stringent sustainability criteria of automotive and industrial clients. According to Rubber World, September 2025, in the article 'Arlanxeo Baypren chloroprene rubber plant in Germany receives ISCC PLUS certification', the company's facility in Dormagen became its sixth plant globally to achieve this standard, enabling the commercial supply of bio-circular grades for demanding technical applications.

Simultaneously, the integration of devulcanization technologies for circular economy compliance is expanding the market’s scope by facilitating the re-introduction of end-of-life tire materials into the production cycle. This trend focuses on advanced reclaiming processes that break down cross-linked rubber networks, converting waste into high-quality feedstock that can replace virgin synthetic rubber in new compounds. The push for circularity is further supported by significant capacity expansions aimed at meeting mandates for recycled content in tire manufacturing. According to Tyre and Rubber Recycling, February 2025, in the article 'GRP Expanding Capacity', GRP Limited announced the addition of 3,600 metric tonnes of reclaim capacity to its operations, highlighting the growing industrial investment in recovery infrastructure to support these circular economy goals.

Segmental Insights

Styrene Butadiene Rubber is currently the fastest-growing segment within the Global Synthetic Rubber Market, driven primarily by the escalating demand for high-performance tires in the automotive sector. Manufacturers are increasingly prioritizing this material to produce "green tires" that offer superior fuel efficiency and lower rolling resistance. This shift is significantly accelerated by stringent regulatory frameworks, such as the tire labeling standards enforced by the European Commission, which compel producers to meet rigorous environmental and safety benchmarks. Consequently, the industry's focus on sustainable mobility is directly fueling the rapid expansion of this segment.

Regional Insights

Asia Pacific holds the leading position in the global synthetic rubber market, driven primarily by the extensive automotive manufacturing base in China and India. The region functions as a critical production hub for tires, generating consistent demand for raw materials such as styrene-butadiene rubber. Furthermore, rising infrastructure development necessitates substantial volumes of industrial rubber products for construction applications. Major global tire manufacturers continue to establish facilities within the region to leverage local supply chains, reinforcing Asia Pacific’s status as the central market for synthetic rubber consumption and production.

Recent Developments

• In November 2024, Synthos Synthetic Rubber signed a memorandum of understanding with Sumitomo Rubber Industries to advance the circular economy within the tire manufacturing sector. The collaboration focused on the development and application of TyreXol, a rubber powder derived from end-of-life tires, for use in new tire production. By researching and validating the use of this recycled material in synthetic rubber compounds, the companies aimed to lower the environmental footprint of tire manufacturing and reduce reliance on virgin raw materials. This partnership underscored the industry's shift towards sustainable mobility solutions and the adoption of renewable and recycled feedstocks in high-performance rubber applications.
• In September 2024, Versalis entered into a collaboration agreement with Bridgestone EMEA and Grupo BB&G to establish a closed-loop ecosystem for the recycling of end-of-life tires. Under this partnership, the chemical company committed to integrating tyre pyrolysis oil, produced by Grupo BB&G from waste tires, into its production cycle to manufacture high-quality circular elastomers. These synthetic rubber materials would then be utilized by Bridgestone to create new tires with a higher content of recycled raw materials. This initiative aimed to develop a scalable supply chain that maximizes the lifecycle of tire materials and contributes significantly to the decarbonization of the synthetic rubber value chain.
• In August 2024, Kumho Petrochemical announced a strategic expansion of its high-performance synthetic rubber offerings to meet surging demand from the global electric vehicle market. The company focused on increasing the production and supply of solution styrene butadiene rubber (SSBR), a critical material used in high-performance tires to enhance fuel efficiency and durability for electric cars. Additionally, the firm revealed plans to broaden the commercial applications of its acrylonitrile butadiene latex beyond medical gloves to a wider range of industrial uses. This product diversification strategy was aimed at improving profitability and aligning the company’s portfolio with the evolving sustainability requirements of the automotive industry.
• In March 2024, Arlanxeo unveiled its advanced sustainable synthetic rubber portfolios at the India Rubber Expo held in Mumbai. The company showcased its expanded Keltan Eco series, which includes ISCC PLUS certified bio-circular ethylene propylene diene monomer (EPDM) grades, alongside existing bio-based variants derived from sugar cane. These innovative materials are designed to address the rising demand for environmentally friendly components in the automotive sector, such as hoses, seals, and gaskets, as well as applications in green buildings. The Managing Director of the company’s Indian operations highlighted the firm's commitment to supporting the region's mobility and urbanization trends with high-performance, sustainable elastomer solutions.

Key Market Players

• Sinopec
• The Goodyear Tire and Rubber Company
• JSR Corporation
• Versalis S.p.A.
• ZEON Corporation
• LANXESS
• Kumho Petrochemical
• TSRC Corporation
• LG Chem
• Nizhnekamskneftekhim

By Type	By Application	By Region
Styrene Butadiene Rubber Ethylene Propylene Diene Monomer Polybutadiene Rubber Nitrile Butadiene Rubber Butyl Rubber Ethylene Propylene Diene Monomer and Others	Tire Non-Tire Industrial Footwear and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Synthetic Rubber Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Synthetic Rubber Market, By Type:

• Styrene Butadiene Rubber
• Ethylene Propylene Diene Monomer
• Polybutadiene Rubber
• Nitrile Butadiene Rubber
• Butyl Rubber
• Ethylene Propylene Diene Monomer and Others

• Synthetic Rubber Market, By Application:

• Tire
• Non-Tire
• Industrial
• Footwear and Others

• Synthetic Rubber Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE