Butyl Rubber Market Report

Butyl Rubber Market Analysis By Product (Regular Butyl, Bromo Butyl, Chloro Butyl), By Application (Tires & Lubes, Adhesives, Sealants, Stoppers, Industrial & Medical Gloves), By Region, And Segment Forecasts, 2014 - 2025

Published: October 2017  |  84 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-660-8

Industry Insights

The global butyl rubber market size was valued at USD 2.88 billion in 2016. Superior product properties in comparison to natural rubber, in terms of tear strength, aging, and heat resistance are anticipated to provide a positive scope for market growth over the forecast period.

The growing demand for automobile tires for new vehicles and the replacement of old tires is driving the industry growth. Increasing demand for OEM tires due to the rising automobile industry is anticipated to augment the market growth over the coming years.

The growing automobile industry in emerging economies like Brazil, Russia, India, and China (BRIC) largely influences the growth in the tires market. The demand for tires was valued at USD 132.6 million in 2011 and reached USD 172.4 million in a span of 5 years.

U.S. butyl rubber market revenue, by product, 2014 - 2025 (USD Million)

U.S. butyl rubber market

The high volatility in natural rubber (NR) prices has been a major driver for the growth of the industry. In the past few years, the consumption of synthetic rubber has been high on an average (around 3,500 kilotons per annum) in comparison to natural rubber.

Environmental impact and sustainability have emerged as the key issues for the industry as butyl rubber is derived from petrochemicals. The negative impact of air pollution caused by isobutylene production is a major cause of concern for the industry.

Isobutylene, a liquid, when released into the atmosphere may cause eye & nose irritation and result in nausea. In addition, isobutylene is also highly inflammable in nature. Governments globally have brought into effect various regulations to ensure that safety standards are adhered to during isobutylene production.

Product Insights

The increasing use of regular and chloro butyl in the manufacturing of tires is anticipated to provide a positive scope for the market growth over the forecast period. The use of these products offer benefits such as consistent inflation pressure, durability, and heat stability.

In terms of revenue, bromo butyl was the second-largest product segment, accounting for a market share of 32.3% in 2016. Higher curing rate coupled with vulcanization efficiency of the product is anticipated to drive the product demand. The advantages of the product in comparison to regular butyl, in terms of adhesion, is anticipated to drive the industry growth over the next eight years.

Bromo and chloro butyl offer almost similar properties. However, bromo butyl provides higher stability and incur lower manufacturing costs in comparison to chloro butyl, which in turn is expected to positively affect the market growth.

The use of bromo butyl for the manufacturing of medical stoppers is likely to provide a positive scope for product demand over the next eight years. High heat resistance properties of the product support the sterilization of stoppers that are used in the medical industry.

Application Insights

Tires & lubes was the largest application segment in 2016.Increasing demand for automobiles due to various factors such as increasing disposable income and population is likely to drive the tires & lubes industry, thereby augmenting the market growth.

The demand for butyl rubber in adhesives, sealants, and stoppers is expected to indicate a CAGR of 5.8% in terms of volume. The product is typically used for manufacturing valve cement, tapes, and flooring adhesives. Butyl adhesive tapes are used in electrical and electronic circuits for insulation, which is anticipated to provide a positive scope for market growth.

Butyl Rubber market revenue, by application, 2016 (%)

Butyl rubber market

Increasing hygiene concerns and medical awareness among consumers are expected to drive the use of medical gloves across clinics, hospitals, and veterinary medical care organizations. In addition, the growing use of disposable medical gloves is anticipated to facilitate sustainable demand for the product over the forecast period.

Other product applications include sporting equipment, automotive & mechanical goods, vibration isolation, and pharmaceutical closure. The growing construction and pharmaceutical industries are anticipated to provide positive scope for market growth over the next eight years.

Regional Insights

North America was one of the major market for butyl rubber, accounting for a share of 15.1%, in terms of volume, in 2016. The recent U.S. policies have increased the pace of industrialization across the region, which is likely to provide a positive scope for market growth over the forecast period.

The growing automotive sector across Asia Pacific has propelled the use of the product in the manufacturing of various automotive goods including tires, wipers, and brakes, which is likely to drive industry growth. In addition, the necessity to replace used tires is further expected to augment the industry growth.

The U.S. accounted for the largest market share in North America, as of 2016.The presence of numerous hospitals, medical institutions, and clinics coupled with healthcare awareness among the consumers is expected to drive the product demand in medical gloves application.

Stringent government regulations coupled with an economic slowdown in Europe have significantly affected industries such as pharmaceuticals, construction, and automotive. Due to a slowdown in application industries, the growth rate in the region is anticipated to be low as compared to Asia Pacific and North America.

Competitive Insights

The competition between the companies in the butyl rubber market is likely to be moderate due to the presence of numerous players in the industry. The competition is expected to be in terms of pricing and the availability of new & efficient manufacturing processes.

In March 2017, Lanxess announced investment worth USD 118.5 million for the company’s advanced industrial intermediated business unit to expand production facilities for chemical intermediates. In addition, SIBUR completed its APG processing capacity expansion and modernization project at the Vyngapurovskiy Gas Processing Plant in March 2016.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Market revenue in USD million, volume in kilotons, & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country scope

U.S., Germany, China, and Brazil

Report coverage

Volume forecast, revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the butyl rubber market based on product, application, and region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)

    • Regular Butyl

    • Bromo Butyl

    • Chloro Butyl

  • Application Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)

    • Tires & Lubes

    • Adhesive, Sealants, Stoppers

    • Industrial & Medical Gloves

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

    • Asia Pacific

      • China

    • Central & South America

      • Brazil

    • Middle East & Africa

Key questions answered by the report
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