Isoprene Market Report

Isoprene Market Analysis By Type (Polymer Grade, Chemical Grade), By Application (Polyisoprene, Styrene-Isoprene Styrene, Isobutylene-Isoprene Rubber), By End-use, And Segment Forecasts, 2014 - 2025

Published: August 2017  |  120 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-564-9

Industry Insights

The global isoprene market size was valued at USD 1.17 billion in 2016. Increasing demand for the product in automotive parts including tires, fuel hoses, engine mounting, mud flaps, suspension bushes, floor mats, and exhaust rubber hangers is expected to drive market growth. Growing automotive production mainly in China, Indonesia, Japan, Malaysia and Taiwan is expected to propel demand for the product in automotive sector.

Increased urbanization along with high demand for SUVs and sedans is expected to propel the market growth. India is expected to witness high demand growth for automobiles due to industrialization coupled with government support for manufacturing vehicles.

U.S. isoprene market volume by product, 2014 - 2025 (Kilo tons)

U.S. isoprene market

Isoprene is an all-inclusive industrial chemical that is used to make various products including synthetic rubber, pesticide, medicine and other refined chemical products, such as pyrethrum, linalool, plant alcohol, VE and to synthesize perfume. The demand for the product is expected to witness a significant growth as a result of their physical, chemical, and mechanical properties is beneficial for producing medical device.

Increasing demand for the product in automotive parts including tires, fuel hoses, engine mounting, mud flaps, suspension bushes, floor mats, and exhaust rubber hangers is expected to drive market growth. Growing automotive production mainly in China, Indonesia, Japan, Malaysia and Taiwan is expected to propel demand for the industry in automotive sector.

The natural rubber market is expected to grow in terms of potential, strength and dominance over the synthetic rubber market, which is used in manufacturing tires, automobile parts, and surgical appliances. But polyisoprene application of the product is a more consistent and cleaner analog than natural rubber, and the companies can benefit from this by carefully administrating their potential while making new technology available on the market.

Increasing expenditures and greater attention to health care by developing markets, construction of hospitals and clinics, and the establishment of public health insurance will augment medical devices market. In addition, aging population coupled with the rising global income levels in developing countries will fuel growth, thereby deriving the demand for the product in the medical sector.

Application Insights

Consumer electronics accounted for USD 959.7 million in 2016 on account of high durability and rising automotive production mainly in China, Indonesia, Japan, Malaysia and Taiwan is expected to propel demand for polyisoprene in automotive sector.

Growing foreign investment in Thailand owing to abundant availability of highly skilled, efficient, and cheap labor will spur the product demand, and therefore augmenting the demand for isoprene in the market over the next eight years. Demand for polyisoprene is derived from its distinguished uses including the production of tires, footwear, motor mounts, sponge, pipe gasket, sporting goods, and baby bottle nipples.

In addition, as a result of its resistance towards oxidation, the demand for IIR in the market is expected to witness a high growth on account of few unsaturated groups per molecule in its structure, showing low permeability to gases and its excellent resistance to attack by ozone. Its application in various goods, and as a substitution to the natural rubber, is expected to augment the demand for isobutylene-isoprene rubber

End-use Insights

Tires is expected to have a high-volume rise at a CAGR of 6.3% from 2017-2025, thereby exhibiting substantial growth over the forecast period. Tires made from polyisoprene have characteristics such as strength, wear resistance, and resilience, which is expected to increase its share over the forecast period.

The demand for the product in the tire manufacturing is expected to witness a positive growth on account of rise in average life of passenger cars along with increasing automotive sector in China, Mexico, and India. The increased sale of vehicles is also expected to influence the demand for tires in replacement market as well as in OE positively.

Industrial rubber accounted for 8.6% of overall volume share, has various application including footwear, gasket, sealing products, hoses and conveyor belts. The demand for industrial rubber is expected to witness a high growth as a result of increasing automotive sales, rising urbanization, growing disposable income and increasing population, which in turn will augment the demand for the product in the market over the next few years.

Product Insights

Polymer grade was most extensively used and accounted for 54.0% of the global volume share in 2016. Rising demand for the product as a result of its various properties including high resilience, cold resistance, and tensile strength, therefore fueling the need for polymer grade. The product is a clear and colorless liquid, representing approximately 99.3% of isoprene content in it, and is usually used in industries as a significant biological material.

Global isoprene market revenue share by application, 2016 (%)

Global isoprene market

Polymer grade find its usage in polyisoprene application, which in turn utilized in making tires, mechanical and molded goods, motor mounts, shock-absorber bushings as well as pipe gaskets. Growing use of polyisoprene in wide range of industrial goods is expected to propel the demand for polymer grade in the market over the next few years.

Regional Insights

Asia Pacific is expected to show high volume gains at a CAGR of 8.0% from 2017 to 2025. Increasing FDI as well as expansion of automobile plants by various manufacturers including Honda and Toyota, which will fuel the market growth over the next eight years.

The increasing use of the product in packaging applications is expected to witness high growth owing to the increasing requirement for medical equipment’s by hospitals in Asia Pacific region. In addition, the increasing use of medical packaging in order to prevent infections and maintain health & safety standards is expected to positively impact the market growth.

India is expected to witness high growth in light of industrialization coupled with government support to manufacture vehicles. The growing production of all kind of vehicles and components on account of increasing R&D efforts is expected to propel market growth. The encouragement of 100% FDI in the automobile sector under the automatic route is expected to boost the manufacturing sector.

Europe accounted for 7.0% of revenue market share, owing to the growing construction sector in various countries including UK, Netherlands, Germany, Hungary, Poland, Sweden, and Ireland will propel market demand over the next eight years. Growing EU funding coupled with supportive measures taken by government including subsidies, tax breaks and incentives will augment automotive industry in the region.

Competitive Insights

The isoprene market is highly competitive in nature with various large-scale manufacturers in the U.S., Japan, the Netherlands, China, Russia and China.The market is dominated by various major participants including Kuraray Company Ltd., Royal Dutch Shell Plc., ExxonMobil Corp., LyondellBasell Industries N.V., Shandong Yuhuang Chemical (Group) Co., Ltd., Braskem and The Goodyear Tire and Rubber Company.

Product differentiation along with threat of forward and backward integration by manufacturers to distribute the product and to capture market share is expected to result in high industry rivalry in the product’s market over the forecast period. In addition, possible entry of new players is further expected to intensify rivalry in the industry.

In April 2014, Kuraray Industries Ltd. revamped their bio-based liquid rubber by expanding their collaboration with Amyris, a U.S. based company. In order to increase their tire-based fuel efficiency, the company invested USD 4 million in Amyris, this singing a contract for the period 2011-2014. This joint development agreement includes utilization of one of many core businesses of Kuraray- farnesene, which is a hydrogenated styrene thermoplastic elastomer.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                                                

Volume in Kilo Tons & Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country scope

U.S., Russia, Germany, India, China, Brazil

Report coverage             

Volume & Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts volume and revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2017 to 2025. For the purpose of this study, Grand View Research has segmented the global isoprene market on the basis of product, application and region:

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

    • Polymer grade

    • Chemical grade

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

    • Polyisoprene

    • Styrene-isoprene styrene

    • Isobutylene-isoprene rubber

    • Specialty chemicals

  • End-User Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Tires

    • Adhesives

    • Industrial rubber

    • Others

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

    • North America

      • U.S

    • Europe

      • Germany

      • Russia

    • Asia Pacific

      • China

      • India

    • Central and South America

      • Brazil

    • Middle East and Africa

Key questions answered by the report
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