GVR Report cover 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, 2018 - 2025

  • Report ID: GVR-1-68038-564-9
  • Number of Pages: 120
  • Format: Electronic (PDF)
  • Historical Range: 2014 - 2016
  • Industry: Research

Report Overview

The global isoprene market size to be valued at USD 3.97 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 7.5% during the forecast period. 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.

Isoprene Market volume, by application

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.

Isoprene Market Trends

The market for isoprene rubber is growing on account of its application in tires, conveyor belts, hoses, moulded rubber, and medical equipment including gloves and balloons. Rising global awareness and improving safety treatment alternatives over traditional rubber materials used in the production of various medical devices are expected to aid the market growth. Surgical gloves are in high demand in the medical industry. In addition, the demand for required components for surgical glove production is anticipated to create a favorable environment for the market of isoprene rubber to grow.

Moreover, Isoprene rubber is widely used to make condoms. Government regulations aimed at limiting uncontrolled growing population and controlling sexually transmitted diseases are driving the condom market. This is fostering growth in the market of isoprene rubber as well in the forecast period. However, stringent laws and regulations for rubber manufacturing is expected to hinder the market growth. Tire and rubber manufacturing operations that employs extensive isoprene and creates hazardous air pollutants (HAP). Regulatory restrictions to reduce HAPs are projected to impede the synthetic isoprene rubber market.

Moreover, the COVID-19 had a negative impact on the market on account of global supply chain disruption. The COVID-19 outbreak disrupted the global tire market in 2020, causing a dramatic decline in sales of replacement tires and original equipment, prompting manufacturers to suspend manufacturing. Furthermore, due to the pandemic, the closure of manufacturing sites has reduced rubber production, resulting in decline in the demand for isoprene market across the globe.

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.

Isoprene Market share, by application

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.

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.

Isoprene Market Trends by Region

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.

Key Companies & Market Share 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.

Recent Developments

  • In March, 2022, Kraton announced to expand its global presence by using DL Chemical's manufacturing skills and presence in the Asian market, including its financial strength, enabling Kraton to spend even more in industry-leading achieving sustainability. The merger helps DL Chemical and Kraton achieve their goals towards becoming worldwide leaders in specialty chemicals

  • In March, 2022, Aurora Microplates, a company that sells microplates used in biochemical analysis has agreed to be acquired by Zeon Corporation's subsidiary. As an outcome of this arrangement, Zeon will stimulate economic development in life sciences and healthcare, a priority area for introducing new companies under its intermediate management plan, as well as attempt to penetrate the European and American market in this sector

Isoprene Market Report Scope

Report Attribute

Details

Revenue forecast in 2025

USD 3.97 billion

Growth rate

CAGR of 7.5% from 2017 to 2025

Base year for estimation

2016

Historical data

2014 - 2016

Forecast period

2017 - 2025

Quantitative units

Revenue in USD million/billion and CAGR from 2017 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

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

Country scope

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

Key companies profiled

Kuraray Company Ltd.; Royal Dutch Shell Plc.; ExxonMobil Corp.; LyondellBasell Industries N.V.; Shandong Yuhuang Chemical (Group) Co., Ltd.; Braskem; The Goodyear Tire and Rubber Company.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Global Isoprene Market Segmentation

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:

Global Isoprene Market Segmentation

  • 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

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