Reclaimed Rubber Market Analysis By Product (WTR, Butyl Reclaim, EPDM, Drab & Colored), By Application (Automotive & Aircraft Tires, Cycle Tires, Retreading, Belts & Hoses, Footwear, Molded Rubber Goods), And Segment Forecasts, 2018 - 2025

Industry Insights

The global reclaimed rubber market size was estimated at USD 1.90 billion in 2015. The shift in trend towards rubber recycling to improve sustainability in the automotive tires industry has contributed largely to growth in recent years. Rubber is cured via a thermo-chemical process that softens & expands the product to reduce the overall viscosity and break the cross-links. The final product is highly uniform and costs around one-third of existing polymer prices.

This inexpensive raw material is largely preferred by manufacturers owing to its lower power consumption rate & reduced thermal plasticity levels that make it easier to break down while processing, in comparison with the synthetic counterpart. The ready availability of waste tires and low cost of reclaim rubber has further contributed to industry growth in recent years.

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

Expanding automotive & aerospace industries in emerging economies such as Thailand, Malaysia, India and even China has led to high consumption, specifically for tires and similar applications.Furthermore, stringent recycling standards and regulatory intervention by governments to reduce the amount of landfills and similar wastage that curbs the amount of available fertile farming land has also led to increased reclamation activities.

Product Insights

Whole Tire Reclaim (WTR) rubber is the most dominant product, accounting for over 42% of the volume share in 2015. The thread portion of scrap tires is filled with carbon black to create a high-grade, high-performance product. WTR was the most popular segment until recently when the introduction of new elastomer-based nitrile and silicon tires corroded its market share.

Ethylene propylene diene monomer (EPDM) segment is currently growing at a rapid rate owing to high ozone resistance, reduction of electricity consumption and improved speed extrusion among other advantages. EPDM is increasingly replacing conventional virgin rubber in automotive & aircraft tires, consumer molded goods and even electrical cables, hoses and conveyor belts.

Application Insights

The product finds the highest application in automotive & aircraft tires, owing to technological developments that have increased their processing advantages in tire applications. Rising natural rubber prices have also prompted automobile manufacturers to shift towards recyclable materials with lower processing costs.

The automotive & aircraft tires segment is thus expected to grow at highest CAGR of 11.1% in terms of volume over the forecast period. Cycle tires also constitute another important application segment, with volume share estimated to reach 29.14% by 2025.

Reclaimed rubber market share by application, 2015

However, footwear is expected to emerge as another fast growing segment with high consumption in shoe soles, heels, and liners. The ‘Go Green trend has rapidly caught on in the footwear industry as well, with consumers seeking innovative yet fashionable footwear, while manufacturers are increasingly experimenting with eco-friendly materials other than recycled tires, such as sustainable wood, organic cotton or even cork & bamboo.

Regional Insights

Asia Pacific emerged as the dominant consumer while accounting for over 62% of the total volume in 2015 and is also anticipated to emerge as the fastest-growing region over the forecast period.Expanding automotive & aerospace industry specifically in China, Thailand & India is expected to remain a significant factor influencing demand over the upcoming years.

Major recyclers have also been shifting their production bases to emerging economies in Asia Pacific owing to lower labor costs in these regions, along with the ban on landfills in the EU.Product demand in Central & South America (CSA) was valued over USD 170.5 million in 2015.

Growing industrial manufacturing activities in the region have led to high product demand in non-tire applications as well, such as medical molded consumer goods, battery boxes, and mats & flooring.Developed countries are likely to witness growth at below-average rates as compared to other regions across the globe. However, rebounding rubber market in the region, along with recovery in the automotive industry is likely to drive reclaimed tire consumption in North America & Europe.

Competitive Insights

Key players include GRP (Gujarat Reclaim & Rubber Product Ltd.), J. Allcock & Sons, Rolex Reclaim Pvt. Ltd., Sun Exims (India) Pvt. Ltd., Huxar Reclamation, Star Polymers, Genan, Titan International Ltd., Balaji Rubber Reclaim, Swani Rubber Industries, and Michelin among others.

The industry is characterized by the presence of several small scale industrial producers with obsolete production technologies and limited capacity, especially in developing nations such as India, which has lent a significant advantage to new industry participants with better processing technologies.

Report Scope

Segments covered in the report

This report forecasts volume & revenue growth and provides an analysis of the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the global reclaimed rubber market on the basis of product, application, and region:

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

  • Whole Tire Reclaim (WTR)

  • Butyl Reclaim

  • EPDM

  • Drab & Colored

  • Others

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

  • Automotive & Aircraft Tires

  • Cycle Tires

  • Retreading

  • Belts & Hoses

  • Footwear

  • Molded Goods

  • Others

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

• North America

  • U.S

• Europe

  • Germany

  • UK

  • France

  • Russia

• Asia Pacific

  • China

  • India

  • Japan

  • Thailand

  • Malaysia

  • Indonesia

• Central & South America

  • Brazil

• Middle East and Africa