Rubber Processing Chemicals Market Size, Share & Trends Analysis Report By Product (Anti-Degradants, Accelerators, Flame Retardants, Processing Aids/Promoters), By Application, By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global rubber processing chemicals market size was valued at USD 5.05 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 4.2% from 2020 to 2025. driven by ascending demand from end-use industries including automotive and building and construction. Rubber is used to manufacture a variety of products such as gloves, tires, mats, flooring, pipes, and belts. Its improved resistance against the effects to heat, sunlight, oxygen, mechanical stress, and ozone is leading the global market growth.

These end-use products are broadly categorized into two end-use segments, including tire and non-tire. The growth of the market for rubber processing chemicals majorly depends on the tire industry which includes both, synthetic and natural rubber. The consumption, majorly in emerging economics, has increased owing to the fact that the number of vehicles purchased along with sales of replacement tires has increased considerably. In 2019, the global car sales crossed a mark of 96 million units and is projected to drive the market for rubber processing chemicals over the forecast period.

Owing to growing domestic demand for automobiles and extensive network of automotive manufacturers, the rubber processing chemical market in the U.S. is witnessing a surge. Overall, the U.S. stands second in the list of the world’s market for vehicle sales and production. The country’s automotive industry is forefront of innovation. According to the Auto Alliance, the U.S. has spent almost a fifth of the global R&D spending in the automotive industry.

Rubber processing generates large amount of wastewater, which if released untreated, may cause severe health problems. In addition, manufacturing processes, such as extrusion and molding, result in excess deaths from hematopoietic, lung, stomach, bladder, and other cancers. Hence, several regulatory bodies such as the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) and New Source Performance Standards (NSPS) have stringent regulations regarding usage and disposal of wastewater from rubber processing plants.

The growing concern over health and environment has resulted in usage of alternatives such as toughened natural rubbers and fibers, which are made up of plant cellulose and vegetable-based oil processing. For example, Yokohama Tire Corporation of Japan uses oil derived from modified natural rubber and orange peels to manufacture tires. These eco-friendly tires also show better grips in braking and cornering.

Rubber Processing Chemicals Market Trends

Global rubber processing chemicals market is driven by growing demand from automotive industry and rising utilization in production of non-tire rubber products. The automotive sector has always been the backbone of rubber industry. In 2014, out of the total rubber consumption, more than half of the market was dominated by rubber tires. Owing to this, the rubber processing chemicals market is expected to benefit from increasing rubber tire consumption over the forecast period, globally.

The auto industry in North America is witnessing a surge, while the European market was estimated to grow at a low pace, as the market is recovering from the slump from the last few years. China and India have emerged as new manufacturing hubs over the last five years and are expected to be the key manufacturing markets for the automotive industry due to cheap availability of skilled labor. Rising purchasing power and increase in purchase rate of vehicles is expected to propel the automotive segment growth.

China recorded car sales of 29.1 million units in 2017, including light trucks, which was followed by India with car sales of 4.01 million units in the same year. Factors such as green tires & high-performance tires, improved fuel-efficient tires in emerging countries are pacing the demand for rubber processing chemicals. Furthermore, awareness about the safety & quality has led the demand for rubber processing chemicals, which are adding superior qualities in tire & non-tire applications.

The non-tire applications account for over 40% share in the global market. The rubber hose and belting products are used in various sectors including construction and oil & gas. Transmission belts are used in industrial machinery, automobile, construction equipment, and agriculture. Other manufacturing sectors, such as paper industry, which use large diameter rubber rolls and steel mills which use rubber covered rolls for chrome-plating and galvanizing contribute to the overall growth of the rubber market in non-tire applications, which in turn drives the market.

Stringent regulatory framework is a key factor restraining the market. High concentration of BOD, COD, and SS discharged from latex rubber processing, high-level exposure to sulfate, acidic effluent, and high concentration of nitrogen and ammonia compounds are also the major environmental problems evolved during rubber processing.

The polluted water containing ammonia and nitrogen is discharged in water bodies including canals and rivers, that further leads to water pollution and death of aquatic animals. Several regulatory bodies have imposed strict regulation on the usage of hazardous chemicals and the disposal of polluted wastewater generated during rubber processing. National Emission Standards for Hazardous Air Pollutants (NESHAP) considers chemicals such as formaldehyde, methanol, styrene, toluene, and hexane under HAP emissions which may result in health issues such as chronic disorders.

According to the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH), usage or supply of several chemicals, such as anti-degradants, ultraviolet absorbers, antioxidants, used in rubber processing is restricted in the European region. In addition, other regulatory bodies such as New Source Performance Standards (NSPS) and National Institute of Occupational Safety and Health (NIOSH) also regulate the usage of various chemicals for rubber production. Owing to these stringent regulations, the market players are focusing on improving in the chemical processes and finding new alternatives. However, these stringent regulations are expected to restrain market growth over the forecast period.

Product Insights

Rubber processing chemicals play an important role in improving the overall performance of a tire and non-tire rubber products. The rubber processing chemicals are categorized in different product segments such as anti-degradants, flame retardants, accelerators, processing aid/promoters, and others. Anti-degradant was the largest segment with a market share of 51% in 2019. During vulcanization process, anti-degradants are mixed with natural rubber to get better results, increased tensile strength, better finishing, and high resistance from heat. The major anti-degradants used in the vulcanization process differs according to the requirement of the product along with different formulation.

Accelerators are the chemical agents used to effectively cause vulcanization. In vulcanization, accelerators are extensively used in combination with sulfur, zinc oxide, and stearic acid. Accelerators are classified into two types, primary and secondary/ultra-accelerators. Primary accelerators are majorly used in tire manufacturing while secondary accelerators are used to boost the speed and state of cure in the vulcanization.

Flame retardants are generally used to prevent rubber from flaming incidents and heat. In addition, flame retardants are also used for proofing purposes to prevent rubber from moisture, dust, and heat. Various formulations have been developed over the years, which meet performance specifications established by industry standards, as well as the specific requirements from the end-users.

Application Insights

Different types of rubber are used for different purposes. Tire manufacturing is the largest application segment. The main functions of automotive tires are to provide grip, resist abrasion, and transport loads with reasonable safety and performance. One of the major factors driving the rubber processing chemicals market is a significant increase in the number of vehicles, especially in the Asia Pacific region.

Need for improved resistance against effects of heat, sunlight, oxygen, mechanical stress, and ozone are driving demand for rubber processing chemicals globally. The widespread end-use application requires rubber processing chemicals to produce high quality and performance rubber products. End-use industries are segregated into two segments including tire and non-tire rubber industries. Tire end-use industry includes Bridgestone Corp., Michelin, Goodyear Tire and Rubber Co., and MRF Ltd.

Though the market is dominated by tire application, non-tire is also a key application driving the growth of rubber processing chemicals. The non-tire applications mainly include industrial rubber, along with polymer modification, building and construction, and automotive (non-tire). Emerging economies such as China, India, and South Korea are expected to have a major share, owing to recent boom in the manufacturing sector.

Regional Insights

Asia Pacific was the largest market for rubber processing chemicals in terms of volume share in 2019 owing to rising demand from automotive and construction industries. The region is also a significant exporter of natural rubber to other regional markets. China led the market in terms of production and consumption. Further, other dominant producers in the region include Indonesia, Malaysia, Thailand, and India.

Abundant availability of raw materials in countries such as China is expected to boost the production facilities and may result in shifting of production facilities in the Asia Pacific region. However, stringent environmental regulations are forcing the manufacturers to find alternatives to the existing products, which are restricted by regulatory bodies such as REACH.

The Indian market is driven by factors such as growing automobile production capacities and rising demand of the high performance and quality automotive tires in this country is propelling the rubber processing chemicals demand over the forecast period. In addition, increasing exports of natural rubber along with increasing purchasing power of consumers are propelling the growth of the automotive industry, thereby fueling the rubber processing chemical market.

The Europe market was valued at USD 823.9 million in 2019. Widespread automotive industry and continuous R&D activities is fueling the growth of the market over the forecast period. In Europe, Germany is estimated to be largest market while the U.K. is expected to witness a volume-based CAGR of 4.1% from 2019 to 2025, due to its increasing demand for high quality and performance products.

The German market is expected to grow at a CAGR of 2.2% between 2019 and 2025. Factors such as growing automobile production capacities and rising demand of the high performance and quality automotive tires in this country is propelling the rubber processing chemicals demand over the forecast period.

The UK automotive industry is surging fast on account of rising demand for high performance and quality industry products. UK has a key market share in the global automotive sector and increasing automotive production is contributing to the growth of the industry over the forecast period.

Key Companies & Market Share Insights

The competitive factors that have a deep impact on market growth include manufacturing technology, product portfolio, and pricing. Major companies in the global market for rubber processing chemicals include Lanxess AG; BASF SE; Solvay SA; AkzoNobel N.V.; Arkema S.A.; and R.T. Vanderbilt Holding Company, Inc. Most of the manufacturers being multinational companies have indulged in R&D activities, new product launches, and expansions for innovative and sustainable production methods.

For instant, in June 2019, Eastman Chemical Company successfully completed the de-bottlenecking of its St. Gabriel Diethyl hydroxylamine (DEHA) production facility. DEHA is mostly used in the production of styrene-butadiene rubber (SBR) and the new development is expected to meet the growing needs of the customers in the western hemisphere.

The Netherlands-based AkzoNobel N.V. is engaged in the development, manufacturing, and supply of rubber processing chemicals such as adhesion promoters and blowing agents. The company has various business units in various countries such as Poland, U.S., Australia, Germany, Denmark, Sweden, Brazil, Lithuania, Latvia, Uruguay, Turkey, India, Singapore, Greece, Ireland, U.K., China, and Estonia.

Rubber Processing Chemicals Market Report Scope

Global Rubber Processing Chemicals Market Segmentation

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

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

  • Anti-degradants

  • Accelerators

  • Flame Retardants

  • Processing aids/Promoters

  • Others

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

  • Tire

  • Non-Tire

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

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • India

  • Latin America

    • Brazil

  • Middle East & Africa