Liquid Synthetic Rubber Market is Expected to Reach $28.8 Billion by 2027

According to a new report published by Allied Market Research, titled, “Liquid Synthetic Rubber Market by Product and Application: Opportunity Analysis and Industry Forecast, 2020–2027,” the global liquid synthetic rubber market was valued at $20.3 billion in 2019, and is projected to reach $28.8 billion by 2027, growing at a CAGR of 4.5% from 2020 to 2027.

Liquid synthetic rubber is a liquid polyurethane casting compound and a durable flexible rubber. It exhibits superior flow properties and extreme wear & abrasion resistance. Products of liquid synthetic rubber include liquid isoprene, liquid butadiene, and liquid styrene butadiene. It is widely applicable in adhesive manufacturing, industrial rubber manufacturing, tyre manufacturing, and polymer modification.

Increase in usage of liquid synthetic rubber in tyre manufacturing is a major factor expected to drive the growth of the global liquid synthetic rubber market. Moreover, development of the automobile industry across the countries such as Germany and China and rise in demand for electric vehicle across the globe have led to surge in demand for tyres, which, in turn, is expected to drive the demand for liquid synthetic rubber from tyre manufacturers. In addition, surge in investment from the emerging economies such as China and India toward the development of housing infrastructure has surged the demand for adhesives, which eventually is likely to boost the demand for liquid synthetic rubber.

However, fluctuation in raw material prices is expected to restrain the market growth. On the contrary, increase in product penetration in the industrial rubber manufacturing is expected to offer potential growth opportunities for the global market during the forecast period.

The global liquid synthetic rubber market is segmented on the basis of product, application, and region. 

Depending on product, the liquid synthetic rubber market is divided into liquid isoprene rubber, liquid butadiene rubber, liquid styrene butadiene rubber, and others. The liquid styrene butadiene segment was the largest contributor to the global market, garnering more than two-fifths of the total share in 2019.

By application, the market is fragmented into adhesives, industrial rubber, tyre manufacturing, polymer modification, and others. The tyre manufacturing segment dominated the global market, with over two-fifths of the total share in 2019.

Region wise, the liquid synthetic rubber market size is fragmented into North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for the major global liquid synthetic rubber market share in 2019, and dominated the global market with more than half of the total market share in 2019.

Key players operating in the global liquid synthetic rubber market include Evonik Industries, H.B. Fuller, Synthomer PLC, Asahi Kasei Corporation, Kuraray Co., Ltd., Efremov Synthetic Rubber, Saudi Aramco, Nippon Soda Co., Ltd., Sibur International GmbH, and Puyang Linshi Chemical New Material Co., Ltd.

COVID-19 analysis:

COVID-19 is an infectious disease that originated in Hubei province of the Wuhan city in China in late December. The outbreak of the pandemic had led to partial or complete shutdown of production facilities, which do not come under essential goods, owing to prolonged lockdown in major countries such as the U.S., China, Japan, India, and Germany. It has led to either closure or suspension of their production activities in most of the industrial units across the world. The crisis has negatively affected the growth of the liquid synthetic rubber market, as the demand from the tyres, automotive, and construction industry has declined, globally. Owing to the lockdown implemented across various countries, national and international transport have been hampered, which has significantly impacted the supply chain of liquid synthetic rubber across the globe, thereby increasing the supply–demand gap. Thus, insufficiency in raw material supply is expected to hamper the production rate of liquid synthetic rubber, which negatively impacts the market growth.  Furthermore, the price of the liquid synthetic rubber has dropped due lower demand.

Lockdown for more than three months has resulted in declining demand of liquid synthetic rubber in the tyres and automotive industries during the global crisis. With unlocking of the regions and countries, the demand from the automotive, tyres, and the construction industries will increase, which is likely to boost the demand for liquid synthetic rubber, globally. This situation is further expected to improve as government has started relaxing norms around the world for resuming business activities.

Key findings of the study

• The liquid styrene butadiene segment dominated the global liquid synthetic rubber market with around 41.6% of the market share in terms of revenue. 
• The liquid isoprene segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 6.3% from 2020 to 2027
• The tyre segment dominated the global liquid synthetic rubber market with around 41.03% in terms of revenue. 
• The adhesive segment is estimated to exhibit the highest growth rate, registering a CAGR of 5.0% from 2020 to 2027
• Asia-Pacific dominated the global liquid synthetic rubber market with around 56.0% of the market share. In addition, it is also estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.8% from 2020 to 2027