Enter your contact details & our Business Development
expert will circle back to address your request!
February 26, New York, USA, 2021 – The global rubber additives market is expected to rise at a significant CAGR of 5.7% during the 2021-2027 periods, thanks to promising technological advancements in materials like graphite. The rising demand for new advancements like electric vehicles in tire manufacturing and promising opportunities in the manufacturing of electric vehicles like the ballistic field-effect transistors promise robust growth. The rubber additives are essential for achieving large area pressure sensor arrays to guide next-generation electric vehicles.
According to the International Energy Agency or the IEA, sales of electric vehicles reach 2.1 million in 2019, surpassing the record-breaking growth in 2018. Moreover, the total tally of EVs has reached 7.2 million vehicles globally and grows at a 40% year-on-year increase. Moreover, the EV movement is only starting to pick up the pace, as technological advancement progress to two-three-wheelers, public bus systems, and the commercial trucking industry globally. Furthermore, ambitious legislations like UK’s decision to announce bans on sales for petrol and diesel vehicles starting in 2030 remain an important driver of growth in the global rubber additives market.
Conventional Applications to Occupy Largest Share of Total Revenues
Rubber additives are agents, and chemicals added to the synthesis and processing of rubber polymers. These additives are advanced polymers that improve the mechanical, and structural properties of rubber, to enhance key end-metrics like performance, and reliability. There are various kinds of rubber additives in the market which aid key end-applications through their role as processing aids, chemical blowing agents, antiozonants, vulcanization accelerators, and inhibitors, adhesion promoters, and fillers. Rubber additives as vulcanization accelerators play a key role in improving cross-linking efficiency of materials, while inhibitors slow down the acceleration process. This is essential for conventional applications like tire manufacturing, wherein it is important to fabricate rubber with other components to reduce the overall energy required during fabrication. Additionally, adhesion promoters available in the market can also improve the rubber-to-metal adhesion making them more promising in the use of conventional applications like tire manufacturing. The growing application of rubber in tire manufacturing, construction, consumer goods, electric insulation, and tire & tubing will remain important drivers of growth despite emerging new applications like electric vehicles in the rubber additives chemical market.
Construction Sector to Remain a Key End-Industrial Sector for Growth
The construction sector remains a promising avenue for growth for players in the rubber additive chemical market. The rubber additives are used in large quantities in applications like insulation, waterproofing, manufacturing of polymer concrete, and bearings of bridges. According to Oxford Economics, economic development around the world will require immense investment in infrastructure globally. The think tank estimates that this investment will need to be in the tune of $3.7 trillion per year, rising at 19% per year to keep up with global trade, and commerce. According to the World bank, such development is already making its way to drive growth in the construction sector. For example, according to the World Bank, the private investment in infrastructure or PPI in H1 in 2019 grew to USD49.8 billion across 175 projects. The investment was 14% higher from H1 of 2018. Moreover, the investment was higher than the average investment in the last five years (USD42.2 billion). The rising advancements in rubber additives driving quality manufacturing, and efficacy of products, and rising demand for construction activities globally will drive tremendous growth for the rubber additive chemical market.
Green Tire Manufacturing Remains a Promising New Arena for New Opportunities
Due to rising stringent regulations relating to the environment, green tire manufacturing remains a promising new horizon for growth opportunities. Green tire manufacturing goes far beyond the actual manufacturing of tires. Green tire manufacturing is an essential prospect for vehicles to reduce emissions and provide an end-to-end recycling solution. Vehicle emissions are directly conceived due to the level of fuel consumption. However, the level of fuel consumption can be reduced by lowering the resistance by tires. The new green tires are already on the road, promising more fuel-efficacy for vehicle manufacturers, and consumers. The green tires promise to increase the addition of rubber additives with recycled materials like silica, in combination with recycled rubber, and plastics. Furthermore, thanks to its increased fuel-efficiency, the demand for green tires will remain the highest in passenger vehicles. The green tire remains an essential demand driver in the global fuel economy, a quarter of CO2 emissions are attributed to the rolling resistance of tires. The growing demand for rubber additive chemicals in tire manufacturing and the rising prospect of green tires remain promising drivers for growth for the rubber additive chemical market.
Asia Pacific Will Likely Remain Key Region for Growth Due to Rising Demand for Automobiles
The rising demand for automotive vehicles for both private, and public consumption, and large manufacturing base of auto motives, and rubber plants promise robust growth in the Asia Pacific region. The growth will remain highest in countries like China and will exhibit similar trends across countries like India, Thailand, Vietnam, Singapore, among others. The growth for tires will also remain robust in key countries like North America, as demand for new vehicles has slowed in the region. However, consumers remain in dire need of vehicle purchase, while lowering demand for purchase of new vehicles, but move towards purchases of used vehicles. The rising purchases of used vehicles, and horizons like VI regulations, and electric vehicles will likely drive new opportunities for growth in the North American region. The growing trade between the US, and China also remains a promising driver for developments like electric vehicles, wherein Tesla has opened a new plant in China. Similarly, Chinese cheap electric vehicles will also make their way into the market in the near future.
Please fill form below: