Analysis of the Synthetic Rubber Market Size and Share

Synthetic Rubber Market Analysis

The synthetic rubber market was estimated at USD 32.13 billion in 2023 and is projected to reach USD 39.49 billion by 2028, growing at a compound annual growth rate (CAGR) of 4.21% during the forecast period (2023–2028).

Market growth is expected to be driven by the increasing production of electric vehicles. However, the use of polyurethane as a substitute for synthetic rubber in certain applications could potentially slow market expansion.

Future opportunities for the market are likely to stem from the development of bio-based feedstocks for synthetic rubber and the rising demand for medical gloves.

The Asia-Pacific region holds the largest market share, driven by high demand from countries such as China, India, and Japan, and is expected to lead the market during the forecast period.

Rising Demand for Synthetic Rubber in Tires and Tire Components

The tire and tire component segment holds the largest share of the synthetic rubber market. Styrene-butadiene rubber (SBR) is the primary material used in tire manufacturing due to its durability and resistance to wear over time.

Approximately 50% of automotive tires are made from a blend of SBR rubber and natural rubber. For lower-end tires, the proportion of SBR is reduced to cut production costs, which may decrease the tire's lifespan but offers a cost-effective solution.

According to the International Tire and Rubber Association (ITRA), China and the United States are the two largest tire manufacturers globally. Data from China's National Bureau of Statistics indicates that the Chinese tire industry produced approximately 902.5 million tires in 2021, up from 807.5 million the previous year.

Additionally, Modern Tire Dealer reported that the total number of tires shipped from the U.S. reached 335 million units in 2022. Among these, nearly 222 million were replacement passenger car tires, making them the most sold tire category.

As a result, the tire and tire component segment is expected to significantly drive market growth during the forecast period.

Asia-Pacific Dominates the Synthetic Rubber Market

The Asia-Pacific region accounts for the majority of the synthetic rubber market, with India, China, and Japan being major buyers. Countries such as China, India, Japan, South Korea, Thailand, and Indonesia are home to some of the world's leading tire manufacturers.

China produced nearly 902.5 million tires in 2021, up from 807.5 million in the previous year, according to the National Bureau of Statistics of China.

India ranks second only to China in terms of rubber production and consumption in the Asia-Pacific region. Despite being one of the largest producers, India imports significant quantities of rubber to meet domestic demand.

According to the Rubber Board, India consumed 720,000 tons of synthetic rubber in the fiscal year 2021–2022, reflecting a growth of approximately 17% compared to the previous fiscal year. The automotive tire and tube industry accounted for over three-quarters of this consumption, with the remainder used in other rubber products.

Japan's tire industry is also undergoing substantial growth in the region. Toyo Tire Corporation, one of Japan's largest rubber companies, specializes in automotive tires and other related products. Toyo's net sales increased from approximately JPY 393.7 billion (USD 3.4 billion) in 2021 to nearly JPY 497.2 billion (USD 3.7 billion) in 2022, significantly contributing to the region's market expansion.

These factors are expected to enable the Asia-Pacific region to dominate the global synthetic rubber market during the forecast period.