Industrial Rubber Market Size, Share, and Growth Forecast for 2024 - 2031

Industrial Rubber Market Size and Share Analysis

The global industrial rubber market is projected to witness a CAGR of 5.8% during the forecast period from 2024 to 2031. It is anticipated to increase from US$ 25.2 Bn recorded in 2024 to a decent US$ 37.5 Bn by 2031.

The market is driven by rising demand from the automotive, construction, and healthcare industries. Increasing sales of electric and self-driving vehicles are set to provide a competitive edge. Unique technologies are also being used to enhance product quality and innovation.

In the U.S., the manufacturing sector, which includes industrial rubber products, contributed to over US$ 2.4 trillion to the economy in 2022, reflecting the industry's robust growth potential. Increasing industrial rubber demand in EVs is a key factor augmenting the market. Report shows that in 2023, EV production in the U.S. reached approximately 1.6 million units.

Key Highlights of the Market

• By type, the natural rubber segment is anticipated to witness a CAGR of 5.9% through 2031 amid its high tensile strength.
• North America will likely witness 6.9% CAGR through 2031 due to increasing sales of electric vehicles.
• Increasing adoption of bio-based rubber and developments in recycling technologies to propel market growth.
• Expansion in emerging markets and the rise of green infrastructure projects offer significant growth potential for industrial rubber.
• Rising demand for durable materials in automotive and construction industries is anticipated to accelerate the market.
• Growth in manufacturing activities boosts the adoption of rubber for industrial machinery and equipment.
• Emerging economies in Asia Pacific and Africa present lucrative opportunities for industrial rubber producers.

Market Attributes	Key Insights
Industrial Rubber Market Size (2024E)	US$ 25.2 Bn
Projected Market Value (2031F)	US$ 37.5 Bn
Global Market Growth Rate (CAGR 2024 to 2031)	5.8%
Historical Market Growth Rate (CAGR 2019 to 2023)	5.2%

North America Leads with Increasing Demand for Self-driving Vehicles

The industrial rubber products industry in North America is projected to witness a CAGR of 6.9% through 2031. Key drivers include rising demand from the automotive, construction, and healthcare industries. The region is also set to gain a competitive edge with increasing sales of EVs and self-driving vehicles. For example,

• In the U.S., Electric Vehicle (EV) sales saw a significant increase, reaching 1.6 million units in 2023.

Companies are leveraging novel technologies to enhance product quality. For example, Michelin launched the Michelin X Tweel in 2021. It is an innovative airless tire designed for various applications, showcasing the company's commitment to innovation.

Government data from the Bureau of Economic Analysis indicates that manufacturing contributed over US$ 2.4 trillion to the U.S. economy in 2022, reflecting the industry's robust growth potential. As technology evolves and experienced industry leaders continue to thrive, North America is well-positioned to maintain its leadership in the market.

Asia Pacific Sees Decent Growth Backed by Demand for Synthetic Rubber

Asia Pacific is likely to witness a CAGR of 6.7% through 2031. It will likely be pushed by China's rapid economic growth. As the world's second-largest economy, China is on track to become the key consumer and producer of industrial rubber globally. For example,

• Currently, China consumes over 25% of the world's industrial rubber and accounts for more than 13% of total rubber production.
• The automotive, construction, and industrial manufacturing sectors are experiencing significant growth in China, leading to a surging demand for rubber products.

China is also the most prominent producer of synthetic rubber, with a vast network of manufacturers operating in the country. However, most of this production is consumed domestically.

Mechanical Rubber Goods Lead with High Demand from Construction Industry

The industrial rubber industry is categorized based on product types. Among the different categories, mechanical rubber goods are leading the way and are anticipated to witness a significant CAGR of 5% through 2031.

The segment’s growth is mainly driven by the rising need for vibration control and noise reduction in key industries like automotive, aerospace, and construction. For instance,

• BASF introduced its Elastollan TPU in 2022. It is designed for high-performance applications requiring durability and flexibility, which aligns perfectly with the rising demand for lightweight solutions.

According to data from the U.S. Bureau of Labor Statistics, the manufacturing sector, which includes mechanical rubber goods, contributed over US$ 2 trillion to the U.S. economy in 2022, highlighting the importance of this industry. As companies focus on innovation and efficiency, demand for high-performance rubber products will continue to surge.

The rubber hose and belting segment, on the other hand, is anticipated to hold a share of around 41% in 2024. This is due to the rapid expansion of key sectors such as manufacturing, automotive, and construction. Rubber hoses are essential in applications requiring flexibility, durability, and resistance to extreme conditions. These include conveying fluids in oil and gas, chemical industries, and hydraulic systems.

Demand for Natural Rubber Rises Owing to Superior Elasticity Property

Based on type, natural rubber is set to lead the market with a considerable CAGR of 5.9% through 2031. This is attributed to its remarkable qualities, including high tensile strength, excellent tear resistance, and impressive elasticity.

A significant factor boosting demand is the tire industry, where natural rubber's outstanding wear resistance and grip on wet surfaces make it a preferred choice. Additionally, surging consumer preference for eco-friendly and sustainable products is further fueling demand for natural rubber.

• Report shows that sales of sustainable products in the U.S. were projected to reach between US$ 142.3 Bn and US$ 150.1 Bn by 2021. This figure reflects a surging consumer preference for sustainable options across various categories, including rubber products.

Market Introduction and Trend Analysis

The industrial rubber industry is surging due to emerging applications and new technological developments. Industrial rubbers are versatile materials found in various modern industries. They are increasingly used in automotive, construction, manufacturing, and electronics, among other fields.

Global demand for industrial rubber is set to rise continuously. This growth is driven by a strong economic outlook in Asia Pacific. High vehicle production and sales worldwide are also contributing to this growth. For example,

• In recent years, the production of motor vehicles in the U.S. has increased.
• As of December 2023, motor vehicle production in the U.S. was reported at 10,611,555 units.
• In August 2024, car production in the U.S. rose to 11.03 million units, up from 9.40 million units in July 2024. This number shows a rising demand for industrial rubber in the automotive sector.

Growth is continuously showing an upward trend in small-scale markets like India, Thailand, Malaysia, and Brazil. However, developed markets like the U.S. and Japan may see slower growth than the global average. This slowdown is due to declining demand for durable goods and automotive production.

Historical Growth and Course Ahead

The industrial rubber market rose to a notable CAGR of 5.2% from 2019 to 2023. Sales took a significant hit in 2020 due to the COVID-19 pandemic. However, as end-use industries began to recover and production ramped up in early 2021, demand for industrial rubber rebounded sharply.

From 2024 to 2031, the market is anticipated to rise considerably. The fast growth in industries like automotive and construction is likely to bolster demand. Various initiatives and announcements aimed at supporting these industries are also anticipated to fuel growth. Governments in several countries are further developing programs for recycling and sustainable practices. For example,

• The U.S. Environmental Protection Agency (EPA) reported that rubber and tire recycling reached around 3.4 million tons in 2019. This reflects a significant push toward reducing waste and promoting the circular economy in industrial rubber manufacturing.

Demand for industrial rubber is predicted to surge at an average CAGR of 5.8% from 2024 to 2031.

Market Growth Drivers

Surging Electric Vehicle Adoption to Propel Demand Globally

Surging production of Electric Vehicles (EVs) is having a profound impact on the industrial rubber market. As more consumers and manufacturers embrace electrification in the automotive industry, there is a noticeable shift in focus toward creating rubber products that cater specifically to the needs of EVs. For example,

• The U.S. Department of Energy reported that as of 2023, there were over 1.8 million EVs on the country’s roads. This number is set to rise rapidly as more manufacturers commit to electrification.

It shows an increasing demand for high-performance tires, seals, and gaskets that can handle the unique challenges posed by electric vehicles, such as high torque. Key players like Goodyear and Michelin are stepping up by investing in the development of specialized rubber compounds and tire designs tailored for EV applications.

Emergence of Lightweight Rubber to Augment Demand

Shift toward lightweight materials is becoming increasingly crucial in the industrial rubber business, particularly in the context of EV production. As the automotive industry transitions from Internal Combustion Engine (ICE) vehicles to EVs, there is a notable change in the types of rubber materials being used.

Manufacturers are moving away from traditional nitrile rubber and embracing alternatives like Ethylene Propylene Diene Terpolymer (EPDM), silicone, Thermoplastic Elastomers (TPE), and Thermoplastic Vulcanizates (TPV). Lightweight rubber belts made from elastomers are mainly designed for efficient performance in various industries, including manufacturing and logistics. For example,

• Companies like Martin's Rubber offer a range of lightweight rubber materials suitable for various applications, including automotive and manufacturing sectors. Its products are designed to enhance efficiency and performance while reducing weight, making these ideal for modern industrial needs.

Market Restraining Factors

Release of Hazardous Pollutants during Manufacturing to Hinder Demand

Growth of the industrial rubber industry is facing a few significant challenges, primarily due to increasing awareness of the environmental impacts of rubber manufacturing. For example,

• According to the EPA, the rubber manufacturing process releases hazardous air pollutants (HAPs). It found that around 1,100 tons of these pollutants are emitted annually from the tire manufacturing industry.

Individuals are becoming increasingly conscious of the negative effects, such as air and water pollution caused by the production and storage of rubber products. During the manufacturing process, various harmful gases, fumes, and vapors are released due to chemical leaks and the high-temperature vulcanization process.

It not only contributes to air pollution but also raises concerns about the quality of water sources if wastewater from rubber production is not properly treated. Rapid expansion of the industrial rubber business has led to a substantial increase in pollution emissions, which can have serious and lasting consequences for the environment.

Key Market Opportunities

High Demand for Eco-friendly Products to Open Door to Success

The industrial rubber industry is shifting toward eco-friendly and sustainable products, with manufacturers increasingly prioritizing bio-based and recycled materials. Companies like Michelin and Goodyear are leading the charge by creating tires from renewable resources and recycled rubber, significantly reducing their carbon footprints. This movement is fueled by rising consumer awareness and government initiatives aimed at minimizing pollution. For example,

• In 2019, the U.S. Environmental Protection Agency (EPA) reported that rubber and tire recycling reached around 3.4 million tons. It highlights the industry's surging focus on sustainability.

As green manufacturing practices and unique recycling technologies evolve, demand for sustainable rubber solutions is set to rise, encouraging innovation in the industry. Several companies are also taking initiatives to promote sustainability. For example,

• Vibracoustic, headquartered in Germany, launched the Green Rubber Project, aimed at identifying sustainable sources of rubber and exploring innovative recycling methods for natural rubber waste.

Such initiatives reflect a growing commitment in the industry to enhance sustainability and reduce environmental impact through unique recycling technologies.

Developments in Polymer Technology to Create Novel Growth Avenues

Innovations in polymer technologies are shaping the future of the industrial rubber market. Developments in synthetic rubber compounds have produced materials that excel in durability, heat resistance, and chemical stability.

Advanced polymers are finding their way into high-performance applications across diverse industries, such as automotive, aerospace, and industrial machinery. For example, new elastomers are being used to create tires and mechanical rubber goods that deliver better fuel efficiency, longer lifespans, and enhanced safety. Governments in several countries also have launched initiatives for unique technologies and manufacturing. For example,

• The Biden-Harris Administration launched the Sustainable Polymers Tech Hub in Ohio, which is set to receive approximately US$ 51 Mn in funding. This initiative aims to promote the region's capacity as a global leader in advanced manufacturing.
• The European Commission's Horizon 2020 program has invested over €80 Mn in research for these materials, driving growth in the market to meet the rising demand for quality rubber products.

Competitive Landscape for the Industrial Rubber Market

The competitive landscape of the industrial rubber market is characterized by innovation and collaboration among key players. Focus on sustainability, environmental concerns, and developments in technology are key trends fueling the revenue in this industry.

The industry is also growing with ongoing efforts of key players and government support. Companies like Goodyear launched its Eagle GOODYEAR tire in 2020, featuring sustainable materials that enhance performance while reducing environmental impact.

• According to the U.S. Environmental Protection Agency (EPA), about 3.4 million tons of tires were recycled in 2019, showcasing the industry's commitment to sustainability.

Recent trends highlight how manufacturers are adapting to regulatory pressures and consumer demand for green products, fostering a competitive and evolving market landscape.

Recent Industry Developments

• In October 2024, the Rubber Board in Sri Lanka planned to launch a campaign called 'Replant and Reap Rewards' to increase natural rubber production in traditional growing areas and the Northeast. The campaign, which will continue until February 2025, aims to address the significant gap between production and consumption of natural rubber.
• In October 2024, Bridgestone Americas received a grant from the U.S. Department of Energy to accelerate the production of bio-based butadiene. The project aims to develop a sustainable and cost-effective approach to obtaining butadiene from synthetic rubber, which is used as a feedstock for Bridgestone tires.
• In October 2024, the Tripura government planned to extend the 'Chief Minister's Rubber Mission' for another five years, aiming to provide 60,000 hectares of land for 60,000 families by 2025. The government is also constructing integrated rubber processing centers and skill development programs to ensure quality in latex collection.

Industrial Rubber Market Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	North America Latin America Europe East Asia South Asia and Oceania Middle East and Africa
Key Market Segments Covered	Product Type End Use Region
Key Companies Profiled in the Report	Asahi Kasei Corporation Exxon Mobil Corporation Greenville Industrial Rubber and Gasket Co. Eni S.p.A. Kraton Corporation BRP Manufacturing Sinopec Corporation JSR Corporation Kossan Rubber Industries Bhd Kumho Polychem Sumitomo Chemical Co. Ltd Denka Company Limited Ube Industries Ltd. Zeon Corporation Bridgestone Corporation Yokohama Rubber Company Ltd. Tokyo Zairyo Co., Ltd. Kuraray Co., Ltd Goodyear Tire and Rubber Corporation Ansell Limited LG Chem Ltd Industrial Rubber and Gasket Inc. Indag Rubber Limited Harrisons Malayalam LTD GRP Ltd Bangkok Synthetics Co., Ltd. (BST) Assco, s.r.o. SIBUR DuPont de Nemours, Inc.
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Industrial Rubber Market Segmentation

By Product:

• Mechanical Rubber Goods
• Rubber Hose and Belting
• Others

By Type

• Natural
• Styrene Butadiene
• Polybutadiene
• Ethylene-Propylene
• Nitrile Butadiene
• Others

By End Use:

• Automotive
• Construction and Infrastructure
• Energy
• Aerospace
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia and Oceania
• Middle East and Africa

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