Butyl Rubber Market

Butyl Rubber Market Overview

According to MRFR, the Butyl Rubber Market is projected to exhibit a CAGR of 4.66% during the forecast period (2022-2030). Superior commodity properties in terms of tear strength, ageing and heat resistance relative to natural rubber are projected to offer a positive scope for market growth over the forecast period.Local voters have sanctioned PJSC Nizhnekamskneftekhim (NKNH) to proceed with technical re-equipment in May 2021. On April 30th company held public hearings on project dimensions and Environmental Impact Assessment (EIA). As part of the technological upgrade plan, NKNH will be faced with a reduction in capacity output for butyl rubber from its production facilities while transforming half of this into halo butyl rubber with an annual output capacity of fifty thousand tons, which is the common raw material for the tire industry. The move was necessitated by escalating demand for tubeless tires that are both environmentally friendly and affordable.

Butyl Rubber Market Dynamics

Drivers Growing Adoption from the Automotive Sector to Fuel Market Growth

The rising demand for vehicle tyres and tubing is favourably mirrored in the global market for butyl rubber. Growing demand for OEM tyres is projected to expand market growth over the coming years due to the increasing automotive industry. Demand for raw materials, including butyl rubber, has risen dramatically with the continuing growth of the automotive industry in developing economies. In countries such as China, Mexico, and India, sales of passenger and commercial vehicles are spiralling due to increased buying power in these countries. In these countries, the emergence of an existing tire-recycling industry also provides an incentive for marketing. In the coming years, the increasing demand for butyl rubber for damp proofing and roof repair is expected to fuel this market's growth. In addition, demand is expected to be propelled by the use of food-grade butyl rubber in food applications.

Opportunities Growing Exploration of Untapped Markets to Create Growth Avenues for the Key Players

In addition, as part of corporate social responsibility, industry players are seeking to find new ways to reduce/mitigate the ecological harm caused by butyl

rubber

production and this is expected to encourage market growth patterns in the near future.

Restraints Fluctuating Raw Material Costs to Impede Market Growth

Factors such as fluctuating raw material costs, volatile organic compound (VOC) pollution regulations due to rubber processing and the availability of alternatives are, however, likely to threaten the development of the industry in the future. The price volatility of raw materials and government policies impacting the price of butyl rubber are threatening the butyl rubber industry. The rubber content was improved by the anti-dumping duty levy on carbon black rubber goods. It is difficult to treat butyl rubber during processing, owing to its ability to catch air and creep. Environmental concerns are another challenge for the industry, so exposure to contaminants in the manufacture of rubber remains a big health problem. It has poor tolerance to

aliphatic

sugars, and

aromatic

hydrocarbons.

Segmental Analysis

The segmental analysis of the Butyl Rubber Market is based on Type and Application.

By Type

On the basis of type, the market has been segmented into bromobutyl, intoregular butyl, and chlorobutyl. The class of bromobutyl accounted for a comparatively greater market share in 2017. During the forecast period, the segment is expected to experience a CAGR of 5.21 percent and surpass a USD 2.2 billion market valuation. The growing use of bromo butyl in large-scale industries such as the automotive and pharmaceutical industries can be due to this.

By Application

The industry has been segmented into tyres and tubing, adhesives and sealants, industrial and medical gloves, pharmaceuticals, and others, based on application. The highest market share is actually in the hands of tyres and tubes and the trend is expected to persist during the measurement period. The segment is expected to reach a value of USD 4 billion by the end of 2023. The growth of the segment is supported by the growing development of automobiles coupled with the expansion of the aerospace industry. Currently, the market for butyl rubber is concentrated in the supply field of tyres and tubing. During the prediction era, the tyres and tubes segment is projected to remain incredibly lucrative.

Regional Analysis

Four main areas, including the Asia Pacific, North America, Europe, and the rest of the world, have been given a geographical description of the global economy.

APAC to account as Fastest Growing Region

The highest market share is accounted for by Asia-Pacific (APAC). The industry in the region stood at over USD 1.5 billion in 2017. During the prognosis period, the region is expected to remain highly lucrative for butyl rubber. Rapid industrial development is one of the key factors driving the growth of the region's economy. In terms of automobile production, China leads globally, which is substantially positive for the country's Butyl Rubber Industry. Moreover, in countries such as India and China, the increasing demand for passenger and commercial vehicles is also giving impetus to the Butyl Rubber Market in the region. The continued growth of APAC industries such as automobile, aerospace, pharmaceuticals and construction is growing its position as a significant business destination for industry players.

North America leads the Americas with established end-use Sectors

One of the main markets for butyl rubber has been North America. The new U.S. reforms have accelerated industrialization rate across the country, which over the projected horizon is expected to provide a favourable scope for business growth. As of 2016, the U.S. accounted for the highest market share in North America. It is anticipated that the presence of various hospitals, medical institutions, and clinics combined with customer healthcare awareness would boost the market for goods in the application of medical gloves. Industries like pharmaceuticals, manufacturing, and automobile have been greatly impacted by tight government restrictions combined with an economic downturn. The area's growth rate is projected to be poor relative to Asia Pacific and North America because of a downturn in the application industry.

Competitive Landscape

Key Players focus on Product Development to Expand their Business Standing

The Butyl Rubber Industry has now been a very competitive industry, and this aspect is helpful to the studied market as businesses obtain opportunities to expand their presence. Furthermore, major industry players are focused on expanding their geographic footprint. In order to build a standout image in the global market, all of these market leaders are aggressively focused on product creativity. At the same time, by participating in strategic growth operations, focus is placed on capturing untapped markets. These industry players are introducing different tactics such as growth, supply deals, and product releases to achieve full sales.

• Arlanxeo
• JSR Corporation
• China Petrochemical Corporation
• Sibur International GmbH
• Reliance Industries Limited
• PJSC Nizhnekamskneftekhim
• Exxon Mobile Corporation
• Zhejiang Cenway New Synthetic Materials Co., Ltd. 

Quanex has recently introduced on 10 August 2022, a novel moisture barrier for solar panels which can be applied by manufacturers during their final manufacturing processes. This is a polyisobutylene butyl rubber adhesive with an integrated dryer called SolarGain Edge Sealant LP03. Solar Gain Edge Sealant is used when water ingress needs to be prevented inside solar modules to enhance protection against cells, contacts and conductive coatings, thus making them more efficient and long-lasting. Quanex says its sealant adds another ten to fifteen years of working life to a panel.MRF, the world's largest tyre maker said it considers domestic partners’ help for developing raw materials instead of imports in July 2022. In line with the import substitution program, the company works with Russian suppliers on such types of raw materials as sulfur, butyl-rubber, microcrystalline wax, tackifier resin etc.

Recent Development

In July 2021, MRF, the world's largest tyre maker, has said this month that it is considering developing raw materials with local partners in order to cut import reliance. In line with the import substitution program, the company cooperates with domestic sources to develop raw materials needed for production, such as sulfur, butyl rubber, microcrystalline wax, and tackifier resin.In May 2021, the voters of Nizhnekamsk District have given a nod to PJSC Nizhnekamskneftekhim (NKNH) for the implementation of technical re-equipment. A public hearing was held on April 30 when the company discussed the project parameters and the environmental impact assessment. Through this technical improvement, NKNH will reduce the production of butyl rubber at its site and convert a 50 kiloton per annum capacity to halobutyl rubber, which is a major raw material for tire manufacturing. The decision was taken due to increasing demand for environmentally friendly and economical tubeless tyres.In Panjin City of Liaoning Province, Cenway finished its butyl rubber upgrading project in August 2020 and started producing on August 18. In December last year, the synthetic rubber manufacturer created a wholly owned subsidiary called Panjin Cenway New Materials in Panjin, as stated by the local government. An official document also confirmed that they purchased butyl rubber facilities within this municipality, and it took them three months to implement an upgrade plan.On August 15, 2023, Global Platform for Sustainable Natural Rubber (GPSNR) disclosed that Sri Trang Agro-Industry (STA) had been admitted into the producers/processors/traders group as an additional member. STA joined GPSNR to establish a sustainable and fair trade in the natural rubber industry globally.” The firm maintains about 7 thousand hectares of land under rubber cultivation across Thailand’s nineteen provinces.Quanex has launched a novel moisture barrier specifically designed for use during the final manufacture of solar panels by the solar panel manufacturer on August 10, 2022. SolarGain Edge Sealant LP03 consists of polyisobutylene butyl rubber adhesive and an integrated desiccant. By preventing moisture penetration into a solar module, Quanex’s Solar Gain Edge Sealant aims to increase protection for cells, connections, and conductive coatings so as to enhance performance and durability. The company further suggests that its sealants can add at least ten to fifteen more years of service life per panel.

Report Overview

By Type

• Intoregular Butyl
• Bromobutyl
• Chlorobutyl

By Application

• Tires and Tubes
• Adhesive and Sealants
• Industrial and medical gloves
• Pharmaceuticals