Solution Styrene Butadiene Rubber Market Size, Share & COVID-19 Impact Analysis, By Application (Tires, Polymer Modification, Adhesives & Sealants, Footwear, and Others), and Regional Forecast, 2023-2030

The global solution styrene butadiene rubber market size was valued at USD 4.49 billion in 2022 and is projected to grow from USD 4.67 billion in 2023 to USD 6.25 billion by 2030, exhibiting a CAGR of 4.2% during the forecast period. Asia Pacific dominated the solution styrene butadiene rubber market with a market share of 49.44% in 2022.

Solution Styrene Butadiene Rubber (S-SBR) is a synthetic rubber compound widely used in tires and other rubber products. It is a copolymer of two main monomers, styrene and butadiene, and is made by polymerizing styrene and butadiene in a solution. The ratio of these two monomers and the polymerization process can be adjusted to achieve specific properties in the resulting rubber.

Its low rolling resistance helps improve fuel efficiency in vehicles by reducing the energy required to roll the tires. This is essential for achieving better mileage and reducing greenhouse gas emissions. It also provides good resistance to abrasion, weathering, and aging, which makes it suitable for various outdoor and automotive applications beyond tires, such as conveyor belts, footwear, and industrial products.

Increasing production in the tire industry is anticipated to drive market growth during the forecast period by creating greater demand for synthetic rubber. This could be achieved through various means, such as expanding tire manufacturing facilities, improving production efficiency, or developing new tire technologies that require more solution styrene butadiene rubber. Additionally, exploring sustainable and eco-friendly options in tire production could also contribute to market growth.

COVID-19 IMPACT

Disruptions in the Supply Chain Hampered Market Growth amid COVID-19

Since March 2020, the world has been under lockdown, limiting the flow of products and resources and significantly impacting the supply chain. Many countries have announced restrictions on the distribution and transportation of raw materials, affecting the value chain of rubber manufacturers. The emergence of COVID-19 has significantly harmed companies' income generation. After the initial production and supply disruptions, the automotive sector experienced a demand shock with an uncertain timeline for recovery owing to shelter-in-place regulations. This further had an impact on the consumption of rubber.

LATEST TRENDS

Presence of Robust Manufacturing and Automotive Industries Provides Beneficial Market Opportunities

The presence of robust manufacturing and the automotive industry can significantly benefit the market. The automotive industry is one of the largest consumers of solution styrene butadiene rubber, using it in tire manufacturing. A thriving automotive sector with growing vehicle production leads to increased demand to produce high-performance tires. This steady demand drives market growth. Robust manufacturing and automotive industries often drive technological innovations and advancement. This can lead to the development of new tire technologies that rely on the product to improve fuel efficiency, safety, and performance, further increasing the demand.

Moreover, the automotive industry is the major consumer of solution styrene butadiene rubber, primarily for tire manufacturing. As the automotive sector expands, there is an increased demand for high-performance tires that require the product as a crucial component. Robust growth in the automotive industry translates to higher demand for the product, creating opportunities for manufacturers to expand production and cater to this demand.

DRIVING FACTORS

Growing Polymer Modification Techniques to Drive Market Expansion 

Polymer modification plays a significant role in encouraging the solution styrene butadiene rubber market growth. Polymer modification techniques can be used to tailor the properties of S-SBR to meet specific performance requirements. By adjusting the polymer structure, manufacturers can enhance the properties of the rubber, such as abrasion resistance, wet grip, and fuel efficiency. This customization makes the product more attractive to various industries, including automotive tire manufacturing.

Additionally, companies that invest in polymer modification techniques gain competitive advantages. They can offer specialized product grades with superior performance characteristics, attracting customers looking for high-quality rubber materials for their products. Polymer-modified S-SBR can find applications beyond traditional tire manufacturing, including construction, footwear, and industrial sectors. This diversification of applications can expand the market during the forecast period.

Hence, polymer modification allows companies to customize rubber properties, meet environmental standards, gain a competitive edge, explore new applications, and promote ongoing research and innovation in the market. This is expected to drive market growth.

RESTRAINING FACTORS

Fluctuating Prices of Raw Materials to Hamper Market Growth

Fluctuating prices in raw materials can have a significant impact on the growth of the market. S-SBR is a synthetic rubber widely used in the tire manufacturing industry.  Styrene and butadiene, both petrochemical-based raw materials, primarily drive the product. Any fluctuation in the prices of these raw materials can directly affect the production cost of the product. If the prices of styrene and butadiene increase, it can lead to higher manufacturing costs for S-SBR producers, which may be passed on to consumers through higher prices.

Additionally, the market is highly competitive, and manufacturers often operate on profit margins. When raw material prices rise, some companies may be better equipped to absorb these cost increases than others. This can lead to a competitive advantage for larger or financially stable companies, potentially reducing market competition and hindering growth for smaller players.  Moreover, the tire industry, a major consumer of the product, relies on stable pricing to plan and budget for production. Fluctuating prices due to raw materials price volatility can disrupt the tire manufacturing process, leading to uncertainties in the supply change and affecting the overall market growth.

SEGMENTATION

By Application Analysis

Tires Segment Accounted for the Largest Share Due to its Superior Properties

Based on application, the market is segmented into tires, polymer modification, adhesives & sealants, footwear, and others.

The tires application segment holds a major solution styrene butadiene rubber market share. It is mainly used for the production of high-performance tires. It offers excellent viscoelasticity as compared to other rubbers. The physical composition of S-SBR tires provides extreme tear strength, mechanical properties, and other better functional abilities than conventional rubber tires. It helps the tire gain impressive mechanical properties and excellent performance in the braking standards, and they are cost-efficient, thus supporting the segment's growth.

The polymer modification segment plays a significant role in encouraging market growth. Polymer modification techniques can be used to tailor the properties of S-SBR to meet specific performance requirements. By adjusting the polymer structure, manufacturers can enhance its properties, such as abrasion resistance, wet grip, and fuel efficiency. This customization makes solution styrene butadiene rubber more attractive to various industries, including automotive tire manufacturing.

The footwear segment is expected to witness considerable growth in this market during the forecast period. The sports industry's rapid growth and fitness concerns are surging the demand for running shoes. This results in fueling the footwear segment globally.

The others segment is expected to grow at a significant growth rate during the forecast period. The growth is associated with the high demand for products from various industries, such as food & beverage, pharmaceutical, textile, oil & gas, and chemical. S-SBR products, such as hoses, belts, electrical (wire and cable) insulation, gaskets, seals, and coatings, help make the equipment leakage-proof and resistant to external environments, thereby improving the operational life of the machines.

REGIONAL INSIGHTS

By geography, the market is studied in the regions, including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific accounted for 49.4% of the global market in 2022. The rapidly growing automotive industry is propelling the demand for products in the region. Asia Pacific is considered a major producer of rubber globally. Thailand, Indonesia, Vietnam, India, and China are the key countries in rubber production. Also, China and India are considered to be dominating countries in rubber consumption due to the presence of rubber and automotive manufacturers.

Europe accounted for a significant market share in 2022. The market growth is associated with the rising demand for solution styrene butadiene rubber and relevant compounds from various industrial sectors, such as polymers, sealants, insulation, and other industrial applications in the region.

The growing industries, such as food & beverage, pharmaceutical, textile, oil & gas, and chemical, will increase the product demand in North America during the forecast period. The market is predicted to develop significantly in Latin America during the projected period.

Brazil is one of Latin America's most important economies. Consumer electronics and the increasing use of solution styrene butadiene rubber in tires are likely to boost the market in the country. Increasing demand for solution styrene butadiene rubber from tire and other automobile parts producers to drive market growth in the Middle East & Africa.

KEY INDUSTRY PLAYERS

Growing Market Players’ Focus on Increasing their Production Capacity to Drive Market Growth

The key players in North America and Europe, such as The Goodyear Tire & Rubber Company, Trinseo, Versalis, and Dynasol Group, are focusing on increasing their presence in various countries in the Asia Pacific to strengthen their position in the market and drive the market growth of the organization. The key players in the market have, therefore, developed strong regional presence, distribution channels, and product offerings.

Major market players are engaged in research and development to produce superior quality products to provide enhanced properties. Furthermore, the companies are now promoting strategic partnerships to improve their R&D efforts. The businesses greatly emphasize increasing the service area to raise the market share and boost the company's revenues. Companies are dedicated to introducing new consumer goods to suit the growing consumer trends.

LIST OF KEY COMPANIES PROFILED:

• ARLANXEO (Netherlands)


• SIBUR (Russia)


• LG Chem (South Korea)


• The Goodyear Tire & Rubber Company (U.S.)


• Sinopec (China)


• JSR Corporation (Japan)


• Dynasol Group (Spain)


• Asahi Kasei Corporation (Tokyo)


• Sumitomo Chemical Asia Pte Ltd. (Japan)


• Trinseo (U.S.)


• Versalis (Italy)

KEY INDUSTRY DEVELOPMENTS:

• August 2023: Goodyear collaborated with German automotive brand Opel to develop an innovative custom tire for the Opel experimental concept car. This collaboration between the two brands indicates the company's commitment to enhancing the vehicle's aerodynamic performance, resulting in great energy efficiency.


• May 2023: ARLANXEO announced the construction of a world-class rubber facility in Jubail, Saudi Arabia. The total capacity of the plant will be 140 kilotons per annum, which will produce two high-performance elastomers, Lithium Butadiene Rubber and ultra-high cis Polybutadiene.


• April 2023: Hainan Baling Chemical New Material Co., Ltd., a subsidiary of Sinopec, launched production of its styrene-butadiene copolymer in Hainan, China. This new project will help the company to reach an annual production capacity of 170,000 tons.


• February 2023: ARLANXEO, a global leader in performance elastomers, announced the opening of a new polybutadiene production line in Brazil, which will produce around 65 kilotons of polybutadiene per annum.


• February 2023: SIBUR developed a new technology for producing butyllithium, an essential component used in manufacturing synthetic rubbers and SBS polymers. This initiative enhances the company's capability and competitive edge in the global market.

REPORT COVERAGE

The research report provides both qualitative & quantitative insights on solution styrene butadiene rubber globally. Quantitative insights include market sizing in terms of value (USD Billion) & volume (Kiloton) across each segment, sub-segment, and region profiled in the scope of study. Also, it provides market analysis and growth rates of segments, sub-segment, and key counties across each region. Qualitative insight covers the elaborative analysis of key market drivers, restraints, growth opportunities, and industry trends related to the market. The competitive landscape section covers detailed company profiling of the key players operating in the industry.

Report Scope & Segmentation