Isoprene is a colorless volatile compound that is widely used to make polyisoprene, a synthetic equivalent of natural rubber. In terms of demand by type, the market is segmented into Polyisoprene, Thermoplastic Elastomer, and Butyl Rubber (IIR). Polyisoprene is the largest segment on the back of strong demand from the automotive industry. Polyisoprene is used as a raw material in the manufacture of automotive tires. Based on applications, the market is bifurcated into tires, tires, and adhesives. The tires segment is anticipated to have the highest demand due to its rising use in the automotive industry.
Asia Pacific region is a major hub for tire manufacturing, with several leading tire companies and production facilities located in countries like China, Japan, South Korea, and India. These countries have a large and growing automotive industry, driving the demand for tires. As a result, there is a strong demand for isoprene in the region. China is the largest market for rubber, followed by Japan and the United States. The rising demand for tires in the automotive industry will boost the isoprene market in the upcoming years.
The region has witnessed significant investments in tire manufacturing facilities, leading to capacity expansions and technological advancements. These developments require a steady supply of isoprene to meet the growing demand for synthetic rubber in tire production.
In 2022, DL Chemicals announced that they are set to build the world’s largest Polyisoprene plant in Singapore.
On February 23, 2023, Kuraray announced that the construction of the new Isoprene plant in Thailand has been completed and is ready to start production.
Bridgestone India announced that the company will invest over Rs 600 crore over the next three years to expand its tire production capacity and upgrade technology at its Pune-based plant.
The demand for isoprene in the Asia Pacific region is increasing due to the growth in the various end-use industries like automotive, construction, electrical etc. The tire industry in particular is a major consumer of isoprene owing to its properties, such as flexibility, tensile strength, and tear strength, making it the material of choice in the tire manufacturing sector. The increasing production and sales of vehicles, along with the need for replacement of tires will contribute to the rising demand for Polyisoprene which will positively impact the Isoprene market.
The Asia Pacific region is witnessing rapid growth in the adoption of electric vehicles. Governments in countries like China and Japan are promoting the use of electric cars through incentives and infrastructure development. As the electric vehicle market increases, there will be a growing demand for tires specifically designed for electric vehicles, considering their unique requirements related to weight distribution, rolling resistance, and range optimization.
Isoprene is also used in various automotive components, such as belts, hoses, gaskets, seals, and adhesives. These components are important for the functioning of vehicles and used in engine systems, braking systems, etc.
The growth of industries such as logistics, construction, and infrastructure development contributes to the demand for commercial vehicles and drives the demand for commercial vehicle tires.
The isoprene market for tires in the Asia Pacific also faces challenges. Fluctuating raw material prices, environmental concerns, and the increasing focus on sustainable alternatives to synthetic rubber pose potential obstacles to market growth. Manufacturers are exploring bio-based alternatives to isoprene, such as renewable feedstocks and bio-isoprene, to overcome these challenges.
Need help
How can we help you?
Reach us with your research requirements and we shall provide the optimum solution to suit your needs.