The global Butyl elastomers market is projected to experience robust growth between 2023 and 2032, reaching USD 7.2 billion by 2032 from the current market size of USD 5 billion, registering a CAGR of around 4% during this period. This growth is primarily driven by the escalating demand from the tire industry.
Butyl elastomers, synthetic rubbers created through the combination of isobutylene and isoprene, boast low permeability, excellent water resistance, and strong impact and tear resistance. These qualities make them highly favored in tire production. Additionally, they find extensive use in the pharmaceutical industry for items such as rubber stoppers and gloves due to their good shock absorption, low moisture and gas permeability, and widespread industrial applicability.
Source: Secondary & Primary Research and Prismane Consulting estimates
Butyl Elastomers Demand Supply Analysis
Butyl elastomers serve to impart adhesive properties in various products including tapes, valve cement, and flooring adhesives. The estimated global production capacity of butyl elastomers stands at approximately 2700 thousand tons, with Asia-Pacific contributing around 56% of this capacity.
These companies are major producers of butyl elastomers, which are widely used in various industries for their excellent properties and versatility.
Despite being the largest contributor in terms of volume and capacity, Asia-Pacific remains a net importer of butyl elastomer, importing an average of around 240 thousand tons between 2016 and 2022. Central & Eastern Europe emerges as the primary exporter of butyl elastomers, with Russia alone accounting for 95% of the exports in 2022.
The rising demand for vehicle tires and tubing is driving the need for butyl elastomer. Anticipated butyl elastomers market growth in OEM tire demand is fuelled by the expanding automotive industry. The demand for raw materials, including butyl elastomers, has surged alongside the consistent growth of the automotive sector in developing economies. Furthermore, the increasing use of butyl elastomer for moisture-proofing and roof repairs is projected to fuel market growth in the coming years.
Butyl elastomer finds applications in suspension bushings, speaker cone edges, shock mounts, as well as car and truck body mounts.
The global tire industry is intricately connected to the automotive sector. The escalating demand for new vehicles and replacement tires for older ones is propelling global rubber demand. Key players dominating the global tire market include Bridgestone, Michelin, Continental, Goodyear, Sumitomo, Pirelli, Copper Tires, Yokohama, Apollo, and MRF, among others. Butyl Elastomers’ demand growth largely hinges on its use across various end-use industries, particularly the tire industry. The dominance within the global tire industry rests with the Asia Pacific region, followed by North America and Western Europe. In Asia Pacific, China, Japan, and India stand out as the largest markets. Notably, economies such as China, India, and Japan contribute significantly to global exports.
The Asia-Pacific economy thrives due to substantial advancements in automobile manufacturing. A significant portion of the world's automotive electronics is sourced from the ASEAN region. Manufacturing, product development, and research activities in the automotive industry have shifted to Asian countries, attributed to increased disposable income and improved standards of living. The region is also favored for its availability of skilled labor and lower manufacturing costs.
The anticipated growth in the automotive industry is poised to drive tire demand, subsequently leading to an increased need for butyl elastomers.
Factors such as fluctuating raw material costs, volatile organic compound (VOC) pollution regulations due to rubber processing, and the availability of alternatives will hinder the butyl elastomers market in the forecast years. The price 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.
The demand for butyl elastomers in the pharmaceutical industry is increasing because it is low permeable, provide protection of sterile pharmaceutical applications and it avoid contamination during the storage of samples. Butyl elastomers are widely used for manufacturing stoppers, seals, injection vials, blood-collecting bottles, infusion container caps, and other pharmaceutical applications. Pharmaceutical stoppers are made of butyl elastomers because they provide a gas and moisture barrier and also provide high cleanliness. Owing to its low permeability, it is used in making gas masks.
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