Butyl Rubber Market Size
The global Butyl Rubber Market size was valued at USD 5 billion in 2023 and it is poised to register a CAGR of 4% to during the forecast period, to reach USD 7 billion by the end of 2032. Butyl Rubber is widely used in various applications, including tire inner liners, tire innertubes, curing bladders and envelopes, hoses, adhesives & sealants, and many other rubber goods suitable for industrial and consumer applications. Butyl Rubber serves end-use industries such as Automotive, Construction, Medical, Pharmaceuticals, Food, and Others.
Butyl Rubber, also known as Isobutylene-Isoprene Rubber (IIR), is a synthetic rubber derived from butylene and isoprene. It was first developed in 1937 at Standard Oil of New Jersey's Linden, N.J., laboratory.
Global Butyl Rubber Demand-Supply Analysis, 2016-2032 (KT)
Source: Secondary & Primary Research and Prismane Consulting estimates
Butyl Rubber Capacity Overview
The global Butyl Rubber installed capacity was estimated to be over 2600 kilo tons in 2022, further projected to cross 3200 kilo tons by 2032, with majority of expansions announced in Asia, particularly in China. The key Butyl Rubber manufacturers include ExxonMobil, Lanxess, PJSC Nizhnekamskneftekhim, SIBUR, Cenway, Sinopec Beijing Yanshan Petrochemical Co., Ltd, Japan Butyl Co. Ltd, and Reliance Sibur Elastomers Private Ltd. These companies together account for over 85% of the global butyl rubber capacities, with ExxonMobil dominating the market with a share of over 30%. The company operates its butyl rubber and halogenated butyl rubber production facilities in the USA, France, the United Kingdom, and joint ventures in Japan and Saudi Arabia.
More than half of the global Butyl Rubber supply resides in Asia-Pacific, with China being the largest Butyl Rubber producer globally, accounting for 33% of the global Butyl rubber production capacity. Conway is the largest butyl and halobutyl rubber producer in the country, with an installed capacity of 350 kilotons as of 2022. North America ranks second in terms of production capacity, representing a 19% share followed by Western Europe accounting for 12%.
Global Butyl Rubber Demand By Region, 2022 (KT)
Source: Secondary & Primary Research and Prismane Consulting estimates
Butyl Rubber Demand Overview
Asia-Pacific dominates the Butyl Rubber Market, accounting for over 60% of the total demand, mainly attributed to the growing transportation and pharmaceutical industries in countries such as China, Japan, and India. North America is the second largest consumer of butyl rubber, followed by Western Europe. The Butyl Rubber market in Asia Pacific is projected to witness strong growth during the forecast period owing to expansion in the tire manufacturing and transportation industry.
Global Butyl Rubber Demand By Application, 2016-2032 (KT)
Source: Secondary & Primary Research and Prismane Consulting estimates
In terms of the Butyl Rubber market by applications, Transportation (Tire, Tubes, Mechanical Products, and Others) dominates the global Butyl Rubber market, accounting for over 80% of the global market. he exceptional gas impermeability and air retention properties of Butyl Rubber make it an ideal material for these applications, contributing to its widespread use in the transportation sector. In the transportation industry, Butyl Rubber is used to produce various products such as inner tubes and inner liners for tires, sealants, pneumatic springs air cushions, and other products. The Butyl Rubber demand in the Transportation sector is driven by the automotive industry's growth, increasing vehicle production, along with the rising demand for high-performance tires is projected to drive the global Butyl Rubber market during 2023-2032.
Key Butyl Rubber Manufacturers:
Recent Developments in the Butyl Rubber Market
EU sanctions on Russian Butyl Rubber
Russia has been a significant exporter of butyl rubber globally, catering to both domestic and international demands. Major destinations for Russian butyl rubber exports include China, India, Turkey, and South Korea. After a brief dip in 2021, Russian butyl rubber exports saw a modest 2.1% year-over-year increase in 2022, totaling 120.7 kilotons. The highest export volumes were recorded in the second quarter of 2022 at 42.3 kilotons, gradually decreasing quarter by quarter to 24.2 kilotons in Q4. China accounted for the largest share of these shipments, with 84.7 kilotons, followed by South Korea with 8.7 kilotons and India with 5.4 kilotons.
However, it's worth noting that the European Union (EU) has announced sanctions on critical tire raw materials, including Russian butyl rubber, starting in July 2024. The diversification of Russian butyl rubber exports to Turkey and Asian countries, especially China, and India, is seen as a strategic move to mitigate the impact of these sanctions. . China was the largest buyer of Russian butyl rubber in 2022, accounting for 70% of the total shipments.
Nevertheless, the absence of Russian supply will have implications for the EU, as it relies heavily on Russian imports. In anticipation of the upcoming deadline, several European tire manufacturers have already begun reducing their dependence on Russian materials, by increasing shipments from Asia or exploring alternative sources.
China to extend anti-dumping tariffs on halogenated rubber from U.S.
China has once again decided to extend anti-dumping tariffs on halogenated rubber imports from the United States, the European Union, and Singapore. This extension comes as part of the final investigation into anti-dumping measures against this type of rubber.
On August 20, 2018, Chinese authorities implemented definitive anti-dumping duties on halogenated butyl rubber imports from the United States, the European Union, and Singapore. These duties were set at 75.5% for imports from the United States, 27.4% to 71.9% for imports from the European Union (depending on the company), and 23.1% to 45.2% for imports from Singapore (depending on the company). These duties were established for a five-year period.
In August 2023, China's commerce ministry decided to continue the same anti-dumping duties on imports of halogenated butyl rubber originating from Singapore, the United States, and the European Union.
Butyl Rubber Future Outlook
Over the past six years, tire manufacturers and butyl rubber producers have faced significant uncertainty. Prior to the onset of COVID-19, both European and Chinese tire manufacturers experienced a drop in production due to factors such as a sluggish economy, stricter safety and environmental inspections in tire factories, fluctuations in key raw material prices, and global geopolitical and economic instability. However, despite these challenges, there has been a positive recovery in the aftermath of COVID-19, driven by increased vehicle production. While COVID-19 temporarily slowed production, global vehicle production has grown steadily from 58 million in 2000 to 80 million in 2022.
Looking ahead, it is estimated that the butyl rubber market will witness a CAGR of 4% in the forecast period, reaching a valuation of USD 6 billion by 2032.
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