Chloroprene Rubber Market Size
In 2022, the global Chloroprene Rubber Market size reached a valuation of USD 1.6 billion, with a growth projected at a CAGR of 2% to cross USD 2 billion by 2032. This strong growth can be attributed to the rising demand for fuel efficient vehicles and strong growth in the automotive industry. Chloroprene rubber is widely used in automotive, adhesives, building & construction, consumer goods, industrial machinery and wire & cable. Chloroprene rubber is used to manufacture rubber parts used in air suspensions, steering hoses, joint boots, brake hoses, seals and gaskets. In the electrical industry, it is widely used as sheaths for wires and cable. Chloroprene-based adhesives are known for their rapid bonding strength.
Introduction Chloroprene Rubber
Chloroprene rubber is a type of synthetic rubber that is made from chloroprene monomers through a process called polymerization. It was first developed by DuPont in the 1930s and has since found a wide range of industrial and consumer applications due to its unique properties. Dupont brought chloroprene rubber under trademark of Neoprene which is today commonly used named of chloroprene rubber
Global Chloroprene Rubber Demand Supply Analysis 2016-2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Chloroprene Rubber Capacity Analysis
In 2022, the global chloroprene rubber capacity stood at 380 kilo tons with companies like Arlanxeo, Denka, Tosoh, Showa Denko and Shanxi Synthetic Rubber Group Co Ltd being prominent player in the market.
In 2015, DuPont sold its Neoprene business to Denka Performance Elastomer, a joint venture between Denka and Mitsui. As of 2022, Denka is the largest producer of chloroprene rubber with a capacity of more than 170 kilo tons, with plants located in USA and Japan. Followed by Denka, Arlanxeo and Shanxi Synthetic Rubber Group Co Ltd are prominent producer of Chloroprene Rubber having capacity share of 18% and 10% respectively.
With global growth rate of less than 2%, no capacity expansions are announced in short term forecast. This will increase the Chloroprene rubber utilization from an average of mid 80s in 2022 to mid-90s in the forecast period.
Global Chloroprene Rubber Demand Analysis, By Region (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Chloroprene Rubber Demand Analysis
The global demand for chloroprene rubber was estimated to be over 300 kilo tons in 2022 which is further expected to grow at a CAGR of 1.5% to reach cross 380 kilo tons by 2032. The global chloroprene rubber market was impacted due to COVID-19 pandemic, with the market contracting by -5% in 2020. The demand bounced back in 2021 on the back of strong recovery in automotive, electronics and other end use industries of chloroprene rubber.
Asia-Pacific is the biggest consumer of chloroprene rubber in the world. Accounting for more than 50% of the global chloroprene rubber demand, followed by North America and Western Europe, together accounting for a market share of 40%. Owing to increasing demand for fuel efficient car around the world, the consumption for chloroprene rubber is anticipated to witness significant growth in automotive industry during forecast period.
In developing countries such as India and China, the demand of chloroprene rubber in automobile industry owing to the fuel-efficient cars has extensively called for strong demand in the forecast period. The Chloroprene Rubber demand in Asia-Pacific has been estimated to grow at a CAGR of 1.7% during the forecast period. Most of the demand for chloroprene rubber in the region will be for Automotive, Electronics and Consumer Goods industries.
The automotive industry in China has been the largest in the world and most of the cars manufactured in China are sold within China and the country exports more than 11% of total production which translates to 3.11 million units in 2022, making the country the world s second biggest car exporter. Most automotive and other downstream derivative companies are shifting their base to Asian Countries like China, India, Vietnam and other Southeast Asian Countries, due to this the chloroprene rubber demand will also increase.
Global Chloroprene Rubber Demand Analysis, By Application 2016 - 2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Chloroprene Rubber Trade Analysis
With majority of the supply concentrated in Japan and China, the Asia-Pacific is largest exporter of chloroprene rubber. In 2022, the region exported around 110 kilo tons of chloroprene rubber, with Japan constituting for a 75% share. With increasing supply, China also has significantly reduced its import dependence and increased its exports since 2017.
Followed by Asia Pacific, Western Europe is a major exporter, with Germany dominating the exports. In 2022, Germany exported around 26 kilo tons of chloroprene rubber. All other major countries in region such as France, Italy, Spain and UK are net importer of chloroprene rubber.
North America has been importer with marginal net imports of 4 kilo tons in 2022. Historically, the region has occasionally showed trade surplus, however, during long term forecast the regional is poised to increase its imports making it net importer through forecast period.
Chloroprene Rubber Market Dynamics
Drivers: Rising demand for fuel efficient vehicles
The rising demand for fuel efficient vehicles will positively impact the Chloroprene rubber market. Global sales of electric cars increased by around 60% in 2022, surpassing 10 million, up from around 9% in 2021 and less than 5% in 2020.
The growing demand for fuel-efficient vehicles across the world will boost the Chloroprene Rubber market growth. The demand for chloroprene rubber from the electronic industry is increasing due to their varied properties such as light-weight, dielectric properties, high-temperature resistance, and high-impact qualities. Rapid urbanization and the economic boom in the emerging countries of Asia-Pacific are expected to boost the demand for chloroprene rubbers for use in construction composites. Chloroprene rubber has demand in end use industries such as rubber industry, and adhesive industry. Chloroprene rubber is as well used to manufacture dipped articles such as gloves, to improve bitumen quality and to manufacture molded foam.
Restrain: Availability of substitutes
Substitutes such as styrene-butadiene rubber (SBR), epichlorohydrin rubber (ECO), nitrile rubber (acrylonitrile butadiene copolymer) are expected to hamper the chloroprene rubber market growth. Natural rubber is a strong competitor for chloroprene rubber, as they can be easily substituted in various applications. Chloroprene rubbers cannot be processed and recycled and cannot be decomposed naturally.
Challenges: High Costs of Chloroprene Rubber
The high costs of chloroprene rubber can hinder the market growth in the forecast period. Chloroprene rubber is the costliest rubber among the other rubbers. The cost of chloroprene rubber in comparison to butyl rubber. In Japan, the average prices of chloroprene rubber were 4.3$/kg in comparison to butyl rubber, which cost 3.6$/kg.
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