SBR (Styrene Butadiene Rubber ) Market Size
The global SBR market size is projected to grow from USD 10.2 Billion in 2022 to USD 16 Billion by 2032, at a CAGR of 4.5% during the forecast period. The global SBR market is influenced by the strong growth in the automotive industry, coupled with a rising trend in the adoption of electric vehicles.
Styrene butadiene Rubber (SBR) is derived from Styrene and Butadiene Monomers through copolymerization and accounts for more than 25% of the synthetic rubber market. SBR has better heat, weather, and chemical resistance as compared to natural rubber.
Global SBR Demand Supply Analysis Until 2032 (KT)
Source: Secondary & Primary Research and Prismane Consulting estimates
SBR Market By Type
At present SBR is made by two available technologies, namely Emulsion Polymerisation (e-SBR) and Solution Polymerisation (s-SBR). Both technologies produce SBR with distinctive characteristics and properties. SBR serves end-use industries such as Tire, Mechanical Products, Footwear, Adhesives, and others. Solution styrene butadiene rubber with low vinyl content provides temperature flexibility at low temperatures, abrasion resistance, and low rolling resistance for products such as tires and low molding parts.
Emulsion SBR is blended with other rubbers and is finds applications in passenger cars light truck tires and truck re-treading compounds. Other applications of E-SBR include conveyor belts, piping, hoses, shoe soles, molded products, tubings, and carpets. S-SBR shares similarities with E-SBR in terms of tensile strength, modulus, and elongation. However, it outperforms E-SBR in terms of heat dissipation, flex resistance, and decreased rolling resistance in tires. This makes S-SBR a favorable material of choice for meeting the ever-increasing demands of high-performance tire standards.
The Solution-SBR is expected to witness faster growth as compared to the emulsion grade as the solution grade of SBR can easily meet the stringent specifications of the tire and automotive industry. The demand for SBR was significantly affected by the global economic slowdown and COVID-19 pandemic, where the demand from all the major end-user industries declined especially the tire & automotive sector, the largest outlet for SBR. The growth in the automotive industry and the increase in trend in the adoption of electrical vehicles in developing countries is further projected to push the demand growth of SBR in the long-term forecast.
Global SBR Demand, By Application till 2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
SBR Market By Application
In 2022, the primary market for SBR was in tires and related products, and this sector is poised for substantial growth in the forecast period. The increased demand for tires within the automotive industry is a key factor driving the SBR demand. Tires play a pivotal role in ensuring safe and efficient transportation, and their importance has only grown with innovations in transportation technology, such as electric and autonomous vehicles.
Additionally, the tire industry is witnessing expanded production by major manufacturers, further stimulating growth. Tire manufacturing stands as the largest end user for synthetic rubber, constituting more than 75% of global E-SBR and S-SBR production, respectively. Beyond tires, synthetic rubber finds applications in non-tire automotive applications, such as industrial hoses, conveyor belts, a variety of extruded rubber and molded products, footwear, and consumer goods.
Electric vehicles have been a major area of development in the automotive industry since the last decade. EVs and HEVs have been gaining importance and increasing their market share at a decent pace, with the high cost of batteries being the only key restraining factor. The key companies present in the automotive industry include Toyota, Tesla, BMW, Volkswagen, and Mercedes, Volvo, Ford, Mitsubishi, General Motors and Renault-Nissan, all of whom have been successful in developing and optimizing their own hybrid and electric models for improved performance and efficiency.
China is the largest automotive market globally and is expected to increase the production of electric and hybrid vehicles. Volvo and Tesla Mottos recently announced to set up an electric vehicle manufacturing facility in China. India has set a goal to replace all gasoline vehicles by 2030. The Government is looking at providing incentives like lower taxes and interest rate on loans for consumers buying electric vehicles are opposed to that of conventional vehicles.
More electrical systems are being incorporated into each new generation of motor vehicle to ensure greater passenger comfort and safety. These include automatic window systems, electronic seat adjustment, climate control systems, navigation systems and in-car entertainment. Electrical systems make extensive use of. Growth in production of automobiles and initiatives taken by original equipment manufacturers to reduce weight of the vehicles will further drive the demand of SBR in the long-term forecast. Growing purchasing power in the developing economies is seen as a key driver of demand for synthetic rubbers like SBR. The economy in Asia-Pacific has been thriving on account of the advancements witnessed in the automobiles, mechanical products, footwear, adhesives and others.
Global SBR Demand, By Region (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
SBR Market By Region
In 2022, Asia-Pacific on the back of China dominated the global SBR market accounting for over 50% of the market. The region is projected to witness strong growth during the forecast period on the back of huge investment in the Tire and Automotive industry, mainly in China and India. China was estimated to be the largest consumer of SBR in the region in 2022 driven by high demand from automotive production.
In addition to this, China is also the largest market for tire industry globally in terms of volume and value. The country has been the largest producer as well as consumer of tires globally since 2005. In 2021, the country produced around 902.5 million of tires with a year-on-year growth of 12% from around 807 million of tires in 2020. The tire industry of the country is growing driven by the sale of new automotives. The rapid development of electric vehicles caused growth in sales of energy passenger vehicles which further drove the tire demand in the country. However, owing to anti-dumping tariffs imposed by Wester Countries, the tire market of China declined in 2017. In response, to industry declining, the government of China released Tire Industry Entry Standards in 2017 to increase the entry barrier for manufacturers.
The major SBR producers in China are Sinopec, China National Petrochemical Corp (CNPC), Bridgestone, Zhejiang Petrochemical, Baling and North Dynasol Synthetic Rubber Co., Ltd. China National Petrochemical Corp has 3 production facilities located in Fushun, Jilin and Lanzhou. The company manufactures Emulsion polystyrene butadiene rubber with production capacity of around 500 kilo tons annually. Sinopec has a production facility situated in Zibo with production capacity of around 250 kilo tons.
North America accounted for a significant demand for SBR globally in 2022. The demand of SBR in North America is driven by growing tires production in the region. The stagnant growth of automotive industry for the past few years is limiting the demand of SBR in tire and related products while growing sale of new automotives is driving the market in the region. During the forecast period, SBR demand in applications such as mechanical products, footwear and adhesives is poised to experience faster growth than demand in tire production.
Recent Developments in SBR Market
In December 2023, Versalis announced the shutdown of its synthetic rubber facility in Grangemouth, United Kingdom, citing increasingly challenging conditions in the elastomer market and declining profitability. Versalis will shut it 60 kilo tons SBR plant by April 2024.
In 2022, Synthos announced a reduction in the production capacity of E-SBR by around 30% which translates to 100 kilo tons amid surge in raw material and utility prices. The reduction in E-SBR capacity will continue until additional notice is provided. Meanwhile, S-SBR and BR production will continue to run as nominal rates.
In Q1 2023, Synthos announced its decision to cease the production of 110,000 metric tons of E-SBR at its Kralupy, Czech Republic facility by Q2 2023. This decision was prompted by the high utility costs, which have created an unsustainable market environment for E-SBR producers in Europe. This strategic move will result in an annual reduction in the company s E-SBR capacity, from 430,000 metric tons to 320,000 metric tons. However, Synthos underscores that even with this 110,000 metric ton reduction in capacity, the company will remain the largest E-SBR producer in Europe.
In May 2023, Sumitomo Chemical revealed its plan to ceased the production of 40 kilo tons of S-SBR in Jurong Island, Singapore by the first half of 2024 as a crucial step in the company s restructuring efforts. The company established its S-SBR plant in Singapore in 2014.
Hankook Tire and Kumho Petrochemical signed a memorandum of understanding, MoU to develop ecofriendly tires using solution-polymerised styrene butadiene rubber, eco SSBR. Kumho Petrochemical will provide recycled Styrene Monomer for production of eco-SSBR. The company has aims to commercialize SSBR material by 2026.
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