Robust demand to drive rubber market in 2025

The global rubber market is driven by various end-use industries whose robust growth will be sustained in 2025. The global rubber market size, valued at US$ 46.95 billion in 2023, is expected to expand at a compound annual growth rate (CAGR) of 5.08% from 2024 to 2030, according to a Grand View Research report “Rubber Market Size, Share & Trends Analysis Report By Type, By End-Use (Automotive, Construction, Industrial, Healthcare, Consumer goods, Packaging), By Region, And Segment Forecasts, 2024 – 2030.”  Rubber is mainly used as a raw material in a variety of end-use industries due to properties such as heat and abrasion resistance. It is primarily utilised in production of tires, crap tubes, adhesives, hoses, gaskets, and roll coatings. Owing to its robust qualities, including tear resistance and durability, it is mostly employed in manufacture of tires.

The report further states that the rubber market has been significantly driven by superior properties exhibited by product such as abrasion and heat resistance and its applicability as a valuable raw material in various end-use industries such as industrial, automotive, electrical, and consumer goods. Rubber is a major raw material used for production of car tires, personal protective equipment such as masks and gloves, and others.

In terms of region, Asia Pacific dominated rubber market and accounted for the largest revenue share of over 30%. Asian countries such as China, Vietnam, Indonesia, India, and Thailand, Japan are expected to remain as primary markets for rubber due to extensive rubber tire production in these countries. The past few years saw China and India posting drastic rise in automotive production due to technology transfer to sector from Western markets which is expected to drive demand for rubber tires and influence the market.

Growing consumer awareness towards environmental protection and rubber manufacturers’ approach toward sustainability have created high demand for reclaimed rubber in various end-use sectors such as footwear, automotive, flooring, and others. Also, the growing consumer awareness on the need for physical fitness is likely to propel demand for rubber flooring mats, driving the market growth. In addition, the dynamic aviation sector is expected to result in increased flights and more consumption of rubber tires. These factors are likely to positively impact demand for rubber for its use in aircraft tires.

Furthermore, rising demand for natural rubber goods, combined with a developing global automobile and construction industry, is expected to boost the market. Due to its high tensile strength, vibration-dampening characteristics, and tear resistance, natural rubber is preferred over synthetic rubber.

End-use sectors to expand

The automotive segment led the market and accounted for largest revenue share of more than 34% and this scenario will continue in 2025. Rubber demand is increasing due to its distinctive characteristics, such as high tensile strength, vibration dampening, and tear and abrasion resistance, which makes it suitable for manufacture of seals, tires, and others in automotive industry.

Rubber finds application in construction industry owing to its properties such as durability, weather resistance, and energy efficiency. Various rubber-based materials are required for construction of roads, bridges, and infrastructure projects. In infrastructure, rubber is used in applications such as expansion joints, waterproofing membranes, and sealants. Rising construction activities across the globe is expected to boost the demand for rubber over the forecast period.

Industrial end-use industry is expected to grow at a significant rate over the forecast period. Rise of automation and smart manufacturing is predicted to drive up demand for rubber components in industrial machines and equipment. Rubber components are in high demand in a variety of industries, including manufacturing, mining, and energy.

Synthetic rubber to lead growth

In terms of material type, the synthetic rubber type segment led the market and accounted for revenue share of over 50%. Synthetic rubber is popular in a variety of industries, including construction, automotive, textiles, medicines, and defense, due to its low cost and lightweight properties. Synthetic rubber in automotive end-use industry to produce a wide range of goods, including adhesives, gaskets, hoses, roll covers, pipes, tires, and waste tubes. The rapidly increasing population and increasing rates of urbanization drive construction industry. In order to lower the cost and increase quality of materials, major players in these industries also invest in research and development.

Likewise, natural rubber is expected to grow at a significant rate. Demand growth is attributed to such factors as increased vehicle manufacturing, increased construction activity, high demand for footwear, and increased airplane production. Furthermore, natural rubber is a key raw material utilised in production of a wide range of end-use items, including medical equipment, industrial components, surgical gloves, vehicle tires, clothes, pacifiers, toys, mattresses, and others.