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Rubber Consumption: Top Market Reports

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Global Resin & Rubber Industry

World consumption of rubber (one of the most traded synthetic materials) is expected to grow at a yearly rate of almost 4.5% through 2015 to exceed 30 million metric tons, according to research from Freedonia. Market growth will be driven by increased demand for rubber thanks to recovery in tire output as the global production of motor vehicles climbs.

In the global resin industry, paints and coatings manufacturers account for the largest market share of acrylic resins, with the paper and paperboard industry representing the fastest growing end-use for acrylic resins. Acrylic resins are part of the thermoplastic or thermosetting plastic substances category made from methacrylic acid, acryclic acid and other compounds of the same nature.

Key Market Segments

The global industrial rubber products industry is forecast to record 6% yearly growth through 2016 to reach almost $140 billion, reports Freedonia. Growth in original equipment manufacturing (OEM) markets will fuel demand, with particularly strong growth in the motor vehicle sector.

Global Industry Analysts predicts the global nitrile butadiene rubber (NBR) market will reach a volume of almost 650,000 tons by 2017. The market is influenced by demand from the automotive, industrial and manufacturing sectors along with GDP growth and raw material supply. Construction and infrastructure activity in the Asia-Pacific and Latin American regions will fuel long-term growth.

The global epoxy resin market is expected to exceed 3 million tons by 2017, according to research from Global Industry Analysts. End-use applications such as bonding applications, electrical laminates, decorative powder coating, flooring, paving, and marine and maintenance coatings are expected to account for rising epoxy resin demand. The industry will also benefit from increased research and development efforts leading to higher product innovation.

Regional Market Share

Asia-Pacific will witness fast gains in rubber production, with China leading the region to account for more than 25% of world rubber output gains to 2015 in terms of volume, reports Freedonia. The Asia-Pacific region is forecast to make up 80% of global growth in terms of volume through 2015. Levels of motorcycle and bicycle production in China are high, creating demand for rubber used to manufacture non-motor vehicle tires.

In North America and Western Europe, the rubber industry is expected to record gains that lag behind the world average. These two regions are expected to see some degree of recovery following sales declines between 2005 and 2010. In Central and South America as well as in Eastern Europe, the rubber market is expected to witness increased growth, though it will remain less than the global average through 2015. Africa and the Middle East region, however, will keep pace with the global average over the same period.

The US acrylic resins market is expected to see demand rise to a yearly rate of almost 4%. Acrylic resin consumption by paints and coatings manufacturers is expected to surpass $6.5 billion before the end of 2012. The US acrylic monomer market is characterized by a high degree of concentration. Leading names currently operating in this market space include BASF, Dow Chemical, Air Products and Chemicals, Rohm and Haas, Celanese, INEOS Acrylics and Altuglas. Between them, these seven companies meet around 90% of US acrylic monomer demand.

Market Outlook

Tire rubber represented more than 65% of global rubber demand in 2010. Freedonia forecasts tire rubber gains to decline to a slower pace than other product sales between 2012 and 2015. Tire rubber will, however, continue to dominate the market. Tire rubber sales will be driven by rising production levels of non-motor vehicle tires for motorcycles, bicycles and industrial vehicle tires. Asia-Pacific production of these tires will overshoot motor vehicle tire output. Rubber for motor vehicle tire production represented more than 50% of global rubber sales in 2010, and will continue to dominate over the five-year period ending 2015.

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