Hydrogenated Nitrile Butadiene Rubber (HNBR) Market: Broadened Scope of Application to Underpin Growth
Shifts in the preference from nitrile butadiene rubber (NBR) to hydrogenated nitrile butadiene rubber (HNBR) has led to HNBR becoming one of the fast growing raw materials in the production of rubber articles. The perpetual rise in consumer preference for high-quality rubber calls for a change in the production process of rubber. Due to its physical strength and splendid retention properties, hydrogenated nitrile butadiene rubber finds center stage in numerous automotive, construction, oil and gas, and machinery applications. The automotive industry alone accounted for 47% share in the hydrogenated nitrile butadiene rubber market in 2018.
Considering the popularity of hydrogenated nitrile butadiene rubber in numerous industrial applications, and its contribution to the growth of the synthetic rubber industry, manufacturers are vying towards increasing their production capacities for HNBR. Sensing the high demand for hydrogenated nitrile butadiene rubber in the end-use sector and the volatility in the prices of natural rubber leading to a shift towards synthetic rubber, TMR has conducted extensive research on the hydrogenated nitrile butadiene rubber market. In its new study, TMR lays bare the key trends in the hydrogenated nitrile butadiene rubber market, and explains how the change in opportunities has impacted the key strategies of stakeholders in the HNBR market space.
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Evolutionary Landscape of the HNBR Market
The synthetic rubber market is a key example of how volatility promotes growth. The synthetic rubber market came into the picture when the economic slowdown and low prices started hampering the natural rubber industry. It has now become an important commodity catering to the rising demand due to industrialization. Among the numerous synthetic rubbers in the market, hydrogenated nitrile butadiene rubber finds extensive application across a number of industries. The global hydrogenated nitrile butadiene rubber is projected to be valued at ~ US $ 60 Mn by the end of 2027, states TMR.
HNBR got its very own eminence because of the rising global competition in the automotive industry. New trends in engine designs called for the need to incorporate high-performance material in developing timing belts. To address this need, automotive manufacturers started moving away from polychloroprene to replace it with HNBR as the key raw material for timing belts.
Not just automotive manufacturers, but giants in the oil and gas industry eyed hydrogenated nitrile butadiene rubber for numerous oilfield applications such as sealing, gaskets, down-hole packers, and others. Although the risk of substitution continues to be a longstanding challenge for partakers in the hydrogenated nitrile butadiene rubber market, it presents an opportunity for the development of products with enhanced properties.
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Key Trends Transitioning the Market
Governments Providing Assistance for Rubber Production
The governments of numerous leading rubber producing countries such as Thailand, India, Indonesia, and Sri Lanka are providing economic assistance to rubber manufacturers in the form of subsidies, tax breaks, as custom duty waivers. For instance, the Indian government has helped the rubber growers and manufacturers through various efforts such as trade fairs and buyer-seller meets.
Similarly, in Thailand, the government supported the rubber industry by establishing a free trade agreement with rubber importing countries such as New Zealand and Australia. These efforts stem from rising rubber exports from these countries to different parts of the world, and the building of pressure to enhance the production of rubber. In a bid to reduce the transportation costs for raw materials and increase revenue outcomes, leading tire manufacturers in North America and Europe are outsourcing their operations to rubber producing countries such as China and India.
Rise in Demand for Seals and Gaskets
The seals and gaskets segment displays an upward trajectory, as it remains to be the preferred choice for the transportation and automotive industry. With the emergence of 3D printing techniques in the manufacturing sector, there has been considerable reduction in the turnaround time for the production of seals and gaskets. Capitalizing on the high demand and smooth manufacturing process for seals and gaskets, manufacturers are increasing their production capacities to stay ahead of the game in the hydrogenated nitrile butadiene rubber market.
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HNBR Market: Key Winning Strategies
Product Diversification to Remain Imperative
One of the key winning strategies deployed by leading manufacturers in the hydrogenated nitrile butadiene rubber market is product diversification to cater to a wide range of applications. Key players are foraying towards capitalizing on the high demand from different end-use industries such as oil and gas, automotive, construction, medical, and machinery. They are essentially tapping into the opportune potential of widening applications of hydrogenated nitrile butadiene rubber. For instance, Ge Mao Rubber Industrial Co., Ltd. manufactures products used in a pool of industries such as automotive, semiconductor, medical, drinking water, food & drug equipment, sanitary, and other applications. Similarly, Rahco Rubber, Inc. caters to industries such as plumbing, agriculture, energy, appliances, food service, transportation, marine, and municipal.
Variable Pricing to Align with Market Fluctuations
The rubber industry is highly dynamic in nature, with production fluctuation depending upon user trends and demand from the end-use industry. Leading manufacturers in the hydrogenated nitrile butadiene rubber industry are setting the prices of products with respect to market conditions in order to gain a competitive advantage over other players. They are essentially anticipating the changing trends in end-use industries and the economic conditions to set up suitable prices for HNBR products. This strategy has helped players cope with the volatility of the synthetic rubber industry.
Analysis of the Competitive Landscape
The global hydrogenated nitrile butadiene rubber market features a highly consolidated market landscape, with two major players - Zeon Chemical L.P. and ARLANXEO - accounting for 80% market share in 2018. Other key companies manufacturing HNBR include
- Rahco Rubber, Inc.
- Elastomer Engineering Ltd.
- Ge Mao Rubber Industrial Co., Ltd. (GMORS).
Increasing production capacities and expansion of production units in developing countries remains a key strategy for players to expand their global footprints in the hydrogenated nitrile butadiene rubber market. For instance, in July 2015, KACO GmbH + Co. KG established a new plant in Ningguo City in the Anhui province, aimed at manufacturing dynamic sealing parts and supplying them to local and international automobile industries.
Players are resorting to online channels and websites to connect with a large base of customers and suppliers. In addition to this, they are striving to expand their frontiers in regional markets to leverage the untapped revenue pockets in these regions. They are participating in international conferences, tradeshows, and events to create a presence and build a strong brand image. Apart from these strategies, strategic mergers and acquisitions remain a preferred winning imperative for key market players to gain access to a large consumer base across the world.
Analysts’ Viewpoint on the HNBR Market
Authors of the report have an optimistic outlook on the future growth of the global hydrogenated nitrile butadiene rubber market. Developing countries are likely to remain lucrative markets, owing to the presence of numerous end-use industries. However, cost plays a key role in the hydrogenated nitrile butadiene rubber market because of the volatility in the synthetic rubber industry. Players responding quickly to the key changes in the industry will remain at the forefront, while the ones shying away from them may bear the brunt of losses.
Players are likely to increase the production of HNBR products used in the automotive industry, considering the contribution of this sector to the market’s success. Apart from this, mergers and acquisitions are likely to alter the market shares of companies during the forecast period. Overall, consolidation of the hydrogenated nitrile butadiene rubber market is likely to reduce over the forecast period, owing to the broadened scope application of HNBR and the lucrativeness of the market.
Hydrogenated Nitrile Butadiene Rubber (HNBR) Market Description
- Hydrogenated nitrile butadiene rubber retains its properties even after long-term exposure to heat, oil, and chemicals.
- The hydrogenated nitrile butadiene rubber market in Asia Pacific is anticipated to expand in the near future, owing to the rapid growth of the automotive and oil & gas industries, led by fast-paced industrialization and urbanization.
- Hydrogenated nitrile butadiene rubber is primarily used in the automotive industry, owing to its resistance to fuels, lubricating oils, coolants, and other media. It is suitable for engine sealing components.
Key Growth Drivers of the Hydrogenated Nitrile Butadiene Rubber Market
- New grades of material with improved low temperature flexibility are extending the service temperature range of hydrogenated nitrile butadiene rubber, allowing new applications in seals and mounts. For example, HNBR is primarily used in the seals and moldings of car engines that run on new fuels such as rapeseed oil methyl ester.
- Hydrogenated nitrile butadiene rubber is characterized by its physical strength and retention properties after long-term exposure to oil, heat, and chemicals. This is expected to boost the demand for HNBR in various industries such as oil & gas, construction, and automotive during the forecast period.
Major Challenges for the Hydrogenated Nitrile Butadiene Rubber Market
- The availability of substitutes such as thermoplastic elastomers is expected to act as major restraining factor for the HNBR market.
- The disadvantages of hydrogenated nitrile butadiene rubber include higher cost, limited resistance to polar organic solvents and aromatic oils, poor electrical properties, and poor flame resistance. These drawbacks of hydrogenated nitrile butadiene rubber increase the usage of other elastomers, including NBR, polyurethane-based, and EPDM.
- NBR is a major substitute for hydrogenated nitrile butadiene rubber, as it possesses similar features. Additionally, the production cost incurred in the manufacture of NBR is lower than that of hydrogenated nitrile butadiene rubber.
Lucrative Opportunities for the Global Hydrogenated Nitrile Butadiene Rubber Market
- Hydrogenated nitrile butadiene rubber can be used in a wide range of applications such as automotive, industrial, and other performance-demanding applications as compared to traditional NBR materials. This acts as a major opportunity for the HNBR market.
- HNBR is also widely employed in industrial sealing for oil field exploration and processing, and rolls for steel and paper mills. Hydrogenated nitrile butadiene rubber is utilized in a broad range of applications, including automotive (coolants, oils, and fuel systems), industrial, oil & gas, food and pharmaceuticals, and medical.
- Capacity expansion, joint ventures, and acquisitions can create opportunities for established players to expand their businesses further and new players to enter the HNBR market
Asia Pacific Prominent in the Hydrogenated Nitrile Butadiene Rubber Market
- Asia Pacific accounted for a major share of the global hydrogenated nitrile butadiene rubber market in 2018. Its share is expected to increase by 2027, due to large-scale production activities and plant expansions undertaken by rubber processing industries in the region.
- Growth of the automotive and tire industries in China and India is projected to boost the consumption of hydrogenated nitrile butadiene rubber in Asia Pacific in the next few years.
- China and India are the leading automobile manufacturing nations in Asia Pacific, and generate significantly large demand for hydrogenated nitrile butadiene rubber products used in manufacturing motorcycles, cars, light vehicles, trucks, and buses.
North America Also Offers Growth Opportunities
- North America held a key share of the global hydrogenated nitrile butadiene market in 2018. Multinational corporations in North America are engaged in developing high-performance hydrogenated nitrile butadiene rubber elastomers through research & development.
- The demand for hydrogenated nitrile butadiene rubber is high in North America, due to the presence of large rubber processing industries in the region. A large number of renowned manufacturers of hydrogenated nitrile butadiene rubber, such as TG North America Corp. and Lord Corp., operate in the region. These companies export their products to Europe and Asia Pacific.
- The U.S. constituted a significant share of the hydrogenated nitrile butadiene rubber market in North America in 2018. The automobile sector is one of the largest consumers of hydrogenated nitrile butadiene rubber in the U.S.
Automotive Segment to Account for a Prominent Share
- In terms of revenue, the automotive segment accounted for a major share of the global hydrogenated nitrile butadiene rubber market in 2018. The segment is projected to continue its dominance throughout the forecast period, as a number of large automobile makers from Europe and the U.S are entering Asia Pacific and Latin America.
- Hydrogenated nitrile butadiene rubber offers excellent mechanical properties, as well as heat, oil, and fluid resistance in various automotive applications.
- HNBR is widely used in the manufacture of fuel system seals, hoses, engine seals, grommets, gaskets, transmission system bonded piston seals, A/C seals and hoses, synchronous (timing) belts, and multi-V belts, in the automotive industry.
Leading Players Actively Engage in Joint Ventures and R&D Activities
- Key players operating in the global hydrogenated nitrile butadiene rubber market include
- Zeon Chemicals
- Lianda Corporation
- Rahco Rubber, Inc.
- Elastomer Engineering Ltd.
- Ge Mao Rubber Industrial Co., Ltd. (GMORS)
- KACO GmbH + Co. KG
- Parker Hannifin
These companies are engaged in expansions, mergers & acquisitions, and joint ventures in order to increase their share in the global hydrogenated nitrile butadiene rubber market.
Zeon Corp. is expected to increase its production capacity for hydrogenated nitrile butadiene rubber at its manufacturing plant in Kawasaki, Japan, by the end of 2019. Currently, the production capacity of high-performance Zetpol at the Kawasaki plant stands at 500 tons per year.
Hydrogenated Nitrile Butadiene Rubber (HNBR) Market
TMR’s recent publication comprises an exhaustive analysis on the hydrogenated nitrile butadiene rubber market, where readers can get insightful information pertaining to the key aspects of the HNBR market. The study analyzes the impact of the historical and current trends on the future development of the hydrogenated nitrile butadiene rubber market. It sheds light on how the hydrogenated nitrile butadiene rubber market will unfold during the forecast period of 2019 to 2027.
The hydrogenated nitrile butadiene rubber market report gives readers an overview of the disruptive trends and technological developments brought in by the key players in the HNBR market. Additionally, it details out the new opportunities in the HNBR market, and offers a perspective on the upcoming developments in this space. The hydrogenated nitrile butadiene rubber market has been analyzed in terms of volume (tons) and revenue (US$ thousand).
Through this study on the hydrogenated nitrile butadiene rubber market, readers can acquire important qualitative and quantitative details pertaining to the regulatory scenario, investments, and price trends that influence the HNBR market. The study encompasses a competitive dashboard that ascertains the key strategies adopted by key players, and assesses their market share on regional and global levels.
Key Questions Answered in the Hydrogenated Nitrile Butadiene Rubber Market Report
The report provides actionable insights pertaining to the key happenings in the hydrogenated nitrile butadiene rubber market in a comprehensible manner. The study answers significant questions that helps stakeholders take important business-related decisions. Some of the questions include:
- What will be the hydrogenated nitrile butadiene rubber market’s valuation by the end of the forecast period?
- What are the key strategies adopted by the big shots in the hydrogenated nitrile butadiene rubber market?
- What factors have helped the automotive segment gain a leading position in the hydrogenated nitrile butadiene rubber market?
- How will the growth of the hydrogenated nitrile butadiene rubber market unfold during the forecast period?
- How will historical trends impact the present and future of the hydrogenated nitrile butadiene rubber market?
The analysts of the report on the hydrogenated nitrile butadiene rubber market have followed a bottom-up and top-down approach to gain exclusive data pertaining to the market’s present and future. Regional pricing trends have been considered to derive market revenues, while market estimates have been derived based on market volume. Extensive primary and secondary research has been conducted to come up with key market figures.
For primary research on the hydrogenated nitrile butadiene rubber market, analysts conducted one-to-one interviews with the brand managers, industry leaders, CEOs of leading companies, and key manufacturers. The information derived through primary research was backed by secondary research through sources such as The European Printing Ink Association (EUPIA), The Flexography Technical Association, The National Association of Printing Ink Manufacturers, The U.S. Environmental Protection Agency, and others.
Hydrogenated Nitrile Butadiene Rubber Market: Segmentation
The report on the hydrogenated nitrile butadiene rubber market lends a comprehensive segmentation, giving a holistic view of the market to the readers. The study segments the hydrogenated nitrile butadiene rubber market into three broad categories – end-use industry, application, and region.
The report on the hydrogenated nitrile butadiene rubber market highlights key the trends in each segment and their impact on market players. It assesses the contribution of each region to the hydrogenated nitrile butadiene rubber market’s growth. The information provided includes Y-o-Y growth analysis, value chain analysis, and supply chain analysis.
Oil and Gas
Seals and Gaskets
Middle East and Africa