Industrial Rubber Products Market

Industrial Rubber Products Market: Description

• Industrial rubber products are used in various downstream industries, including manufacturing, construction, and healthcare. Industrial rubber products are classified into different product categories such as mechanical rubber goods, rubber hoses, rubber belts, and rubber roofing.
• The global lightweight vehicles industry is witnessing technological innovations, increased investments, and use of quality products impacting new business models that are being adopted by original equipment manufacturers (OEMs). Rise in investments in the automotive sector is likely to drive the global industrial rubber products market.

 Key Growth Drivers of Global Industrial Rubber Products Market

• The automotive sector, specifically the engine design section, involves the replacement of traditional engines with high performance overhead cam engines and multi-valve designs. This has created challenges in the engineering of timing belts with increase in under-the-hood temperatures due to hotter running engines and compact engine compartments. Increase in the demand for timing belts in the automotive sector is expected to propel the global industrial rubber products market.
• Rise in load bearing requirements forces traditional synchronous belt materials to perform beyond their limits. Material suppliers and belt manufacturers are working together to develop new designs and materials that address these performance needs. Synthetic rubber is used to design such timing belts. Rise in the demand for rubber products in end-use industries is driving the global industrial rubber products market. 

 Major Challenges for Global Industrial Rubber Products Market

• Several developed countries, such as the U.S. have enacted laws on the manufacturing of rubber. The U.S. Environmental Protection Agency (EPA) has identified rubber tire manufacturing facilities as major sources of hazardous air pollutants (HAP) emission. These standards were implemented in 2002 as section 112(d) of the Clean Air Act (CAA).
• Stringent government regulations and health hazards associated with industrial rubber are thus restraining the global industrial rubber products market.

 Lucrative Opportunities for Global Industrial Rubber Products Market

• Environment-friendly rubber has minimal impact on the environment. Virgin rubber is an environment-friendly rubber. This rubber is derived from the rubber tree. Rubber trees help remove carbon dioxide from the air.
• Increase in awareness about environment conservation is expected to boost the demand for green tires in the near future. Increase in recycling rate is anticipated to create opportunities in the global industrial rubber products market during the forecast period. 

 Asia Pacific to Dominate Global Industrial Rubber Products Market

• In terms of both, value and volume, Asia Pacific held a major share of the global industrial rubber products market in 2018. The market in Asia Pacific is expected to expand rapidly during the forecast period. The auto parts manufacturing industry in Asia Pacific is primarily driven by the growing automobile manufacturing industry, especially in countries such as China, South Korea, and India. Thus, expansion of auto parts and automotive industries in Asia Pacific is driving the global industrial rubber products market.
• North America also constitutes a significant share of the global industrial rubber products market. There has been a rapid increase in construction activities across the U.S. and Canada. The residential sector is a key driver for the growth of the construction industry, with low borrowing costs and wage growth continuing to increase the demand for more housing units in these countries. In the construction & infrastructure sector, rubber is largely used in applications such as roofing and windows. Thus, growth of the construction industry in North America is propelling the industrial rubber products market in the region.

Natural Rubber to Account for Prominent Share

• In terms of rubber, the natural rubber segment held a major share of the global industrial rubber products market in 2018. Natural rubber combines high strength, i.e. tensile and tear, with outstanding resistance to fatigue, and hence, is extensively employed in the manufacturing of belts and hoses. Synthetic rubber is expected to create lucrative opportunities for the global industrial rubber products market.

Molded Process Leads Global Industrial Rubber Products Market

• Based on process, the molded segment held a leading share of the global industrial rubber products market in 2018. The molding process includes transfer molding, injection molding, and compression molding. Injection molding is the most precise method used to shape rubber. Transfer-molded rubber products require a few and simple pre-forms.
• The extruded segment accounted for a considerable share of the global industrial rubber products market in 2018.

Mechanical Rubber Goods to Lead Global Industrial Rubber Products Market

• In terms of product, the mechanical rubber goods segment constituted a key share of the global industrial rubber products market in 2018 and is likely to continue its dominance during the forecast period.
• The segment is expected to be driven by the rise in the global production of medium-load and heavy-load trucks and buses, and advancements in light motor vehicles.
• In terms of product, the rubber hoses segment also held a key share of the global industrial rubber products market in 2018. 

Leading Players Actively Engage in Joint Ventures and R&D Activities

• The global industrial rubber products market is fragmented; it is dominated by major multinational companies. Market concentration can be ascribed to barriers to entry, such as the influence of brand loyalty, high capital requirements related to building or modernizing manufacturing facilities, and maintenance of highly-advanced research & development facilities.
• Two prominent companies operating in the global industrial rubber products market are Bridgestone Corporation and The Goodyear Tire & Rubber Company.
• On April 10, 2019, Bridgestone Corporation’s Australian subsidiary, i.e. Bridgestone Mining Solutions Australia Pty. Ltd., established the Hunter Valley Mining Solution Center. The subsidiary sells and provides services pertaining to tires used in mining vehicles and conveyor belts.
• On June 19, 2018, The Goodyear Tire & Rubber Company and Bridgestone Americas, Inc. jointly formed TireHub LLC, a joint venture for the distribution of passenger vehicle and light truck tires. TireHub LLC would be providing tire dealers and retailers in the U.S. with a wide range of passenger vehicle and light truck tires.
• The Goodyear Tire & Rubber Company focuses on expanding its presence in emerging markets across the globe. In November 2016, the company expanded its tire factory in Pulandian, China. This expansion aims to increase the capacity of the factory by approximately 5 million tires a year. The new plant is expected to be operational by 2020.