New York – Global synthetic rubber output is to grow at a CAGR (compound annual growth rate) of 5 percent to reach a production capacity of 9.8 million tonnes by 2020, according to a 2015-2020 market report.
Growth is being driven by “cost effectiveness and adaptability of elastomers in major end-user markets”, said a press release from report supplier ReportLinker.
Asia Pacific, particularly China, leads in consumption and revenue generation, followed by the North America, added the release, which put current global elastomers production at around 7.3 million tonnes.
Growing demand from automotive industry is cited as the main driver for the elastomers market, with growing purchasing power in developing economies also anticipated to increase demand.
The report lists major players as including Kraton Polymer, BASF, TSRC of Taiwan, Huntsman, Dow, Arkema, Evonik, AES, Polyone, LyondellBasell, LG, Teknor Apex, Yantai Wanhua and Lubrizol.
However, the industry is expected to face certain challenges, including fluctuations in crude oil prices, product commoditisation and market saturation in many applications for elastomers.
The report title is Global Elastomers market - Segmented by Product type, Application and Geography - Trends and Forecasts (2015-2020).