Liquid synthetic rubber market set for 4.5% annual growth 

Portland, Oregon – The liquid synthetic rubber (SR) industry is expected to grow at a compound annual growth rate (CAGR) of 4.5% between 2020 and 2027, according to a recent market study. 

The global liquid SR market was pegged at $20.3 billion (€16.6 billion) in 2019 and is projected to reach $28.8 billion by 2027, said the report by US-based Allied Market Research on 26 May.

According to the study, the increase in use of liquid synthetic rubber – including liquid isoprene rubber, liquid butadiene rubber, liquid styrene butadiene rubber – is driven by the adhesive industry and a rise in the production of tires globally. 

In addition, the growing use of the products in industrial rubber manufacturing is expected to offer “lucrative opportunities” for market players. 

Fluctuating raw material prices, however, are likely to hinder the market growth. 

According to the study, in terms of resin type, the liquid styrene butadiene rubber segment held the lion's share of the market in 2019, accounting for more than two-fifths of the global liquid synthetic rubber market.

The rise in the use of the materials was due to an increased focus on durability and performance of tires along with the adoption of tire labeling regulations, the report added. 

Meanwhile, the liquid isoprene rubber segment is projected to register the highest CAGR of 6.3% during the forecast period, due to infrastructure activities in countries such as India and China. 

By application, the tire industry held the largest share in 2019, as major manufacturers in China, Japan, and India had access to ‘abundant raw materials and low manufacturing costs.’