South America synthetic rubber market was worth US$ 1,367.47 million in 2022 and is expected to reach US$ 1,898.52 million by 2031 at a CAGR of 4.19% during the forecast period.
Get Free sample copy of this report @ https://www.astuteanalytica.com/request-sample/south-america-synthetic-rubber-market
The synthetic rubber market has been experiencing healthy growth in recent years and is expected to continue this trend. The market is driven by various factors, including the increasing demand for synthetic rubber in automotive, construction, and other industrial sectors, as well as technological advancements and the need for eco-friendly and sustainable materials. As of 2021, the total production of synthetic rubber in South America was approximately 544,130 metric tons, while the consumption was around 530,000 metric tons. It is projected that both production and consumption will continue to grow at a moderate rate, CAGR of around 4% over the forecast period.
The most popular type of synthetic rubber in South America is Styrene-Butadiene Rubber (SBR), which accounts for approximately 32% of the market share. SBR is widely used in tire manufacturing, footwear, and other industrial applications due to its excellent resistance to abrasion, low-temperature flexibility, and ability to mix with other types of synthetic rubbers.
One of the key factors driving the growth of the synthetic rubber market in South America is the increasing demand for eco-friendly and sustainable materials. As the awareness about the impact of synthetic materials on the environment grows, more and more companies are looking for alternatives to traditional rubber materials. Synthetic rubber offers a more sustainable and eco-friendly solution as it is derived from petrochemicals, which are non-renewable resources, but are more efficient to produce and have a lower carbon footprint than natural rubber.
Moreover, the increasing adoption of technology in the production process is also contributing to the growth of the market. Advances in technology have led to the development of innovative manufacturing processes and improved production efficiency, which have resulted in cost savings for manufacturers and higher quality products for end-users.
Transportation Industry to Generate More than 54% Revenue of South America Synthetic Rubber Market
The major end users of synthetic rubber in South America are:
- Transportation Industry: 54% market share
- Building & Construction Industry: 17.9% market share
- Textile and Apparel: 11.2% market share
- Medical: 8.7% market share
The transportation industry is the largest contributor to the South America synthetic rubber market, generating over 54% of the total revenue. This is due to the significant demand for synthetic rubber in tire production, which is a key component of vehicles. The South American tire market is projected to grow at a CAGR of around 6% over the next 10 years.
In 2021, approximately 12 million passenger cars were sold in South America, while the region also witnessed the production of approximately 10.2 million vehicles. The demand for new tires is expected to increase in the aftermarket, which accounts for about 55% of the total tire demand in South America. The growing demand for tire replacements can be attributed to factors such as rising disposable income, increasing vehicle ownership, and the need for better-performing tires.
In terms of market share, the compact car segment is the largest in South America, accounting for approximately 35% of the total passenger car market share. The mid-size car segment comes in second, with around 28% of the market share. Overall, the South America synthetic rubber market offers significant opportunities for manufacturers and suppliers of synthetic rubber products, especially those that can offer high-quality, cost-effective, and sustainable solutions to meet the growing demand from the automotive industry and other end-user sectors.
Fluctuating Raw material Prices to Pose a Challenge for Players in South America Synthetic Rubber Market
The fluctuating prices of raw materials pose a challenge to the South American market. The primary raw materials used in synthetic rubber production are monomers derived from petroleum, such as styrene and butadiene. Prices of these monomers are influenced by various factors, including crude oil prices, supply and demand dynamics, and geopolitical events.
In 2019, crude oil prices showed moderate fluctuations, ranging between $50 and $70 per barrel. This, in turn, led to some variability in the prices of styrene and butadiene. However, in general, prices remained relatively stable compared to the subsequent years. The global economy experienced a significant impact from the COVID-19 pandemic in 2020, causing a sharp decline in demand for oil and petroleum-based products. As a result, crude oil prices dropped dramatically, falling as low as $20 per barrel in April. This led to decreased prices for raw materials used in synthetic rubber production. However, as economies in the South America synthetic rubber market began to recover and demand started to rebound, prices for styrene and butadiene increased towards the end of the year.
The year 2021 saw a gradual recovery in demand for petroleum-based products, and crude oil prices began to stabilize. Prices increased to around $60-$70 per barrel, leading to a moderate increase in the prices of styrene and butadiene. However, supply chain disruptions and geopolitical tensions contributed to periodic fluctuations in raw material prices throughout the year.
These fluctuations in raw material prices create uncertainties for synthetic rubber producers in South America, affecting their production costs and profitability. The market’s ability to adapt to these price changes and maintain a steady supply of raw materials will be crucial for the continued growth of the synthetic rubber industry in the region.
Brazil to Hold More than 40% Revenue Share of the South America Synthetic Rubber Market
Brazil is expected to dominate the South America market with a market share of more than 40%. This is largely due to its strong manufacturing base and high demand from various end-user industries, including automotive, construction, transportation, footwear, and manufacturing. Wherein, the automotive industry is a key driver in Brazil, accounting for a significant share of the demand for synthetic rubber. Brazil is one of the largest producers of vehicles in the world, with over 2.5 million units produced in 2021. This high production volume translates into a significant demand for synthetic rubber, which is used extensively in tire manufacturing.
The construction industry is another key driver of the synthetic rubber market in Brazil. With the government investing heavily in infrastructure development, the demand for synthetic rubber in the construction sector is expected to grow. Synthetic rubber is used in construction applications such as roofing, flooring, waterproofing, and sealants due to its excellent resistance to weather and chemicals.
The manufacturing industry is another important contributor to the synthetic rubber market in Brazil. The country is home to several large manufacturers of synthetic rubber, which helps to meet the domestic demand for synthetic rubber products and also export to other countries. This is further supported by the presence of large manufacturers in Brazil, such as Petrobras, Braskem, and Lanxess, is also expected to drive the growth of the market in the country. These companies have a strong presence in the domestic market and also export their products to other countries.
Browse summary of the report and Complete Table of Contents (ToC): https://www.astuteanalytica.com/industry-report/south-america-synthetic-rubber-market
Top 6 Players Hold More than 55% Revenue Share of South America Synthetic Tire Market
The South American synthetic rubber market appears to be moderately concentrated, with the top six players contributing more than 55% of the market share. ContiTec, a dominant market player, likely holds a substantial share of this percentage. A moderately concentrated market like this suggests that there is room for smaller players to enter the market, but they may face challenges in competing with the top players.
Some factors that may influence the competitiveness of the South American synthetic rubber market include:
- Demand growth: The demand for synthetic rubber in South America may be driven by various industries, such as automotive, construction, and consumer goods. If the demand for synthetic rubber continues to grow in these sectors, it can lead to increased competition among market players.
- Technological advancements: Innovations in the production process and the development of new synthetic rubber products could influence the competitiveness of the market. Companies that invest in R&D and adopt advanced technologies may gain a competitive advantage over their rivals.
- Raw material prices: The prices of raw materials, such as crude oil and natural gas, can impact the production costs of synthetic rubber. Companies that can effectively manage their supply chain and mitigate the risks associated with fluctuating raw material prices may have a competitive edge.
- Regulatory landscape: Environmental regulations and trade policies can have a significant impact on the synthetic rubber market. Companies that can adapt to changes in the regulatory environment and implement sustainable practices are likely to be more competitive.
Some of the Top Market Players Are:
- ContiTech
- Goodyear
- HM Rubber
- Rubber Brasil
- Sumitomo Chemical Co., Ltd.
- Yokohama
- Mg Industria E Comercio S.A.
- Industries De Calcados Kissol Ltda
- Vulcabrasǀazaleia (Vulcabras)
- Dakota Nordeste S.A.
- Other Prominent players
Directly Purchase a copy of report with TOC @ https://www.astuteanalytica.com/inquire-before-purchase/south-america-synthetic-rubber-market
About Astute Analytica
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
Contact us:
Aamir Beg
BSI Business Park, H-15,Sector-63, Noida- 201301- India
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
Email: sales@astuteanalytica.com
Website: www.astuteanalytica.com