Styrene-Butadiene Rubber market

• Increased adoptions from adhesives industry is driving the market growth

Styrene-butadiene rubber is primarily used in the manufacture of pressure-sensitive adhesives and also in the bonding of tufted carpets. Increasing demand for tapes, labels, graphics, etc., has driven the market CAGR during the forecast period. Rubber-based PSAs are replacing traditional PSAs in various applications, which have increased the consumption of styrene-butadiene rubber in the adhesive industry. In 2021, as the restrictions eased, the demand for adhesives started recovering and outgrew the pre-pandemic levels in 2022. Styrene-butadiene rubber is used in tires to improve their properties of the Tire. It helps in reducing rolling resistance and improves fuel economy.

It also enhances the wet grip and braking performance of the Tire.

Additionally, it increases the Tire's life by protecting it from wear and tear. According to Top Tire Review, in 2021, the tire industry was valued at USD 130.54 billion. The top three companies, Michelin, Bridgestone, and Goodyear, accounted for approximately 50% of the overall styrene-butadiene rubber market revenue. Moreover, the demand for adhesive is expected to increase, with the increasing demand from the packaging industry, mainly in the Asia-Pacific region, owing to the development of the e-retail and e-commerce sectors. Increased adoption of structural tapes in green buildings has enhanced the performance of emerging building technologies.

Adhesives for European flooring systems have a long tradition of indoor air sustainability. Styrene-butadiene rubber is the main polymer for manufacturing footwear outsoles because of its availability, low cost, and high filler tolerance. In 2021, 22.2 billion pairs of footwear were produced ly. Asia is responsible for over slightly less than 90 percent of footwear production.

In 2023 Synthos entered into a Memorandum of Understanding with Kumho Tire which is a reputed South Korean tire manufacturer.

During Q1/23 Synthos made known its decision to stop making E-SBR (110k MT/year) at Kralupy facility so as to shut down completely by Q2/23. The move is motivated by soaring utilities costs, which have made E-SBR production in Europe unsustainable. This strategic decision will lead to a permanent reduction of the company's E-Styrene Butadiene Rubber capacity from 430 thousand tons per year to 320 thousand tons per year. Nonetheless, Synthos emphasizes that despite the mentioned 110 k MT capacity cut it would still remain the biggest E-SBR producer in Europe.

In 2022, Synthos announced that it would reduce its production volume of E-SBR by about 30% or one hundred thousand tonnes against the background of raw material and utility prices soaring. Reduction in E-SBR capacity will continue until further notice. At the same time S-SBR and BR will be produced at nominal rates.

The Global Styrene-Butadiene Rubber Market Industry experiences substantial growth driven by the automotive sector. Styrene-butadiene rubber is extensively utilized in tire manufacturing due to its excellent abrasion resistance and durability. As the automotive industry continues to expand, particularly in emerging markets, the demand for high-performance tires increases. In 2024, the market is projected to reach 4.86 USD Billion, reflecting the automotive sector's pivotal role in this growth. The shift towards electric vehicles also contributes to this trend, as manufacturers seek advanced materials to enhance performance and sustainability.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American styrene-butadiene rubber market area will dominate this market. The tire application in this Region is driven by the demand from famous automotive manufacturers such as Ford, Cadillac, and General Motors will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: STYRENE-BUTADIENE RUBBER MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's styrene-butadiene rubber market accounts for the second-largest market share due to therising demand for high-performance tires from the automotive industry. Further, the German styrene-butadiene rubber market held the largest market share, and the UK styrene-butadiene rubber market was the fastest-growing market in the European Region.

The Asia-Pacific styrene-butadiene rubber market is expected to grow at the fastest CAGR from 2023 to 2030. This is due rising demand for high-performance tires from the automotive industry will probably boost the Tire fabricating industries' demand for higher-specification crude materials and high fuel efficiency in vehicles creating the need for low rolling resistance in tires. Moreover, China’s styrene-butadiene rubber market held the largest market share, and the Indian styrene-butadiene rubber market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the styrene-butadiene rubber market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, styrene–butadiene rubber industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s uses in the styrene-butadiene rubber industry to benefit clients and increase the market sector. In recent years, the styrene-butadiene rubber industry has offered automobiles some of the most significant advantages.

Major players in the styrene-butadiene rubber market, including Rockwood Lithium, AkzoNobel, Chemtura, Asahi Kasei, Bridgestone, LANXESS, MICHELIN, China Petroleum & Chemical, JSR, Reliance Industries Limited (India), Zeon Corporation (Japan), LG Chem (South Korea),Trinseo (US), KUMHO PETROCHEMICAL (South Korea), Goodyear Rubber Company (US) and others, are attempting to increase market demand by investing in research and development operations.

China Petroleum & Chemical Corp.'s Hainan Baling Chemical New Material Co., Ltd. initiated the manufacture of a styrene-butadiene copolymer (SBC) project in Hainan, China, in 2023. It can handle 170,000 tons of cargo annually. The largest SBC plants in the world are currently found in Sinopec. Rubber elasticity can be achieved at ambient temperature and high temperatures can be used to plasticize thermoplastic elastomer (TPE) copolymers. SBC is a subtype of thermoplastic polyethylene (TPE), and its products, such as SBS, SEBS, SIS, and SEPS, are extensively utilized in food packaging, automotives, consumer electronics, footwear, asphalt modification, resin modification, and adhesives.

ARLANXEO is a world-leading synthetic rubber company with sales of around EUR 3.0 billion in 2019, about 3,900 employees, and a presence at 12 production sites in 9 countries and seven innovation centers worldwide. Headquartered in The Hague, Netherlands, the company's core business is developing, manufacturing, and marketing synthetic high-performance rubber for use in the automotive and Tire industries, construction industries, and oil and gas industries.

ARLANXEO was established in April 2016 as a joint venture of LANXESS - a world-leading specialty chemicals company based in Cologne, Germany - and Saudi Aramco - a major  energy and chemicals enterprise headquartered in Dhahran, Saudi Arabia. The two partners each held a 50% interest in the joint venture. Since December 31, 2018, ARLANXEO has been a wholly-owned subsidiary of Saudi Aramco, a leading producer of energy and chemicals.Arlanxeo inaugurated a new 65 kilotonne-per-annum (ktpa) polybutadiene (PBR) production line in southern Brazil. The new plant will help increase the flexibility of rubber production at the Triunfo facility.

Asahi Kasei Corporation is a multinational Japanese chemical company. Its main products are chemicals and materials science. It was founded in May 1931, using Nobeoka Ammonia Fiber Co., Ltd.'s paid-in capital, a Nobeoka, Miyazaki-based producer of ammonia, nitric acid, and other chemicals. Asahi Kasei Corporation began the sale of Tufdene S-SBR (solution-polymerized styrene-butadiene rubber), and Asadene BR (butadiene rubber) made using the mass-balance method at Asahi Kasei Synthetic Rubber Singapore Pte. Ltd. and the Synthetic Rubber Plant of Asahi Kasei's Kawasaki Works.

The sale will be based on the ISCC PLUS2 certification for S-SBR and BR, acquired by Asahi Kasei's Synthetic Rubber Division in October 2022.