Global rubber compound market is likely to exhibit a promising growth curve as far as the short-term outlook is considered. The report will uncover the insights into how the market growth will unfold in the next few years.
Sustained Demand from the Industrial Sector Continues to Shape Rubber Compound Market
Rubber compounds are extensively used in various industrial sectors for insulation, sealant, and several other industrial applications. Owing to the durability of these compounds, they are used to insulate wires and cables from damage, absorb electricity and heat, as well as to prevent short circuits. Rubber compounding or formulation refers to the addition of certain chemicals to raw to obtain desired properties. These well-known chemicals include crosslinking agents, anti-degradants, reinforcements, and colorants. These compounds could be a combination of 3-15 different ingredients of thousands of different compositions and vendors. Apart from the earlier example of use, rubber compounds are used in various machinery for effective heat management. Another example would be when butyl rubber is extensively used in work gloves to protect workers from electric currents and other potential hazards in many industries. Surging levels of industrialization are expected to fuel growth prospects for the rubber compound market.
Increasing Use of Elastomers for Footwear Applications to Boost Rubber Compound Market Expansion
Heightened levels of consumerism and higher disposable incomes have led to a wider range of various products being made available at cost-effective pricing. This has held true for the footwear industry as well. The increasing demand for elastomers in the production of footwear can be attributed to their favourable properties such as flexibility, longer shelf life, and sturdiness. It is due to these properties that manufacturers prefer to use these compounds in place of plastic or leather. This is expected to be a major factor contributing to the growth of the rubber compound market over the forecast timeline.
Growing Availability of Alternatives to Pose a Threat to Rubber Compound Market Growth
The higher costs associated with the adoption and processing of rubber compounds are expected to increase investment expenditures, in turn spiking end-product sales. Moreover, a general lack of awareness about the benefits of these products may also hamper demand. This has led to a higher adoption of cheaper, low-quality alternatives, particularly among small-scale industries, owing to their cost-effectiveness. This is a major factor that could potentially have a negative impact on the growth trajectory of the rubber compound market.
Rubber Compound Market: COVID-19 Impact
With the onset of the COVID-19 pandemic, restrictions were imposed by respective governments on the movement of people and goods, thus hampering the supply of necessary raw materials, among other operational hurdles, resulting in a significant decline in generated revenues for several industries. This was no different for the rubber compound market as product consumption levels reduced drastically. Additionally, people became more careful with their finances owing to job insecurity and an overall decline in earned incomes was more evident. However, as restrictions were gradually relaxed, post the 3rd and 4th respective waves, this global market regressed to its pre-COVID state of operations.
Asia Pacific to Index the Highest Market Share in Global Rubber Compound Market
The increasing demand for high-quality materials from various industrial sectors in the Asia Pacific, particularly in China, is a primary factor that is expected to cement the growth trajectory of the rubber compound market of the region in the coming years. Moreover, the increasing prominence of end-use manufacturing industries, as well as the steady increase in disposable incomes have also contributed to this regional growth. North America is also expected to account for a significant share of this market. This can be attributed to the increasing adoption of these compounds in various industrial sectors, increased funding, as well as favorable policies being implemented by respective governments in this region.
Rubber Compound Market: Competitive Landscape
Major players in the rubber compound market include Hexpol Group, Phoenix Compounding Technology GmbH, Cooper Standard Automotive Inc., Hutchinson SA, PTE Polymer-Technik Elbe, Elastomix Pvt Ltd., AirBoss of America, Chunghe Compounding Co. Ltd., Dongjue Silicone Group Co. Ltd., KRAIBURG Holding GmbH & Co. KG, Dongguan New Orient Technology Co. Ltd., Guanlian, American Phoenix Inc., Haiyu Rubber, and Dyna-Mix Custom Rubber Mixing. To gain a competitive edge in this market, various established industry players are now more focused on new product launches, partnerships, collaborations, acquisitions, and alliances.
Recent Notable Developments
Regional Classification of Global Rubber Compound Market Can be Given as Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Rubber Compound Market
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