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Nitrile Butadiene Rubber (NBR) Market | Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Nitrile Butadiene Rubber (NBR) Market is valued at over 1,000 kilotons in 2021 and is projected to register a CAGR of over 5% during the forecast period (2022-2027). Due to the COVID-19 outbreak, nationwide lockdown around the globe, disruption in manufacturing activities and supply chains, production halts have negatively impacted the market in 2020.
New York, April 22, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Nitrile Butadiene Rubber (NBR) Market | Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06271892/?utm_source=GNW
However, the conditions started recovering in 2021, thereby restoring the growth trajectory of the market studied during the forecast period.
Key Highlights
Over the short term, the major factors driving the market studied are the growing usage in transportation and increasing industrial activities.
On the flipside, availability of substitutes is expected to hinder the growth of the market studied.
Asia-Pacific dominated the market across the globe with the largest consumption from the countries such as China, India, and ASEAN Countries.
Key Market Trends
Increasing Demand from the Automotive and Transportation Sector
Automotive and transportation form one of the major end-user industry of nitrile butadiene rubber. NBR is used in the automotive and aeronautical industry to make fuel and oil handling hoses, seals, grommets, and self-sealing fuel tanks since ordinary rubbers cannot be used.
NBR’s ability to withstand a varied range of temperatures from -40 to 108 °C (-40 to 226 °F) makes it an ideal material for aeronautical applications. The uses of nitrile rubber include automotive transmission belts.
The tires made from NBR are widely used in military vehicles and heavy-duty vehicles. It is also used in coated tire cord fabrics providing fundamental properties such as controlled deformation, high strength, high affinity, and abrasion resistance.
The global automotive industry suffered massively both in terms of sales and production during the COVID-19 pandemic. As per the data published by OICA, the global automotive production in 2020 stood at 7,77,11,725, approximately a 15.5% decline when compared with the previous year’s stats.
The 2021 global production stood at 8,01,45,988 units, a 3% increase from 2020 stats, but still 13% below pre covid levels (2019).
Africa, Asia-Oceania, and Americas have been the major contributors of this resurgence in 2021, with 16%, 6%, and 3% growth respectively in comparison to 2020 stats. Europe region is still suffering from production in 2021, being 4% below 2020 stats.
The automotive sector is expected to regain stability in the coming years. The EV (electric vehicle) sector has been witnessing significant investments in recent times. However, this growth is a restraint for the market studied since it mostly eliminates the usage of NBR in them.
All the aforementioned factors are expected to affect the demand for nitrile butadiene rubber (NBR) over the forecast period.
Asia-Pacific Region to Dominate the Market
Asia-Pacific region dominated the global market share of nitrile butadiene rubber (NBR). With the growing construction activities and rapid urbanization in countries such as China and India, the usage of NBR is increasing in the region.
China has the largest construction market in the world, encompassing 20% of all construction investments globally. China is expected to spend nearly USD 13 trillion on buildings by 2030. Additionally, the demographics in the country are expected to spur the growth of residential construction continually.
According to the National Development and Reform Commission, the Chinese government approved 26 infrastructure projects at an estimated investment of about USD 142 billion, which are estimated to be completed by 2023. The growing demand for housing is expected to drive residential construction in the public and private sectors.
Furthermore, India is also witnessing huge investments in the infrastructure projects which is likely to provide huge demand for market studied.
According to IBEF, in Union Budget 2021, the government allocated INR 233,083 crore (USD 32.02 billion) to enhance the transport infrastructure. The government expanded the ‘National Infrastructure Pipeline (NIP)’ to 7,400 projects. Around 217 projects worth INR 1.10 lakh crore (USD 15.09 billion) were completed in 2020.
China is the largest automotive hub in the world. According to OICA, the overall automotive production in the country in 2021 stood 2,60,82,220, a 3% increase from 2020.
In Indian, according to the OICA, 2021, total automotive production was about 4.4 million vehicles, including passenger, commercial, three-wheeler, two-wheeler, and quadricycles, which increased by about 30% compared to 3.38 million vehicles produced in the year 2020.
Furthermore, the healthcare industry in the country is projected to reach USD 372 billion by 2022 as per Invest India, and with various operations and surgeries taking place in the country, the demand for the product may increase in different medical appliances and kits such as gloves, etc.
All such factors, coupled with the increasing consumption from other emerging economies of Asia-Pacific, are driving the growth of the market in the region.
Competitive Landscape
The nitrile butadiene rubber market is partially fragmented. Some of the major players (not in any particular order) include KUMHO PETROCHEMICAL, Synthomer Plc, LG Chem, JSR Corporation, and Dynasol Group among others.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06271892/?utm_source=GNW
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