The Nitrile Butadiene Rubber Market is estimated to be valued at US$ 2.2 Bn in 2023 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Nitrile butadiene rubber (NBR) has excellent chemical resistance, good weathering resistance, and oil resistance. It is majorly used in automotive, oil & gas extraction, medical, and other industrial applications due to its toughness, flexibility, abrasion resistance, and resistance against oil, grease, and chemicals. Nitrile butadiene rubber can withstand exposure to gasoline, hydraulic brake fluid, transmission fluid, detergents, etc. making it ideal for various automotive applications including hoses, belts, gaskets, seals, and oil seals.
Market key trends:
Nitrile butadiene rubber witnesses high demand from the automotive industry. Nitrile rubber is increasingly being used in automobile seals, door profiles, oil seals and other components to enhance the vehicle's life and performance. Stringent emission regulations about fuel economy and extending component life have pushed automakers towards nitrile rubber. Additionally, improving economic conditions and increasing disposable incomes in emerging countries are positively impacting automotive sales thereby augmenting demand for Nitrile butadiene rubber.
Porter's Analysis
Threat of new entrants: Low capital requirements and existing customers limit threat of new entrants in the nitrile butadiene rubber market.
Bargaining power of buyers: Large buyers in the automotive and construction industries can negotiate lower prices from nitrile butadiene rubber suppliers.
Bargaining power of suppliers: Few raw material suppliers and differentiation of nitrile butadiene rubber from other synthetic rubbers increases suppliers' bargaining power.
Threat of new substitutes: Natural and synthetic rubbers can substitute nitrile butadiene rubber, though it offers better chemical and temperature resistance.
Competitive rivalry: Intense competition exists among established nitrile butadiene rubber producers.
SWOT Analysis
Strengths: Nitrile butadiene rubber possesses good oil and heat resistance properties, making it suitable for industrial applications.
Weaknesses: Nitrile butadiene rubber has high production costs and its products require vulcanization to develop final properties.
Opportunities: Growing demand from automotive and construction industries due to improving infrastructure in developing nations.
Threats: Stringent environmental regulations regarding emissions during nitrile butadiene rubber production. Volatility in raw material prices also poses threat.
Key Takeaways
The global nitrile butadiene rubber market is expected to witness high growth, exhibiting CAGR of 6.4% over the forecast period, due to increasing demand from automotive and construction industries. The global market size for nitrile butadiene rubber was valued at US$ 2.2 Bn in 2023.
Regionally, Asia Pacific dominates the global nitrile butadiene rubber market and is expected to continue its dominance during the forecast period. This is attributed to extensive demand from China, India, Japan, and Southeast Asian countries owing to rapid industrialization and infrastructure development activities in the region.
Key players operating in the nitrile butadiene rubber market are Apcotex Industries Limited, ARLANXEO, China Petroleum & Chemical Corporation (Sinopec), Dynasol Group, JSR Corporation, KUMHO PETROCHEMICAL, Lanxess, LG Chem, Sibur, Synthomer, Synthos, TSRC, Versalis SpA, and Zeon Corporation. These players are focused on capacity expansion and new product development strategies to strengthen their market position.
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