Rubber Process Oil Market size was valued at USD 2.3 Billion in 2023 and is set to exceed USD 3.83 Billion by the end of 2036, registering over 4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of rubber process oil is estimated at USD 2.41 Billion. Tires are the largest consumers of RPO. The increasing demand for tires, driven by growing vehicle sales, the expansion of the transportation sector, and the replacement tire market, all contribute to the demand for RPO. In 2020, the European Union (EU) manufactured 4.3 million tonnes of tires. Despite having 94 tire production facilities, within the EU the region's imports of tire categories exceed its exports.
RPO is used as a reinforcing agent in the production of rubber-based adhesives and sealants, which gives them strength and flexibility. This helps them to be used in a variety of applications, such as bonding car parts, sealing joints in buildings, and gluing together materials in the manufacturing process. As these sectors grow, the demand for RPO is expected to increase.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
4% |
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Base Year Market Size (2023) |
USD 2.3 Billion |
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Forecast Year Market Size (2036) |
USD 3.83 Billion |
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Regional Scope |
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by Type (Aromatic, Paraffinic, Naphthenic, Mild Extracted Solvent)
The aromatic rubber process oil market is estimated to gain the largest market share of about 38% in the year 2036. The segment growth can be attributed to the increasing demand for synthetic rubber in the automotive industry, which is a major application segment for aromatic rubber process oil. The increasing demand for synthetic rubber in the automotive industry is largely due to its superior performance and durability over natural rubber. Additionally, the aromatic rubber process oil offers better resistance to heat and oxidation, making it an ideal choice for the automotive industry.
Application (Rubber Processing, Lubrication, Tyre, Footwear, Adhesive & Sealants, Polymer, Paints & Coatings, Pharmaceuticals)
The rubber processing segment in the aromatic rubber process oil market is estimated to gain a significant share of about 23% in the year 2036. The segment growth can be attributed to the increasing demand for rubber products, such as tires, conveyor belts, and hoses, due to increasing industrialization and urbanization. As more industries rely on rubber products, there is a greater demand for rubber processing applications to manufacture them. This has resulted in increased research and development of more efficient rubber processing techniques, as well as new technologies to improve the quality and performance of rubber products.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Application |
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APAC Market Forecast
The rubber process oil market in Asia Pacific, amongst the market in all the other regions, is anticipated to hold the largest with a share of about 35% by the end of 2036. The market growth in the region is also expected on account of China, India, and Japan being the largest producers and consumers of rubber process oil in the region. Additionally, these countries are also focusing on reducing their dependence on imports, which further contributes to market growth in the region. Furthermore, the region's growing automotive industry and increasing investments in the tire industry are also driving the growth of the market in the region.
North American Market Statistics
The North America rubber process oil market is estimated to be the second largest, registering a share of about 28% by the end of 2036. The market’s expansion can be attributed majorly to the increasing production of rubber-based products, and the growing adoption of rubber process oils in various industrial applications. Approximately 35 million metric tons of rubber are produced in the United States each year. This, in turn, is leading to an increased demand for rubber process oils, which are used in the manufacturing process of rubber-based products. Furthermore, the increasing preference for synthetic rubber, which is more cost-effective and energy-efficient, is also driving the growth of the market.
Author Credits: Rajrani Baghel
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