The global rubber vulcanization market is projected to register a CAGR of XX% during the review period, 2018–2023. The growth of the global market is attributed to the growth of the automotive & transportation industry as most of the vulcanized rubber is used in tire production. The extensive use of rubber in the production of gloves, catheters, feeding tubes, as well as pacemakers and mammary prostheses is expected to drive the demand for rubber in the healthcare sector. Moreover, the growing industrial and consumer goods applications of rubber is also expected to fuel the global market growth. The presence of significant opportunities in the market such as rapid adoption in the oil & gas industry along with the trends such as devulcanization technology has resulted in manufactures to undergo strategic growth initiatives such as product launch and expansion.
The key players operating in the global rubber vulcanization market include LANXESS (Germany), BASF SE (Germany), Arkema SA (France), Eastman Chemical Company (US), Kumho Petrochemical (South Korea), Sumitomo Chemical Co., Ltd. (Japan), Duslo, a.s. (Slovakia), Shandong Stair Chemical & Technology Co., Ltd (China), Willing New Materials Technology Co., Ltd (China), and King Industries, Inc (US). The market comprises of tier-1 and tier-2 companies, with a global presence. This results in a high degree of rivalry among the players. Furthermore, companies such as LANXESS, BASF SE, and Kumho Petrochemicals, as well as the Chinese players, offer a wide range of products, which leads to the rest of the players to invest more in R&D for new product development.
Date
Approach
Description
28 Feb 2019
Expansion
Kumho Petrochemical will complete the expansion of its acrylonitrile-butadiene (NB) latex production with a capacity of 150,000 tons by the first half of this year. It is used widely in making surgical gloves. This will increase the company's synthetic rubber production capacity to 550,000 tons a year, making it a leader in the global market.
18 January 2018
Product Launch
Eastman Chemical introduced a new insoluble sulfur, Crystex-brand Cure Pro at the ACS Rubber Division International Elastomer Conference in Cleveland, US. The product offers superior dispersion, enhanced thermal stability and flow, and more sulfur.
20 November 2017
Product Launch
Arkema introduced Luperox AIR-XL technology, a hot air curable organic peroxide for EPDM compounds. The product is specifically designed to enhance the mechanical performance of EPDM, EPM, and HNBR and heat aging as compared with sulfur cure. Additionally, elastomers cured with Luperox AIR-XL are nitrosamines-free and therefore offer physical health and safety benefits.
28 April 2016
Expansion
BASF inaugurated a new specialty amines production plant in Nanjing, China. The new plant produces dimethylaminopropylamine and polyetheramines. Dimethylaminopropylamine is mainly used in the production of betaines, which are used as co-surfactants in personal care products such as shampoo and body wash along with various other applications such as dye-stuff intermediates, lubricant additives, electroplating, coupling agents for rubber, and others.
Threat of New Entrants
The threat of new entrants is expected to be low in the market as the market is highly capital intensive. The other factor that is expected to act as a barrier for new entrants is the large economies of scale. Moreover, stringent regulations by the US EPA and REACH make it difficult for new players to enter the market. Even in small quantity, vulcanization requires a variety of raw materials; the availability of which is not easy. This also makes it difficult for new entrants to enter the market and gain profits.
Threat of Rivalry
The threat of rivalry is expected to be moderate to high as a wide range of chemicals is used in the vulcanization of rubber. The differentiation of products coupled with versatility in product offerings is expected to intensify the rivalry. The players in the market are focusing on product launch and expansion, which is also expected to result in a high degree of rivalry among the existing players in the global market.
Threat of Substitutes
The specific characteristics of vulcanized rubber, i.e., enhanced strength, high resistance to oxidation and wear and tear abrasion, as well as elasticity, cannot be offered by any other material at present. The process makes rubber suitable material for its specific uses in car tires, gloves, gaskets, seals, and catheters, among others. Hence, the threat of substitutes is expected to be low in the market.
Bargaining Power of Suppliers
The bargaining power of suppliers is expected to be moderate on the backdrop of large number of players operating in the market. Additionally, the power is lowered by the versatile product offerings by the manufacturers in the market. However, the increasing demand for final rubber products from major end-use industries is likely to increase the bargaining power of the suppliers.
Bargaining Power of Buyers
The bargaining power of buyers is high in the market owing to the wide range of applications of rubber in end-use industries such as automotive & transportation, consumer goods, healthcare, and textiles. The presence of large number of well-established global customers coupled with high brand identity in the market is expected to increase the bargaining power of buyers.
