Synthetic rubber

Synthetic rubber is mainly used in the making of tires, belts, hoses, and other automotive components, but the use of synthetic rubber is not limited. Apart from the automotive industries, synthetic rubber also increasing its demand in industrialization, and growing construction activities.

The automotive industry is known to be one of the largest consumers of synthetic rubber. And reason why demand for synthetic rubber is increasing is because it is used in making tires and tires are an important part of the vehicle. With the growing demand for vehicles in South America synthetic rubber is also in demand. In addition to this, according to the research report of Astute Analytica, the South America synthetic rubber market is growing at a compound annual growth rate (CAGR) of 4.19% during the forecast period from 2023-2031.

Why are automotive industries choosing synthetic rubber?

Synthetic rubber is also known for its durability and superior performance in comparison to natural rubber.

Before understanding the rise in demand for synthetic rubber, people need to understand the rise of the automotive industry and the factors affecting it.

The factors that are responsible for the rising demand in automotive industries: -

Rise in population: - The main factor for this is the increasing population and this leads to high demand for modes of transportation. Due to the rising population, public transport is not enough for traveling for people. These automotive industries manufacture vehicles to ease the problem of people in need of a mode of transport.

Competition brands: - This cause is given, if a company is manufacturing a new product so many rival companies are manufacturing the same product but enhanced, and the same things happen in the automotive industry. Many brands and companies are manufacturing vehicles but more enhanced and effective than others and due to this auto part suppliers are required to manufacture parts for them and tires are one of the parts that automotive industries need.

In the making of tires and other automotive components synthetic rubber is required.

Here is an example, Continental, a German auto part supplier is planning to consider the sale of the car division of Conti Tech.

These factors tell that the automotive industries and synthetic rubber are directly related to each other. The growth of automotive industries and the importance of synthetic rubber are also correlated. According to a known fact, 75% of rubber in the world is used for manufacturing tires.

The domination of the automotive industry on the rubber industry is both direct and indirect.

Closing Note

Apart from tires, some other rubber products are used in automotive industries like rubber bumpers, o-rings, rubber airbags, rubber seals, belts, rubber mats, rubber hoses, etc.

As for the producers of natural rubber and synthetic rubber, Brazil is well known for its production of rubber. Brazil is one of the largest rubber producers and exporters of rubber in the world.

Increasing demand for synthetic rubber led to the growth of Brazil in South America's synthetic rubber market by 41%.

Original Source

South America synthetic rubber market