Currently, the global isoprene market is reporting an impressive rise. The expansion of the synthetic rubber industry is behind this market’s significant progress, states a new report by Transparency Market Research (TMR). Since isoprene demonstrates characteristics similar to natural rubber, such as strength and flexibility, its demand in the production of tires, adhesives, and other rubber products has increased considerably.
The study suggests that the opportunity in this market will reach US$1.47 bn by the end of 2022. The continuing growth in the automotive industry will support this market going forward. Nowadays, consumers are highly interested in owning vehicles, which is translated in the rising need for tires. The high cost of natural rubber tires has fuelled the demand for synthetic rubber tires in the automotive industry, propelling this market to a great extent, states the research report.
Demand for Polymer Grade Isoprene Continues to be on Higher Side
Polymer grade isoprene and chemical grade isoprene are the two main products available in the global isoprene market. Among the two, the former reports a higher demand. In 2017, the segment held more than 54% of the overall demand for isoprene across the world. Researchers expect this trend to continue and the polymer grade isoprene segment to remain dominant in the near future.
Tires, industrial rubber, and adhesives are the prime end users of isoprene. Of these, isoprene finds extensive application in the tires segment. The properties of polyisoprene, such as durability, wear resistance, resilience, and strength, makes it a suitable alternative of natural rubber for the manufacturing of tires. With the ongoing expansion in the automotive industry, this segment is likely to remain the key end user of isoprene in the years to come, reports the market study.
Continued Leadership for North America
The report also offers an in-depth study of the regional performance of the worldwide isoprene market. According to it, the global market is spread across the Middle East and Africa, Latin America, Europe, Asia Pacific, and North America. At present, North America dominates the worldwide market for isoprene. The presence of a well-established automotive industry is the main factor behind the rise of this regional market. The North America isoprene market is expected to continue its lead throughout the forecast period, rising at CAGR of 4.50%.
Europe is also reporting a significant rise in its market currently. However, it is a maturing market and, due to this, it will witness a slowdown in the near future. On the other hand is Asia Pacific, which is teeming with novel opportunities. The thriving automotive industry in India and China, together with the rising disposable income of consumers, is making this region an opportune market for isoprene, notes the study.
Leading Players to Focus on Backward integration to Remain in Competition
Royal Dutch Shell Plc, DuPont, SIBUR, ZEON Corp., LyondellBasell Industries N.V., Ningbo Jinhai Chenguang, Braskem, Fortrec Chemicals and Petroleum Pte Ltd., and Bridgestone Corp. are some of the leading companies in the global isoprene market, which are reviewed in the research report. With the intense rivalry among these companies, the business landscape in this market is highly competitive.
Leading companies are pursuing product differentiation strategies actively to remain in the competition. Going forward, they are likely to focus more on backward integration to stay a step ahead of their competitors, states the market report.