Rubber Vulcanization Market

The global rubber vulcanization market is expected to register a CAGR of 4.94% during the review period. The growth of the global market is highly dependent upon the growth of the automotive and transportation industry. The extensive use of silicone rubber in the healthcare industry for contraceptives, gloves, injection parts, tubing, diaphragm, catheters, and intravenous medications is expected to be the major factor fueling the global market growth. Moreover, the increasing use of rubber products such as conveyor belts and rollers in industrial applications as well as in consumer goods such as sports equipment and footwear is also projected to positively influence the global market growth. However, stringent regulations and the adverse effects associated with production and disposal of rubber are likely to hamper the global market growth during the forecast period.

Around 75% of rubber produced is used in tire production, which is one of the important parts of automobiles and transport vehicles. The increasing production and sale of automobiles across the globe is fueling the demand for tires, which consequently is expected to propel the demand for rubber vulcanization. The most widely used rubber for tire production is styrene butadiene rubber (SBR). It is primarily used for producing tire treads, which is the part that remains in contact with the road surface. The introduction of low rolling resistance tires is one of the primary factors driving the demand for rubber, and thus rubber vulcanization in the automotive industry. These tires consume less energy, lower fuel consumption, and reducing CO2 emissions. According to the US Department of Energy, installing low resistance tires can improve fuel economy by about 3% for light-duty vehicles (LDVs) and by more than 10% for heavy-duty vehicles (HDVs). However, the reduction of tread depth to improve rolling resistance results in the corresponding reduction in tire wear life. This leads to an increase in the repetitive sale of such tires, which further fuels the demand for rubber vulcanization in tire production.

Other than SBR, silicone rubber is also used in wide range of applications in automobile interiors such as airbags, ignition cables, HT cables, grommets, radiator seals, performance hoses, vibration dampening, spark plug boots, and ventilation flaps. This is attributed to the properties of silicone rubber such as environmental resistance, sealing properties, and temperature resistance. Furthermore, ethylene propylene diene monomer (EPDM) is used in the manufacturing of windshields, weather strips, pedal pads, shift boots, and overhead waterproofing membranes. Additional rubber components used in an automobile include bumper, O-ring, airbag, seals & gaskets, mats, hose, dust covers, mud flaps, wiper blades, and engine mounts.

The tires used in aircraft are mostly made of natural rubber, on account of its better heat resistance. The strength and resiliency of natural rubber are enhanced by mixing it sulfur, carbon black, and other chemicals. The blended stock is milled into sheets and fed into an extruder that forms aircraft tire tread materials. The growth of the aerospace industry positively influences the demand for natural rubber-based tires, which in turn is expected to drive the demand for rubber vulcanization. The growing demand for lightweight and fuel-efficient military aircraft for homeland security and counter-terrorism is another factor expected to fuel the global market growth. The US Geological Survey stated in its Minerals Book 2015 that the global aircraft fleet is expected to double over the next 20 years. According to the US Department of Commerce, Bureau of the Census, Foreign Trade Division, the total exports of the US aerospace industry held at USD 150.61 billion in 2018, which increased from USD 143.17 billion in 2017. The top 5 destinations for US aerospace exports in 2018 were China, France, the UK, Canada, and Germany. The increase in aircraft production is attributed to the improvement in commercial aviation network, the growth of the tourism industry, economic development, and an increase in the number of air passengers.

The oil & gas industry uses a wide range of products made from rubber in processes such as exploration, extraction, refining, and transportation. The oil & gas industry is exposed to high temperature, high pressure, and harsh environments on a daily basis, thus the material requirement for corrosion resistance, vibration resistance, thermal resistance, and chemical stability is necessary. Certain rubber products used in the oil & gas industry include seals & gaskets, O-rings, pipe, tubing, and hose, sleeves and rubber bladders, washers, grommets, and connectors, couplings, and fittings. According to the DNV-GL Energy Transition Outlook 2017, the total global final energy demand was 400EJ in 2015 (equivalent to 9,600 million tons) of oil and is estimated to increase to 430EJ in 2050.

The presence of large number of oil & gas reserves in the Middle East & Africa is expected to increase the demand for rubber products, thereby offering lucrative opportunities for the players operating in the global market. According to the Global Trends in Oil & Gas Markets to 2025 by LUKOIL, Iraq remains to be the most promising country in terms of conventional oil production growth, reaching to 6 mb/d by 2020. The Organization of the Petroleum Exporting Countries (OPEC) control about 42% of global oil production. According to the International Energy Agency, global investments in oil and gas recovered slightly in 2017, following sharp declines of 24% and 26% in 2016 and 2015, respectively. The agency also stated that the Middle East & Africa will continue investing heavily as major energy-exporting countries expand the size of their energy sector and strengthen their positions in global markets. For instance, Saudi Arabia plans to build three new oil refineries with a production capacity of 400,000 b/d each by 2020.

According to the Arab Petroleum Investments Corporation (APICORP), there are 10 latest energy projects, concerning oil & gas in countries such as Iraq, Kuwait, UAE, and Oman.

Soot is produced during the vulcanization of synthetic rubber. It consists of fine black particles, mainly composed of carbon, produced by incomplete combustion of coal, oil, wood, and other fuels. Soot comprises acids, chemicals, metals, soils, and dust. Soot particles are extremely tiny, with a diameter of approximately 2.5 micrometers or smaller. They are smaller than a dust particle, about 1/30 the diameter of a human hair. Compounds of soot such as sulfur dioxide and nitrogen oxide combine with the moisture, resulting in the formation of acid rain. This worsens the water quality, damages soil, and crops, and changes the nutrient balance in the ecosystem as well as results in nitrogen pollution.

Moreover, inhaling these particles may lead to respiratory diseases, cause coronary heart diseases, asthma, and bronchitis, among others. Fine particles of size less than 3 microns can penetrate easily into the air passage, causing cancer and bronchial problems, whereas larger particles that are trapped in the nose may result in breathing problems and irritation. According to the World Health Organization, 383,000 deaths were reported due to asthma in 2015, and the number increased to 420,000 in 2016, according to the Global Burden of Disease research.

According to the Clean Air Act, the US Environmental Protection Agency (EPA) is required to routinely adjust their allowable limits for soot emissions. The current limit for soot emission is 15 μg/m3, but EPA proposes to change it to between 12 and 13 by 2020. The EPA states that the change in the emission standards could result in up to an annual savings of USD 5.9 billion due to a reduction in costs related to premature deaths and diseases. Furthermore, several regulatory bodies such as the National Emission Standards for Hazardous Air Pollutants (NESHAP), and the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) have imposed strict policies regarding the use of hazardous chemicals and disposal of polluted wastewater from rubber processing. In addition, there are regulations imposed by the European Union legislation, Council of Europe, the US Food and Drug Administration (FDA), and the French Bundesinstitut für Risikobewertung, which cover the use of rubber as a food contact material. Thus, the adverse effects associated with rubber production and stringent regulations are factors expected to hamper the global market growth during the forecast period