The global reclaimed rubber market is expected to grow at a CAGR of above 10% during the period 2017-2021, according to a new market research study by Technavio.
The report categorizes the global reclaimed rubber market by product type (WTR, Butyl reclaim, EPDM, and drab and colored) and by application (tire and non-tire). The report also determines the geographic breakdown of the market in terms of detailed analysis and impact, which includes key geographies such as APAC, EMEA, and the Americas.
Market driver: increasing demand for reclaimed rubber in APAC
In the global reclaimed rubber market, APAC accounted for the largest market share in 2016. Due to the rapid advancements in manufacturing technology and high demand for rubber from various industries in Indonesia, India, Vietnam, Thailand, and China, it is anticipated to be the fastest growing market during the forecast period. In countries such as China, Thailand, and India, the automotive and aerospace industries are expanding and is likely to drive the demand for reclaimed rubber during the forecast period.
According to Hitesh Bhatia, a lead analyst at Technavio for plastics, polymers, and elastomers, “Export of rubber from APAC to the US, Canada, and Europe has increased due to the stringent regulations implied in these countries to prevent environmental hazards caused by wastes from reclaimed rubber manufacturing. The increasing demand for tires is encouraging the growth of the reclaimed rubber market in APAC.”
Market trend: increase in R&D activities
A significant amount of investment is being made in R&D by major players in the global reclaimed rubber market to reduce the operation cost for manufacturing the rubber. One of the major trends in the global reclaimed rubber market is the increase in rubber quality as this results in enhanced efficiency and quality of the products. Vendors are heavily emphasizing on innovations and incorporating new technologies in their manufacturing process to maintain the competitive edge and market share. The use of alternative resources for manufacturing reclaimed rubber is also growing. These R&D activities will help the market to grow during the forecast period.
Market challenge: price fluctuations of crude oil
To avoid environmental hazards, reclaimed rubber is recycled and can be reused later. Reclaimed rubbers consist of synthetic rubbers such as butyl reclaim, WTR, and others. Synthetic rubber is made from crude oil and is dependent on crude oil prices which fluctuates with the gap in demand and supply in the oil market. This fluctuation in price has affected the prices of reclaimed rubber’s raw material.