Chloroprene Rubber Market

Market Overview

The global chloroprene rubber market size was valued at USD 1.07 billion in 2022. It is estimated to reach USD 1.54 billion by 2031, growing at a CAGR of 4.2% during the forecast period (2023–2031). Due to the various characteristics of chloroprene rubber, including lightweight, dielectric capability, high-temperature resistance, and high-impact quality, the electronic industry has an increasing demand for chloroprene rubber.

The chloroprene rubber market refers to the global industry involved in producing, distributing, and utilizing chloroprene rubber, known as polychloroprene or CR. Chloroprene rubber is a synthetic rubber made from the polymerization of chloroprene monomers. It possesses excellent physical and chemical properties, making it suitable for various applications. Chloroprene rubber is known for its resistance to oil, weathering, heat, flame, and chemicals, making it a popular choice in automotive, construction, electrical, and general manufacturing industries. It is used to produce various products, including hoses, belts, gaskets, seals, cables, adhesives, footwear, and coatings.

Factors like the increasing demand for durable and high-performance materials, growth in end-use industries, and advancements in manufacturing technologies drive the market for chloroprene rubber. Additionally, the rising focus on sustainability and environmental regulations has led to the development of eco-friendly versions of chloroprene rubber, further driving its market growth. The chloroprene rubber market is highly competitive, with key players involved in research and development activities to introduce innovative products and expand their market presence. These companies often focus on developing solutions that offer improved performance, cost-effectiveness, and sustainability. The chloroprene rubber market is expected to grow due to its versatility, durability, and widespread applications in various industries. The market dynamics are influenced by factors such as economic conditions, technological advancements, and regulatory policies, which shape the demand and supply trends within the industry.

Market Dynamics

Global Chloroprene Rubber Market Drivers

Increasing Demand from Automotive and Other End-use Industries

Chloroprene rubber is used in various industries, such as automotive, construction, electrical and electronics, textile, etc. It is used to make impregnated products such as gloves and improve the quality of asphalt and mold foam. The rapid development in developing regions such as the Asia-Pacific and the Middle East is expected to boost the demand for chloroprene rubber. In addition, the expansion of the market will benefit from a large amount of investment in research and development, and the global demand for energy-saving vehicles will promote the growth of the neoprene market. Due to the various characteristics of chloroprene rubber, including lightweight, dielectric capability, high-temperature resistance, and high-impact quality, the electronic industry has an increasing demand for chloroprene rubber.

In addition, as per the Economist Intelligence Unit Limited, the global automotive market is expected to witness double-digit growth in 2021, in which new passenger vehicle sales are expected to boost by 15% and commercial vehicle sales by 16% in 2021. Moreover, the CAGR for the global automotive market is expected to remain at 5%-10% during the forecast period. Such high consumption of automotive vehicles boosts the demand for chloroprene rubber and drives market growth.

Growing Demand for High-Performance Materials

The growing demand for high-performance materials is a significant driver for the chloroprene rubber market, particularly in the automotive, aerospace, and construction industries. These industries require materials that can withstand challenging environments and deliver reliable performance under extreme conditions. Chloroprene rubber is well-suited for high-performance applications due to its exceptional resistance to various conditions. It exhibits excellent thermal stability, allowing it to maintain its properties even at high temperatures. This makes it suitable for use in engine components, gaskets, seals, and hoses in the automotive industry, where exposure to heat and fluctuating temperatures is common.

Furthermore, chloroprene rubber demonstrates superior resistance to ozone and UV radiation. This makes it ideal for outdoor applications in the construction industry, where materials are exposed to sunlight and environmental elements. Chloroprene rubber can withstand the damaging effects of ozone and UV radiation, ensuring long-lasting durability and performance in construction seals, roofing membranes, and other applications.

Global Chloroprene Rubber Market Restraints

Volatile Raw Material Prices

Synthetic rubber is a major raw material that is required in the production of chloroprene rubber. Synthetic rubber is made from various petroleum-based monomers and uses crude oil during manufacturing. Global crude oil prices have witnessed extreme variations in recent years. Social unrest in major crude oil-producing countries such as Libya, Venezuela, Nigeria, Iran, and Iraq has negatively affected crude oil supply, creating inelasticity in demand and supply balance.

These factors are short-lived in the market and cause immediate falls and price rises. Monomers required for manufacturing polymers are derived from petrochemicals. Hence, crude oil prices largely influence petrochemical prices. Since major raw materials used in chloroprene rubber largely depend on petrochemicals, volatility in crude oil prices is expected to lead to fluctuations in chloroprene rubber over the forecast period.

Global Chloroprene Rubber Market Opportunities

Focus on Sustainable and Eco-friendly Solutions

More attention to sustainability and environmental responsibility presents significant chloroprene rubber market opportunities to develop eco-friendly solutions. Manufacturers can invest in research and development to create sustainable alternatives that reduce the environmental impact of traditional chloroprene rubber production and usage. One aspect of developing sustainable chloroprene rubber is optimizing the manufacturing process. Companies can explore reducing energy consumption, water usage, and emissions during production. Implementing cleaner production techniques and incorporating renewable energy sources can help minimize the carbon footprint of chloroprene rubber manufacturing.

Furthermore, manufacturers can focus on developing bio-based or recycled chloroprene rubber materials. Bio-based chloroprene rubber can be derived from renewable sources such as biomass or plant-based feedstocks. Using renewable raw materials reduces the reliance on fossil fuels and decreases the overall environmental impact of the production process. Recycled chloroprene rubber, on the other hand, involves reprocessing and reusing waste rubber materials, reducing waste generation, and conserving resources.

Regional Analysis

Based on region, the global chloroprene rubber market is bifurcated into North America, Europe, Asia Pacific, Central and South America, the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global chloroprene rubber market shareholder and is estimated to grow at a CAGR of 4.2% over the forecast period. North America is among the largest automotive, electrical and electronics devices, medical equipment, consumer goods, and textiles consumers. The demand in the sectors mentioned above and the consumption of chloroprene rubber are expected to grow post-pandemic. Due to rising digitalization, artificial programming interfaces (API) have expanded in North America to support more consumer-oriented communications, software, trade, and digital content. This is expected to drive the market for chloroprene rubber in manufacturing cable jackets for telecommunication applications.

Overall, North America's diverse industrial landscape and consumption patterns contribute to its dominance in the chloroprene rubber market. The projected growth of the automotive, electrical, and electronics, medical equipment, consumer goods, and textiles sectors, along with emerging opportunities in the digitalization trend, is expected to drive the demand for chloroprene rubber in the region.

Europe is anticipated to exhibit a CAGR of 4.4% over the forecast period. The chloroprene rubber market in Europe is likely affected by the stalled industrial output caused by the COVID-19 pandemic. However, Europeans have increased online purchasing and plan to continue their new digital behaviors even after the pandemic. The advent of online purchasing is anticipated to drive the market for electronic devices like smartphones, laptops, and other internet-supporting devices like cables. This is expected to drive the demand for chloroprene rubber in manufacturing cable jackets for coaxial and optical fiber cables and cases for laptops and smartphones.

Furthermore, manufacturing cases for laptops and smartphones also contributes to the demand for chloroprene rubber in Europe. As the usage of electronic devices continues to rise, there is an increased need for protective cases that provide durability and resistance to impact and environmental factors. Chloroprene rubber is well-suited for manufacturing these cases due to its outstanding mechanical properties and resistance to wear and tear.

In Asia-Pacific, the growing manufacturing sector is expected to propel the demand for chloroprene rubber in automotive, construction, electrical and electronics, textiles, and others. In recent years, India and China have witnessed a spike in automotive production due to a technology shift from the Western markets to the sector. An entrenched manufacturing base for electrical and electronics in Taiwan, China, and South Korea is expected to provide further impetus to chloroprene rubber as an insulating material. Rapid urbanization, improving economic conditions, and rising infrastructural projects support the growth of the chloroprene rubber market in the Asia-Pacific.

In Central and South America, an increase in construction activity, particularly in Brazil and Chile, is expected to propel the demand for chloroprene rubber. Rising consumer disposable income and rapid regional infrastructure development are expected to drive the construction industry, steering the demand for chloroprene rubber. Furthermore, growing automobile sales have prompted an increase in the regional demand for lightweight materials, thereby driving the market for chloroprene rubber. Rising coronavirus-positive cases due to the Delta variant in Brazil and other South American countries are propelling the demand for PPE, including medical gloves. This, in turn, positively influences the demand for chloroprene rubber in the medical and healthcare industry.

In the Middle East and Africa, the chloroprene rubber market in the region is expected to be driven by the growth of automotive, construction, and electrical and electronic applications. The growing automotive aftermarket, coupled with the easy availability of raw materials for chloroprene rubber production, is likely to provide the necessary thrust for the growth of the chloroprene market in the region. The recent fall in oil prices and introduction of production cuts, owing to the COVID-19 pandemic’s effect on the demand, will likely negatively impact the economy of Middle East and African countries. This, in turn, is projected to result in sluggish growth of various end-use markets, including automotive, electrical and electronics, and construction, over the forecast period. This is expected to directly impact the market for chloroprene rubber to be used in the abovementioned applications.

Segmental Analysis

The global chloroprene rubber market is bifurcated into applications.

Based on application, the global market is bifurcated into automotive, electrical and electronics, construction, textile, and others. 

The automotive segment dominates the global market and is projected to exhibit a CAGR of 4.5% over the forecast period. Chloroprene rubber is known for its toughness and excellent abrasion resistance, making it suitable for high wear and tear applications. The presence of chlorine in the molecular structure of this elastomer causes elastomer to resist swelling by hydrocarbon oils and provides superior resistance to chemicals, fuels, and flame. The properties above make them suitable for automotive applications that involve high wear of tires during rolling movement and in internal combustion engines for power generation. Chloroprene rubber is used to manufacture O rings, gaskets, tire sidewalls, fan belts, automotive trims, and seatbelts used in automotive applications.

Recent Developments

• May 2023- Showa Denko announced that it had increased the price of chloroprene rubber by JPY60/kg or more, equivalent to US$470/m.t. or more for transactions denominated in US dollars and EUR440/m.t. or more for transactions denominated in euros. The increase was attributed to rising demand and tight supply.
• March 2022- Denka announced that the EPA had denied its request to have the assessment of chloroprene lowered. The EPA's decision was based on concerns about the potential health risks of exposure to chloroprene.