Chloroprene Rubber Market

Market Overview

The global market for chloroprene rubber was valued at USD 1036 million in 2021, and it is anticipated to reach USD 1505.17 million by 2030 at a CAGR of 4.78%.

Chloroprene is a monomer that is used in the production of polychloroprene, which is a polymer. Chloroprene is a colourless liquid. A broad spectrum of hues is available for the synthetic rubber known as polychloroprene. The primary attributes of this synthetic rubber include a high degree of elasticity, resistance to solvents and heat, resistance to sweat, adherence to a variety of surfaces, and ageing caused by exposure to the elements. Chloroprene rubber (CR), more commonly referred to as Neoprene, was one of the first oil-resistant synthetic rubbers to be developed. It possesses an excellent balance of physical and chemical properties, making it a versatile and valuable type of rubber.

On the other hand, it possesses only minor resistance to lubricants and fuels derived from petroleum. In addition to being used in automobile hoses and belts, architectural rubber goods, and fundamental industrial components, chloroprene rubber also finds use in a wide variety of other industrial applications. In the past, chloroprene rubber had no further applications outside those in adhesives and electrical lines. Nevertheless, the market has undergone significant shifts, and there is currently a great demand for items in the industrial and automotive sectors.

Market Dynamics

Global Chloroprene Rubber Market Drivers

Widespread Use of Chloroprene Rubber in Industrial & Commercial Applications Promotes Market Growth

Based on its appealing mechanical and other properties, chloroprene rubber—the trade name for Neoprene—is sometimes referred to as all-purpose rubber and finds employment in various industrial and commercial applications. Although more expensive than many synthetic alternatives, chloroprene rubber is a very common elastomer. Chloroprene rubber is utilized in a wide range of items for both indoor and outdoor applications because of its outstanding elasticity, flexibility, and smooth finish. Chloroprene rubber is mainly used in manufacturing goods, including gaskets, hoses, springs, belts, flexible mounts, shoe soles, and adhesives. The elastomer is suitable for uses requiring great resistance to heat, flame, oil, and abrasion. Chloroprene rubber is a suitable material for outdoor applications like corrosion-resistant coatings or landfill linings due to its exceptional ozone and weathering resistance and ability to withstand acids, oils, water, grease, and inorganic salts. Transformers benefit significantly from the better noise isolation offered by chloroprene rubber sheets, which are also employed as a foundation for other adhesives. Chloroprene rubber is an excellent choice for weather stripping on fire doors because of its fire resistance. Chloroprene rubber is frequently used in computer pads, under car hoods, and to protect industrial machinery. These uses generate demand for chloroprene rubber, which propels the market's expansion.

Increasing use of chloroprene rubber in vehicle production and construction

Rubber consumption is projected to be propelled by increased vehicle production, economic expansion, and the growing number of tire manufacturing units in Latin America and Asia. All of these factors contribute to an expanding market for rubber. The usage of synthetic rubber will probably be restricted throughout the forecast period as the demand for thermoplastic elastomers (TPEs) develops due to the low production costs and novel applications for these materials.

Binders, coatings, electric wire, hoses, and belts made of chloroprene rubber are utilized extensively in a variety of applications, including those for motor vehicle components, available industrial materials, architectural rubber goods, building, and window seals. The adhesives application sector of the chloroprene rubber market is estimated to take a substantial share of overall demand during the forecast period. It is due to increased demand in the construction and automotive industries.

Global Chloroprene Rubber Market Opportunities

Increased demand for latex and high-quality rubber sheets are creating growth opportunities in the market

The capacity to modify the compound to meet the needs of the product is made possible by chloroprene rubber's excellent chemical stability and ability to maintain flexibility over a wide temperature range. There has been an increase in investment in research and development in chloroprene rubber compounds that can be utilized for dip-moulded goods in a wide range of industries, including dentistry, medical/personal protection, sports/recreation, automotive, and other end-use industries. Its use in the medical and automotive industries has expanded because of its excellent elastic metal bonding capabilities. Because it is synthetic and completely free of latex, chloroprene rubber is ideal for use in the manufacture of emergency medical supplies. Chloroprene rubber sport shoe bottoms are in higher demand due to the rising prevalence of latex allergy. This trend is predicted to continue in the future, opening up the new market potential for manufacturers. Several nations are making significant investments in the development and manufacture of chloroprene rubber due to the increased demand for latex and high-quality synthetic rubber sheets. The ability of chloroprene rubber to successfully filter out particles smaller than COVID-19 has led to the recent usage of the material in manufacturing face masks, which has opened up new manufacturing prospects for the industry's leading players.

Global Chloroprene Rubber Market Restraints

Existence of alternatives

During the projected period, the presence of alternatives to chloroprene rubber, such as styrene-butadiene rubber (SBR), and nitrile rubber (acrylonitrile butadiene copolymer), epichlorohydrin rubber (ECO), and natural rubber, is predicted to restrain market expansion. Natural rubber is one of the critical rivals of chloroprene rubber since it can be easily replaced in applications. The choice between the two is made based on the rubber's price. Additionally, since chloroprene rubbers cannot be naturally dissolved or recycled, they provide significant hurdles to the chloroprene rubber business. There is also a significant risk for small and rising firms to enter the market because it is very capital-demanding and demands long payback periods.

Segmental Analysis

The global chloroprene rubber market is broken into three parts: product, end-user, and region. Further, the market is divided into sponge/foam, sheet, and latex based on product. Since chloroprene rubber sheets have qualities including strong abrasion resistance, high resilience, and improved resistance to UV and ozone radiations, they have attracted a significant part of the market. These characteristics make them perfect for use in building insulation, liners, seals, and gaskets in the construction, electrical, and automotive industries.

According to end-user, the market is categorized into automotive, building & construction, textiles, electrical & electronics, and others. The automotive industry has the largest market share. Due to its long-lasting resilience, tensile strength, and temperature resistance, chloroprene is frequently utilized in the automotive sector. Hose covers, constant velocity joint (CVJ) boots, power transmission belts, vibration mounts, shock absorber seals, and steering system components heavily utilize neoprene rubber. The demand for electric vehicles has grown dramatically worldwide to reduce carbon emissions and dependence on fossil fuels. It has boosted the demand for chloroprene rubber and helped develop the global market.

The market is broken down into North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa based on the region. Asia-Pacific dominated the market.

Regional Analysis

Based on the region, the global market for chloroprene rubber is broken down into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

The Asia-Pacific region was the most dominant player in the chloroprene rubber market. It is because China's demand is expanding in several applications that involve industrial components and vehicles. As a result of the expanding population and rapid industrialization that will take place throughout the projected period, it is anticipated that North America and Europe will develop significantly after Asia-Pacific. In producing chloroprene, implementing new technology that replaces smoked rubber suppression with vulcanization has also contributed to the expansion of the market in North America and Europe. Specifically, this development has allowed for the substitution of smoked rubber suppression with vulcanization.

Recent Developments

• In March 2022, the EPA denied the request made by DENKA to have the assessment of chloroprene lowered.
• On 16^th May 2022, Chloroprene rubber prices at Showa Denko increased 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.

Chloroprene Rubber Market Segmentation

By Product

• Sheet
• Sponge/Foam
• Latex

By End-User

• Automotive
• Textiles
• Electrical & Electronics
• Building & Construction
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East & Africa