Liquid Synthetic Rubber Market Size, Share & Trends Analysis Report By Product (Liquid Isoprene Rubber, Liquid Butadiene Rubber, Liquid Styrene Butadiene Rubber), By Application (Adhesives, Industrial Rubber, Tyre Manufacturing, Polymer Modification) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Liquid Synthetic Rubber Market Size

The global Liquid Synthetic Rubber Market Size was valued at USD 15.77 billion in 2024 and is projected to reach from USD 16.43 billion in 2025 to USD 22.84 billion by 2033, growing at a CAGR of 4.2% during the forecast period (2025-2033).

The by-products of the petroleum industry are used in the production of synthetic rubber, which is an artificial elastomer. The increased flow qualities and higher abrasion resistance of liquid synthetic rubber can be attributed to the fact that it is polyurethane in its liquid state. Its use is in the production of industrial rubber, as well as in the manufacture of tyres, adhesives, and modified polymers.

In a growing number of end-use sectors, liquid synthetic rubber is being investigated in depth as part of the research process. Recent research suggests that liquid synthetic rubber might be used in biomaterials to improve the mechanical qualities of dental composites and fractures. [Citation needed] [Citation needed] One study found that the introduction of liquid synthetic rubber improved fracture toughness by a significant 9 percent for flow-type composites used in dental applications, while the improvement was only 8 percent for condensable composites used in dental applications. The material may find its use as a toughening agent.

Because car production and aftermarket activities have been temporarily halted, the tyre manufacturing industry has experienced a major decline in business. In addition, the fact that there is a limited demand for tyres all around the world makes the impact of the cheap price of natural rubber irrelevant. However, the predicted increase in automobile production and sales will lead to an increase in the market share of liquid synthetic rubber beginning in 2021.

Liquid Synthetic Rubber Market Growth Factors

The Rise in Demand of Tyres Sector

The production of tyres makes extensive use of liquid synthetic rubber because it offers increased durability and higher performance of tyres, in addition to the introduction of tyre labelling laws, which has led to the widespread deployment of this material. PBR and SBR are the types of synthetic rubber that are utilized in the production of tyres at the highest rates. The primary application for polybutadiene is in the production of tyres for automobiles. It has been calculated that the process of producing tyres uses up around 70 percent of the total amount of polybutadiene that is manufactured. Its primary application is as a sidewall in tyres, where it helps reduce the wear and tear that is brought on by the constant bending that occurs when the tyres are being driven. In addition, butadiene is used for a variety of purposes in other components of automobiles.

According to the OICA, the worldwide production of automobiles reached around 80.14 million in 2021, which represents a growth rate rise of almost 3 percent when compared to the 77.71 million vehicles that were produced in 2020. As a result, an increase in the manufacturing of automobiles is projected to be the primary factor driving demand for tyres over the duration of the research.

The rise of the automobile sector, which is a significant consumer of liquid synthetic rubber in Europe and Asia-Pacific, is another factor that contributes to the expansion of the market for liquid synthetic rubber.

During the course of the projection, the expansion of the liquid synthetic rubber market is likely to be driven largely by the fast development of the manufacturing sector in rising economies such as China and India, particularly in the areas of automotive and construction materials.

Liquid Synthetic Rubber Market Restraining Factors

volatility in the price of raw materials

The factor slowing the growth of the market for liquid synthetic rubber is the volatility in the price of raw materials. The price of crude oil has a direct impact on the pricing of styrene and butadiene, which are both important raw ingredients for the production of liquid SBR and BR, respectively. In addition, the production of liquid synthetic rubber involves the utilization of a variety of catalysts and solvents, including hexane, cyclohexane, benzene, and toluene, which are sourced from oil and gas industry. Over the course of the past few years, the global chemicals industry has witnessed a series of large-scale disruptions, such as a shift to the faster-growing Asian markets and the development of shale gas in the United States and coal in China. Other examples include the shift to the faster-growing Asian markets.

The expansion of the liquid synthetic rubber industry is also being hampered by the strict regulations imposed by governments around the world, particularly in Europe and the United States.

Regional Insights

Asia-Pacific: Dominant Region

Asia-Pacific region held the biggest share of the market for liquid synthetic rubber in 2019. This was possible as a direct result of the brisk expansion of the manufacturing and construction industries in countries such as China, India, and Japan, which has resulted in a significant increase in the demand for liquid synthetic rubber. In addition, an increase in infrastructure development and building activities throughout the region, particularly in countries such as China and India, have contributed to an increase in the demand for adhesives. Because of this, the demand that adhesive makers have for liquid synthetic rubber has increased dramatically in recent times. In addition, an increase in both the demand for and production of electric cars throughout the area has contributed to an uptick in the automotive sector's need for tyres. As a result of this, the demand for liquid synthetic rubber from producers of tyres has grown significantly, which is anticipated to contribute significantly to the expansion of the market.

North America: Fastest Growing Region

North America accounted for the biggest market share in terms of both volume and revenue. The existence of multiple manufacturers, the availability of raw materials, cheap production costs, and a diverse range of application sectors are projected to propel regional market expansion over the projection period. The growing usage of liquid isoprene rubber in SIS block polymers for use in adhesives accounted for a large part of the Asia Pacific LIR market. Liquid isoprene rubber is combined with natural rubber to function as a reactive plasticizer (NR). The substance is combined with NR to increase metal adhesion qualities, such as zinc-plated steel wire used in tyres. Furthermore, LIR acts as a reactive plasticizer and is vulcanizable with solid rubbers, enhancing processability with rubber compounds and driving market expansion throughout the projection period.

China is the world's leading manufacturer of synthetic rubber and raw ingredients including butadiene, styrene, solvents, and catalysts. The fast expansion of the country's industrial sector, particularly automotive and construction materials, is predicted to boost the market throughout the forecast period. The expanding automobile sector in Europe is a profitable end-user of LSR, boosting market expansion. The existence of major tyre manufacturers such as Bridgestone, Michelin, Goodyear, Pirelli, and Apollo, as well as novel production processes used by the manufacturers, are likely to supplement industry expansion. North American infrastructure and commercial developments are expected to stimulate demand for adhesives, and coatings. The abundance of opportunities has compelled coating makers to address product challenges like as chemical resistance, mechanical strength, and weatherability, which is expected to boost market expansion.

Segmental Analysis

By Product

Regardless of the product, the sector of liquid styrene butadiene raked in the most share of the market in 2019. This may be explained by the fact that liquid styrene butadiene rubber is the primary component utilized in the manufacturing of tyres and tyre components, such as the tread, apex/rim/flange, and carcass of the tyre. The need for it in the tyre manufacturing sector is being driven by an increased emphasis on the durability and performance of tyres, as well as the implementation of rules around tyre labeling.

By Application

The tyre segment topped the market in terms of share in 2019. This was due to the fact that liquid synthetic rubber is used extensively in the manufacturing of tyres. In addition, the presence of large tyre manufacturing businesses in China and Japan, which is a result of the plentiful supply of raw materials, cheap production cost, and wide spectrum of application sectors, is predicted to fuel the demand for liquid synthetic rubber from tyre manufacturers.

Recent Developments

• April 2021-Arlanxeo will create Arlanxeo India Private Limited in marking the next step in the company's path toward expanding its operations across the Indian subcontinent. As a result, the company will be able to streamline its operations and provide customers in the market for the Indian subcontinent with a central point of contact for the whole spectrum of its goods and applications.