Nitrile Butadiene Rubber (NBR) Market

Market Overview

The global nitrile butadiene rubber (NBR) market size was valued at USD 2.01 billion in 2022. It is projected to reach USD 2.82 billion by 2031, growing at a CAGR of 3.8% during the forecast period (2023-2031). 

Nitrile butadiene rubber (NBR) is an oil-resistant synthetic rubber made from acrylonitrile and butadiene copolymers. NBR is predominantly used in fuel hoses, gaskets, rollers, and other goods that require oil resistance. Among all the worldwide nitrile butadiene rubber market categories, the automotive end-use segment is anticipated to have the most considerable penetration. The growing use of nitrile butadiene rubber products such as seals and O-rings, hoses, belts, molded products, cables, and others fuels the automotive sector's market expansion. In the upcoming years, the trend toward electric vehicles and the development of driverless automobiles will propel the growth of the automotive industry, which will subsequently increase demand for nitrile butadiene rubber.

Highlights

• The gaskets and O-rings segment is the major contributor to the market by application.
• The automotive and transportation segment is the major contributor to the market by end-user industry.
• Asia-Pacific is the major revenue contributor by region.

Market Dynamics

Global Nitrile Butadiene Rubber (NBR) Market Drivers

Increasing Use of NBR in the Transportation Sector

Belts, O-rings, and cables in the automotive sector all use nitrile butadiene rubber (NBR). NBR is employed in applications requiring oil and fuel resistance, heat abrasion resistance, and water and gas permeability. The temperature range that NBR rubber can sustain is -40°C to 108°C. It is, therefore, perfect for use in aerospace-related applications. It is utilized in gasoline and oil handling hoses, gaskets, seals, grommets, and self-sealing fuel tanks in the automotive and aerospace sectors because it can withstand the corrosive impacts of various oils, greases, and chemicals.

Additionally, the impact of COVID-19 on global vehicle manufacturing caused a decline in 2020, which is already beginning to recover. Vehicle demand and production have increased globally due to pent-up consumer demand and a surge in preference for personal mobility. In the first nine months of 2021, American businesses manufactured 4.8 million passenger cars, a 10.8% increase over the same period in 2020.

Global Nitrile Butadiene Rubber (NBR) Market Restraint

Availability of Replacement Materials

NBR has an issue; its flexibility decreases as the concentration of nitrile increases. Thus, engineers must carefully balance the resistance and flexibility of NBR. Unlike its alternatives, NBR rubber cannot withstand temperatures below zero. When adopting NBR, industries must decide between temperature control and oil resistance in their applications. Global Composite developed Brandonite 1200-60A, a thermoset elastomer based on polyurethane that outperforms NBR in several applications. The item has reduced specific gravity and greater tensile strength and elongation characteristics. The product is more resistant to UV and ozone.

Global Nitrile Butadiene Rubber (NBR) Market Opportunities

Growing Use of NBR in Industrial Applications

Due to its resistance to fatty media and wear resistance, NBR is employed in process industries in diaphragms, pneumatic and hydraulic seals, and radial shaft seals. NBR rubber can also be chemically altered to work in different applications. For instance, rubber rollers and conveyor belts can be made using carboxylic-modified NBR rubber. Conveyor belt sales are anticipated to increase due to burgeoning industry, fast urbanization, and infrastructure-building initiatives in developing nations. The rise in several other sectors, including the building, electricity, and chemical industries, is being complemented by increasing investments and government facilities, particularly in Asia-Pacific.

In 2022, the United States was expected to experience the most significant production increases out of all the leading chemical manufacturing markets, according to a prediction made by the German chemical industry group Verband der Chemischen Industrie eV (VCI). According to the organization, global chemical production would increase by 2.7% in 2022, a significant decline from the predicted 7% rebound increase in 2021.

Regional Analysis

The global nitrile butadiene rubber (NBR) industry is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific Dominates the Global Market

Asia-Pacific is the major revenue contributor and is expected to exhibit a CAGR of 4.30% during the forecast period. The nation's primary end-user industries using nitrile butadiene rubber are the automotive and other transportation, building and construction, industrial sector, and others. One of the world's biggest vehicle marketplaces is in China. 2020 saw a further decline in automotive manufacturing due to COVID-19's spread and a lack of semiconductor chips. For instance, the China Association of Automotive Manufacturers (CAAM) reports that total car production in 2020 was 25.225 million units, a 2.0% decrease from the previous year. As per the Civil Aviation Administration of China (CAAC), China is one of the biggest markets for domestic air travelers and one of the leading aircraft manufacturers.

Europe is expected to grow at a CAGR of 2.90% during the forecast period. Germany is the largest automobile manufacturer in Europe. Germany dominates the European automotive market with 41 assembly and engine production facilities and manufactures one-third of all automobiles sold on the continent. For many years, the nation has served as a center for some of the top manufacturers of luxury automobiles. With one in three cars in the country being electric, the electric vehicle (EV) market has grown significantly. Such developments are anticipated to restrain the market under study, despite their contribution to the automotive segment. If these advancements occur, the transportation sector's need for NBR will increase during the following few years.

The United States has one of the world's largest and most potent economies. Electric vehicles are gaining market share and dominating the traditional automobile industry. Market research hinders these vehicles since they require less NBR because Li-ion batteries power them. The aircraft industry dominates the transportation business. According to IATA figures, there will be an anticipated 51% annual growth in the number of passengers flying globally in 2022. The need for NBR could rise due to increased aviation traffic, which could signify that older aircraft need more upkeep and renovation. The demand for NBR is further increased by the fact that the United States has the world's most significant military aircraft fleet and aims to improve it to keep up with the growing fleet in nations like China and Russia.

Saudi Arabia has the second-highest proven oil reserves globally. The nation is projected to continue to increase its oil and gas output to meet its export obligations. Around sixty percent of the Saudi government's income is derived from oil. Saudi Aramco operates over 90 pipelines and 12,000 miles of crude oil and petroleum product pipelines. It oversees the majority of the nation's oil and gas operations. Saudi Arabia controls 15 percent of the world's proven crude oil reserves. It has a daily production capacity of around 12 million barrels of crude oil, including capacity from the Neutral Zone, which it shares with Kuwait. Saudi Arabia is the second-largest petroleum producer in the world and the largest crude oil producer in OPEC.

Segmental Analysis

The global nitrile butadiene rubber (NBR) industry is segmented by application and end-user industry.

Based on application, the global nitrile butadiene rubber (NBR) market is bifurcated into adhesives and sealants, belts and cables, gloves, hoses, gaskets and O-rings, and others.

The gaskets and O-rings segment is the major contributor to the market and is estimated to exhibit a CAGR of 4.40% during the forecast period. O-rings are round, ring-shaped pieces inserted in a groove to produce a seal between two parts, whereas gaskets are flat pieces of material used to make a seal between the two flat surfaces, typically with a bolted junction. NBR is employed in applications that require resistance to scorching and low temperatures, abrasion, water, and gas permeability because of its resilience. NBR is also used in the process industry due to its effective resistance to fatty media and wear resistance, such as in diaphragms, pneumatic and hydraulic seals, and radial shaft seals as O-rings or gaskets. 

Adhesives are created for specific uses. In addition to their function in the adhesion process, they can also be employed as sealing agents to avoid the self-loosening effect brought on by dynamic loads, to seal off areas to prevent oxidation and corrosion, for waterproofing, etc. The most popular elastomer for high-end sealing applications is NBR. It is primarily utilized in applications where grease and mineral oil are constantly in touch with the seals. The construction and automotive rubber products sectors typically have their foundation in nitrile butadiene rubber (NBR). NBR is better suited for heavier industrial applications because of its increased wear and tear resistance.

The low-temperature emulsion polymerization process is used to create the NBR-based conveyor belt. When general conveyor belting comes into contact with polar oil, the cover is prone to expand (petroleum base oil, grease, animal and vegetable fat, etc.). As a result, the rubber cover separates from the carcass, and the material conveying system eventually reverses or stops. Therefore, it is essential to utilize oil-resistant conveyor belts while transporting items containing oil or grease. Conveyor belts made of NBR (Nitrile Butadiene Rubber) are appropriate for moving goods that include more fat, oil, and limited acid.

The synthetic rubber copolymer of acrylonitrile (ACN) and butadiene are known as nitrile butadiene rubber (NBR). They have excellent resistance to oil and are commonly used in the automobile industry to safeguard hands' safety and skin. Disposable commercial use For various industrial services and procedures that call for additional worker and product safety, such as those in the chemicals, electronics, paints and coatings, printing, and dyeing industries, nitrile gloves are widely employed in manufacturing and production facilities. The biotechnology, pharmaceutical, medical device, and particular packaging sectors also use NBR gloves. They are extensively utilized in varnish production, chemical processing, metal treatment, examination, handling seals, and the automobile industry.

Based on the end-user industry, the global nitrile butadiene rubber (NBR) market is bifurcated into automotive and transportation, building and construction, industrial, medical, and other end-user industries.

The automotive and transportation segment is the major contributor to the market and is estimated to exhibit a CAGR of 3.95% during the forecast period. The automotive and transportation sector is one of the primary end-use industries for nitrile butadiene rubber. Since standard rubbers cannot be used, NBR is employed in the automotive and aerospace industries to create fuel and oil handling hoses, seals, grommets, and self-sealing fuel tanks. The wide range of temperatures that NBR can take, from -40 to 108 °C (-40 to 226 °F), makes it the perfect material for aeronautical applications. Belts for automobile transmissions are one application for nitrile rubber. During the COVID-19 pandemic, the worldwide automotive industry suffered greatly in sales and output.

The building and construction sectors are the largest industry in any economy on the planet. This market sector is crucial to the overall NBR market. Various materials are used in the building and construction industry, including seals, gaskets, rubber insulation, pipelines, and fittings. These products contain a significant amount of nitrile butadiene rubber, or NBR, making the building and construction market crucial to the market under study. Pipes and hoses are used during construction for direct and indirect purposes, such as water discharge. These materials also contribute to the need for nitrile butadiene rubber in the sector of buildings and construction.

The industrial sector is one of the leading markets for hoses, cables, belts, and other products made using nitrile butadiene rubber. In addition to these products, latex-free gloves made of NBR are widely used in this market. Latex-free gloves are typically used in fields dealing with chemicals, risky materials, and high-pressure and temperature environments. This division includes the mining, metallurgy, chemicals, oil and gas, and manufacturing sectors. Under this division, the oil and gas industry is significant. One of the most prized commodities in today's market is crude oil. Its numerous applications include producing electricity and serving as a feedstock for petrochemical goods, including polymers, solvents, and adhesives.

Recent Developments

• August 2022- A significant investment drive by Kumho Petrochemical will see the South Korean company invest KRW 6,000 billion (about USD 5.10 billion) over the following five years in new and current operations. As part of the effort, Kumho would spend KRW 3,300 billion (about USD 2.81 billion) in its key business sectors, which include the production of styrene solution butadiene rubber (SSBR) and nitrile butadiene latex (NB latex).