Solution Styrene Butadiene Rubber(SSBR) Tires Market Size, Share & Trends Analysis Report By Vehicle Type (Passenger Car, Commercial Vehicle), By Distribution Channel (OEM, Aftermarket), By Rim Size (Less than 15, 15 to 20, More than 20) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global Solution Styrene Butadiene Rubber(SSBR) tires market size was valued at USD 4.3 billion in 2023 and is projected to reach a value of USD 9.9 billion by 2032, registering a CAGR of 9.7% during the forecast period (2024-2032). Increasing styrene-butadiene rubber usage in the tire manufacturing industry will significantly boost global Solution Styrene Butadiene Rubber(SSBR) tires market growth.

Solution Styrene Butadiene Rubber (SSBR) is a synthetic rubber that produces tires. It is a styrene-butadiene copolymer formed using a polymerization solution. SSBR is noted for its unique molecular structure, which improves tire performance compared to typical emulsion styrene-butadiene rubber (E-SBR). One of the most notable characteristics of SSBR is its ability to improve wet grip, reduce rolling resistance, and increase fuel efficiency in tires. SSBR is a popular choice among tire producers looking to build high-performance tires that meet safety and environmental regulations. 

The global SSBR (Solution Styrene Butadiene Rubber) tires market is defined by the growing use of SSBR as a critical material in tire manufacture, owing to its excellent performance characteristics. SSBR, a synthetic rubber version, is popular because it improves wet grip, reduces rolling resistance, and increases fuel efficiency in tires. This rubber compound has proven essential to the tire industry, providing excellent traction and safety in various road conditions. As environmental concerns become more critical, SSBR aligns with sustainability goals by helping to reduce carbon emissions through better fuel economy. The market's trajectory is tightly linked to the expansion of the automotive sector and the changing regulatory framework, which favors eco-friendly and high-performance tire solutions.

Highlights

• Passenger Cars account for the largest share of the market based on vehicle type.
• The aftermarket influences the market growth by the distribution channel.
• 15 to 20 generates the highest revenue share by rim size.

Market Dynamics

Solution styrene butadiene rubber(ssbr) tires market drivers:

Automotive industry growth

The ongoing expansion of the automobile sector is a significant driver of the Global SSBR Tires Market. As worldwide vehicle production and sales expand, so does demand for tires, particularly those made of sophisticated materials such as SSBR. The rise of the automotive sector, spurred by factors such as population growth, urbanization, and rising disposable income, directly impacts the tire market. The International Organization of Motor Vehicle Manufacturers (OICA) estimated that worldwide vehicle production would reach 85.4 million in 2022, up 5.7% from 2021. In 2022, China, Japan, and Germany were the world's largest automotive and commercial vehicle manufacturers. China has led the world in vehicle production for 13 years, with more than 27 million cars and commercial vehicles expected in 2022. The industry is predicted to recover and adapt to changing market demands. Therefore, the growth trend will likely continue.

Additionally, the expansion of the automotive sector allows tire producers to broaden their product offerings, including tires with sophisticated technologies and materials such as SSBR, to fulfill the diversified needs of vehicle manufacturers and consumers worldwide. The rise of the automotive sector highlights the relevance of SSBR in tire manufacturing, as tire manufacturers strive to develop products that meet the performance criteria of current automobiles. SSBR's role in improving tire performance, such as wet grip, rolling resistance, and fuel efficiency, is essential in the automotive supply chain, driving demand and market expansion in lockstep with the automotive industry's trajectory. 

Solution styrene butadiene rubber(ssbr) tires market restraints:

Limited availability of raw materials

SSBR is made from two essential raw materials: styrene and butadiene. Any disruptions or changes in the supply of these natural ingredients can impact SSBR manufacturing, potentially posing a barrier to satisfying demand for tires made from this synthetic rubber. For example, the styrene market saw mixed sentiments in the first quarter of 2023 as crude oil prices fluctuated. At the end of the quarter, styrene prices rose as the demand-supply gap expanded and crude oil prices rose. However, Butadiene prices in the US market changed in the second quarter of 2023. In early Q2, prices rose somewhat due to increasing demand for synthetic rubber, particularly SBR. However, the 1,3-butadiene market in North America contracted during the first two quarters of 2023. This was owing to a low number of queries, a plentiful supply, and low operational rates. 

Additionally, in recent years, the worldwide petrochemical industry, a significant source of raw materials for synthetic rubber manufacture, has faced supply chain interruptions caused by geopolitical conflicts, natural disasters, and the COVID-19 epidemic. According to the ICIS Supply and Demand Database, worldwide styrene production capacity will be around 44 million tonnes by 2023. This is about 10 million tonnes more than in 2019, with China accounting for most of it. In comparison, Europe's styrene production capacity is approximately 5 million tonnes. Also, disruptions in the availability of butadiene, which is generated from crude oil and plays an integral part in SSBR production, might directly impact SSBR manufacturers' ability to meet demand from tire producers.

Solution styrene butadiene rubber(ssbr) tires market opportunity:

Focus on sustainability and eco-friendly solutions

The automotive industry's growing emphasis on sustainability and environmentally friendly solutions complements SSBR's commitment to reduced rolling resistance and greater fuel efficiency. As environmental concerns gain traction, there is a chance for SSBR to play an essential role in the development of "green tires." In 2023, Goodyear introduced a demo tire made of 90% sustainable materials as part of its goal to produce a tire made entirely of sustainable materials by 2030. SSBR's properties help to achieve these goals. According to research published by the World Business Council for Sustainable Development (WBCSD), the tire sector is looking into measures to improve tire environmental performance. This involves lowering rolling resistance to increase fuel efficiency and reduce carbon emissions. In 2023, Eco-SSBR unleashes Hankook's sustainability potential. Similarly, by 2022, Asahi Kasei has established a solid reputation for its high-performance S-SBR grades, ideal for eco-friendly tires with exceptional fuel efficiency and wear resistance.

Furthermore, the shift toward sustainable and environmentally friendly solutions in the automotive industry, particularly tire manufacturing, represents a strategic opportunity for SSBR. As tire producers strive to develop products with a lower environmental impact, SSBR's contribution to fuel efficiency and reduced carbon emissions makes it essential to create green and sustainable tire technologies. Collaborations between SSBR manufacturers and tire makers to build environmentally friendly tire solutions can result in developments consistent with global sustainability efforts.

Regional Analysis

The global Solution Styrene Butadiene Rubber(SSBR) tires market share analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North america dominates the global market

North America is the most significant global SSBR (Solution Styrene Butadiene Rubber) tire market shareholder and is estimated to grow at a CAGR of 9.9% over the forecast period. North America is a large market for SSBR tires, thanks to the region's robust automotive sector, consumer preferences for high-performance vehicles, and a growing emphasis on sustainability. According to the United States Tire Manufacturers Association (USTMA), the US tire market is predicted to ship 325.4 million units in 2023, a decrease from 332 million in 2022. In November 2023, the USTMA anticipated that the US tire market would ship 327.7 million units. More than 737,000 people work directly in the business, and retailing, distribution, and marketing chains can employ another 284,000. Thus, an established value chain and strong manufacturing views assist North America in maintaining its stronghold in the global market. 

Asia-Pacific is anticipated to exhibit a CAGR of 10.1% over the forecast period. China and Japan are projected to dominate the Asia-Pacific market. The fast production of automotive cars in China and Japan will likely propel Asia-Pacific market growth. In 2023, China produced 30.16 million automobiles, up 11.6% from 2022. Furthermore, car manufacturers intend to relocate their manufacturing facilities to India, boosting regional industry growth.

Furthermore, China produced 475.471 million tires from January to June 2023, representing a 13.9% rise yearly. 85.772 million tires were made in June 2023, meaning an 11.4% rise year over year. Also, 8.86 million tons of tires were exported in 2023, representing a 16% increase yearly. In the first half of 2023, China's tire exports climbed by 13.7% in quantity and 19.9% in value year on year. 

Europe holds a significant market share. France, the United Kingdom, Italy, and Germany are the primary drivers of Europe's S-SBR tire market, which is expected to increase significantly. Supporting government tire labeling requirements and additional rules, particularly for winter tire use in cars, is likely to increase winter tire sales, driving industry growth. Increased export potential for European products in the Asia Pacific region due to high-quality compliance and labeling regulations are expected to improve product demand.

Additionally, as the demand for EVs grows in Europe, these tires are designed to improve energy efficiency and expand the range of electric vehicles. Europe is expected to have the most significant rate of electric vehicle adoption globally by 2030, surpassing China. The region is expected to have a 67.3 percent penetration rate for new energy cars, up from 22% in 2023. This example demonstrates the strategic use of SSBR technology to fulfill the unique needs of the European market, where sustainability and EV adoption are significant trends.

Segmental Analysis

The global Solution Styrene Butadiene Rubber(SSBR) tires market growth is segmented based on vehicle type, distribution channel, and rim size.

The market is further segmented by type into Passenger Cars, Commercial Vehicles.

The Passenger Car segment includes the production and demand for tires built exclusively for passenger vehicles. For example, in 2022, almost 62 million passenger cars were created worldwide. Passenger cars, the most significant section of the automotive market, encompass many vehicles, such as sedans, hatchbacks, SUVs, and crossovers. Tires made with SSBR for passenger cars are designed to fulfill the diverse needs of consumers, prioritizing factors such as fuel efficiency, safety, and a pleasant ride. SSBR in passenger car tires improves wet grip, reduces rolling resistance, and improves overall performance, which aligns with the growing need for high-performance, environmentally friendly tire solutions in the passenger vehicle segment.

The Commercial Vehicle industry produces and utilizes tires suited for commercial or industrial vehicles. This category comprises various vehicles, including trucks, buses, vans, and other heavy-duty vehicles. Commercial vehicle tires must withstand harsher conditions, such as greater loads and longer distances. Tires with SSBR in this sector are designed to endure the rigors of commercial operation while providing benefits such as fuel efficiency, durability, and extended tread life. Using SSBR in commercial vehicle tires helps optimize fleet operations by solving the specific performance requirements required for efficient and safe transportation in the retail sector.

Based on the distribution channel, the market is classified into OEM and Aftermarket.

The aftermarket business is expected to increase due to a preference for SSBR tires in the replacement situation. Aftermarket SSBR tires are designed for consumers who want to replace their original tires or upgrade to higher-performance options. This market is distinguished by the availability of a diverse range of SSBR tire brands and models, allowing consumers to choose depending on specific criteria such as driving style, climate circumstances, and vehicle type. Aftermarket SSBR tires add to the industry's dynamism by allowing consumers to improve the performance and efficiency of their vehicles after the initial purchase. The aftermarket segment also enables tire manufacturers to demonstrate the benefits of SSBR technology to customers who want to improve their driving experience without purchasing a new vehicle. 

On the other hand, OEM manufacturers are battling to continue their ongoing production operations due to decreased cash availability and reduced profit margins. OEMs work with tire manufacturers to offer vehicles with tires that fulfill specific performance and design standards. SSBR tires are installed on automobiles before they reach the consumer market in this area. OEMs consider safety, fuel efficiency, and overall vehicle performance when selecting SSBR tires, ensuring that the tires match the intended features of the cars they equip. The OEM segment is critical in establishing the initial quality and performance criteria for SSBR tires as they become a standard feature of newly manufactured vehicles.

The market can be further bifurcated by rim size into Less than 15, 15 to 20, and More than 20.

The global SSBR tires market's 15 to 20-inch Rim Size sector contains tires for many vehicles, including medium cars, SUVs, crossovers, and larger trucks. Tires in this rim size range are designed for drivers looking for a balance of performance and mobility. SSBR technology in tires with rim sizes ranging from 15 to 20 inches improves total tire performance, including traction, durability, and fuel efficiency. This sector is critical for satisfying varying consumer preferences by providing SSBR tires that meet the needs of numerous vehicle types in the midsize and larger categories.

Furthermore, the Less than 15 Inch Rim Size section includes tires suited for automobiles with smaller wheel dimensions. This category usually comprises compact automobiles, subcompact cars, and certain entry-level sedans. Tires in this rim size range are designed to deliver the best performance for tiny vehicles, focusing on fuel efficiency, ride comfort, and maneuverability. SSBR in tires with rim sizes less than 15 inches improves wet grip and reduces rolling resistance, meeting the unique needs of drivers of smaller vehicles who value efficiency and safety.

Impact of covid-19

As per the data published by the U.S. Tire Manufacturers Association, due to the disruption in the value chain of the automotive industry after the outbreak of the COVID-19 pandemic, in the year 2020, the market of North America witnessed a record low supply of automotive tires. The market registered a sharp decline of 18% as compared to the sales of 2019.

Many manufacturers with a substantial hold on the sales of SSBR tires have listed considerable decrement in their net revenue generation and profit margins. The massive dip in the production and sales of the products are underpinning the weak performance of these companies across the global market. For instance, Bridgestone, a global manufacture of SSBR tiers recorded a reduction in revenue by 11%, with operating profit plummeted almost twice between the first quarters of 2020. Hankook observed a reduction of 20% in its revenue and a reduction of 29% in its profit margin.

The strategic exit of the global market players from the unprofitable markets has accelerated and significantly decreased the development prospects. Additionally, the exits resulted in market consolidation in particular regions affecting the overall performance of the market. The suppliers operating in the market are facing intense cash liquidity issues and retailers are also unable to cope up with the sudden change and volatility in the economic behavior of the market. The entire automotive value chain may succumb to the disruptive situation.

Recent Developments

• February 2024- Michelin, Antin, and Enviro announced the construction of Sweden's first end-of-life tire recycling factory.
• January 2024- The Goodyear Tire and Rubber Company recently introduced the GP-3E tire line to the Goodyear Off-the-Road (OTR) portfolio.