NITRILE BUTADIENE RUBBER MARKET ANALYSIS

Global nitrile butadiene rubber market was valued at US$ 2.2 Bn in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 6.4% from 2023 to 2030.

Global Nitrile Butadiene Rubber Market Drivers:

• Growing demand from aerospace and automotive application: Rapid development in the transportation industry is driving the growth of the nitrile butadiene rubber market. For instance, in 2020 according to the Coherent Market Insights analysis, the automobile sector in India is expected to grow due to favorable government policies, such as the extension of the FAME-2 scheme till 2024 and the Production Link Incentive (PLI) scheme for auto and auto components manufacturers in India, which is valued at about US$ 18 Bn (INR 18,000 crore). According to the same source, Airbus is a European multinational aerospace corporation whixh delivered 611 commercial flights in 2021, increasing from 566 flights delivered in 2020. Boeing delivered 340 jetliners in 2021, depicting an increase from 157 jetliners in 2020. Owing to a surge in e–commerce and freight, Boeing was able to secure orders form UPS, Atlas Air, and FedEx in 2021. There is an increase in commercial flight orders, owing to the recovery in passenger travel rates from 2021.
• Strong growth in Oil & Fuel-resistant seals: Increasing demand from oil and fuel-resistant seals in many industries is also anticipated to foster the market growth. It has good mechanical strength, along with elasticity and good deformation behavior between -30 to 100 C, which makes it an ideal for oil & gas applications. Additionally, a rise in the oil and gas industry will favor the market growth. For instance, in June 2020, Zhoushan (Zhejiang) Refinery and Petrochemicalis a new integrated refinery and petrochemical project being developed in Zhoushan Island, Zhejiang province, China. Which commissioned the expansion and integration of its refining and petrochemical complex in 2021. The plant is expected to become the largest refinery in China, upon completion expected in 2022.

Global Nitrile Butadiene Rubber Market Opportunities:

• Growing of projects: Growing demand for nitrile glove is projected to bring bright market opportunities over the forecast period. Nitrile gloves are produced from synthetic rubber. They are capable of withstanding harsh chemicals and punctures. NBR nitrile gloves were originally produced as a latex allergy substitute for health, food, and cleaning workers.Increasing demand from adhesive and sealant application is expected to offer significant growth opportunities over the forecast period. Adhesive and Sealant application has improved product durability and reliability, increased product performance, enhanced increased design flexibility, enhanced product aesthetics, and improved process productivity and reduced manufacturing cost. NBR is majorly used as elastomer for high-end sealing applications.

Global Nitrile Butadiene Rubber Market Trends:

• NBR hoses are gaining popularity in a variety of sectors throughout the world: NBR hoses are gaining traction across a wide range of industries worldwide. NBR hoses are majorly used in aerospace equipment, industrial machinery, motor vehicles, and other transportation equipment. Moreover, NBR hoses are attributable to industrial equipment, including off-road equipment, such as construction and agricultural equipment.
• Industries involved in food processing: Food processing industries, leather and textile industries, and some other industries are increasingly adopting nitrile butadiene rubber. NBR is used in the textiles industry, where it is used in woven and non-woven fabrics to enhance the finish and waterproofing properties.

Global Nitrile Butadiene Rubber Market Restraints:

• Substitute product availability: Availability of substitute products, such as a polyurethane-based thermoset elastomer petrochemical, Brandonite 1200-60A is expected to hinder the Nitrile Butadiene Rubber market growth.Counterbalance: With supply of natural rubber under threat, due to pathogens, the world is in need of some alternatives like the nitrile butadiene rubber, which is one of the most liable synthetic natural rubber for carrying out industrial applications. It is resilient and flexible than other substitutes available in the market.
• Fluctuating price of raw materials: Fluctuating price of raw materials is another key factor expected to hamper the market growth. NBR rubber is produced by the copolymerization of acrylonitrile and butadiene. The price of acrylonitrile differs due to the supply fluctuations and the volatility of prices of propylene.Counterbalance: Nitrile butadiene rubber is a petroleum-based and oil-resistant synthetic rubber. In comparison to other commonly used substitutes, it is much more compatible with the environments and low in cost.

Global Nitrile Butadiene Rubber Market Segmentation:

Figure no 1. Global Nitrile Butadiene Rubber Market, By Application, 2022

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Based on application, the market is segmented into adhesives and sealants, belts and cables, gloves, hoses, gaskets and O-Rings, and other applications. Out of which, the adhesives and sealants segment is expected to dominate the global market over the forecast period and this is attributed to its excellent compression resistance property. It also offers resistance to most of the oils and lubricants, particularly petroleum-based lubricants.

Hoses segment is also expected to witness significant growth in the near future and this is owing to the fact that NBR is one of the crucial synthetic rubber types which have high resistance to aliphatic hydrocarbon oils and fuels. Moreover, NBR hoses are widely used in various durable goods sectors, including industrial machinery, aerospace equipment, motor vehicles, and other transportation equipment.

Figure no 2. Global Nitrile Butadiene Rubber Market, By Region, 2022

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Based on Region, the global nitrile butadiene rubber market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is expected to gain significant growth over the forecast period and this is attributed to the strong presence of automotive industry in China. China has one of the largest automotive industry in the world. Automotive production remained dull in 2020 due to the spread of COVID-19. For instance, according to the China Association of Automotive Manufacturers (CAAM), overall vehicle production totaled 25.225 million units in 2020, with a 2.0% decline compared to the same period in the previous year. However, automobile production witnessed a recovery in 2021, with improving global export and production coming back to normal in the country. According to OICA (Organisation Internationale des Constructeurs d'Automobiles), the overall automobile production in the country in 2021 stood 260,82,220 a 3% increase from 2020.

North America is expected to witness the fastest growth over the forecast period, owing to the strong presence of aviation sector with the growing demand for air traffic passenger. As per International Air Transport Association statistics, annual growth in global air traffic passenger demand in 2023 is estimated to be around 51%. The higher demand for air traffic may indicate more maintenance and refurbishment of existing aircraft, which may increase the demand for NBR.

Global Nitrile Butadiene Rubber Market: Key Developments

• In April 2021, ARLANXEO a producer of a broad portfolio of Butadiene Rubbers marketed under the brand name BUNA®, launched its legal entity ARLANXEO India Private Limited, which will commence operations from Mumbai.
• In April 2021, Sinopec-SK Petrochemical Co. Ltd, a joint venture of SK Global Chemical (a subsidiary of SK Innovation) and Sinopec, planned to complete its expansion of new petrochemical facilities and start operation in full throttle in the second half of 2021, with a 40% increase in capacity from 2.2 million metric ton of petrochemical products. The expansion in annual production capacity comprises 0.19 million metric tons of butadiene along with other chemicals
• In September 2021, Apcotex a rapidly growing specialty chemical company with a diverse customer base across key markets. Its Taloja latex plant’s capacity increased from 55000 MT to 65000 MT p.a. The Valia rubber plant’s capacity enhanced from 16000 MT to 21000 MT p.a.
• In Oct 2021, Dynasol Group is one of the leading names in the synthetic rubber market, ranking among the 10 largest companies of its sector in the world. They announced the surcharges of US$ 325.5MT on all synthetic rubber and rubber chemicals produced in Europe.
• In December 2021, ARLANXEO and TSRC a joint venture called ARLANXEO-TSRC (Nantong) Chemical Industrial Co., Ltd., announced the plan to relocate the current plant of its joint venture - ARLANXEO-TSRC (Nantong) Chemical Industrial Co. Ltd. from the northern to the southern section of the Nantong Economy and Technology Development Area (NETDA) Chemical Park, Jiangsu, designed annual capacity of NBR (nitrile-butadiene rubber) in the new location, which will increase from 30,000 ton to 40,000 ton per annum.

Global Nitrile Butadiene Rubber Market: Key Companies Insights

The global nitrile butadiene rubber market is highly competitive. This is attributed to continuous launch of new technologies, due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global Nitrile Butadiene Rubber market are:

Apcotex Industries Limited, ARLANXEO, China Petroleum & Chemical Corporation (Sinopec), Dynasol Group, JSR Corporation, KUMHO PETROCHEMICAL, Lanxess, LG Chem, Sibur, Synthomer, Synthos, TSRC, Versalis SpA, and Zeon Corporation

*Definition: Nitrile Butadiene Rubber is a type of synthetic rubber that is made from the compounds acrylonitrile and butadiene. It is often referred by many other names, including Buna-N and nitrile rubber. It has excellent abrasion resistance and rebound properties. It is also less expensive than fluoroelastomers. It has a relatively narrow range of temperature and abrasion resistance. It is an ideal choice for a variety of applications where temperature and chemical resistance are paramount.