This study analyzes the world industrial rubber product industry. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by market (e.g., industrial equipment, motor vehicles, construction), product (e.g., mechanical goods, hose, belt, roofing), world region and 27 countries. The study also considers market environment factors, details industry structure, evaluates company market shares and profiles 39 global industry players including Continental, Freudenberg and Tokai Rubber.
World demand to rise 5.8% annually through 2016
The global market for industrial rubber products is projected to increase 5.8 percent per year to $139.8 billion in 2016, accelerating from the growth rate during the 2006-2011 period. Demand gains will be fueled by growth in key original equipment manufacturing (OEM) markets, particularly motor vehicles. In addition, the worldwide motor vehicle park will grow at a faster pace as income levels rise, supporting aftermarket demand for industrial rubber products.
Industrial equipment to remain largest segment
The motor vehicle market is forecast to post the strongest gains through 2016, reflecting a turnaround in light vehicle production, bolstering OEM sales of industrial rubber products. However, the industrial equipment market, which includes industrial machinery and equipment as well as off-road vehicles, is expected to remain the largest segment of the industrial rubber product market through 2016. Growth in this segment will be supported by increasing industrial manufacturing activity, as well as by rising demand for heavy industrial equipment such as construction and mining machinery.
Mechanical rubber goods -- which include such products as body seals, vibration control devices and wiper blades -- are expected to remain by far the largest product segment through 2016. Because these products are employed heavily in motor vehicles, segment growth will be largely attributable to an acceleration in global automotive output. However, rubber belts and hoses will see the fastest gains of any product segment during that span, bolstered by a better outlook for pricing relative to mechanical goods.
Asia/Pacific to solidify its status as dominant region
The Asia/Pacific region, which represented 44 percent of the global market for industrial rubber products in 2011, is forecast to post the fastest gains of any region through 2016. Gains in regional demand will be fueled by ongoing industrialization efforts and rising personal income levels, which will support manufacturing output in a range of industries, from construction machinery to household appliances.
India is expected to register the strongest growth of any country worldwide through 2016, outpacing even China. However, China will have the most growth in absolute terms, accounting for 42 percent of all additional sales generated through 2016. Several lower-volume markets, such as Indonesia and Malaysia, are forecast to register healthy gains as a result of increased manufacturing activity. Advances in Central and South America and the Africa/Mideast region are expected to outpace the global average, though those regions will continue to represent a modest share of the global market.
The US industrial rubber product market, second largest in the world behind China, will experience a rebound in demand due to an improved manufacturing climate. Western Europe and Japan will see modest increases, in large part because those markets have already reached a mature level. Nevertheless, because of the advanced industrial and technological nature of their economies, intensity of product use in those areas will remain among the highest in the world.
Specific products covered in this report include mechanical rubber goods (e.g., vibration control components, body seals, and wiper blades), hoses (e.g., vehicular, fluid power, water, air, and other industrial), belts (e.g., flat and nonflat), roofing membranes, and other products (e.g., flooring, roll coverings, sheet, film, and geomembranes). Excluded from the scope of the study are tires and tire products (e.g., inner tubes and tread rubber), wire and cable jacketing, gaskets and most seals (with the exception of body seals used on vehicles), druggist and medical rubber sundries (e.g., gloves and prophylactics), medical rubber tubing, coated fabrics and rubber clothing, balloons, toys, life rafts and boats, and rubber bands. The term “rubber” as used in this study includes products made from both thermoset (i.e., natural or synthetic rubber) and thermoplastic elastomers, including blends thereof. Major markets for industrial rubber products include industrial equipment, motor vehicles, construction, and aerospace and othher transportation equipment. Demand data are also presented for elastomers used in the production of industrial rubber products. Historical data for industrial rubber products for 2001, 2006, and 2011 and forecasts for 2016 and 2021 are provided in current US dollars.
Macroeconomic and demographic indicators presented in this study were obtained from The Freedonia Group Consensus Forecasts dated January 2012. Gross Domestic Product (GDP) historical data are derived from the national income and products accounts from the Organisation for Economic Co- Operation and Development (OECD) for its member countries, from the European Bank for Reconstruction and Development (EBRD) for its member countries, and from the International Monetary Fund for its member countries that are not part of the OECD or EBRD. Sources of GDP estimates for other countries are based on information from the World Bank and a variety of sources including the countries’ statistical bureaus. GDP forecasts are developed from a consensus of public agencies and private firms.
Information and data on industrial rubber products were obtained from a variety of primary and secondary sources, including trade associations, government publications, industry participants, online databases and other Freedonia studies. Primary information was gathered through consultations with personnel of participating companies and other industry specialists. Secondary data and background information were obtained from various trade publications, including Automotive News, Rubber and Plastic News, and Rubber World. Corporate annual reports, SEC Form 10-K filings, product catalogs and other company information were also used extensively in framing the industry and market environments and as input for market size assessments.