Why are tires the largest application?
Tires use large amounts of SBR and polybutadiene in treads and sidewalls, and halobutyl rubber in inner liners to retain air. Every new vehicle and every replacement tire therefore creates synthetic rubber demand. IRSG expects tire production to grow at an average of 1.46% per year through 2032, supported by vehicle sales, replacement demand, and growth in emerging markets. Tire makers are also increasing the share of synthetic rubber in high-performance and EV tires. Truck and bus tires, which use more natural rubber, also contain significant amounts of synthetic rubber in specific components.

How do electric vehicles change rubber demand?
Electric vehicles are heavier and deliver high torque, which increases tire wear, while drivers want low rolling resistance to extend range. Tire makers respond with silica-filled treads based on functionalized S-SBR and high-cis polybutadiene, which improve rolling resistance, wet grip, and abrasion resistance at the same time. This shifts demand toward premium S-SBR grades and supports investment by producers in new S-SBR capacity. Tire labelling schemes in Europe and other regions, which grade rolling resistance, wet grip, and noise, give tire makers a further incentive to use advanced rubber compounds.

What capacity investments are under way?
Producers are expanding capacity for high-performance grades. Zeon Corporation upgraded its Singapore plant so that its combined S-SBR capacity will reach 125,000 tonnes per year, with full commercial production in 2026. ARLANXEO announced in November 2025 that it will raise polybutadiene output at its Triunfo plant in Brazil by nearly 25%, with the expansion coming on stream in 2027. These investments target tire makers seeking better performance and regional supply. New capacity is often located near major tire-making clusters to reduce logistics costs and support close technical cooperation.

What role does EPDM play?
EPDM (ethylene-propylene-diene monomer) has excellent resistance to weather, ozone, and heat, making it the leading rubber for automotive weatherstripping, radiator and coolant hoses, roofing membranes, and wire and cable insulation. Construction and automotive demand drive EPDM growth, and EV thermal management systems use EPDM hoses and seals. EPDM is also widely used in solar panel and building sealing systems, linking demand to renewable energy and construction activity.

What are specialty elastomers used for?
Nitrile and hydrogenated nitrile rubber resist oils and fuels and are used in seals, gaskets, hoses, and gloves. Chloroprene is used in belts, hoses, and adhesives. Fluoroelastomers withstand high temperatures and aggressive chemicals in automotive, aerospace, and semiconductor equipment. Acrylic and ethylene acrylic rubbers serve high-temperature automotive seals. These specialty grades have smaller volumes but much higher value per tonne. Fluoroelastomer demand is rising with semiconductor manufacturing and EV battery and power electronics applications.

How do raw material prices affect the market?
Butadiene, styrene, isoprene, ethylene, propylene, and acrylonitrile are derived from petrochemical feedstocks, so their prices follow crude oil and naphtha markets and cracker operating rates. Butadiene supply is linked to ethylene production, and changes in cracker feedstocks can affect availability. Producers pass through raw material costs with a lag, which can squeeze or widen margins. Integrated producers that also operate crackers or buy feedstocks under long-term contracts are better able to manage these swings.

How do emulsion and solution processes differ?
Emulsion polymerization produces E-SBR and nitrile rubber in water-based systems and is used for general-purpose grades. Solution polymerization uses organic solvents and allows precise control of polymer structure, producing S-SBR, polybutadiene, and other high-performance grades. Continuous processes dominate large-scale production, while batch processes are used for specialty grades.

Which non-tire applications are growing?
Automotive hoses, belts, seals, and vibration dampers; industrial conveyor belts and rollers; footwear soles; construction roofing and sealing products; consumer goods; and medical tubing and gloves are important non-tire markets. Growth in construction, infrastructure, and healthcare in emerging economies supports these applications. Gloves and medical products became a major application during the COVID-19 pandemic and remain an important market for nitrile rubber.

What challenges face synthetic rubber producers?
Overcapacity in some grades, particularly in Asia, can pressure prices. Volatile feedstock costs, energy prices in Europe, and trade measures affect profitability. Sustainability pressures are pushing producers to develop bio-based and recycled feedstocks and to reduce emissions from production. Some producers have closed older, less efficient plants in Europe and Japan while focusing new investment on high-value grades.

Which synthetic rubber market segments are growing fastest?
Solution SBR and high-performance polybutadiene for tire treads; EPDM for automotive and construction; hydrogenated nitrile and fluoroelastomers for high-temperature applications; medical and healthcare products; and solution polymerization processes are the fastest-growing segments.