The global rubber products market is expected to grow from $327.4 billion in 2020 to $359.7 billion in 2021 at a compound annual growth rate (CAGR) of 9 percent.The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges.The market is expected to reach $442.8 billion in 2025 at a CAGR of 5 percent.
Asia Pacific was the largest region in the global rubber products market, accounting for 48 percent of the market in 2020. North America was the second largest region, accounting for 20 percent of the global rubber products market. Africa was the smallest region in the global rubber products market. Technology is expected to be a continued driver of market growth during this period. Industries that involve technology, such as this one, benefited from this trend during this period.For example, technologies such as "green tires," where 20-30 percent of a vehicle's fuel consumption is related to tire performance, took off during this period. Green tires offer wet grip, durability and low rolling resistance, reducing fuel consumption by 5-7 percent. Thus, technological advances which enabled improved performance, reduced fuel consumption contributed to the market growth. The outbreak of the Coronavirus disease (COVID-19) acted as a massive restraint on the rubber products manufacturing market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. COVID 19 is an infectious disease with flu-like symptoms including fever, cough and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Steps by national governments to contain the transmission have resulted in halting of manufacturing activities and a decline in economic activity with countries entering a state of lockdown and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021.
However, it is expected that the rubber products manufacturing market will recover from the shock across the forecast period as it is a 'black swan' event and not related to ongoing or fundamental weaknesses in the market or the global economy. Computer simulation and 3D printing technology is expected to have a significant impact on the rubber product manufacturing industry. An increasing number of companies are adopting 3D technology to design and develop rubber products. Software aided system offers 3D presentations on production line processes, including potential fault lines and also provides control on the manufacturing process. For example, Stratasys develops 3D printing technologies to produce automotive tires that can be customized to different levels of hardness, and elongation. Major companies in the market include Bridgestone Corporation; Michelin Inc; Good Year Tire & Rubber Company; Continental Tire the Americas; Pirelli & C SpA.