According to Ken Research Analysis, the Global Reclaimed Rubber Market was valued at ~US$ 1 billion in 2017, it is estimated to be ~US$ 2 billion in 2022 and is forecasted to reach a market size of ~US$ 4 billion opportunities by 2028 at a CAGR of ~12% during 2022–2028. Reclaimed rubber requires less energy consumption, and is cost-effective which drives the growth of the market.
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Key Growth Drivers
- The increasing demand for tires and tubes in the automotive industry is driving the global reclaimed rubber market. According to the International Organization of Motor Vehicle Manufacturers (OICA), an organization working in the interest of vehicle manufacturers and assemblers stated that vehicle production increased by 3% from 2020 to 2021 after declining by 13% from 2019 to 2020. Thus, the increasing production of motor vehicles is driving the demand for tires, which is likely to act as a driver for the reclaimed rubber market.
- Devocalization or depolymerization of waste rubber will likely result in the degradation of the physical properties of rubber. Devocalization is a process through which vulcanized waste rubber is transformed into the state in which it can be vulcanized, after mixing and processing. Degradation of rubber can range up to 30 to 70% from the virgin state. A higher level of application such as tires from waste rubber is limited to use after the degradation of a material.
- COVID-19 has decelerated the growth of the reclaimed rubber market. This is because of the temporary shutdown of assembly lines, disruption of the supply chain, and decline in vehicle sales numbers. But as the market is recovering and restrictions are easing down, it is estimated that the Reclaimed Rubber market will recover shortly. According to the International Organization of Motor Vehicle Manufacturers (OICA), stated that Europe vehicle production declined by 24% from 2019 to 2021, and American vehicle production declined by 20% from 2019 to 2021. The decrease in the demand for vehicles during COVID-19 impacted the sales of automotive tires, which significantly impacted the reclaimed rubber market.
Key Trends by Market Segment
By Type: The whole tire segment held the largest market share of the global reclaimed rubber market in 2021. The automotive industry and OEMs are driving the demand for whole-tire reclaimed rubber.
- The whole tire reclaimed rubber is manufactured from the end-of-life tire and the tread’s peeling. This reclaimed rubber is used in auto tires, conveyor belts, rubber sheets, rubber molded goods, and transmission belts.
- The demand for whole-tire reclaimed rubber is rising because of its high versatility, durability, lower processing cost, and lesser impact on the environment.
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By Application: The tire segment accounted for the largest market share in 2021, owing to the rising demand from the automotive and aerospace tire industry.
- Tire usages are inner liners, inner tubes, tire sidewalls, tire piles, tire tread, and retreads. The demand for tires is rising due to a shift in the trend toward eco-friendly and sustainable materials.
- Furthermore, the easy availability of wasted and disposed tires along with lower reclaim rubber costs, propel the demand for the tire segment.
By End-User: The automotive and aircraft tires held the largest market in 2021, owing to the increasing demand for lower-cost tires, and awareness regarding the usage of sustainable products.
- Aircraft tires are built from conductive elastomer, which contains natural rubber, and are subject to extreme conditions. On the other hand, automotive tires are available in a variety of applications by multiple tire companies.
- Rising rubber costs, soaring environmental concerns caused by dumping used rubber in rivers, and increased energy efficiency, are all those factors that are driving the automotive and aircraft tire segment.
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By Geography: Asia Pacific accounted for the largest market share within the global reclaimed rubber market in 2021, owing to the emerging automotive industry, and houses most of the reclaimed rubber companies.
- According to the International Trade Association (ITA), a USA agency that promotes trade and investment. China continues to be the world’s largest vehicle market by both annual sales and manufacturing output, with domestic production expected to reach 35 million vehicles by 2025.
- The International Organization of Motor Vehicle Manufacturers (OICA), stated that Asia region vehicle production increased by 4,67,73,2785 in 2021 from 4,42,76,549 in 2020. Hence, the rising automotive industry is likely to boost the growth of the reclaimed rubber market.
Competitive Landscape
The global reclaimed rubber market is highly competitive with ~200 players which include globally diversified players, and regional players as well as a majority number of country-niche players having their niche in reclaimed rubber manufacturing and distributing to multiple end-user industries.
Country niche players held the largest market share by type. While large global players control about 10% of the market share by type. Some of the major players in the market include GRP Limited, Fishfa Rubbers Ltd., Huxar Reclamation, Genan Holding Limited, Star Polymers Inc., Enviro Systems AB, J. Allcock & Sons Ltd, Evonik, S. E. Power Limited, Swani Industries, and others.
Recent Developments Related to Major Players
- BlackCycle project funded by Horizon 2020, officially launched in May 2020. The project aims to enable a massive circular economy of tires. The project will design world-first processes to make new tires from end-of-life tires.
- In January 2020, Goodyear and Rubber-Cal announced a partnership with the launch of a new line of rubber flooring & mats. New flooring products are manufactured from 100% recycled rubber materials.
Conclusion
The global reclaimed rubber market witnessed significant growth during the period 2017-2021, the rising automotive tire industry, and increasing demand for low-cost and sustainable tires are driving the growth of the reclaimed rubber market. The growth rate is expected to remain significant during the forecast period.
Though the market is highly competitive with ~200 participants, the majority of country-niche players dominate the market share by type, and global players also hold a significant share.
Note: This is an upcoming/planned report, so the figures quoted here for a market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients, and the report delivered within a maximum of 2 working weeks.
Ken Research has recently published report titled, Global Reclaimed Rubber Market Size, Segments, Outlook, and Revenue Forecast 2022-2028, market is segmented by Type, Application, and End-User. In addition, the report also covers market size and forecasts for the four regions in the Reclaimed Rubber markets. The revenue used to size and forecast the market for each segment is US$ billion.
Market Taxonomy
By Type
- Whole Tire Reclaimed Rubber
- Butyl Reclaimed Rubber
- EPDM Reclaimed Rubber
- Drab & Colored Reclaimed Rubber
- Others
By Application
- Tire
- Non-Tire
By End-User
- Automotive & Aircraft Tires
- Retreading
- Belts & Hoses
- Footwear
- Molded Rubber Goods
- Others
By Geography
- North America
- USA
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- AustraliaRest of Asia Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Players
- GRP Limited
- Fishfa Rubbers Ltd.
- Huxar Reclamation
- Genan Holding Limited
- Star Polymers Inc.
- Enviro Systems AB
- J. Allcock & Sons Ltd
- Evonik
- S. E. Power Limited
- Swani Industries