Liquid Polymers in Tyres Market - Forecast(2023 - 2028)

Report Code: CMR 1339 Report Format: PDF + Excel

Liquid Polymers In Tyres Market Overview

Liquid Polymers in Tyres market size is estimated to reach US$9.8 billion by 2027, growing at a CAGR of 4.0% from 2022-2027. Liquid polymers are non-volatile solvents that separate solid from liquid and thicken sludge for mechanical dewatering. Such solvent majorly contains poly ethylene glycol, poly propylene glycol, polytetrahydrofuran which as water-based coatings, lubricants, anti-agents etc. have various industrial applications. Hence such polymers as a lubricant to rubber compounds are used with natural rubber & synthetic rubber-like styrene butadiene rubber which are mainly used in tire manufacturing. The drivers that have positively impacted the growth of liquid polymer in the tyres market is rapid development in the automotive sector, technological advancement in tire manufacturing and a growing shift towards electric vehicles which has increased the demand for fuel-efficient tyres. However, the manufacturing process of tyres creates a lot of waste and emissions causing air as well as water pollution. Hence to prevent waste creation, certain regulations have been imposed by the government organization, on the manufacturing of tyres which has reduced usage of liquid polymers in them, thereby hampering the growth of liquid polymers in the tyres industry.

COVID-19 Impact

COVID-19 pandemic had negatively impacted the liquid polymers in tyres market on a global level, as due to restrictions and lockdown imposed by governments all across the globe, the productivity went down of various sectors like automobile, metalworking, rubber, aerospace etc. The automobile sector was majorly hit, as there was shutting down of large part of the auto industry, workshops and its many suppliers around the world which caused a decline in vehicle usage as well as vehicle sales globally. With the decline in vehicle usage, the consumption of rubbers used in tyres also declined thereby causing a decrease in demand for synthetic based rubbers like styrene butadiene rubber which are mainly used in tyre manufacturing. Hence such a decrease in demand for synthetic rubber negatively impacted the growth of liquid polymer in the tyres industry as such polymers like polyethylene glycol are used as lubricants in natural as well synthetic rubber manufacturing which are ultimately used in tyres. As per the International Organization of Motor Vehicle Manufacturing, in 2020 there was a 16% global decline in vehicles production i.e., less than 78 million vehicles, with all major producing regions like the U.S, Brazil, Germany having a sharp decline of 11% to 44% and Europe saw a drop of 21% on average.

Liquid Polymers In Tyres Report Coverage

The report: “Liquid Polymers in Tyres Market – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Liquid Polymers in Tyres Industry.

By Polymer Type – Polyethylene glycol, Poly Propylene glycol.
By Tyre Type – Radial tyres, SUVs tyres, Tubeless tyres, All terrain tyres, Performance tyres, others.
By End User – Automobile Tyre (Passenger Vehicles, Commercial Vehicles, Trucks & Buses, Two-Wheeler/ Three-Wheeler), Aerospace Tyres, Construction vehicles tyres (Front loader Truck, Backhoe, Dump Trucks, Wheel Tractor Scrapper, Others), Others.
By Geography - North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa).

Key Takeaways

  • Asia-Pacific region dominates the lubricant additive market, as the region consists of countries like China, India which are rapidly advancing their industrial and automotive sector, and Japan is the largest manufacturer of tyres 
  • Tiremakers commitment to producing technically advanced tyres such as run-flat tyres, self-sealing tyres and using technologies like air-free tyre technology and noise dampening technology has provided growth opportunities for liquid polymers in tyres market 
  • With the growing demand for four-wheelers such as SUVs in countries like U.S, India and across all Europe, the output for tires to be used in such vehicle types will also increase. Hence this will lead to an increase in the usage of liquid polymers for manufacturing tyre-based rubbers such as synthetic rubbers.

Figure: Asia-Pacific Liquid Polymers in Tyres Market Revenue, 2021-2027 Liquid Polymers in Tyres Market Revenue
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Liquid Polymers in Tyres Market Segment – By Polymer Type

Polyethene glycol held the largest share in the liquid polymers in tyres market in 2021, with a share of over 40%. This is due to factors like polyethylene glycol being used as an air pack releasing agent, inner releasing agent and as lubricant in the tyre industry. Moreover, such liquid polymer also acts as an activator in the manufacturing of styrene butadiene rubber and butadiene rubber which are mainly used in tyre manufacturing. The increase in production volume of certain vehicles such as passenger cars has positively impacted the demand of styrene butadiene rubber. For instance, as per the November 2021 report of Europe Automobile Manufacturer Association, the new passenger car registration in the first ten months of 2021 increased up to 2.2% with an increase shown in European Union markets like Italy showed 12.7%, Spain showed 5.6% and France showed 3.1%. Hence such an increase in production and demand of these vehicles segment, the consumption of tyres will also increase in them, thereby leading to more usage of polyethylene glycol to produce tyre-based rubber-like styrene butadiene rubber

Liquid Polymers in Tyres Market Segment – By Tyre Types

SUV tyre segment held the largest share in the liquid polymers in tyres market in 2021, with a share of over 35%. This owns to factors like the robust growth of SUV vehicles in major regions like the United States, India and across Europe due to growing consumer demand for greater fuel-efficient compact cars. For instance, as per the 2020 report of the International Council of Clean Transportation in Europe, the sales of sports utility vehicles (SUV) in 2019 was 5.7 million which compared to the number of units sold in 2001 has grown ten times. Moreover, as per the 2021 report of the National Automobile Dealers Association, the vehicles sales in Q2 totalled up to 17 million units in the US, in which 76.9% was light trucks and sports utility vehicles (SUVs) and the segment is expected to grow up to 80% market share. Hence with the increase in demand for SUV vehicles, the demand for SUV tyres will also increase, thereby leading to more usage of liquid polymers in the production of SUV based tyres through synthetic rubber-like styrene butadiene rubber.

Liquid Polymers in Tyres Market Segment – By End User

Automotive tyres held the largest share in the liquid polymers in tyres market in 2021, with a share of over 45%. This is due to fact that tyres form an essential part of the entire automotive system as it is ultimately built to link the car with the road. Hence with rapid development in the automotive sector and growing demand for vehicles globally has increased the output of tyres that would be used in vehicles. For instance, as per European Automobile Manufacturers Association, the production and registration of passenger cars in the EU increased by 53.4% in 2021 with strong volume seen in Spain, France, Germany where mostly manual cars are used in Europe. Also, as per the European Association of Motorcycle Manufacturers, in European markets like France, Germany, Italy, Spain the two-wheeler production and registration rose by 10.6% in 2021 from last year. With the increase in demand for vehicles in such major regions, the demand for rubber polymers like styrene butadiene rubber which is used in tyre production in such regions will also increase. Hence this will lead to an increase in the usage of liquid polymers like polyethene glycol, which are used as effective lubricants in synthetic rubber manufacturing.

Liquid Polymers in Tyres Market Segment – By Geography

Asia-Pacific held the largest share in the liquid polymers in tyres market in 2021, with a share of over 35%. It is due to factors such as increase in production volume of vehicles in countries like China, India, Japan etc. and an increase in investments in automobile sectors. For instance, as per the International Organization of Motor Vehicle Manufacturing, the global production volume of vehicles increased to 57 million in 2021 from 52 million in 2020, with Asia accounting for 50% of production. Also, as per the Indian Brand and Equity Foundation, the automobile sector in India attracted FDI worth US$30.51 billion between April 2000 and June 2021. As per the 2021 report of the European Automobile Manufacturers Association on global vehicle production, China produces 32% of 74 million cars manufactured worldwide followed by Europe 23%, Japan & Korea 16%. Hence as the automobile production in major Asian countries like China, India, Japan, South Korea increases, so this will increase tyres production volume in such countries thereby positively impacting the demand for liquid polymers that will be used for tire production in the Asia-Pacific region.

Liquid Polymers in Tyres Market Drivers

Increase in Demand for Electric vehicles

With the growing technological advancements, consumers have started shifting their demand from manual vehicles to electric hybrid vehicles. Various automotive plants for e-vehicles are being set up in countries. For instance, as per European Automobile Manufacturing Association, the production for e-vehicles increased up to 11% in 2020 from 3% in 2019 in the EU, and as per the International Energy Agency, electric car registration increased by 41% in 2020 globally, with China and Europe being the largest electric vehicle market. With such a shift, the automotive industry is evolving towards a new type of tyres technology such as low rolling resistance tyres to meet the unique challenges of electric and autonomous vehicles. Hence the growing demand for electric vehicles will increase demand for low rolling resistance tyres, thereby positively impacting the demand for liquid polymers which would be used in making styrene butadiene rubber used in such tyres. 

Rapid Development in Tyres Industry

The growing advances in vehicle technology and mobility has transformed the tyre industry as new tyre concepts including electric vehicles tyres, smart tyres and sustainable tyres are being introduced. Hence various technological advancements are being made in tyre manufacturing to meet the growing demand for high-performance tyres in vehicles segments like passenger cars and light vehicles which mostly consists of cross-utility vehicles (CUV), sports-utility vehicles (SUV). For instance, in 2021 Michelin North America developed a Unique-Puncture-Proof Tyre System (UPPTS) which is a combined airless tyre and wheel assembly in passenger cars. Hence the company plans to equip such airless tyres in next three years. Moreover, in 2021, Pirelli produced a range of FSC (Forest Stewardship Council)-certified tyres with a combination of natural rubber and rayon for BMW plug-in Hybrid vehicles. Hence such advancements in tyres will lead to effective usage of liquid polymers in the production of such high-performance tyres. 

Liquid Polymers in Tyres market Challenges

Stringent government regulations

The styrene butadiene rubber and butadiene rubber are not easily biodegradable and the wastewater produced in their manufacturing is highly toxic. Hence when it is released in rivers or ponds, it consumes a lot of oxygen causing an increase in toxicity level thereby killing marine life and causing water pollution. Hence such rubbers are used in tyres production, so to prevent waste creation during tyre manufacturing, certain regulations have been laid down by governments. For instance, in July 2020 the final amendments made by U.S Environment Protection Agency to the 2002 National Emission Standard for Hazardous Air Pollution for Rubber Tyre Manufacturing, restrict the residue establishments during tire manufacturing. Hence such restriction will hamper the production output of tyres, thereby negatively impacting the demand of liquid polymers for tyres, as they are used as lubricants in tyres.

Liquid Polymers In Tyres Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. Liquid Polymers In Tyres top 10 companies include:

  1. Evonik Industries
  2. H.B. Fuller
  3. Synthomer PLC
  4. Asahi Kasei Corporation
  5. Kyraray Co. Ltd
  6. Efremov Synthetic Rubber
  7. Saudi Aramco
  8. Nippon Soda Co. Ltd
  9. Sibur International GMBH
  10. Puyang Linshi Chemical New Material Co. Ltd

Recent Developments

  • In 2021, Petrochemicals and Polymers products manufacturer ExxonMobil Chemical Co. acquired high-performance structural polymers firm Materia Inc. Hence such acquisition would expand the polymers product portfolio of the firm for vehicles and other industrial applications. 
  • In 2020, Engineered Polymer Industries Inc. acquired RD Rubber Technology Corporations a manufacturer of molded rubber LSR components. Hence such acquisition will enable to company to enhance its liquid rubber products.

Relevant Reports

Rubber Tyre Market - Forecast 2021 – 2026
Report Code – AM 65227

Automotive Tire Market - Forecast 2021 – 2026
Report Code – AM 31685

For more Chemical and Materials related reports, please click here

1. Liquid Polymers in Tyres Market- Market Overview
    1.1 Definitions and Scope
2. Liquid Polymers in Tyres Market - Executive Summary
    2.1 Key Trends by Polymer Type
    2.2 Key Trends by Tyre Type
    2.3 Key Trends by End User
    2.4 Key Trends by Geography
3. Liquid Polymers in Tyres Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Liquid Polymers in Tyres Market - Startup companies Scenario Premium Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Liquid Polymers in Tyres Market – Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Liquid Polymers in Tyres Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Liquid Polymers in Tyres Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Liquid Polymers in Tyres Market – By Polymer Type (Market Size- $Million/Billion)
    8.1 Poly ethylene glycol
    8.2 Poly propylene glycol
9. Liquid Polymers in Tyres Market – By Tyre Type (Market Size -$Million/Billion)
    9.1 Radial Tyres
    9.2 SUVs Tyres
    9.3 Tubeless Tyres
    9.4 All Terrain Tyres
    9.5 Performance Tyres
    9.6 Others
10. Liquid Polymers in Tyres Market – By End User (Market Size -$Million/Billion)
    10.1 Automobiles Tyres
        10.1.1 Passenger vehicles
        10.1.2 Commercial Vehicles
        10.1.3 Trucks & Buses
        10.1.4 Two-wheeler/ Three-Wheeler
    10.2 Aerospace Tyres
    10.3 Construction Vehicle Tyres
        10.3.1 Front Loader Trucks
        10.3.2 Backhoe
        10.3.3 Dump Trucks
        10.3.4 Wheel Tractor Scrapper
        10.3.5 Others
    10.4 Others
11. Liquid Polymers in Tyres Market - By Geography (Market Size -$Million/Billion)
    11.1 North America
        11.1.1 USA
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 UK
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 Netherlands
        11.2.6 Spain
        11.2.7 Russia
        11.2.8 Belgium
        11.2.9 Rest of Europe
    11.3 Asia-Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 India
        11.3.4 South Korea
        11.3.5 Australia and New Zeeland
        11.3.6 Indonesia
        11.3.7 Taiwan
        11.3.8 Malaysia
        11.3.9 Rest of APAC
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Colombia
        11.4.4 Chile
        11.4.5 Rest of South America
    11.5 Rest of the World
        11.5.1 Middle East
            11.5.1.1 Saudi Arabia
            11.5.1.2 UAE
            11.5.1.3 Israel
            11.5.1.4 Rest of the Middle East
        11.5.2 Africa
            11.5.2.1 South Africa
            11.5.2.2 Nigeria
            11.5.2.3 Rest of Africa
12. Liquid Polymers in Tyres Market – Entropy
    12.1 New Product Launches
    12.2 M&As, Collaborations, JVs and Partnerships
13. Liquid Polymers in Tyres Market – Industry/Competition Segment Analysis Premium 
    13.1 Company Benchmarking Matrix – Major Companies
    13.2 Market Share at Global Level - Major companies
    13.3 Market Share by Key Region - Major companies
    13.4 Market Share by Key Country - Major companies
    13.5 Market Share by Key Application - Major companies
    13.6 Market Share by Key Product Type/Product category - Major companies
14. Liquid Polymers in Tyres Market – Key Company List by Country Premium Premium 
15. Liquid Polymers in Tyres Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10 and more
"*Financials would be provided on a best effort basis for private companies"