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Plasticizers & Tackifiers in Tyres Market - Forecast(2023 - 2028)
Plasticizers & Tackifiers in Tyres Market Overview
Plasticizers & Tackifiers in Tyres market size is forecast to reach US$49.2 billion by 2027 after growing at a CAGR of 6.2% during 2022-2027. Due to the increasing use of rubber additives such as plasticizers and tackifiers in tyres as they have low molecular weight properties of the compounds, the demand for global plasticizers and tackifiers resins in automotive tyres has risen. Increasing usage of tackifiers resins in the production of durable and flexible plastic copolymers such as ethylene-vinyl acetate (EVA) is also expected to drive the growth of the market. Also, the increasing usage of phthalates, also known as phthalate esters as plasticizers is gaining attention in a wide variety of tyres for its effectiveness. Plasticizers play a very important role in the rubber tyre industry because they can reduce rubber viscosity and thus improve the processing properties and filler dispersion to enhance elasticity, known as viscoelasticity, and reduce processing energy consumption. In 2019, according to the Multidisciplinary Digital Publishing Institute (MDPI) Journal, the total quantity of plasticizers used in the rubber tire manufacturing industry reached 10.3 million tons globally, where the demand for plasticizers & tackifiers in tyres market can be seen and is expected to grow during the forecast period.
COVID-19 Impact
Currently, due to the COVID-19 pandemic, the core end-use industries such as automotive, and aerospace were highly impacted. Due to social distancing policy, most of the manufacturing plants of automotive and chemical industries of plasticizers and tackifiers in tyres were shut down. Lockdowns have reduced the traveling and transporting traffic on wheels by 40-50%, which means lesser usage of tyres and ultimately the consumption of plasticizers and tackifiers for tyres on the account of the COVID-19 outbreak indicating that several developing and developed economies were not well-equipped to prevent the disease spread. Also, due to supply chain disruptions like delay in reaching of raw materials or non-arrival, disrupted financial flows, and rising absenteeism among production line staff and employees, OEMs have been forced to function at zero or partial capacity, which resulted in lower demand and consumption for plasticizers & tackifiers in tyres in 2020.
Plasticizers & Tackifiers in Tyres Market Report Coverage
The report: “Plasticizers & Tackifiers in Tyres Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Plasticizers & Tackifiers in Tyres Market.
By Plasticizer Type: Synthetic Plasticizers (Paraffin Oil, Naphthenic Oil, and Aromatic Oil), and Natural Plasticizers (Cashew Oil, Soyabean Oil, Castor Oil, and Others)
By Tackifier Type: Petroleum Hydrocarbon Tackifier, Phenolic Tackifier (Phenol-Formaldehyde Resin, and Alkyl Phenolic Resin), and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (the Middle East, and Africa)
Key Takeaways
- Asia-Pacific mainly dominates the plasticizers & tackifiers in tyres market, owing to the growing demand from the automotive tyre manufacturing industry, especially in China, India, Japan, and South Korea.
- The synthetic segment held the highest market share of plasticizers and tackifiers in tyres market.
- Growing popularity of plasticizers & tackifiers in rubber tyres for their effectiveness and to meet the demands of the end user’s application is driving the market growth.
- Moreover, strict regulations pertaining to the use of plasticizers and tackifiers in tires are anticipated to create hurdles in the growth of the plasticizers and tackifiers in tyres market over the forecast period.
Figure: Asia-pacific Plasticizers & Tackifiers in Tyres Market Revenue, 2021-2027 (US$ Billion)
Plasticizers & Tackifiers in Tyres Market Segment Analysis – By Plasticizer Type
The synthetic plasticizers segment held the largest share of 56% in the plasticizers & tackifiers in tyres market in 2021. Synthetic plasticizers are the additives that are added to rubber tyres to impart flexibility, softness, viscosity, and other properties to the rubber finished products. Synthetic plasticizers also are sold and mentioned as dispersing agents, dispersants, softeners, and super-plasticizers. They are manufactured in such a way that they are non-volatile, have a high-boiling point, and are compounds having low-molecular-weight that is applied to a rubber tyre to enhance processability, stability, and stretchability. Further, the increasing utilization of synthetic phthalates and non-phthalates as plasticizers for application in the rubbers tyres to make them more durable is expected to drive the demand of the market. Plasticizers are organic compounds added to tyres to facilitate processing and to increase the flexibility and toughness of the final product by internal modification of the rubber molecule, and the main factor owing to the growth of this industry is growing consumption from the automotive industry. As a result, the demand for plasticizers in tyres can be seen and will increase significantly, which contributes to increased business growth.
Plasticizers & Tackifiers in Tyres Market Segment Analysis – By Tackifier Type
The phenolic tackifier segment held the largest share of 48% in the plasticizers & tackifiers in tyres market in 2021. Phenolic tackifiers appear to be amorphous and glassy and are light molecular weighted compounds that are used in the adhesive polymer matrix during application to the rubber tyre, which improves the mobility of the base polymer and hence its tack and peel adhesion. Phenolic tackifier can provide higher stress compliance at a slow strain rate. Phenolic tackifier resins are available in a wide range of polarities, increasing the versatility of adhesive formulation, and is a chemical composite used in the manufacturing of adhesives sensitive to hot melt and pressure, that are used for rubber tyres and products. These tackifiers combined with the desired adhesive helps to correct the balance between adhesion and cohesion of tyres, which are melted and applied on the surface and then solidified by cooling to lend a strong adhesion. They are applied in the molten state at temperatures ranging from 120°C to 180°C depending on the surfaces that are to be bonded. Hence, the several advantages associated with tackifiers that are applied to tyres, will alone drive the growth of the plasticizers and tackifiers in tyres market massively.
Plasticizers & Tackifiers in Tyres Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the Plasticizers & Tackifiers in Tyres market in 2021 up to 43%, owing to the increasing demand from the automotive industry, mainly in China, that has increased at a rapid rate. Asia-Pacific holds the position of the richest region in the world in terms of its natural resources and availability of raw materials, which is followed by other major regions like Australia, North America, and South America. Growing automotive industries in the region’s emerging economies such as China, Japan, India, and Malaysia, is a key factor for the plasticizers and tackifiers market to expand steadily in the coming years. China produces the most number of tyres in the world, in 2020, approximately 807.5 million tires were produced in China, and in 2019, 844.5 million tyres were produced, which was reduced and visibly due to covid-19, but the market is recovering gradually. As a result, the demand for plasticizers and tackifiers is high and expected to expand at a higher rate within the Asia-Pacific region during the forecast period.
Secondly, North America exhibited moderate growth over the forecast period after the Asia Pacific. North America is the second major manufacturing and exporting region for plasticizers & tackifiers in tyres due to its abundant capacity. Hence, with all such applications and robust demand within the region, the plasticizers & tackifiers in the tyres market are predicted to witness healthy growth during the forecast period.
Plasticizers & Tackifiers in Tyres Market Drivers
Increase of production activities in the automotive sector.
Globalization, industrialization, digitalization, and increasing competition are pressing the face of the automotive industry. In addition, increasing safety requirements and voluntary environmental commitments by the automotive industry have also contributed to the changes ahead. According to Organisation Internationale des Constructeurs d'Automobiles (OICA), there has been a global production of 57,262,777 vehicles in 2021, which shows a significant surge compared to the year 2020, where there was a production of 52,146,292, after it suffered a fall from 67,485,823 in 2019, due to the covid-19 pandemic. Proving the capacity of the automotive industry to recover in spite of a global crisis, consequently maintaining a market demand for plasticizers and tackifiers in tyres market as well.
Rising Adoption of Bio-Based Plasticizers & Tackifiers
The growing awareness of the increasing environmental impact due to the usage of petroleum-based products, as well as the depletion of fossil fuels, has evoked the production and usage of bio-based plasticizers and tackifiers in tyres because it helps to significantly cut down the greenhouse gas emissions by up to 40%. Moreover, the growth of the market is currently driven by the use of biodegradable plasticizers and tackifiers mainly for its lesser toxicity and good processability with a variety of other resins and rubber, as well as the growing global movement towards the use of biopolymers is expected to drive the market growth. Hence, the growing demand for such plasticizers & tackifiers is expected to boost the growth of the plasticizers & tackifiers in tyres market.
Plasticizers & Tackifiers in Tyres Market Challenges
Stringent Regulations on the Use of Phthalates Plasticizers
The rising shift from conventional phthalates plasticizers due to the health risks and environmental impact associated with its constant usage in regularly used vehicle tyres is hindering the growth of the market. For Environmental goodness, concerned organizations like the United States Green Building Council (USGBC) are encouraging the use of non-phthalates and bio-based plasticizers and tackifiers as it doesn’t affect the environment. It is also prohibited and banned in some regions like Europe for a few of its applications, according to directives such as the EEC directive 2005/84/EEC, (EC) 10/2011 (Union List), and other regulations, in products that are reachable by children, as when consumed by them can cause a threat to their life. These kinds of strict regulations are one of the biggest restraints for the growth of plasticizers & tackifiers in tyres market.
Plasticizers & Tackifiers in Tyres Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Plasticizers & Tackifiers in Tyres market. Plasticizers & Tackifiers in Tyres market top 10 companies include:
- BASF SE
- Exxon Mobil Chemical
- SI Group
- Eastman Chemical Company
- Kuraray Elastomer
- Evonik Industries AG
- Arkema S.A.
- Daelim Industrial Co. Ltd.
- Dow Chemical Company
- Ineos Group
Recent Developments
· In April 2021, BASF SE introduced Palatinol 10-P BMB and Hexamoll DINCH BMB as a range of biomass plasticizers. These plasticizers are bio-based products and are derived from vegetable oils and organic waste in order to contribute to the rising adoption of bio-based plasticizers & tackifiers globally.
Relevant Reports
Plasticizers and Tackifiers Market - Forecast(2021 - 2026)
Report Code: CMR 1260
Plasticizers Market - Forecast(2021 - 2026)
Report Code: CMR 0146
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