Rubber Process Oil Market Driven By Increasing Demand of Tires
Rubber process oil as the name suggests is used to process and manufacture multiple rubber compounds. It is extracted from petroleum crude oil and it improves the physical properties of vulcanization to reduce the cost of end products of rubber compounds. There are mainly 7 types of rubber process oil namely, distillate aromatic extract, treated distillate aromatic extracted (TDAE), residual aromatic extract (Rae), treated residual aromatic extract (TRAE), paraffinic rubber process oil, mild extracted solvate, and naphthenic rubber process oil. It works as an internal lubricant and performs a cost-efficient extender function. Rubber process oil has several applications in tire, flooring material, footwear, wire and cable coverings, and other applications.
Drivers of rubber process oil market
Growing tire manufacturing across the globe owing to booming demand from automobiles is one of the major drivers of the rubber process oil market. The growth of the automobile industry across the globe is also increasing the demand for rubber process oil. The increasing demand for low-viscosity process oils from the automobile industry is increasing the rubber process oil market size. Growing use of Solution Styrene-Butadiene Rubber (S-Sbr) in tires is also fueling the demand for rubber process oils. Rising demand for rubber gloves across various industries including healthcare and automotive is also bolstering the growth of the rubber process oil market.
Restraints and opportunities
Factors such as volatility in raw material prices and growing environmental concerns about the usage of non-biodegradable products are currently hampering the growth of the rubber process oil market. However, rising investments in R&D by rubber process oil manufacturers to develop green rubber process oils will propel the rubber process oil market growth in the coming years.
Geographically, Asia Pacific region is expected to have a significant market share of the global rubber process oil market share. The Rubber Process Oil market share is projected on account of increasing demand for automobiles that is expected to boost the consumption of rubber process oils in the tire and rubber market of the region. The market of North America region is expected to witness rapid growth. Europe region market will grow slowly on account of the implementation of the European Union directive. European Union directive is banning polycyclic aromatics (PCAs) usage for manufacturing tires which is restraining the growth of the market in the region.
The naphthenic segment is expected to witness substantial growth on account of its high thermal stability and good compatibility with synthetic elastomers. They are used for the production of various products such as rubber, plasticizers, inks, and sealants as they are light-colored and possess non-staining characteristics. Their diverse application in the manufacturing of the above-mentioned products is boosting the growth of the market. TDAE segment is also expected to grow on account of the shift towards TDAE in the European region due to European Union directive. By application, tire segment is expected to have a significant market share on account of increasing demand for automotive tires from the automobile industry. The market will continue to grow owing to the globally increasing demand for automobiles.