Nitrile Butadiene Rubber Market Analysis

The global Nitrile Butadiene Rubber (NBR) market size was valued at USD 2.1 Bn in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 4.6% from 2022 to 2030. NBR rubber is capable of withstanding temperatures from -40°C to 108°C which makes it ideal for aerospace and automotive application. It is widely used in fuel and oil handling hoses, seals, gaskets, grommets, and self-sealing fuel tanks that can withstand the corrosive effects of various greases, oils, and chemicals. The market of NBR is witnessing strong growth on the account of growing demand from automotive and aerospace industry.

Global Nitrile Butadiene Rubber (NBR) Market: Regional Insights

Based on geography, the global Nitrile Butadiene Rubber (NBR) market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East &Africa. Asia Pacific is expected to gain significant growth over the forecast period and this is attributed to the strong presence of automotive industry in China. China has one of the largest automotive industry in the world. Automotive production remained dull in 2020 due to the spread of COVID-19 and the semiconductor chip shortages. For instance, according to the China Association of Automotive Manufacturers (CAAM), overall vehicle production totaled 25.225 million units in 2020, with a 2.0% decline compared to the same period in the previous year. However, automotive production witnessed a recovery in 2021, with improving global export and production coming back to normal in the country. According to OICA, the overall automotive production in the country in 2021 stood 2, 60, 82,220, a 3% increase from 2020.

North America is expected to witness fastest growth over the forecast period owing to the strong presence of aviation sector with the growing air traffic passenger demand. As per International Air Transport Association statistics, annual growth in global air traffic passenger demand in 2022 is estimated to be around 51%. The higher demand for air traffic may indicate more maintenance and refurbishment of existing aircraft, which may increase the demand for NBR.

Figure 1. Global Nitrile Butadiene Rubber (NBR) Market Value Share (%), By Region, 2021

Global Nitrile Butadiene Rubber (NBR) Market Drivers:

Rapid development in transportation industry is driving growth of the Nitrile Butadiene Rubber (NBR) market. For instance, according to the Coherent Market Insights analysis, the automobile sector in India is expected to grow due to favorable government policies, such as the extension of the FAME-2 scheme till 2024 and the Production Link Incentive (PLI) scheme for auto and auto components manufacturers in India, valued at about INR 18,000 crore. According to same source, Airbus delivered 611 commercial flights in 2021, increasing from 566 flights delivered in 2020. Boeing delivered 340 jetliners in 2021, depicting an increase from 157 jetliners in 2020. Owing to the surge in e–commerce and freight, Boeing was able to secure orders form UPS, Atlas Air, and FedEx in 2021. There is an increase in commercial flight orders, owing to the recovery in passenger travel rates from 2021.

Increasing demand from oil- and fuel-resistant seals in many industries is also anticipated to foster market growth. It has good mechanical strength, along with elasticity and good deformation behavior between -30 to 100 C, which makes it ideal for oil &gas applications. Additionally, rise in oil and gas industry will favor the market growth. For instance, in June 2020, Zhoushan (Zhejiang) Refinery and Petrochemical commissioned the expansion and integration of its refining and petrochemical complex in 2021. The plant is expected to become the largest refinery in China, upon completion.

Nitrile Butadiene Rubber Market Report Coverage

Report Coverage	Details
Base Year:	2021	Market Size in 2021:	US$ 2.1 Bn
Historical Data for:	2017 to 2020	Forecast Period:	2022 to 2030
Forecast Period 2022 to 2030 CAGR:	4.6%	2030 Value Projection:	US$ 3.2 Bn
Geographies covered:	North America: U.S. and Canada Latin America: Brazil, Argentina, Mexico, and Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific Middle East: GCC Countries, Israel, and Rest of Middle East Africa: South Africa, North Africa, and Central Africa
Segments covered:	By Application: Adhesives and Sealants, Belts and Cables, Gloves, Hoses, Gaskets and O-Rings, Other Applications By End-User Industry: Automotive and Transportation, Building and Construction, Industrial, Medical, Other End-user Industries
Companies covered:	Apcotex Industries Limited, ARLANXEO, China Petroleum & Chemical Corporation (Sinopec), Dynasol Group, JSR Corporation, KUMHO PETROCHEMICAL, Lanxess, LG Chem, Sibur, Synthomer, Synthos, TSRC, Versalis SpA, and Zeon Corporation
Growth Drivers:	Growing demand from aerospace and automotive application Strong growth in Construction and building industry
Restraints & Challenges:	Availability of substitute products such as a polyurethane-based thermoset elastomer, Brandonite 1200-60A Fluctuating price of raw materials

Global Nitrile Butadiene Rubber (NBR) Market Opportunities:

Growing demand for nitrile glove is projected to bring bright market opportunities over the forecast period. Nitrile gloves are produced from synthetic rubber. They are capable of withstanding harsh chemicals and punctures.  NBR nitrile gloves were originally produced as a latex allergy substitute for health, food, and cleaning workers.

Increasing demand from adhesive and sealant application is expected to offer significant growth opportunities over the forecast period. It has improved product durability and reliability, increased product performance, enhanced increased design flexibility, enhanced product aesthetics, and improved process productivity and reduced manufacturing cost. NBR is majorly used as elastomer for high-end sealing applications.

Global Nitrile Butadiene Rubber (NBR) Market Trends:

NBR hoses are gaining traction across wide range of industries worldwide. NBR hoses are majorly used in aerospace equipment, industrial machinery, motor vehicles, and other transportation equipment. Moreover, NBR hoses are attributable to industrial equipment, including off-road equipment such as construction and agricultural equipment.

Food processing industries, leather and textile industries along with some other industries are increasingly adopting Nitrile Butadiene Rubber (NBR). NBR is used in textiles industry, where it is used in woven and nonwoven fabrics enhance the finish and waterproofing properties.

Global Nitrile Butadiene Rubber (NBR) Market Restraints:

Availability of substitute products such as a polyurethane-based thermoset elastomer, Brandonite 1200-60A is expected to hinder the NBR market growth.

Fluctuating price of raw materials is another key factor expected to hamper the market growth. NBR rubber is produced by the copolymerization of acrylonitrile and butadiene. The price of acrylonitrile differs due to the supply fluctuations and the volatility of prices of propylene.

Figure 2. Global Nitrile Butadiene Rubber (NBR) Market Value Share (%), By Application, 2021

Global Nitrile Butadiene Rubber (NBR) Market Segmentation:

The global Nitrile Butadiene Rubber (NBR) market report is segmented into application, end-user, and region.

Based on application, the market is segmented into Adhesives and Sealants, Belts and Cables, Gloves, Hoses, Gaskets and O-Rings, and Other Applications. Out of which, Adhesives and Sealants is expected to dominate the global market over the forecast period and this is attributed to its excellent compression resistance property. It also offers resistance to most of the oils and lubricants, particularly petroleum-based lubricants

Hoses segment is also expected to witness significant growth in the near future and this is owing to the fact that NBR is one of the crucial synthetic rubber types which have high resistance to aliphatic hydrocarbon oils and fuels. Moreover, NBR hoses are widely used in various durable goods sectors, including industrial machinery, aerospace equipment, motor vehicles, and other transportation equipment.

Based on end-user, the market is segmented into Automotive and Transportation, Building and Construction, Industrial, Medical, and Other End-user Industries. Out of which, Automotive and transportation is expected to dominate the global market over the forecast period and this is attributed to the increasing use of NBR in automotive and aeronautical industry to make fuel and oil handling hoses, grommets, seals, and self-sealing fuel tanks as ordinary rubbers cannot be used.

Building and construction is also expected to witness significant growth in the near future and this is owing to increasing use of various materials such as gaskets, seals, rubber insulations, pipes, fittings, etc. Nitrile butadiene rubber or NBR is a key component in all such materials.

Global Nitrile Butadiene Rubber (NBR) Market: Key Developments

1. In September 2021, Apcotex’s Taloja latex plant’s capacity increased from 55000 MT to 65000 MT p.a. The Valia rubber plant’s capacity enhanced from 16000 MT to 21000 MT p.a.
2. In April 2021, ARLANXEO launched its legal entity ARLANXEO India Private Limited, which will commence operations from Mumbai.
3. In December 2021, ARLANXEO and TSRC announce the plan to relocate the current plant of its joint venture - ARLANXEO-TSRC (Nantong) Chemical Industrial Co. Ltd., from the northern to the southern section of the Nantong  Economy  and  Technology  Development  Area (NETDA)  Chemical  Park,  Jiangsu    Designed annual capacity of NBR (nitrile-butadiene rubber) in the new location will increase from 30,000 ton to 40,000 ton per annum
4. In APR 2021, Sinopec-SK Petrochemical Co. Ltd, a joint venture of SK Global Chemical (a subsidiary of SK  Innovation)  and  Sinopec,  planned  to  complete  its  expansion  of  new petrochemical facilities and start operation in full throttle in the second half of 2021, with a 40% increase in capacity from 2.2 million metric ton of petrochemical products. The expansion in annual production capacity comprises 0.19 million metric tons of butadiene along with other chemicals.
5. In Oct 2021, Dynasol Group announces surcharges of 300€/MT on all synthetic rubber and rubber chemicals produced in Europe.

Global Nitrile Butadiene Rubber (NBR) Market: Key Companies Insights

The global Nitrile Butadiene Rubber (NBR) market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global Nitrile Butadiene Rubber (NBR) market are:

Apcotex Industries Limited, ARLANXEO, China Petroleum & Chemical Corporation (Sinopec), Dynasol Group, JSR Corporation, KUMHO PETROCHEMICAL, Lanxess, LG Chem, Sibur, Synthomer, Synthos, TSRC, Versalis SpA, and Zeon Corporation

*Definition: Nitrile Butadiene Rubber is a type of synthetic rubber that is made from the compounds acrylonitrile and butadiene. It is often referred to by many other names, including Buna-N and nitrile rubber. It has excellent abrasion resistance and rebound properties. It is also less expensive than fluoroelastomers. It has a relatively narrow range of temperature and abrasion resistance. It is an ideal choice for a variety of applications where temperature and chemical resistance are paramount.