|
Forecast
Period
|
2026-2030
|
|
Market
Size (2024)
|
USD 17.96 Billion
|
|
CAGR
(2025-2030)
|
4.21
%
|
|
Fastest
Growing Segment
|
Automotive
|
|
Largest
Market
|
South
India
|
|
Market
Size (2030)
|
USD
22.74 Billion
|
Market Overview
India
Elastomers Market was valued at USD
17.96 Billion in 2024 and is expected to reach USD 22.74 Billion by 2030
with a CAGR of 4.21% during the forecast period. The elastomers market in India has
experienced considerable growth recently, fueled by rising demand from various
sectors, including automotive, construction, healthcare, and consumer goods.
Known for their elastic properties and versatility, elastomers are crucial for
manufacturing a wide array of products, from automotive parts to medical
devices. Key types include natural rubber, synthetic rubber (such as SBR, EPDM,
and NBR), and thermoplastic elastomers (TPEs), each with distinct
characteristics suited for different applications.
The
expanding automotive industry is driving increased demand for elastomers used
in tires, seals, and gaskets. Additionally, the shift towards electric vehicles
(EVs) is expected to further enhance the need for advanced elastomer materials.
The healthcare sector, particularly considering the COVID-19 pandemic, has also
seen a surge in demand for medical-grade elastomers in various devices and
equipment. However, fluctuations in raw material prices, including natural
rubber and petrochemical derivatives, may affect production costs and
profitability. Manufacturers face challenges related to compliance with
stringent environmental regulations and product safety standards.
Regional
growth is notable in states with robust industrial bases, such as Maharashtra,
Gujarat, and Tamil Nadu, which offer established manufacturing infrastructures
and proximity to major automotive and construction centers. There is also an
increasing emphasis on sustainable elastomers and recycling initiatives,
reflecting global trends toward sustainability. Advances in material science
are paving the way for high-performance elastomers with improved temperature
resistance and chemical stability.
The
India elastomers market is well-positioned for strong growth, driven by
technological innovations and expanding applications across various sectors.
The rise of sustainable and eco-friendly elastomer solutions is likely to
influence market dynamics as consumers and industries pursue more
environmentally responsible options.
Key Market Drivers
Growth of the Automotive
Sector
The
expansion of the automotive industry is a significant driver for the elastomers
market in India, shaped by multiple factors. As the Indian economy grows,
demand for both personal and commercial vehicles is increasing. Greater
affordability and urbanization are prompting more consumers to purchase cars,
trucks, and two-wheelers. According to IBEF, total production of passenger
vehicles, three-wheelers, two-wheelers, and quadricycles reached 2,358,041
units in April 2024. In response, major automotive manufacturers are
ramping up production capacities, which in turn heightens the demand for
elastomer components.
The
automotive sector is also innovating with new materials to enhance vehicle
performance. Elastomers are essential for producing lightweight and durable
parts that improve fuel efficiency. Modern vehicles require components that can
endure high temperatures, extreme weather, and mechanical stress, driving
elastomer manufacturers to develop advanced materials with superior properties.
The
shift towards electric mobility is accelerating. Electric vehicles (EVs) demand
specialized elastomer applications, such as battery seals, electrical
insulation, and lightweight materials. Government initiatives like FAME II,
with a budget of USD 1.43 billion, aim to incentivize EV adoption and bolster
manufacturing. Similarly, the Electric Mobility Promotion Scheme, with a budget
of USD 60.18 million, supports green mobility and stimulates EV production.
As
the vehicle population grows, the need for replacement parts increases,
expanding the automotive aftermarket for components like elastomer seals and
gaskets. Rising disposable incomes enable more individuals to purchase personal
vehicles, contributing to overall market growth. This trend also encourages the
acquisition of higher-end vehicles, which often feature advanced elastomer
technologies.
Urbanization
fosters infrastructure development such as roads, highways, and public
transport systems creating further demand for vehicles. The need for efficient
logistics in urban areas drives up the demand for commercial vehicles, which
also rely heavily on elastomer products. This environment presents significant
opportunities for manufacturers and suppliers in the elastomers market to
innovate and expand their product lines in line with trends in the automotive
sector.
Rising Use in Healthcare and
Medical Applications
As
India's population continues to grow and age, there is an increasing demand for
medical devices and equipment, resulting in higher consumption of elastomers
used in components like tubing, seals, and gaskets. Elastomers play a vital
role in various medical applications, including surgical instruments,
diagnostic equipment, and drug delivery systems, enhancing their market
relevance.
Technological
advancements are facilitating the development of new elastomer formulations
that provide improved biocompatibility, chemical resistance, and durability,
making them ideal for sensitive medical uses. The ability to customize
elastomers for specific applications further boosts their effectiveness and
demand. For example, in January 2023, Prayasta, a Bengaluru-based startup
focused on intellectual property, is transforming the Indian breast implant
market through 3D printing technology. Specifically, they utilize Implant-grade
Elastomer Additive Manufacturing (iEAM) to create breast implants and
prostheses that are rupture-resistant and fully customizable in shape, size,
weight, touch, and feel. Prayasta employs the Silimac P250, a 3D printer
designed for implant-grade elastomers, which excels in printing silicone and is
compatible with various elastomeric materials.
Increased
investment from both government and private sectors in healthcare
infrastructure, such as hospitals and clinics, is driving the demand for
medical devices and, consequently, elastomers. For instance, foreign direct
investment (FDI) in the medical and surgical appliances sector reached USD 3.28
billion from April 2000 to March 2024. A growing health consciousness among consumers
is fueling demand for preventive care and medical services, which in turn leads
to greater consumption of medical devices. The trend toward disposable medical
products, such as syringes, catheters, and gloves, has also increased the need
for cost-effective elastomers suitable for single-use applications.
Additionally,
the rise of telemedicine and home healthcare solutions has amplified demand for
portable medical devices that often rely on elastomer components for
functionality and durability. The expansion of wearable health-monitoring
devices further necessitates specialized elastomers that are flexible, durable,
and comfortable for extended wear. As healthcare needs evolve and technology
progresses, elastomer manufacturers have significant opportunities to innovate
and diversify their product offerings to meet the demands of this critical
sector, aligning with broader health and wellness trends.
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Key Market Challenges
Raw Material Volatility
Raw
material volatility poses a significant challenge for the India elastomers
market, affecting production costs and overall market stability. Many
elastomers are sourced from petroleum-based products, making them vulnerable to
fluctuations in crude oil prices. When oil prices increase, raw material costs
rise, resulting in higher production expenses for manufacturers. Additionally,
speculation in commodity markets can cause unpredictable price variations,
complicating budgeting and financial forecasting for elastomer producers.
The
elastomers market heavily relies on a global supply chain for raw materials.
Disruptions stemming from geopolitical issues, natural disasters, or pandemics can
result in shortages or delays in material availability. Transportation
challenges, such as port congestion or freight delays, can further worsen this
supply chain issues and impact production timelines.
While
manufacturers attempt to pass increased costs on to customers, competitive
pressures often limit their ability to raise prices, which can squeeze profit
margins. Fluctuating raw material prices can complicate inventory management,
as companies may be reluctant to purchase large quantities at high prices,
risking potential stock shortages later. To mitigate these risks, companies can
consider diversifying their supplier base to lessen dependence on any single
source, though this requires investments in new partnerships and logistics. The
volatility in raw material prices can also prompt manufacturers to increase
their investments in research and development to create alternative materials
or more cost-efficient production processes. To effectively navigate these
challenges, companies should implement strategic planning, diversify their
sourcing strategies, and focus on innovation to sustain competitiveness in the
market.
Environmental Concerns
Environmental
concerns pose a significant challenge for the India elastomers market,
impacting production methods, regulatory compliance, and overall market
dynamics. Governments are introducing increasingly strict environmental
regulations to curb pollution and encourage sustainable practices. Adhering to
these regulations can lead to additional costs for elastomer manufacturers.
Moreover, regulations surrounding waste disposal and management necessitate
that manufacturers implement effective strategies for handling waste produced
during manufacturing and from end-of-life products.
There
is also a rising demand from consumers for sustainable and eco-friendly
materials, prompting manufacturers to develop elastomers that are either
biodegradable or derived from renewable resources. The production process for
elastomers typically involves toxic chemicals and energy-intensive methods,
raising concerns about resource depletion and environmental consequences.
Shifting to more sustainable production practices requires substantial
investment in new technologies, which can impose a financial strain on
manufacturers.
The
emergence of alternative materials such as biopolymers and sustainable
composites creates competition for traditional elastomers. To remain
competitive in a market increasingly centered on sustainability, manufacturers
must innovate. The recycling of elastomers is particularly challenging due to
their chemical composition, making it difficult to reclaim and reuse these
materials. This presents obstacles for manufacturers aiming to engage in the
circular economy. Investing in technologies for effective recycling can be
costly and demands ongoing research and development. By adopting sustainable
practices, investing in green technologies, and aligning their product
offerings with consumer expectations, companies can address these challenges
and enhance their position in an evolving market landscape.
Key Market Trends
Technological Advancements
Technological
advancements are a major trend in the Indian elastomers market, influencing
production, performance, and applications. Innovations in polymerization
techniques, including high-throughput and continuous processing, enhance
efficiency and lower production costs, allowing manufacturers to provide a
broader range of elastomer products. New formulations and additives are being
introduced to boost the mechanical, thermal, and chemical resistance of
elastomers, incorporating nano-fillers and specialized compounding methods.
The
adoption of smart technologies, such as self-healing and shape-memory
elastomers, is on the rise. These materials can adapt to environmental changes
and self-repair, introducing new functionalities. For example, in December
2023, RenewSys launched India’s first POE (Polyolefin Elastomer) Encapsulant
designed for N-type TOPCon PV cells, known as CONSERV E–NT. This
encapsulant features a free radical scavenger that protects TOPCon cells from
irreversible damage caused by free radicals during normal PV module operation.
It provides several advantages to module manufacturers, including a wider
lamination processing window, which allows for greater flexibility in operating
conditions. This ultimately increases throughput and productivity by reducing
rejection rates related to lamination issues.
Additionally,
progress is being made in the development of bio-based elastomers and recycling
technologies, focusing on creating elastomers from renewable resources and
enhancing recycling methods, thereby supporting a circular economy. For
instance, in September 2024, a study published in the journal ACS Applied
Engineering Materials by a group of researchers in India reported on a
self-healing and recyclable elastomer made from styrene–butadiene rubber (SBR)
using polysulfide metathesis reactions. Low molecular weight polysulfide rubber
(PSR) was blended into the SBR matrix using an internal mixer to create
polysulfide linkages. These linkages undergo dynamic crossover reactions within
the cross-linked networks of vulcanized rubber, facilitated by metal chloride
catalysts. The SBR-PSR blend with polysulfide bridges presents a promising
approach for developing self-healing and recyclable elastomers. Improved
testing methodologies, such as advanced analytical techniques and automated
quality control, are helping manufacturers meet rigorous performance standards.
These technological innovations not only improve elastomer capabilities but
also broaden their applications across various industries, fostering growth and
innovation in the market.
Segmental Insights
Type Insights
Based
on Type, the Styrene Butadiene Rubber (SBR) emerged as
the dominating segment in the Indian market for Elastomers during the forecast
period. SBR
is widely utilized across multiple applications, especially in the automotive
sector for tire production. Its properties make it ideal for high-performance
tires, where durability and wear resistance are crucial. Additionally, SBR is
more cost-effective than other elastomers, making it an appealing option for
manufacturers, particularly in large-scale production settings.
SBR
strikes a favorable balance of mechanical properties, such as high tensile
strength, abrasion resistance, and aging stability, which are vital for
products that must endure significant stress and wear. Furthermore, it can be
easily blended with other polymers to enhance its characteristics, allowing
manufacturers to tailor SBR for specific applications.
The
rapid expansion of India's automotive industry, fueled by rising vehicle
production and demand, further bolsters the use of SBR. As the automotive
sector grows, so does the need for SBR in tires, seals, and various components.
Additionally, ongoing infrastructure initiatives in India, including road
construction and urban development, increase the demand for tires and other
rubber products, solidifying SBR's market position. These factors contribute to
SBR's dominance in the Indian elastomers market, facilitating its broad
adoption across different industries.
End User Insights
Based
on End User, Automotive emerged as the fastest growing segment in the Indian
market for Elastomers in 2024. As urbanization and disposable incomes rise,
more consumers are opting to purchase vehicles. This increased demand directly
leads to a greater need for elastomers in various automotive components. The
automotive industry heavily depends on elastomers for essential parts such as
tires, seals, gaskets, and vibration dampers, positioning it as a major
consumer of these materials.
The
transition to electric vehicles is also creating new opportunities for
elastomers. Components like battery seals, insulation, and lightweight parts
are vital for EVs, contributing to growth in this segment. Additionally,
advancements in elastomer formulations and processing methods are enhancing
their performance, making them suitable for a broader range of automotive
applications, particularly in terms of fuel efficiency and safety.
The
industry is increasingly focusing on lightweight solutions to improve fuel
efficiency and reduce emissions, with elastomers providing the necessary
properties to achieve these objectives. As manufacturers seek improved
durability, weather resistance, and overall vehicle performance, elastomers
deliver critical functionalities that meet these requirements. These factors
are driving the rapid expansion of the automotive sector within the Indian
elastomers market, solidifying its role as a key growth driver.
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Regional Insights
Based
on Region, South India emerged as the dominant region in the Indian market for
Elastomers in 2024. South India, particularly in states like Tamil Nadu and
Karnataka, is home to significant automotive manufacturers and suppliers. This
concentration leads to a strong demand for elastomers used in tires, seals, and
other automotive components. The region boasts a well-established industrial
ecosystem, featuring numerous manufacturing facilities, research centers, and a
skilled workforce, which facilitates efficient production and innovation in
elastomer applications. Being close to suppliers of essential raw materials for
elastomer production, such as butadiene and styrene, helps minimize
transportation costs and ensures a consistent supply for manufacturers.
Ongoing
infrastructure projects, including road construction and urban development,
further drive the demand for elastomer products in construction applications,
contributing to market growth. Additionally, the presence of research and
development facilities fosters advancements in elastomer formulations and
applications, allowing manufacturers to remain competitive and adapt to
changing market needs. State governments in the south have also enacted
policies and incentives to support industrial growth, attracting investments in
manufacturing sectors, including elastomers. These factors solidify the south
region's dominance in the Indian elastomers market, positioning it as a central
hub for production and consumption.
Recent Development
- In
September 2024, China initiated an anti-dumping investigation into halogenated
butyl rubber imported from Canada, Japan, and India, following a review of
materials submitted by Zhejiang Cenway New Materials Co., Ltd., which requested
the investigation on behalf of the domestic industry in July. This probe will
assess imports of halogenated butyl rubber from these countries during the
period from January 1, 2023, to December 31, 2023, and will also evaluate any
damage to the Chinese halogenated butyl rubber industry from January 1, 2021,
to December 31, 2023. The ministry has called for interested parties to
register with its Trade Remedy and Investigation Bureau within 20 days from
September 14 to participate in the investigation. The investigation is anticipated
to conclude before September 14, 2025, though it may be extended by six months
under certain conditions.
- In
April 2024, the Directorate General of Trade Remedies (DGTR) recommended the
implementation of a provisional anti-dumping duty on imports of
Isobutylene-Isoprene Rubber (IIR), or butyl rubber, from China, Saudi Arabia,
Russia, Singapore, and the United States. This recommendation follows a request
from Reliance Sibur Elastomers (RSEPL), the sole producer of this product in
India. The proposed duties on imports from these five countries, which have
been identified as causing harm to the Indian producer, range from USD 319 to USD
647 per tonne, depending on the country of origin. The highest duty is set for
butyl rubber imported from Saudi Arabia, while the lowest applies to imports
from China. The DGTR's investigation revealed that the margin of injury from
dumping ranges from 15% to 60%, indicating a significant impact on the domestic
industry.
- In
February 2024, LANXESS India successfully expanded its Rhenodiv production
facility in Jhagadia. The new production line, which became operational on
February 1, 2024, strengthens LANXESS’s ability to fulfill the growing demand
for high-quality technology tyre release agents in the Indian subcontinent and
Asian markets.
- In
March 2024, Dow introduced polyolefin elastomer (POE)-based artificial leather,
marking its entry into the global automotive seating market. Developed in
partnership with HIUV Materials Technology, this leather alternative features a
soft texture, improved color stability, and excellent resistance to aging and
low temperatures, aligning with rigorous automotive standards. Additionally,
Dow's POE leather is free from hazardous chemicals and heavy metals, has low
VOC emissions, and is 25% to 40% lighter than PVC leather.
- In
July 2023, Indian Oil Corporation Limited awarded an EPC contract exceeding USD 100 million to thyssenkrupp Industrial Solutions India (tkIS India) for a 60
KTPA Poly Butadiene Rubber (PBR) plant at their Panipat Refinery &
Petrochemical Complex in Haryana. The lump-sum EPC scope encompasses residual
process engineering, detailed engineering, project management, procurement,
construction, and plant commissioning.
Key Market Players
- Reliance Industries Ltd.
- Flexishine Polyblends LLP
- Viscon Rubber Pvt. Ltd.
- Sujan Industries
- Kuraray India Private Limited
- ExxonMobil Company India Pvt. Ltd.
- LANXESS India Private Limited
- Peeco Polytech Pvt Ltd.
- Synotech Polymers Pvt. Ltd.
- Apcotex Industries Limited
|
By
Type
|
By
End User
|
By Region
|
- Styrene Butadiene
Rubber
- Polybutadiene
Rubber
- Butyl Rubber
- Nitrile Butadiene
Rubber
- Ethylene Propylene
Diene Monomer Rubber {EPDM}
|
- Automotive
- Medical
- Industrial
- Construction
- Consumer Electronics
- Consumer Goods
- Others
|
- West India
- North India
- South India
- East India
|
Report Scope:
In this report, the India Elastomers Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Elastomers Market, By Type:
o Styrene Butadiene Rubber
o Polybutadiene Rubber
o Butyl Rubber
o Nitrile Butadiene Rubber
o Ethylene Propylene Diene Monomer Rubber {EPDM}
- India Elastomers Market, By End User:
o Automotive
o Medical
o Industrial
o Construction
o Consumer Electronics
o Consumer Goods
o Others
- India Elastomers Market, By Region:
o West India
o North India
o South India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the India Elastomers
Market.
Available Customizations:
India Elastomers Market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
India Elastomers Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]