|
Forecast Period
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2024-2028
|
|
Market Size (2022)
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USD 207.23 million
|
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CAGR (2023-2028)
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5.16%
|
|
Fastest Growing Segment
|
Synthetic
|
|
Largest Market
|
Northern & Central Region
|
Market Overview
Saudi Arabia Industrial Rubber Market has valued at
USD 207.23 million in 2022 and is anticipated to project robust growth in the
forecast period with a CAGR of 5.16%. Saudi Arabia Industrial Rubber Market is
expected to expand during the projected period due to increasing demand from
automotive sector as industrial rubber used in various parts in the automobile
that ensuring the performance, safety, and efficiency of vehicles. In 2020, the
number of vehicles sold in Saudi Arabia annually was approximately 447 thousand
vehicles. Saudi Arabia Industrial Rubber Market is a dynamic and competitive
sector that offers opportunities for growth and innovation. The market players
are focusing on expanding their product portfolio, enhancing their quality
standards, improving their distribution network, and increasing their market
share. Along with this, merger, and acquisition activity in the market enhances
companies' presence in the region as these acquisitions help companies to
better serve their customers.
Key Market Drivers
Growing
Demand of Industrial Rubber in Automotive Industry
The automotive sector in
Saudi Arabia has witnessed significant growth and this growth has fueled a
surge in demand for various automotive components, including industrial rubber
products. Industrial rubber plays a crucial role in ensuring the performance,
safety, and efficiency of vehicles. With increasing vehicle sales directly
translate to higher demand for industrial rubber products in the country.
Rubber components such as hoses, seals, gaskets, and belts are extensively used
in engines, transmissions, braking systems, and other critical automotive
systems, contributing to the overall performance and reliability of vehicles.
The Kingdom's focus on infrastructure development and construction projects has
led to an increased demand for commercial vehicles, such as trucks, buses, and
heavy equipment. Industrial rubber products are essential for these vehicles,
providing durability, flexibility, and resistance to harsh operating
conditions.
Rubber components such as tires, seals, and belts play a crucial
role in ensuring the safety and efficiency of commercial vehicles, making them
indispensable in the automotive sector. Moreover, the demand for enhanced
comfort and reduced noise levels in vehicles has increased significantly.
Industrial rubber products, such as vibration mounts, sound insulation
materials, and rubber bushings, are crucial for minimizing vibrations and noise
transmission, resulting in a smoother and quieter ride experience. The
automotive industry in Saudi Arabia is keen on incorporating advanced rubber
technologies to enhance vehicle comfort levels and improve overall customer
satisfaction. For instance, Evonik offers POLYVEST, a range of butadiene based
liquid rubber, for application in tires and mechanical rubber goods. Saudi
Arabia, like many other countries, is witnessing a gradual shift towards
electric and hybrid vehicles.
These vehicles require specialized rubber
components, such as electric vehicle (EV) charging cables, battery seals, and
high-temperature-resistant rubber materials. Along with this, several
researchers estimate that the increased expenses per kilogram of weight saved
in vehicle weight reduction measures will be possible with electric
automobiles. Regular IC engine-powered automobiles can only save 2-3 per
kilogram of weight, whereas electric vehicles can save 7-8/kg. In their regular
driving cycles, general cars use more energy when accelerating, but they may
also recover more kinetic energy through braking energy recovery. A lighter
vehicle body enables battery reduction while preserving range in electric cars.
By allowing the shrinking of other sections like the brake system and driven
train components, a lighter vehicle body, and battery pack further contribute
to the total weight reduction of the electric vehicle. The growing adoption of
electric and hybrid vehicles presents new opportunities for industrial rubber
manufacturers to develop innovative solutions tailored to the unique
requirements of these vehicles, further driving the demand for rubber products
in the automotive sector.
Furthermore, safety is a top priority in the
automotive sector, and industrial rubber products play a vital role in ensuring
vehicle safety standards. Rubber components, such as tires and sealing systems,
contribute to vehicle stability, traction, and noise reduction. Additionally,
stringent regulations and standards related to emissions, fuel efficiency, and
noise reduction drive the adoption of advanced rubber technologies and
materials. Industrial rubber manufacturers are investing in research and
development to provide innovative solutions that meet and exceed safety and
regulatory requirements. Therefore, increasing demand of industrial rubber from
the automotive sector led to the growth of Saudi Arabia Industrial Rubber
Market in the upcoming year.
Increasing Demand of Industrial Rubber from Medical
& Healthcare Industry
Industrial rubber products are essential components
in a wide range of medical devices and equipment. Rubber is used for
manufacturing components such as gaskets, seals, tubing, and connectors that
ensure proper functioning, durability, and sterility of medical devices. These
components are critical in applications such as surgical instruments,
respiratory equipment, infusion pumps, and diagnostic devices. The increasing
demand for advanced medical technologies and devices in Saudi Arabia drives the
need for high-quality industrial rubber products. Maintaining hygiene and
infection control is of utmost importance in the medical and healthcare
sectors. Industrial rubber plays a vital role in creating a hygienic
environment and preventing the spread of infections. Rubber-based materials are
used for manufacturing gloves, gaskets, and seals that provide a barrier
against contaminants and maintain sterile conditions in medical settings.
Rubber flooring materials with antimicrobial properties are also used in
hospitals and healthcare facilities to minimize the growth and transmission of
pathogens.
In addition, the pharmaceutical industry requires robust and
reliable packaging solutions to ensure the safety, integrity, and shelf-life of
pharmaceutical products. Industrial rubber is used in the manufacturing of
pharmaceutical closures, such as rubber stoppers and seals, which provide a
secure and airtight seal for vials, bottles, and ampoules. These rubber
components preserve the quality of pharmaceutical products, prevent
contamination, and contribute to the overall safety and efficacy of
medications. Moreover, industrial rubber products find extensive use in
research laboratories and healthcare diagnostics in the form of rubber
stoppers, septa, and tubing that are used in laboratory glassware,
chromatography systems, and sample collection devices. To provide healthy and
safe collection the focus on renewable and sustainable solutions across
industries provides an opportunity for the development of eco-friendly rubber
products. For instance, Versalis, a subsidiary of Eni, and Yulex Corporation
partner to produce guayule-based bio rubber for consumer, medical and
industrial applications. Thus, rising demand from the medical & healthcare
sector anticipated the growth of Saudi Arabia Industrial Rubber Market during
the forecast period.
Key Market Challenges
Availability and Pricing of Raw Materials
Amidst the ever-changing global dynamics and market
forces, the Saudi Arabia industrial rubber market faces the challenge of
securing dependable sources of raw materials at competitive prices. Variations
in supply from major rubber-producing nations like Thailand, Indonesia, and
Malaysia can impact the availability of raw materials in Saudi Arabia, causing
a ripple effect. Raw material prices are subject to a myriad of factors,
including weather conditions, geopolitical tensions, and changes in demand.
These price fluctuations can lead to uncertainty in production costs and
ultimately impact the competitiveness of Saudi Arabia's rubber industry.
Moreover, trade policies, tariffs, and trade disputes on a global scale can
disrupt the flow of raw materials, impacting both availability and pricing. The
uncertainty surrounding international trade agreements can create challenges
for sourcing raw materials. Limited availability of certain raw materials can
hinder the development of innovative rubber products with enhanced
functionalities. This, in turn, may limit the industry's ability to meet
evolving market demands.
Sustainability and Environmental Concerns
While the market has flourished as a cornerstone of
various sectors, the challenge of sustainability and environmental concerns has
come to the forefront. The production processes associated with the industrial
rubber market can contribute to greenhouse gas emissions. The energy-intensive
nature of rubber manufacturing and processing requires careful management to
reduce carbon emissions. Rubber waste, including scrap materials and
end-of-life products, poses a significant challenge. Inadequate waste
management practices can lead to environmental pollution and health hazards.
Furthermore, the rubber industry relies heavily on natural rubber derived from
rubber trees. Unsustainable rubber cultivation practices, such as deforestation
and monoculture plantations, can lead to ecosystem degradation and loss of
biodiversity. Water is an essential resource in rubber processing, but its
excessive use and improper disposal of wastewater can strain local water
supplies and contribute to water pollution.
Key Market Trends
Rise of Specialty Rubber Products
In the ever-evolving landscape of the Saudi Arabia
industrial rubber market, a captivating trend is unfolding the rise of
specialty rubber products. The emergence of specialized rubber products
signifies a shift towards customization, performance optimization, and the
pursuit of tailored solutions that precisely meet unique application
requirements. Across diverse industries such as aerospace, automotive, oil and
gas, healthcare, and construction, specialty rubber products are establishing
their presence by effectively addressing specific challenges and demands. Specialty
rubber products are engineered to excel in particular industries. Rubber
compounds can be formulated to withstand extreme temperatures, aggressive
chemicals, high pressures, or challenging environmental conditions attributes
that are crucial in industries like oil exploration, aviation, and
manufacturing. The versatility of rubber makes it an ideal candidate for
innovative applications. Specialty rubber products are finding their way into
emerging technologies such as 3D printing, wearable devices, and medical
implants, showcasing the adaptability and potential of rubber in diverse
industries. Industries with crucial safety and performance requirements are
increasingly relying on specialty rubber products that adhere to stringent
quality standards and certifications. This guarantees that products not only
meet but surpass regulatory benchmarks, instilling unwavering confidence in
their reliability.
Technological Advancements
Technology has emerged as an indispensable catalyst
for driving progress across various industries, including the Saudi Arabia
industrial rubber market. The Industrial Internet of Things (IoT) is making
waves in the industrial rubber sector. IoT sensors and devices are embedded in
rubber machinery, facilitating real-time data collection and analysis to
optimize production efficiency and predict maintenance needs. The emergence of
additive manufacturing, or 3D printing, is allowing for the creation of intricate
rubber components with complex geometries. This technology facilitates rapid
prototyping, customization, and the production of prototypes for testing and
validation. Moreover, technology is optimizing supply chain operations by
enhancing visibility, traceability, and coordination among suppliers,
manufacturers, and distributors.
Segmental Insights
Type Insights
In 2022, the industrial rubber market was dominated
by the synthetic segment and is predicted to continue expanding over the coming
years. Synthetic
rubber provides exceptional versatility and consistent performance, rendering
it highly suitable for a diverse range of applications in industries including
automotive, construction, electronics, and healthcare. Its remarkable
adaptability to various conditions and requirements establishes synthetic
rubber as the preferred choice for manufacturers seeking reliable and steadfast
performance. Moreover, the synthetic rubber segment offers enhanced
customization and specialization. Manufacturers have the ability to precisely
adjust the composition of synthetic rubber compounds to attain specific
characteristics like oil resistance, weather resistance, high-temperature
tolerance, and more.
Application Insights
In 2022, the industrial
rubber market was dominated by the automotive segment and is predicted to
continue expanding over the coming years. Saudi Arabia has made efforts to establish a
local automotive manufacturing and assembly industry. This initiative has led
to increased demand for rubber components used in vehicle assembly, including
tires, hoses, seals, and gaskets. The maintenance and repair sector are a
substantial consumer of rubber products. The automotive aftermarket heavily
depends on rubber components for replacement parts, which contributes to a
consistent demand.
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Regional Insights
The Northern and Central region has established
itself as the leader in the Saudi Arabia Industrial Rubber Market. The northern and central regions of Saudi Arabia
are home to major cities like Riyadh, the capital, and Jeddah, a key commercial
hub. These cities serve as major centers for economic activities, trade, and
infrastructure development. The presence of well-developed transportation
networks, including roadways, railways, and ports, facilitates the movement of
goods and materials, making these regions ideal locations for industrial
operations. The Saudi Arabian government has focused on promoting industrial
growth and diversification, particularly in the central and northern regions.
Initiatives such as the Saudi Vision 2030 aim to stimulate economic development
and attract investments in these regions, thereby fostering a conducive
environment for industrial rubber manufacturing and related activities.
Recent Developments
- In 2023, Arlanxeo has announced plans to build a rubber production plant
in Jubail, Saudi Arabia with the capacity of 140,000 t/y, which will be part of
the $11 billion Amiral complex planned by Saudi Aramco and Total Energies, to
produce two elastomers namely ultra-high cis polybutadiene (NdBR) and lithium
butadiene rubber (LiBR).
- In January 2019, Arkema has reinforced its presence in the Kingdom of
Saudi Arabia adding a new plant located in Al Jalamid.
- In 2018, SIbur and Saudi Aramco plan to build a synthetic rubber plant
in Jubail.
Key Market Players
- Saudi Basic Industries
Corporation
- Arkema Chemicals Saudi Arabia
- Evonik Tasnee Marketing LLC
- eni Saudi Arabia
- Saudi Aramco
- General Industries Co. Ltd
- Saudi Rubber Products Co.
- Saudi Arabian Amiantit Co.
|
By Type
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By Application
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By Product
|
By End User
|
By Region
|
- Natural Rubber
- Synthetic Rubber
|
- Automotive
- Construction
- Manufacturing
- Medical & Healthcare
- Electrical &
electronics
- Others
|
- Mechanical Rubber Good
- Rubber Belt
- Rubber Hose
- Rubber Roofing
- Others
|
- Commercial
- Industrial
- Residential
|
- Northern & Central
- Eastern
- Western
- Southern
|
Report
Scope:
In this
report, the Saudi Arabia Industrial Rubber Market has been segmented into the
following categories, in addition to the industry trends which have also been
detailed below:
- Industrial Rubber Market, By Type:
o
Natural
Rubber
o
Synthetic
Rubber
- Industrial Rubber Market, By Product:
o
Mechanical
Rubber Good
o
Rubber
Belt
o
Rubber
Hose
o
Rubber
Roofing
o
Others
- Industrial Rubber Market, By Application:
o
Automotive
o
Construction
o
Manufacturing
o
Medical
& Healthcare
o
Electrical
& electronics
o
Others
- Industrial Rubber Market, By End User:
o
Commercial
o
Industrial
o
Residential
- Industrial Rubber Market, By Region:
o
Saudi
Arabia
o
UAE
o
Qatar
o
Kuwait
o
Bahrain
o
Rest
of Middle East
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Saudi Arabia Industrial Rubber Market.
Available Customizations:
Saudi Arabia Industrial Rubber Market report with
the given market data, TechSci 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).
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report or want to confirm the date of release, please contact us at [email protected]