India Elastomers Market By Type (Styrene Butadiene Rubber, Polybutadiene Rubber, Butyl Rubber, Nitrile Butadiene Rubber, Ethylene Propylene Diene Monomer Rubber {EPDM}), By End User (Automotive, Medical, Industrial, Construction, Consumer Electronics, Consumer Goods and Others), By Region, Competition, Forecast and Opportunities, 2020-2030F
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIndia Elastomers Market By Type (Styrene Butadiene Rubber, Polybutadiene Rubber, Butyl Rubber, Nitrile Butadiene Rubber, Ethylene Propylene Diene Monomer Rubber {EPDM}), By End User (Automotive, Medical, Industrial, Construction, Consumer Electronics, Consumer Goods and Others), By Region, Competition, Forecast and Opportunities, 2020-2030F
| 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
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
According to IBEF, total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 2,358,041 units in April 2024.
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.
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.
, 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.
foreign direct investment (FDI) in the medical and surgical appliances sector reached USD 3.28 billion from April 2000 to March 2024.
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.
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.
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 launched to boost the mechanical, thermal, and chemical resistance of elastomers, incorporating nano-fillers and specialized compounding methods.
in December 2023, RenewSys launched India’s first POE (Polyolefin Elastomer) Encapsulant designed for N-type TOPCon PV cells, known as CONSERV E–NT.
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.
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 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.
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 |
|
|
|
FAQ'S
For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:
Within 24 to 48 hrs.
You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email
You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.
Discounts are available.
Hard Copy