Recycled Elastomers Market - Global Outlook & Forecast 2024-2029

MARKET INSIGHTS

The global recycled elastomers market was valued at USD 9.80 billion in 2023 and is expected to reach USD 17.41 billion by 2029, growing at a CAGR of 10.05% during the forecast period. The market growth is attributed to the increasing consumption of elastomers in several industries. Also, elastomers are widely adopted in the automotive and healthcare industries to manufacture products such as tires and medical tubes. This growing need for elastomer products raises sustainability issues as elastomers are non-biodegradable and accumulate and produce hazardous chemical gases for human life; such factors promote the recycling of elastomers. Moreover, recycling is a suitable option for reusing elastomers as it contributes to a sustainable environment and provides a new edge to improve waste management. Such factors positively promote the growth of the global recycled elastomers market. Additionally, the improvement of the automotive, aerospace, and electronic industries and the rapid adoption of energy-efficient and sustainable resource dependence are gradually raising the demand for recycled elastomers.

The automotive industry is undergoing a transformative shift towards sustainability, and a crucial aspect of this transition is the adoption of sustainable materials in manufacturing processes. Traditional automotive manufacturing heavily relies on non-renewable resources and generates significant environmental impacts. However, with the growing awareness of climate change and environmental degradation, automakers are now exploring alternative materials that can reduce their carbon footprint and promote a greener future. Hence, such factors positively impact the growth of the recycled elastomers market. For instance, Maruti Suzuki Toyotsu India Private Limited (MSTI) recognizes the importance of sustainable materials in automotive manufacturing and has taken proactive steps to drive innovation in this field. MSTI has established a robust research and development (R&D) program focusing on developing and implementing sustainable materials and technologies in their dismantling processes. By investing in R&D initiatives, MSTI aims to contribute to a greener automotive industry and create a more sustainable future.

Despite lower tire production in Brazil, Germany, South Korea, and Russia, global rubber demand rose 1.4% in 2023 (y-o-y). Rubber demand remained resilient in 2023, supported by a recovery in the auto sector, which accounts for nearly two-thirds of global rubber consumption owing to the penetration of electric vehicles across the globe. Thus, the abovementioned factors encourage the demand for recycled elastomers. For instance, in 2023, as per IEA (International Energy Agency), Electric car sales are expected to continue strongly throughout the period. Over 2.3 million electric cars were sold in the first quarter, about 25% more than in the same period last year. In addition, the demand for recycled elastomers is increasing because of stringent environmental regulations, the need for waste management solutions, and the cost-effectiveness of recycled materials. As governments and industries strive to reduce carbon footprints and promote sustainable practices, the recycled elastomers market is poised for substantial growth.

MARKET GROWTH AND OPPORTUNITIES

Effective Waste Management Across Industries

Growing waste management efforts involve increased recycling initiatives. Elastomers, including recycled elastomers, are favored in these initiatives due to their reclaimed, processed, and reused ability. As recycling becomes an essential strategy for managing waste, the demand for elastomers that can be effectively recycled rises. Further, increasing consumer awareness and preferences for environmentally friendly products influence industries to adopt materials supporting sustainable waste management. Products and applications utilizing recycled elastomers appeal to environmentally conscious consumers, driving demand across various sectors.

Growing Awareness of Recycling

Growing awareness of environmental issues, such as plastic pollution and the impact of non-biodegradable materials, has heightened consumers' and industries' interest in sustainable alternatives. Recycled elastomers, which can be reclaimed and reused, align with the broader environmental consciousness and contribute to sustainable practices. Further, several end-user industries prefer to recycle their elastomers to avoid the production process to save money and time. And with the rising awareness of recycling products for sustainability is significantly providing a growth opportunity to vendors in the recycled elastomers market.

SEGMENTATION INSIGHTS

INSIGHTS BY MATERIAL TYPE

The global recycled elastomers market material type is segmented as synthetic and natural. In 2023, the synthetic segment dominated the global recycled elastomers market and is expected to be the fastest-growing material type segment during the forecast period. Synthetic recycled elastomers are aqueous dispersion of petroleum polymers made in the laboratory. These polymers provide flexibility, high-strength, and water-resistance properties, making them suitable and perfect for an extensive range of industrial applications. The demand for synthetic recycled elastomers from the construction and automotive industries will likely enhance the market growth during the forecast period. Further, they are highly used in construction products such as adhesives & sealants, paints & coatings, and more to increase elastomer properties, binding, and prevent cracking.

INSIGHTS BY SYNTHETIC TYPE

The thermoset synthetic segment holds the most significant global recycled elastomers market share. The thermoset material is known for its excellent durability and high-performance characteristics. Industries such as aerospace, automotive, and electronics often choose thermosets for their ability to withstand high temperatures, chemicals, and mechanical stress. The thermoset segment can be categorized into recycled rubber, recycled polyurethane, and other thermosets. The recycled rubber segment comprises styrene-butadiene rubber (SBR) and ethylene-propylene-diene monomer (EPDM). The growing demand for recycled rubber is due to the fact that it can be recycled from various sources, such as tires, industrial scrap, and post-consumer products.

Further, thermoplastic elastomers have widespread application across diverse industries, offering a dependable source of plastic with the capacity for recycling through devaluation and oxidation processes. A thermoplastic elastomer is used in many industries in various applications such as thermal insulation sheets, CV joint boots, automotive, electrical equipment, bumper, coat hunger, lacquer, varnishes, paints, adhesives, shoe soles, sealing rubber, tires, belts, ring gaskets, handles for knives, scissors, food packaging films, syringes, catheters, camera lens, projectors, they also used in over molding example knives, housewares, computer, tools, etc. Thermoplastic is similar to thermosets as it is flexible and elastic like plastic, which is also considered an efficient economic and sustainability option. The escalating environmental apprehensions propel the surge in thermoplastic demand, given their superior reliability compared to thermoset elastomers.

INSIGHTS BY BY APPLICATION

The global recycled elastomers market by application is segmented as automotive, industrial facilities, healthcare, packaging, construction, consumer goods, and other applications. The automotive application segment accounted for the largest revenue share of over 25% in 2023 and is also expected to remain in its position through the forecast period. This is ascribed to the rising usage of recycled elastomers to produce components such as tires, engine mounts, gaskets, etc. Further, they are also used in the manufacturing of weather stripping and seals for doors, windows, and various vehicle openings. These components provide an effective barrier against environmental elements, such as rain and wind, contributing to the overall safety and comfort of the automobile interior.

GEOGRAPHICAL ANALYSIS

APAC was the largest revenue contributor to the global recycled elastomers market, accounting for a market share of over 32% in revenue. China, in turn, took up a considerable share. This can be attributed to the increasing investments in fully automated industrial machinery and the Y-O-Y growth in government spending on defense aircraft and equipment in major regional economies. In addition, the higher prevalence of electronic appliance vendors in the Chinese market will drive the segment throughout the forecast period. Further, the region has significant foreign direct investment in industrial sectors, owing to cheap labor and availability of land. Increasing government influence on the elastomer industry helps in increasing the recycling industry. Government assistance and economic stability also contribute to increased machinery and equipment consumption to boost the recycled elastomers market in the region.

North America accounted for a significant share of the global recycled elastomers market in 2023. The region is one of the significant rubber exporters emerging countries in the Middle East & Africa, and APAC. In addition, increasing space research projects will aid the market for recycled elastomers for related equipment. Further, Europe holds a significant position in the global recycled elastomers market and is led by Germany, Spain, France, and the U.K., which are also on their way to becoming prominent markets for recycled elastomers. This can be attributed to the growth in export volumes and the demand for luxury cars and defense aircraft across APAC and the Middle East.

VENDORS LANDSCAPE

The global recycled elastomers market exhibits a relatively consolidated landscape, with prominent players including Genan Holding Ltd., GRP LTD, Green Rubber Global, Karton Corporation, and Eastman Chemicals Ltd leading the industry. While there is a presence of local and international participants, the market is characterized by a certain degree of concentration, with these key players holding significant recycled elastomers market share. The competitive dynamics highlight a trend where regional vendors may face challenges competing with their international counterparts, particularly concerning product quality and technological advancements. Furthermore, many players within the recycled elastomers market are anticipated to expand their global footprint, focusing mainly on rapidly developing economies in the Asia-Pacific (APAC) region. This strategic expansion aims to capture a larger share of the recycled elastomers market, leveraging various factors such as competitive pricing, enhanced availability, and cost-effective labor. As the market continues to evolve, the emphasis on global outreach underscores the industry's recognition of the potential growth opportunities in emerging markets.