The global recycled elastomers market is expected to reach USD 14.5 billion by 2027 from USD 8.23 billion in 2021, growing at a CAGR of 9.93%. The elastomers have various applications more than just common daily uses. The growing need for elastomer products raises sustainability issues as elastomers are non-biodegradable. Recycling is difficult because breaking down three-dimensional chemicals with high heat and pressure is difficult. Increasing use of elastomers creates other huge problems, such as the increase in the dumping of rubber waste from industries and other used products. Because of the slow degradation of these elastomers, it accumulates and produces hazardous chemical gases for human life. Such factors promote the recycling of elastomers, thereby boosting the recycled elastomers market.
Moreover, recycling is a better option for the reuse of elastomers. Using conventional processes to reintroduce recycled elastomer contributes to a sustainable environment and provides a new edge to improve waste management. Devulcanization is the main process where a certain level of ultrasonic amplitudes helps break the three-dimensional network of vulcanized rubber with pressure and heat.
MARKET TRENDS & DRIVERS
The Shift Towards Eco-Friendly Elastomers
Elastomer recycling is a very significant factor in providing solutions in various sectors. Conventional methods of recycling helps in size reduction into small components that can be re-compounded. Producing more recycled products rather than manufacturing new resin products contributes more to sustainable production. It involves less cost and flexibility and can last, which is considerably more robust. Increasing awareness among people about the importance of recycled material results in increasing the pressure on industries and manufacturers to practice sustainable activities in processing. However, financial and behavioral factors are important in shifting to an eco-friendly elastomer. Such circumstances are boosting the recycled elastomers market.
Growing Demand From Emerging Economies
Growth in population leads to more consumption, which also increases demand. Elastomers are used in many sectors because of their rigidity, strength, durability, and cost-effectiveness properties. Owing to these properties, the demand for elastomers is continuously increasing. Thermoplastic and thermoset are very common types of elastomers and are used in various industries. These elastomers are required according to their properties, such as high-heat resistance, corrosion resistance, and recyclability. The recycled elastomers market is witnessing continuous growth due to such factors and sustainability initiatives. Further, the consumption of recycled elastomers is expected to grow shortly in countries such as India, China, Brazil, Argentina, and others.
Less Reliability Than Conventional Product
Recycled elastomers are a substitute for primary elastomers and are used to reduce the cost of usage in various applications. Products such as rubber products, latex reclaimed rubber, tire, butyl, nitrile, EPDM, and reclaimed rubber are used in various applications. However, recycled elastomers' price is directly linked to the primary elastomers, which is proportional to the oil prices. Apart from the cost involved in the collection, processing of the elastomers becomes difficult because of complicated technology. Moreover, the technical challenges and presence of toxic chemicals in elastomer waste further hamper the growth of the recycled elastomers market.
INSIGHTS BY TYPE
The recycled thermoset elastomers market dominates the industry and is growing at a CAGR of 9.61% during the forecast period. Thermosetting elastomers are used in many industries, such as automotive, aerospace, agricultural, electrical goods, and construction. Its applications are cell tower tops, electrical housings, insulators, disc brake pistons, circuit breakers, etc. Further, thermoset properties make it very reliable in high temperatures, making it a suitable component for manufacturing since it is heat resistant. Such factors are contributing to the growth of the thermoset recycled elastomers market.
The thermoplastic recycled elastomers market was valued at USD 2.8 billion in 2021. Thermoplastic elastomers are used in many industries in various applications and are considered a very reliable source of plastic as it has the property of recycling through devaluation and oxidation processes. The growing environmental concerns are boosting the growth of thermoplastics as they are the most reliable compared to thermoset elastomers.
INSIGHTS BY END-USER
The automotive end-user industry dominated the global recycled elastomers market and was valued at USD 2.8 billion in 2021. Polyurethanes are known for their properties like lightweight, durability, and strength, and are mostly used in cars manufacturing in seats and bodies of cars, helping in protecting against heat and noise. The high presence of dominated thermoplastic elastomers in the automotive industry drives the recycled elastomer industry and is expected to grow in the near future. Many countries are working towards research and development and continuously advancing technology for better solutions for environmentally-friendly products.
The construction industry is expected to grow shortly, driven by increasing population, consumption, and income, which is the main factor in increasing the standard of living. India and China are emerging economies working on many projects, propelling the construction industry. The industrial recycled elastomers market is growing at a CAGR of 9.10%.
APAC was valued at USD 2.8 billion in 2021 and dominated the global recycled elastomers market share. Several infrastructure and construction projects in developing countries fuel the development of the APAC recycling equipment and machinery industry. Asia Pacific is the region with 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.
The global recycled elastomers market is less fragmented, with some local and international players. Genan Holding Ltd., GRP LTD, Green Rubber Global, Avient Corporation, and Vanden Global Ltd are the leading players in the global industry. Although the industry is characterized by the presence of diversified international vendors and a few regional vendors, regional vendors would find it increasingly difficult to compete with international players, especially in terms of quality and technology. The industry competition is expected to increase in the near future. Many players are expected to expand their presence worldwide, especially in the fast-developing countries in the APAC region, to gain more recycled elastomers market share because of various factors such as price, availability, cheap labor, etc.