China is the world's largest manufacturer and consumer of Styrene-Butadiene Rubber (SBR), which is extensively used in the tire industry. SBR is made by copolymerizing butadiene and styrene, and is known for its low cost, high elasticity, and good abrasion resistance.
The SBR industry in China has been growing at a steady rate, owing to the increasing demand for tires in the country. The automotive industry in China has been witnessing rapid growth in the recent years, with a rise in the number of vehicles on the road. This has been attributed to the growing middle class, rapid urbanization, and the government's push for electric and hybrid vehicles.
As per the GlobalData report, the SBR industry in China is projected to grow at a CAGR of 8.2% during the forecast period of 2017-2022. The market size is expected to reach USD 10.4 billion by 2022, driven by the increasing demand for tires, as well as other rubber products such as hoses, belts, and gaskets.
The report highlights that there are numerous factors driving the growth of the SBR industry in China. These include the availability of cheap raw materials such as 1,3-butadiene, which is used in the production of SBR. China is the world's largest producer of 1,3-butadiene, and this has helped in keeping the cost of production low. Additionally, the government's support for the rubber industry, in the form of subsidies and tax incentives, has further boosted the growth of the industry.
The report also indicates that the SBR industry in China is highly concentrated, with a few large players dominating the market. These include (Brand names removed); Sinopec, China National Petroleum Corporation (CNPC), and others. These companies have a significant market share due to their large production capacities and extensive distribution networks.
Another important factor contributing to the growth of the SBR industry in China is the increasing focus on research and development. Companies are investing heavily in R&D, in order to develop new and innovative products that meet the changing demands of consumers. For instance, there is growing demand for green tires, which are made using environmentally friendly raw materials and have lower rolling resistance, resulting in reduced fuel consumption.
In conclusion, the SBR industry in China is poised for strong growth in the coming years, driven by the increasing demand for tires and other rubber products. The availability of cheap raw materials, government support, concentration of large players, and focus on research and development are some of the key factors that are contributing to the growth of the industry. As the industry continues to evolve and adapt to changing consumer demands, there will be ample opportunities for players to explore and expand their market presence.