Neoprene market grows as automobile and other vehicle sectors expand
24 Jan 2022
Neoprene is a form of synthetic rubber that is produced through the polymerization of chloroprene. It is used across different sectors such as construction, automotive, and medical as it is resistant to aging and oil. It is also used in waterproof items such as wet suits and gloves. Neoprene rubber can sustain in fluctuating temperature ranges and comes with chemical stability.
The global neoprene market growth is driven by a rise in demand from the construction and automotive sectors. Countries across the world have taken initiatives in private and public infrastructure development, especially in the Asia-Pacific region. As per the research report published by Allied Market Research, the global neoprene market is expected to reach $2.4 billion by 2030, with a CAGR of 2.5% from 2021 to 2030.
As the monthly income of people across the globe has increased and there is an upgrade in lifestyle, the demand for automobiles has increased. The younger earning population of developing countries prefer to leave a comfortable life and thus, demand for neoprene from the automotive industry is on the rise.
Though there is a bright future for the market players and investors looking forward to funding R&D activities in this sector, the recent COVID-19 pandemic has impacted the market severely.
As neoprene is widely used in automotive products and in the construction industry's products, such as fire doors, electrical insulation, and waterproofing materials, its demand declined during the pandemic. Due to lockdown measures and lack of workforce available to work offline, the construction and the automotive sector had to halt their operations for a significant period in 2020.
However, the pandemic also led to more demand for medical items such as gloves, which caused a rise in demand for neoprene.
Neoprene and automotive industry
Neoprene is used in the production of several automobile parts such as power transmission belts, braking & steering system components, shock absorber seals, oil seals, and tires. Moreover, it is used in EV which creates more demand in the market. Airbag manufacturing sectors have developed airbags made of neoprene relying on the robustness of the neoprene rubber.
Apart from this, neoprene is used in the manufacturing of bicycles. Recently, Prestacycle, a bicycle products company has launched the world’s smallest and lightest pump that uses neoprene. With a thick neoprene used for the cartridge, it does not let freeze users’ hands, and let them twist the cartridge to control the airflow.
New innovations in the market such as the emergence of CarbonBlack neoprene make sure the market sustains the changing consumer demand and stays eco-friendly. Such advent of new products that use neoprene would open new opportunities in the future.
Chief editor of review team at FinancesOnline
Chief editor of review team at FinancesOnline Alex Hillsberg is an expert in the area of B2B and SaaS related products. He has worked for several B2B startups in the past and gathered a lot of first hand knowledge about the industry during that time.