Table of Contents
Overview
New York, NY – July 24, 2025 – The Global Polybutadiene Rubber Market is set to experience steady growth, with its size expected to reach USD 9.8 billion by 2034, up from USD 6.6 billion in 2024, driven by a compound annual growth rate (CAGR) of 4.0% from 2025 to 2034.
Global butadiene production, with 78.5% derived from steam cracking, benefits from upgraded steam-cracker facilities. These modern plants improve yield efficiencies and reduce unit costs, supporting PBR producers’ margins and encouraging investment in advanced production technologies.
Regional price variations in Q1 2024 highlight market dynamics. In the U.S., PBR prices fell to USD 1,719/MT in March due to supplier destocking amid raw material uncertainties, despite consistent demand. In contrast, Japan’s prices rose to USD 2,668/MT, driven by global crude price increases despite sufficient inventories, posing planning challenges for manufacturers and buyers.
The polybutadiene rubber (PBR) market is poised for growth, driven by increasing demand for industrial-grade hoses and seals in food and beverage processing. In 2023, the global industrial hose market, predominantly composed of rubber compounds like PBR. This expansion is fueled by the need for reliable, food-grade materials for sanitary fluid transfer and packaging, where PBR’s chemical resistance, flexibility, and durability are critical.
The automotive sector, particularly tire production, remains a key driver, with PBR valued for its abrasion resistance, resilience, and low rolling resistance. In 2023, global synthetic rubber consumption, including PBR, reached 15.5 million tonnes, with over 60% attributed to tire manufacturing, per the International Rubber Study Group. India’s synthetic rubber consumption grew from 411,830 tonnes in 2010–11 to 633,975 tonnes in 2017–18, with PBR accounting for approximately 34% of production, supported by policies promoting self-sufficiency.
Key Takeaways
- Polybutadiene Rubber Market size is expected to be worth around USD 9.8 Billion by 2034, from USD 6.6 Billion in 2024, growing at a CAGR of 4.0%.
- High Cis polybutadiene rubber held a dominant market position, capturing more than a 57.2% share of the overall product segment.
- Tire Manufacturing held a dominant market position, capturing more than a 72.9% share of the total polybutadiene rubber market.
- Online held a dominant market position, capturing more than an 81.7% share in the distribution channel segment of the polybutadiene rubber market.
- North America stands out as a dominant region in the polybutadiene rubber market, capturing an estimated 41.3% share and generating approximately USD 2.7 billion in revenue.
How Growth is Impacting the Economy
The growth of the PBR market significantly impacts the global economy, particularly in automotive and manufacturing sectors. Rising vehicle production boosts PBR demand, creating jobs in tire manufacturing and related industries, especially in Asia-Pacific. Investments, such as INEOS’s expansion in Belgium, enhance production capacities, stimulating local economies.
However, raw material price volatility, like butadiene’s fluctuating costs, challenges profitability, impacting downstream industries. The shift to electric vehicles (EVs) and eco-friendly tires drives innovation, fostering economic resilience through sustainable practices. Emerging economies like China and India benefit from increased industrialization, supporting infrastructure development and export growth.
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Strategies for Businesses
Businesses in the PBR market should prioritize innovation, focusing on bio-based and high-performance PBR grades to meet sustainability demands. Strategic partnerships, like Kumho Petrochemical’s collaboration with Sumitomo, can enhance market reach and product development. Investing in efficient procurement and inventory management mitigates raw material price volatility. Expanding production in high-demand regions like Asia-Pacific, as seen with Indian Oil’s plant, ensures supply chain stability. Leveraging digital platforms for distribution, which hold a share, streamlines procurement and broadens customer access, enhancing competitiveness in a dynamic market.
Report Scope
| Market Value (2024) | USD 6.6 Billion |
| Forecast Revenue (2034) | USD 9.8 Billion |
| CAGR (2025-2034) | 4.0% |
| Segments Covered | By Product (High Cis, Low Cis, High Trans, High Vinyl), By Application (Tire Manufacturing, Footwear, Sports Accessories, Others), By Distribution Channel (Online, Offline) |
| Competitive Landscape | ARLANXEO, ENEOS Materials Corporation, Evonik Industries AG, Indian Oil Corporation Ltd, JSR Corporation, KURARAY CO., LTD., Lanxess AG, LG Chem Ltd., SABIC, SIBUR International GmbH, Synthos, The Goodyear Tire & Rubber Company, THE YOKOHAMA RUBBER CO., LTD, Trinseo, UBE Corporation, Versalis S.p.A., ZEON CORPORATION |
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Key Market Segments
By Product
High Cis Polybutadiene Rubber leads with a 57.2% market share, driven by its exceptional elasticity, abrasion resistance, and cold flexibility, making it a top choice for tire manufacturing. Its structure enhances rolling resistance and wet traction, critical for performance tires in passenger and commercial vehicles.
The global push for fuel efficiency and sustainable transport has boosted demand for high cis PBR, as it extends tire life and improves road grip while minimizing energy loss. Growth in the automotive sector, especially in Asia-Pacific and emerging markets with shorter tire replacement cycles, further fuels its dominance. Applications in industrial belts, golf balls, and footwear also contribute to its strong market position.
By Application
Tire Manufacturing commands a 72.9% share of the polybutadiene rubber market in 2024, reflecting its critical role in the automotive and transportation industries. PBR’s superior abrasion resistance, low rolling resistance, and high resilience make it ideal for producing durable, fuel-efficient tires with excellent wet traction.
Rising vehicle production in emerging economies and steady replacement tire demand in mature markets like North America and Europe drive consumption. Increasing consumer and regulatory focus on eco-friendly, cost-effective mobility solutions further amplifies the demand for PBR in tire applications.
By Distribution Channel
Online distribution holds an 81.7% share in 2024, driven by its efficiency and accessibility. Digital marketplaces and e-procurement platforms enable buyers to compare prices, review specifications, access bulk supplies, and ensure timely deliveries without traditional intermediaries. This shift enhances supply chain transparency and reduces transaction costs, particularly for large-scale rubber procurement in the automotive, tire, and industrial rubber sectors.
Regional Analysis
North America dominates with a 41.3% share, generating approximately USD 2.7 billion in revenue in 2024. The region’s robust automotive and tire industries heavily rely on PBR for its abrasion resistance, low rolling resistance, and resilience, ideal for high-performance tires. Beyond tires, PBR is widely used in infrastructure and industrial applications like conveyor systems, belts, hoses, and footwear.
The shift toward electric vehicles, supported by government investments in manufacturing, has increased demand for advanced elastomers like high-cis PBR, valued for its durability and efficiency. Reliable feedstock supply and logistical advancements further strengthen North America’s market position.
Recent Developments
1. ARLANXEO
- ARLANXEO has expanded its Neodymium Polybutadiene Rubber (Nd-PBR) production to meet growing tire industry demands, focusing on sustainability and high-performance applications. The company emphasizes eco-friendly production processes and collaborates with tire manufacturers to enhance fuel efficiency. ARLANXEO’s Buna CB series is widely used in high-grade tire treads.
2. ENEOS Materials Corporation
- ENEOS has developed a new high-cis Polybutadiene Rubber with improved wear resistance for premium tires. The company is investing in R&D to enhance polymerization efficiency and reduce environmental impact. ENEOS also focuses on partnerships with Asian automakers for next-gen tire solutions.
3. Evonik Industries AG
- Evonik has introduced functionalized PBR for specialty applications, including impact modifiers for plastics and high-performance tires. Their VESTENAMER technology improves processing efficiency. Evonik is also working on bio-based butadiene to support sustainable rubber production.
4. Indian Oil Corporation Ltd (IOCL)
- IOCL has launched Indopol Polybutadiene Rubber for tire and industrial applications, leveraging its refinery-integrated butadiene supply. The company is scaling up production to reduce import dependency in India and exploring new catalyst technologies for better PBR grades.
5. JSR Corporation
- JSR has developed a high-vinyl PBR for improved wet-grip performance in tires, aligning with global safety standards. The company is expanding its synthetic rubber portfolio, including BR01 series, and investing in sustainable production methods.
Conclusion
The PBR market’s growth, driven by automotive and sustainability trends, presents opportunities and challenges. Businesses must navigate raw material volatility and environmental concerns. Strategic investments in eco-friendly technologies and regional expansions will ensure long-term competitiveness. As demand rises in emerging economies and EV markets, the PBR industry is set to play a pivotal role in economic growth, balancing profitability with sustainability to meet global needs.
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