Hydrogenated Nitrile Butadiene Rubber Market Size Forecast to Reach $20.4 Billion by 2026

Hydrogenated Nitrile Butadiene Rubber Market Overview

Hydrogenated Nitrile Butadiene Rubber Market size is forecast to reach US$20.4 billion by 2026, after growing at a CAGR of 7.5% during 2021-2026. Globally, the rising demand for hydrogenated nitrile butadiene rubber also known as highly saturated nitrile (HSN), owing to its physical strength and preservation of properties after long-term exposure to oil, heat, and chemicals, from end use industries such as automotive, construction, oil and gas, and machinery applications is estimated to drive the market growth. Of the various synthetic rubbers used in the market, hydrogenated nitrile butadiene rubber is the most commonly used in a variety of industries. Moreover, the increasing usage of thermoplastic elastomers instead of hydrogenated nitrile butadiene rubber will act as a substitute that will hamper the hydrogenated nitrile butadiene rubber industry growth in the forecast era.

Impact of Covid-19

The emergence of coronavirus disease (COVID-19) and consequent lockdowns by governments in several countries has briefly halted the operation of major end-use industries. As a result, the hydrogenated nitrile butadiene rubber industry has gone through a downturn in the year 2020. Movement restrictions had a direct and immediate effect and, after the compulsory social divide has reduced, it is presumed that things will return to normal conditions.

Key Takeaways
  • With the growing global competition, hydrogenated nitrile butadiene rubber (HNBR) or highly saturated nitrile (HSN) has evolved its eminence in the automotive industry.
  • Rising shifts from nitrile butadiene rubber (NBR) to hydrogenated nitrile butadiene rubber (HNBR) have contributed to HNBR being one of the fast-growing raw materials in the manufacture of rubber articles.
  • Increasing adoption of synthetic rubbers such as hydrogenated nitrile butadiene rubber owing to its low heat buildup, by major tire manufacturers has raised the market growth over the forecast period.

Hydrogenated Nitrile Butadiene Rubber Market Segment Analysis – By Type

Solid hydrogenated nitrile butadiene rubber held the largest share in the hydrogenated nitrile butadiene rubber market in 2020 and is expected to grow at a CAGR of 6.9% during the forecast period. Due to its excellent resistance to fuel and heat, it is suitable for use in various end use industries. Solid hydrogenated nitrile butadiene rubber (HNBR)sees applications in the production of grease-resistant automobile products such as hoses, wiper seals, pipes, and static and rotary seals. It also lowers the price and average weight of the automotive, which is an added advantage that promotes the growth of the market. Thus, with the increasing demand for solid hydrogenated nitrile butadiene rubber for several applications, the market is estimated to experience growth in the forecast period.

Hydrogenated Nitrile Butadiene Rubber Market Segment Analysis – By Application

Seals & O-rings held the largest share in the hydrogenated nitrile butadiene rubber market in 2020 and is forecast to rise at a CAGR of 7.1%. Due to its excellent cost-efficiency balance and use in highly demanding applications such as automobile and industrial applications requiring high performance, the demand for hydrogenated nitrile butadiene rubber (HNBR) for the manufacture of seals and O-ring has rapidly increased its importance in recent years. The HNBR seals & O-ring has recently been developed to meet higher temperatures than standard NBR while retaining resistance to petroleum-based oils. The HNBR O-ring provides a temperature range from -30°C to +150°C (-20°F to +302°F). HNBR seals and o-rings are preferable for use with petroleum-based oils and fuels, vegetable oils, aliphatic hydrocarbons, silicone greases and oils, water and steam (up to 300ºF), ethylene glycol, and diluted acids, bases, and salt solutions. Thus, the rising demand for hydrogenated nitrile butadiene rubber in the production of seals & O-rings is expected to drive the market growth in the forecast period.

Hydrogenated Nitrile Butadiene Rubber Market Segment Analysis – By End Use Industry

The automotive sector held the largest share of more than 25% in the hydrogenated nitrile butadiene rubber market in 2020. This is primarily due to the rising consumption of HNBR or highly saturated nitrile (HSN) for producing belts, seals, and hoses in the automotive industry. In addition, the various benefits associated with the use of HNBR such as excellent durability of heat and oxidation, coolants and oils, high mechanical strength, and superior resistance to fuels, strengthen the automobile industry’s acceptance of hydrogenated nitrile butadiene rubber HNBR.  Also, the automotive industry is the largest customer of the hydrogenated nitrile butadiene rubber market. The increasing use of products such as O-rings, suspension parts, mountings, fan belts in automotive is estimated to drive the hydrogenated nitrile butadiene rubber market growth in the predicted period.

Hydrogenated Nitrile Butadiene Rubber Market Segment Analysis – By Geography

The Asia Pacific region held the largest share of more than 35% in the hydrogenated nitrile butadiene rubber market in 2020. Globally, the demand for hydrogenated nitrile butadiene rubber is dominated by the Asia-Pacific region due to the rising automotive, oil and gas, and construction industries. The Asia Pacific constitutes a major share of the global hydrogenated nitrile butadiene rubber market, due to the easy availability of raw materials at competitive prices in the region. The rapid growth of the automotive and oil and gas industry in China, India, and South Korea is projected to propel the demand for hydrogenated nitrile butadiene rubber shortly. According to the Organisation Internationale des Constructeurs d’Automobiles (OICA), the production of cars by 2020 gradually increased from 26,84,192 in the first quarter to 1,32,21,849 in the third quarter, in China. Thus, the demand for the hydrogenated nitrile butadiene rubber market is therefore anticipated to increase in the forecast period because of the mentioned factors.

Hydrogenated Nitrile Butadiene Rubber Market Drivers 
Growing Demand for Hydrogenated Nitrile Butadiene Rubber from the Oil and Gas Sector

The common usage of hydrogenated nitrile butadiene rubber components in oil and gas field applications are in dynamic atmospheres; especially sealing appliances that are in relative motion when interacting with surfaces. Due to the excellent elasticity and resilience, hydrogenated nitrile butadiene rubber seals have widespread use as sealing components, such as hoses, gaskets, O-rings, and so forth, in the gas and oil industry. HNBR seals promise stronger resistance over standard nitrile and fluorocarbon when directly in contact with heat, aggressive fluids, and corrosive chemicals. Hydrogenated nitrile butadiene rubber (HNBR) has also been widely employed for applications in the oil and gas industry due to its heat aging, oil resistance, and low-temperature flexibility in industrial sealing for oil field processing and exploration. According to the India Brand Equity Foundation, India’s oil refining capacity stood at 249.9 million metric tons (MMT) as of 1 October 2020, making it Asia’s second-largest refiner. Private firms own about 35.3% of FY20’s total refining capacity. With the growing oil and gas industry, the demand for hydrogenated nitrile butadiene rubber market is estimated to rise over the forecast period.

Increasing Government Assistance for the Manufacture of Rubber

Governments of a number of leading rubber-producing countries, such as India, Thailand, and Indonesia, are providing economic assistance to rubber manufacturers in the form of discounts, tax cuts, and customs duty exemptions which is driving the market growth. Furthermore, according to the National Rubber Policy 2019, the government of India plans to strategize towards the meeting of the raw material requirement of domestic industry through domestic production as far as possible. The Indian government is also keen on required focus towards development of the entire rubber industry value chain from upstream production to downstream manufacturing activities, and promote the development of rubber product manufacturing sector and facilitate the export of quality rubber products. Similarly, in Thailand, the government-assisted the rubber industry by forming a free trade arrangement with rubber-importing countries such as New Zealand and Australia. These actions derive from the exports of rubber from these countries to various areas of the world and the demand to increase the production of rubber. Thus, the rising government assistance for the production of rubber is expected to drive the hydrogenated nitrile butadiene rubber market growth during the forecast era.

Hydrogenated Nitrile Butadiene Rubber Market Challenges
Rising Demand for Alternatives Will Hamper The Market Growth

Thermoplastic elastomers and liquid silicone rubber have similar properties and are beneficial alternatives to synthetic or natural rubbers such as hydrogenated nitrile butadiene rubber.  The increasing use of thermoplastic elastomers as a substitute in several applications in the construction, footwear, automotive, and electronic industry will restrain the hydrogenated nitrile butadiene rubber market growth. Also, from a processing perspective, thermoplastic elastomers offer cost savings to processors and are priced less than hydrogenated nitrile butadiene rubber which is attractive to the customers. Thus, thermoplastic elastomers have successfully replaced synthetic rubbers to a large extent and the discovery of newer applications of thermoplastic elastomers could further create hurdles in the growth of the hydrogenated nitrile butadiene rubber market.

Hydrogenated Nitrile Butadiene Rubber Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the hydrogenated nitrile butadiene rubber market. Major players in the hydrogenated nitrile butadiene rubber market are Elastomer Engineering Ltd., Polycomp, Zeon Chemicals, ARLANXEO, Rahco Rubber, Inc., Lianda Corporation, Ge Mao Rubber Industrial Co., Ltd. (GMORS), KACO GmbH + Co. KG, and Parker Hannifin among others.

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