Neoprene Market Size, Share, Growth, Forecast 2030

Neoprene Industry Prospective:

The global neoprene market size was evaluated at $3 billion in 2022 and is slated to hit $10 billion by the end of 2030 with a CAGR of nearly 4% between 2023 and 2030.

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Neoprene Market: Overview

Neoprene is a family of synthetic rubbers produced by chloroprene polymerization. Furthermore, the product demonstrates excellent chemical stability along with maintaining flexibility over an extensive range of temperatures. Moreover, neoprene is available in solid rubber or latex form and finds a spectrum of applications in laptop sleeves, electric insulation, flashings, orthopedic braces, liquid & sheet-applied elastomeric membranes, automotive fan belts, and medical gloves. In addition to this, it is used in the manufacture of wetsuits and various water-repelling products.  

Key Insights

• As per the analysis shared by our research analyst, the global neoprene market is projected to expand annually at the annual growth rate of around 4% over the forecast timespan (2023-2030)
• In terms of revenue, the global neoprene market size was evaluated at nearly $3 billion in 2022 and is expected to reach $10 billion by 2030.
• The global neoprene market is anticipated to grow rapidly over the forecast timeline owing to the rise in the use of neoprene in medical, building & construction, aquatics, textile, automotive, and electronics sectors
• In terms of product, the neoprene rubber sheets segment is slated to register the highest CAGR over the forecast period.
• Based on the end-use, the automotive segment is predicted to dominate the segmental surge over the forecast period.
• Region-wise, the North American neoprene industry is projected to register the fastest CAGR during the assessment timeline.

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Neoprene Market: Growth Factors

A surge in product penetration in various end-use sectors to scale up the global market expansion by 2030

The rise in the use of neoprene in medical, building & construction, aquatics, textile, automotive, and electronics sectors will steer the growth of the global neoprene market. Moreover, an increase in urbanization and supportive government policies towards infrastructure growth have resulted in the large-scale use of neoprene in various end-use sectors, thereby driving global market trends. In addition to this, exceptional product features such as excellent tensile strength and ozone & weather resistance will steer the growth of the global market. Large-scale use of product in chloropene production along with rapid breakthroughs in polymers will scale up the growth of the market across the globe. Swift urbanization will contribute majorly to the expansion of the global market. Humungous use of the product as a rubberized material in electrical wings, civil engineering, and fire-proof insulation will expedite the growth of the market globally.  

Neoprene Market: Restraints

Oscillation in the crude oil prices can put brakes on the global industry surge by 2030

Volatility in the crude oil costs and easy availability of substitute products can put brakes on the global neoprene industry elevation. For instance, neoprene which is a synthetic rubber is produced with the help of petroleum raw materials whose costs fluctuate and this can impact the demand for neoprene across the globe. Reportedly, easy access to alternate products such as silicone rubber can further restrict the expansion of the global industry.  

Neoprene Market: Opportunities

An increase in product usage in rust-resisting coating materials to open new avenues of growth for the global market

Advancements in manufacturing processes and technological innovations will pave the way for the expansion of the global neoprene market. A rise in the penetration of neoprene in corrosion-resistant coating materials & landfill linings along with a surge in the product demand as a protective coating in personal computers will generate new opportunities for growth for the global market. Its use in producing a large number of raw materials such as belts, tires, and hoses used for manufacturing vehicles will steer the growth of the market globally.  

Neoprene Market: Challenges

Disturbances in the supply chain activities can create a huge challenge for the global industry by 2030

Stringent regulations governing the use of the product in specialty materials & chemicals can pose a big challenge for the global neoprene industry in the coming years. Supply chain disruptions will further halt the expansion of the industry in the coming years.

Neoprene Market: Segmentation

The global neoprene market is sectored into product, end-use, and region.                                      

In product terms, the neoprene market across the globe is segregated into neoprene rubber sheets, neoprene sponge/foam, and neoprene latex segments. Furthermore, the neoprene rubber sheet segment, which acquired nearly 70% of the global market proceeds in 2022, is anticipated to record the highest gains over the forecast timespan. The expansion of the segment during the period from 2023 to 2030 can be due to beneficial product features such as high abrasion resistance, reduced compression set, improved resistance to ultraviolet rays, and excellent resilience.  

Based on the end-use, the global neoprene industry is divided into automotive, building & construction, electrical & electronics, and textiles segments. Moreover, the automotive segment, which led the end-use segment in 2022, is expected to dominate the segmental expansion even during the forecasting years. The growth of the segment over the forecast period can be subject to favorable features of neoprene such as enhanced tensile strength, outstanding heat resistance, and durability. In addition to this, surge in the use of products in power transmission belts, steering system parts, hose covers, vibration mounts, constant velocity joint boots, and shock absorber seals.  

Neoprene Market: Report Scope

Neoprene Market: Regional Insights

Asia-Pacific region is predicted to lead the global neoprene market over the forecast timeline

Asia-Pacific, which contributed about half of the global neoprene market earnings in 2022, is likely to be a dominating region over the forecast timeline. Moreover, the regional market expansion over the upcoming years can be attributed to ease of product supply through various distribution channels such as online stores, retail stores, and wholesalers. Furthermore, a rise in the demand for neoprene in the automotive manufacturing sector will steer the expansion of the market in the APAC region. A surge in product use in various construction activities in the region will embellish the expansion of the market in the region. Favourable government schemes such as Housing for All in urban and rural regions as well as smart city initiatives will steer the expansion of the market in the region. 

The North American neoprene industry is set to record the fastest CAGR in the next seven years. The growth of the industry in the sub-continent over the forecast timeframe can be subject to the presence of key product manufacturers in countries such as the U.S. Apart from this, easy availability of raw materials in the components in the region will contribute majorly towards the growth of the industry in North America.  Furthermore, an increase in the allocation of funds in the construction sector has proliferated the growth of the industry in North America. Huge demand for neoprene in medical gloves in countries such as the U.S. will steer the industry trends in the region.

Key Developments

• In the second half of 2022, Quanex Building Products, a key manufacturer of energy-efficient window & door products, acquired LMI Custom Mixing, LLC, a firm offering custom rubber compound mix. The strategic move is aimed at expanding the polymer portfolio of Quanex.
• In the first quarter of 2019, Tosoh Corporation, a key chemical & specialty materials firm based in Japan, increased the production capacity of chloroprene rubber and was promoted under the name of Skyprene, a functional polymer product line of specialty materials.

Neoprene Market: Competitive Space

The global neoprene market profiles key players such as:

• Sundow Polymers Co. Ltd.
• The 3M Company
• Denka Company Limited
• Tosoh Corporation
• Pidilite Industries
• Lanxess AG
• BGK GmbH Endlosband
• Zenith Rubber
• Covestro AG
• Tuhuang Chemical Co.

The global neoprene market is segmented as follows:

By Product

• Neoprene Sponge/Foam
• Neoprene Rubber Sheets
• Neoprene Latex

By End-Use

• Automotive
• Building & Construction
• Electrical & Electronics
• Textiles

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa