US Rubber Market Outlook to 2028

US Rubber Market Overview

• In 2023, the U.S. Rubber market was valued at USD 14 billion, driven by the demand in industries such as automotive, healthcare, and construction. Growth is fueled by ongoing demand for synthetic rubber over natural rubber, primarily due to the consistent supply and enhanced properties like durability and flexibility.

• Major players in the U.S. Rubber Market include Goodyear Tire & Rubber Company, Bridgestone Americas, Michelin North America, Cooper Tire & Rubber Company, and Firestone. These companies have significant market shares due to their vast production capacity, R&D investments, and robust distribution networks.
• In 2021, Goodyear finalized its acquisition of Cooper Tire & Rubber Company, which was first announced in February 2021. The acquisition was anticipated to yield significant cost and revenue synergies, estimated at $165 million annually, along with additional efficiencies and tax synergies valued at around $700 million.
• Akron, Ohio, is known as the "Rubber Capital of the World" and remains a dominant player in the U.S. rubber market. Home to major tire manufacturers like Goodyear, Akrons robust infrastructure and access to skilled labor contribute to its market dominance. Other cities like Nashville, Tennessee, and Greenville, South Carolina, are also hubs due to their proximity to automotive manufacturing plants, making them critical regions for rubber production and distribution.

US Rubber Market Segmentation

By Product Type: The U.S. rubber market is segmented by product type into tires, industrial rubber goods, and healthcare rubber products. In 2023, tires dominated the market share under the product type segmentation due to the vast demand from the automotive sector, particularly in electric vehicles. Major manufacturers like Goodyear and Bridgestone have ramped up production to meet this demand.

By End-Use Industry: The market is also segmented by end-use industries into automotive, industrial manufacturing, and healthcare. Automotive held the largest share of the market in 2023, driven by the substantial production of electric vehicles. Rubber components like tires, seals, and hoses are critical in EVs, which require rubber products with high resistance and durability.

By Region: The U.S. rubber market is segmented into North-East, Midwest, and Southern U.S. In 2023, the Midwest held the largest share, primarily due to the region's concentration of tire manufacturing plants and rubber production facilities. Akron, Ohio, and Michigan have long been centers of rubber production due to their proximity to automotive factories.

US Rubber Market Competitive Landscape

• Goodyear Tire & Rubber: In 2024, Goodyear has launched the Assurance WeatherReady 2 tire, which sets a new standard for all-season tires by outperforming competitors in wet handling, wet braking, and dry handling. Featuring advanced All-Weather Technology and AquaTred Technology, it ensures optimal performance in various weather conditions. weather.
• Bridgestone Americas: In 2022, Bridgestone Americas recently announced the production of demonstration tires made with 75% recycled and renewable materials. This initiative aims to support the company's goal of achieving 100% sustainable materials in its products by 2050. The tires incorporate materials like synthetic rubber from recycled plastics and natural rubber from domestic guayule shrubs.

US Rubber Industry Analysis

Growth Drivers:

• Increasing Automotive Production and EV Adoption: The U.S. automotive industry saw significant growth. This increase is driven largely by the rise in electric vehicle (EV) production. In 2022, nearly 918,500 plug-in electric light vehicles were sold in the U.S., marking a 51.17% year-over-year increase. Companies such as Tesla, Ford, and GM have expanded their EV portfolios, which require durable, high-performance rubber components like tires and seals.
• Rising Demand of Rubber in Healthcare: The demand for medical-grade rubber products surged due to the expansion of the healthcare industry. The aging population and the rise in chronic diseases are significant factors driving demand. For instance, the increasing number of knee replacement surgeries globally is expected to augment the demand for implants, which in turn increases the need for medical-grade silicone rubber. Additionally, the growing use of disposable medical devices, such as catheters and gloves, further fuels the demand for medical-grade rubber products.
• Rising Infrastructure Projects in US: In 2023, major U.S. infrastructure projects included power installations and highways and streets, with transportation infrastructure valued at approximately $64 billion. The expansion of new highways and renovation of existing infrastructure significantly drives the industrial rubber market, as these projects require various rubber products for construction and maintenance. This continued growth in infrastructure will sustain the demand for industrial rubber in the construction industry.

Market Challenges:

• Raw Material Supply Chain Disruptions: The U.S. rubber industry has faced significant challenges due to global supply chain disruptions, particularly for synthetic rubber materials derived from petrochemicals. The Energy Information Administration (EIA) reported crude oil prices rose to $84 per barrel in 2023, causing price volatility in raw materials. This has led to cost inflation for rubber manufacturers, making it difficult to maintain profitability while meeting market demands.
• Environmental Regulations: Stringent U.S. Environmental Protection Agency (EPA) regulations on rubber manufacturing processes continue to challenge the industry. Manufacturers must now adopt energy-efficient technologies and adhere to strict guidelines on waste management and emissions control. Compliance with these regulations adds operational costs, as companies must invest in eco-friendly technologies to reduce their environmental footprint, creating an added challenge for profitability in the rubber market.

Government Initiatives:

• Inflation Reduction Act: In 2022, the IRA is designed to reduce US emissions and spur green industrialization to increase economic growth, job creation and put the US at the forefront of the clean energy race. It authorizes new government spending of approximately $391 billion. The Inflation Reduction Act is likely to boost the U.S. rubber market by increasing demand for sustainable rubber products, particularly for use in renewable energy infrastructure like electric vehicles and green manufacturing.
• Biden Administrations Electric Vehicle Incentives: In 2022, under the Inflation Reduction Act, consumers can receive up to $7,500 in tax credits for purchasing new EVs. However, eligibility is contingent upon the sourcing of battery minerals and components, with specific restrictions on materials from countries. By promoting EV production, the government has directly impacted the rubber industry's focus on developing more durable, lightweight materials suited for EVs.

US Rubber Future Market Outlook

U.S. Rubber Market is projected to grow steadily over the next five years, driven by the surge in electric vehicle (EV) production and advancements in healthcare infrastructure. Government initiatives will continue to fuel demand for rubber products across various industries.

Future Trends

• Increased Use of Recycled Rubber Materials: In the coming years, the U.S. rubber market will witness an increased focus on sustainability, with major companies adopting recycled rubber materials for both automotive and industrial applications. This trend will be driven by environmental regulations and the growing demand for eco-friendly products, particularly in the tire industry.
• Technological Advancements in Rubber Production: Advancements in rubber production technologies, including the use of AI and automation, will lead to more efficient manufacturing processes. These technologies will help reduce production costs, improve product quality, and enhance the performance of rubber components, particularly in high-demand sectors such as electric vehicles and healthcare.