Specialty elastomers are polymers that provide high elasticity along with high viscosity. They provide low permeability to moisture and gas and high-temperature resistance along with a low -Young's modulus value and high failure strain in comparison to other materials. The market for specialty elastomers is increasing due to the need from the tire manufacturing, automotive, and construction industries. In addition, its excessive recyclability is also a propelling factor for the specialty elastomers market. However, the European Union's strict environmental laws, stiff competition from biodegradable elastomers, and volatile raw material prices will likely hinder the market's growth. But the ongoing R&D to improve the performance of the specialty elastomers to make them more compliant with the ever-changing regulations is likely to act as an opportunity in the forecasted period.

In 2019, global tire production stood at around 2,240 million units in volume and was anticipated to grow at a moderate rate during the forecast period despite the ongoing COVID-19 pandemic. Global tire demand is driven by vehicles in use generating lasting tire wear and replacement needs and new vehicle sales requiring OEM tires to be fitted. In a regular car tire, around 14% of a tire is made up of natural rubber, 24% is made of synthetic polymers, and the remaining is blended with rubber chemicals. Specialty elastomers are utilized as inner liners in the tires. China exported tires value USD 14.8 billion in 2019, 18.8% of the total exported rubber tires. Around 40% of the tires for the passenger car were shipped to the United States and the European Union. According to China Rubber Industry Association (CRIA), China's truck and bus tire production in FY 2019 was 41.64 million units, a fall of 4.6% compared to 2018, mainly due to global demand for vehicles. India is one of the major markets in the Asia Pacific region, where passenger vehicle sales improved after Q3 2020. Sales reached around 3,10,294 units in October 2020 compared to 2,71,737 units in the same month last year and registered 14.19%.

According to the UN Department of Economic and Social Affairs, 55% of the world's total population is currently living in urban areas, and this portion is expected to increase to 68% by 2050. The steady shift of the human population from rural to urban areas and the overall growth of the world's population are likely to add a further 2.5 billion people to urban areas by 2050, with around 90% of this increase taking place in Asia and Africa. The increase in urban population will likely increase demand for vehicles globally and, in turn, increase demand for tires globally. According to Japan Automobile Tyre Manufacturers Association (JAMA), the sales of new automotive tires in 2020 were 36,439,000, a 17% decrease from the previous year. The first two quarters of 2020 were affected due to the COVID-19 pandemic; however, the demand for new vehicle tires began to recover in the second half of 2020 due to the strong demand for vehicles. In March 2021, Apollo Tires introduced a new range of tires, Apterra Cross tires, for the compact SUV segment in India. These tires are an outcome of the company's research and the exact usage patterns of the Compact SUV. In the same period, Nokian Tyres Plc announced to increase in its production capacity for passenger vehicle tires by 30%. The global market for tires is likely to remain significant due to the increased demand for passenger vehicles, the increasing global population, and the increasing wear and tear in conventional vehicle tires. The growing demand for tires globally will likely increase the demand for specialty elastomers.

In 2019, the global automotive industry recorded 91.7 million vehicles, and electronic vehicles accounted for around 2.6% of global car sales. However, the automotive market reduced by 5% from the previous year and is further expected to decrease owing to the ongoing global pandemic. In the automotive industry, specialty elastomer are utilized as connector seals, hoses, hard-soft combinations, spark plug boots, and seals and gaskets. Further, its high thermal capacity and low viscosity offer a wide breadth of e-mobility applications. Indian automotive production surged at 2.36% CAGR between 2016-2020, with 26.36 million vehicles sold in FY2020. Two-wheeler and passenger vehicles ruled the domestic Indian auto market. Two-wheelers and passenger cars contributed about 80% and 12% market share, accounting for a combined sale of over 20.1 million automobiles in FY20. According to the Federation of Automobile Dealer Associations, Personal vehicle sales in November 2020 stood at 2,91,001 units contrasted to 2,79,365 units in November 2019, registering a 4.17% development and overall automotive exports reached 4.77 million vehicles in FY 2020. In India, EV sales, excluding E-rickshaws, increased by 20% and reached 1.56 lakh units in FY20. Asia- Pacific is the highest vehicle-producing region in the world. China is the biggest automotive manufacturing country globally, producing around 29% of the total global share in 2019. China's automotive industry is flourishing rapidly due to the increasing demand for electronic vehicles as China is the largest consumer of electronic cars.

With spending reaching over USD 1293 billion, the US is one of the largest construction markets globally. During the Covid-19, all the construction activities were shut down, generating the industry to lose USD 61 billion in GDP and reducing total jobs to around 6.5 million. The specialty elastomer market in the world is mainly fueled by rising investment in the residential construction fragment and growing demand for remodeling old buildings. However, owing to the continuing global crisis, the market in the region will be on the bottom side in the year 2020 due to the moistening of construction activities. In 2020, construction expenses in the first two months combined surged 8% from the same period in 2019, stimulated by a 13% jump in single-family construction, an 11% rise in a public buildings, and the lowest 1% increase in private non-residential spending. According to the US Tire Manufacturers Association, total tire shipment in the United States reported 298.3 MN units at the end of 2020, which is minimized quantity compared to 332.7 million units in 2019.

In January 2021, ExxonMobil introduced new Santoprene integrated thermoplastic vulcanizate (TPV) system solutions. Thus, the TPV system can expand the frontiers of performance and recyclability while optimizing the price for glass run channel (GRC) weather seals. The system solutions are authorized by two new TPV grades designed to replace EPDM rubber when utilized together. 

In November 2020, Covestro introduced a new maintainable cast elastomer solution enabling the offshore industry to decrease its environmental impact and carbon footprint. The polyurethane elastomer is based on so-called cardyon® brand polyols, which contain CO2 and perform similarly to the corresponding petrochemical-based elastomer. 

In November 2020, Covestro established a new manufacturing plant for Vulkollan® raw materials in Thailand. The new station is being built to satisfy the increasing demand for high-performance elastomers and offer the product's ever-wider range of applications. The manufacturing here is scheduled to start at the end of 2022.

Some of the major key Players in the market include Lanxess AG, ExxonMobil, King Industries, BASF SE, and SABIC, among others.

Global Specialty Elastomers Market report provides deep insight into the Industrial market's current and future state across various regions. The study comprehensively analyses the Specialty Elastomers market by segmenting based on the Type (Silicone Elastomers, Acrylate Elastomers, Olefin Elastomers, Fluoro Elastomers, Chemically Modified Elastomers, Halogenated Elastomers and Others), End-User Industry (Automotive, Medical, Consumer Goods, Building & Construction, Industrial, Electrical & Electronics and, Others), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report examines the market drivers and restraints and the impact of Covid-19 on the market growth in detail. The study covers and includes emerging market trends, developments, opportunities, and challenges in the industry. This report also covers extensively researched competitive landscape sections with prominent companies and profiles, including their market shares and projects.