World Industrial Rubber Products

World demand to rise 6.6% annually through 2018

Worldwide demand for industrial rubber products is projected to rise a healthy 6.6 percent annually to $158 billion in 2018. Sales will be boosted by an acceleration in fixed investment expenditures and expanding durable goods output. Also contributing to value gains will be a shift in the product mix toward more expensive, better performing items. However, competition from alternative materials (primarily plastics) in some applications will limit the overall pace of market growth through 2018, as will the use of improved designs and higher quality rubber materials, which will reduce aftermarket component needs.

Mechanical goods to claim half of all sales

Mechanical goods (including vehicular body seals, vibration control products, and wiper blades, among other items) will account for roughly half of all industrial rubber goods sales in 2018. Suppliers will benefit from increased output of motor vehicles, a pickup in machinery production, and growth in equipment and vehicular stocks as investment spending climbs. However, rubber hose, the second largest product segment, will post faster advances, due in part to rising demand for higher priced, better quality items.

Industrial equipment, motor vehicle markets are key

Industrial equipment (including off-road machinery) represents the largest market for industrial rubber goods, accounting for over half of the 2013 sales total. Motor vehicles are the second largest market, responsible for one-third of all product demand, with construction, aerospace equipment, and other applications accounting for the remainder.

China to post strongest gains

China will post the strongest gains of any national market in value terms. In fact, almost half of all additional product demand through 2018 will be accounted for by China. Market advances in the country will be stimulated by robust economic growth, ongoing increases in business investment spending, strong gains in...