Market Overview

The market for neoprene is expected to grow at a CAGR of more than 3.5% during the forecast period. Major factors driving the market studied is demand for mounting demand from wire and cable industry.

  • Augmenting popularity of neoprene gloves is likely to act as an opportunities.
  • Asia-Pacific dominated the market across the globe with the largest consumption in a country such as India, China, etc.



Key Market Trends

Increasing Demand for Building and Construction

  • The neoprene market is quite extensive, and is widely used in building and construction applications. The building and construction segment represents one of the fastest growing end-user industries in terms of consumption of neoprene. Neoprene provides demonstrated performance for a wide range of structural sealing and waterproofing applications. In building and construction, neoprene is majorly used in window gaskets, cable coverings, and roof waterproofing membranes, and exhibit excellent durability, waterproofing, and resilience properties.
  • Neoprene is widely used for preventing roof leaks, protecting custom windows from winds and shocks, sealing floors of multi-story buildings, and sheathing bridge bearing pads and cables. The high flexibility of neoprene has made it a frequent choice for structural engineering projects, where custom parts are required with excellent weather-, water-, chemical- and fire-resistant properties.
  • Neoprene is resistant to grease, wax, and oil, and has high resistance to dilute acids, bases, and salt solutions. Another chief advantage of neoprene is that it maintains high performance at a range of temperatures, ranging from -20?C (-4?F) to 95?C (203?F), and can even be compounded for more extreme temperatures. These advantages make neoprene one of the most attractive solutions in building and construction applications.
  • The construction industry in Asia-Pacific is expanding at a very rapid rate, primarily due to the presence of major economies, such as China, India, and the ASEAN countries., India had a total FDI investment of USD 60.08 billion, which was 8% higher than the previous year, with large investments in the real estate and infrastructure sectors.
  • All such factors are likely to increase the demand for neoprene over the forecast period.



China to Dominate the Asia-Pacific Region

  • China is globally recognized for its architectural boom. The demand for low-cost housing and commercial housing is the reason for its growth in the recent years. Under the 13th five-year plan, the government is planning for the infrastructural development of 30,000 km of railway lines and 30,000 km of expressways.
  • China is the leading producer of paints and coatings across the world. It currently produces more than half of the Asia-Pacific coatings, and is a home to more than 10,000 paint companies, among which local producers occupy more than half of the domestic paint market share.
  • The electronics industry is one of the key consumers of neoprene. Electronic products, such as smartphones, OLED TVs, and tablets, among others, have the highest growth in the market in the consumer electronics segment in China. With the increase in the disposable income of the middle-class population and the availability of cheap labor, the domestic production of electronic products is projected to grow rapidly in the near future, thereby driving the neoprene market.
  • China is currently spending only about 3% of the global healthcare spending to address healthcare needs of 22% of the world’s total population. To reduce this gap, China is investing heavily in their domestic healthcare sector.
  • Therefore, from the above mentioned factors, the market for neoprene in China is expected to grow rapidly over the forecast period



Competitive Landscape

The neoprene market is partially fragmented. Some of the major players include Denka Corpration, ARLANXEO, Chongqing Chemical & Pharmaceutical Changshou Chemical Group Co., Ltd., Showa Denko K.K., and Zenith Rubber, among others.

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