The Global Neoprene Market is projected to register a CAGR of over 3.5% during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020. Neoprene is widely used in automotive products including, rubber gaskets, O-rings, seals, hoses, and others, and in construction industry products including, fire doors, electrical insulation, waterproofing membranes, and others. The declining automotive industry along with a temporary halt on construction and automotive activities due to the pandemic lockdown had created a negative impact on the demand of the neoprene market. However, the demand for neoprene products such as medical gloves has been significantly increased during this situation, which in turn stimulates the demand for the neoprene market.

- Over the short term, increasing demand for neoprene from the electrical and electronics industry for application in wire and cables and others is expected to drive the market growth.

- Availability of substitutes like thermoplastic, and polyurethane elastomers in neoprene applications are hindering the market's growth.

- 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 from 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 the 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 exhibits excellent durability, waterproofing, and resilience properties.

For sample report please visit: https://www.statzyreports.com/report/sr496942/neoprene-market

- 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 a 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 (-4ºF) to 95°C (203ºF), 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 has recorded 13% growth in FDI investment during 2020 compared to the previous year, despite of the COVID-19 scenario, with large investments in the real estate and infrastructure sectors.

- In 2019, total value of new construction put in place was about USD 1365 billion in the United States and reached about USD 1429 billion in 2020, with a growth rate of about 4.5%, which in turn increases the market demand for neoprene in the United States.
- Therefore, the aforementioned factors are expected to drive the demand for neoprene in the coming years.

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 recent years.

- Demographics in the country is expected to continue to spur the growth in residential construction. Rising household income levels combined with population migrating from rural to urban areas is expected to continue to drive demand for the residential construction sector in the country. Increased focus on affordable housing by both the public and private sectors will drive growth in the residential construction sector.
- China is promoting and undergoing a process of continuous urbanization, with a target 60% in 2020. The increased living spaces required in the urban areas resulting from urbanization and the desire of middle-class urban residents to improve their living conditions may have a profound effect on the housing market.
- As of Q3 2019, China had produced 18.17 million vehicles and reached 16.96 million vehicles by Q3 2020, registering a decline rate of about 6.66%, which in turn has led to a decrease in the consumption of parts made up of neoprene such as gaskets, seals, o-rings.

- 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.

- In 2019, China consumer electronics market was valued at about USD 249.25 billion and reached about USD 248.77 billion in 2020, with a decline rate of about 0.2%, thus creating a negative impact on the market demand for the neoprene market.
- Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.

Competitive Landscape

The neoprene market is partially fragmented. Some of the major players include Denka Corporation, ARLANXEO, Chongqing Chemical & Pharmaceutical Changshou Chemical Group Co., Ltd., SHOWA DENKO K.K., and ZENITH RUBBER, among others.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

For sample report please visit: https://www.statzyreports.com/report/sr496942/neoprene-market