The rising adoption of electric vehicles (EVs) has significantly boosted global demand for synthetic rubber, a key material in tire production. This trend is driven by the fact that EVs generally weigh more than traditional internal combustion engine vehicles, leading to more frequent tire replacements. According to a report by the Energy Technology Analytical Center, the global synthetic rubber market reached $22.55 billion in 2022 and is expected to grow by 4.8% annually, reaching a peak of $28.55 billion by 2034. The demand for synthetic rubber is fueled by the need to produce durable tires capable of handling the increased wear caused by the heavy batteries and the immediate torque of electric motors.
The report also highlights that the global market for EV tires is projected to grow from $15.6 billion in 2022 to $46.2 billion by 2027. This surge in demand presents a significant opportunity for synthetic rubber producers, including those in Russia, which accounts for approximately 10% of global synthetic rubber production. However, the European Union’s ban on purchasing this material from Russia, effective July 1, 2024, poses challenges for the industry.
