The global crumb rubber market is expected to grow from USD 1.68 billion in 2022 to USD 2.79 billion by 2032, at a CAGR of 5.20% from 2023-2032. The growing applications of crumb rubber in multiple end-use industries will augment the growth of the global crumb rubber market.

Market Introduction:

Discarded tyres from automotive are processed and reduced to their granular forms, which are then further processed to remove most of the steel and fabric particles. The resultant product is called crumb rubber. The two primary and most used processes to manufacture crumb rubber are ambient grinding and cryogenic processing. Crumb rubber is integrated with asphalt to improve its quality. The improved and advanced rubberized asphalt is used in highways, pavements and other constructions. Crumb rubber is also used in artificial turfs, running tracks, and as a soil supplement for sports and playgrounds. Rubber asphalt has superior properties, which lowers maintenance costs as there are fewer damages/cracks, which lowers repair costs. Additionally, crumb rubber offers flexibility, durability and endurance to rubberized asphalt, which makes it tougher to withstand constant weathering and increases its lifespan. The flexibility also enables easy integration of rubber crumb with construction materials used for infrastructural activities like road paving, bridges, etc. crumb rubber also offers waterproofing membranes and flashings, which improve its resistance to monsoon rains and enable the roads to last longer without potholes, cracks and damages. Additionally, crumb rubber is relatively greener than new rubber as it is created primarily from recycled tyres and other rubber goods. Crumb rubber is also utilized in tires and automotive components again. It finds application in adhesives and plastic manufacturing. Crumb rubber offers great thermal and sound insulation, low shrinkage, and high impact and acid resistance. The multiple benefits of crumb rubber have increased its application over the years, driving its growth.

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Recent Development

February 2023 - As part of its commitment to waste reduction in Tasmania, the Tasmanian Government is increasing the use of recycled materials for roadways throughout the state. According to Michael Ferguson, Minister for Infrastructure and Transport, Tasmania has begun resurfacing roads in the state's north at several locations, including the Bass, East Tamar, and West Tamar highways.

July 2022 - The Tennessee Department of Environment and Conservation (TDEC) announced that the state's Tire Environmental Act Program awarded the Crumb Rubber Manufacturers Co. (CRM) of Tullahoma a USD 1 million grant. CRM will match the grant with USD 4 million in funding and utilize the money to buy the equipment needed to create a circular tyre recycling system. The USD 5 million initiative will recycle 2 million used tyres annually and create 54 new employments in Coffee and Franklin counties. Rubberized modified asphalt will have a new, locally viable market developed by CRM and its partners. The business has additional locations around the United States and Canada and a history of processing significant quantities of tyres for advantageous end uses. The Tire Environmental Act Program aims to identify and support initiatives that will most effectively put used tyres to good use.

Market Dynamics:

Drivers

The rising infrastructural development – The world has progressed significantly over the past few decades. The increasing global population has increased the demand for housing, urban-mobility marketplaces and other public utilities. Furthermore, rapid urbanization and industrialization have also increased the demand for better infrastructure like roads, bridges, houses, office spaces, entertainment venues and shopping malls, among other things. Seamless mobility and robust connectivity are the bedrock of any economy. They facilitate local, regional, national and international trade. They generate significant employment, income and revenue as well. All economies understand the importance of robust infrastructure. Governments worldwide are increasing their infrastructural expenditure to build highways, expressways, bridges, airports, ports, housing settlements, schools, hospitals, commercial buildings and other public utilities to facilitate economic development. The aim is to provide employment, a better quality of life, seamless mobility, and connectivity, attract private investments and generate revenue over the long term. The increase in disposable income of the population has increased the demand for housing, office spaces, marketplaces, entertainment venues, roads, etc., driving private investment in infrastructural activities. Building new infrastructure is accompanied by integrating new technologies and materials to build better and long-lasting infrastructure. Crumb rubber provides superior strength to construction materials, improving durability, flexibility, lifespan and sustainability. Using crumb rubber in infrastructural activities is garnering pace given its economic and environmental benefits. Therefore, the rise in infrastructural activities will drive the global crumb rubber market's growth.

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Restraints:

High cost of producing crumb rubber – Crumb rubber is manufactured primarily through ambient and cryogenic grinding. Cryogenic grinding is preferred as it leads to the production of finer particles and better-performing crumb rubber. Cryogenic grinding can be defined as the process of cooling a substance, rubber in this case, and then reducing it to a small particle size. The reduction stage is called freezer milling or freezer grinding. Rubber becomes brittle at low temperatures, which makes it easier to grind them. Liquid nitrogen is used to reduce the temperatures and cool the rubber. However, the process is expensive and not economical. Furthermore, the use of nitrogen increases occupational risks and health hazards. Also, the process generates vast amounts of heat, and using high-grade oxygen might increase the risk of flammability or combustion. Therefore, the high costs of cryogenic grinding and related hazards will limit the market's growth.

Opportunities:

The growing applications of crumb rubber– esides being used extensively in road construction, crumb rubber has several other applications. It is used in the automotive industry to manufacture tyres. The tyres have superior qualities: they have a high resistance to natural elements, greater flexibility, excellent thermal insulation and waterproofing capabilities, and better durability. They are sustainable as they reduce the burden on the environment, given they are recycled products which avoid landfill and utilizes automotive waste optimally. They are also used in artificial turfs and tracking fields in the sports industry. The importance of physical exercise and competitive sports has increased the popularity of open gyms, playgrounds and other sports avenues, which will bode well for the crumb rubber market. Crumb rubber is also used in adhesives, plastic, and rubbers in several end-user industries. They are also used in the construction and building sector for safety equipment, pavements etc. The wide variety of applications can be attributed to the high strength, durability, flexibility, water and impact resistance, thermal insulation and low shrinkage properties. Using crumb rubber in the abovementioned sectors improves product performance, reduces maintenance costs and expands the product's lifecycle. The environmental sustainability of crumb rubber facilitates government support for its use in multiple industries. It also aids in the research and development to improve the product and widen its applications, offering lucrative opportunities to the market players.

Challenges:

The growing health concerns of using crumb rubber in sports equipment – The use of crumb rubber in artificial turfs, tracking fields and sports safety equipment are directly connected to children and young adults. Rubbers have metals, volatile chemicals and organic compounds, potentially hazardous substances that transfer to crumb rubber even after thorough processing. Children are exposed to these chemicals by breathing, touching the material, or ingesting it. The hard turfs and the possibility of microbiological infections are also a concern among stakeholders. However, these concerns are not substantiated by proper investigations, but the vast amount of misleading information on the internet is challenging the market's growth.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region emerged as the largest global crumb rubber market, with a 46% market revenue share in 2022. The US dominates the North American market. The United States has announced several infrastructural projects to revive the economy and increase employment rates. They have also considered these billion-dollar projects to compete with China’s growing global infrastructural ambitions. The increasing capital expenditure on infrastructure will bode well for the growth of the region's crumb rubber market. Increasing defence expenditure of India and China will bode well for the crumb rubber market. Crumb rubber manufacturing is highly advanced and well-established in the region given the presence of key market players, which ensures a robust supply of crumb rubber for end-use industries. The large and significant automotive, building and construction industries will also increase the demand for crumb rubber. The US and Canada are major players in the sports with their athletes counted amongst the best in the world. The Government's focus on ramping up sports infrastructure with renewed funding will propel the market's growth. The rising research and development by the private players will also augment the market's growth. The Asia Pacific is expected to rise the fastest during the forecast period, given the region's vast population with rising per capita income. The rising income levels drive the demand for houses, commercial office space, utilities, and automobiles, which will augment the growth of the regional crumb rubber market. The increasing federal and state-level capital infrastructure and private investment in the region will support the region's crumb rubber market's development.

Product type segment analysis

The product type segment is divided into crumb rubber from passenger cars and crumb rubber from a commercial vehicles. The crumb rubber from the commercial vehicle segment dominated the market with a market share of around 68% in 2022. Any vehicle used to move goods or people on a profit-making basis for a business is referred to as a commercial motor vehicle. Pickup trucks, vans, box trucks, coaches, semi-trucks, trailers, buses, and taxicabs are a few examples. Given the nature of their business, these vehicles travel more to cover and cover more distances than passenger vehicles. They have higher-grade tyres. They generate more tyre waste given their regular basis operation. The processing of these tyres is economical for crumb rubber manufacturers. These can be acquired in bulk quantities. Therefore, the significant presence of commercial vehicles worldwide and the vast waste generation of the segment explain its dominance in the global crumb rubber market.

Application segment analysis

The application segment is divided into automotive components, , rubber and plastic products, sports surfaces, construction materials, asphalt, shock absorption and safety products and others. The asphalt segment dominated the market with a share of around 38% in 2022. rubberized asphalt concrete is created by combining asphalt and crumb rubber. It is bound together by some other binding and stabilizing chemical compounds. The mixture is then spread out and pressed into a road surface. Rubberized asphalt is superior to conventional asphalt. It has better flexible and durable properties and high-impact resistance, decreased reflective cracking, rolling resistance and increased skid resistance. These properties reduce faster wear and tear of the roads and pavements, cracks, potholes, and other damage, thereby increasing their lifespan. The repair and maintenance costs and also reduced. The increasing global infrastructural spending will pave the way for a highway, bridges and other asphalt-related construction, propelling the segment's growth.

Some of the Key Market Players:

• CRM
• Emanuel Tire Family of Companies
• Entech Inc.
• Lakin Tire
• Liberty Tire Recycling
• Mahantango Enterprises
• Sunflex Recycling Pvt. Ltd.
• Tinna Rubber and Infrastructure Limited
• Tire Disposal & Recycling
• Tracc Tire Recycling

Report Description: