Butyl Rubber Market Report 2026

The butyl rubber market size has grown strongly in recent years. It will grow from $3.99 billion in 2025 to $4.22 billion in 2026 at a compound annual growth rate (CAGR) of 6%. The growth in the historic period can be attributed to expansion of automotive tire manufacturing, rising use of rubber-based sealing materials, growth in pharmaceutical packaging demand, increasing adoption of synthetic rubber over natural rubber, availability of isobutylene feedstock.

The butyl rubber market size is expected to see strong growth in the next few years. It will grow to $5.27 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to increasing demand from electric vehicle tires, rising focus on lightweight and durable materials, expansion of healthcare packaging applications, growing investments in specialty rubber grades, increasing adoption in construction sealing solutions. Major trends in the forecast period include increasing demand for high-performance elastomers, growing use of halogenated butyl rubber, rising adoption in tubeless tire applications, expansion of pharmaceutical-grade rubber usage, enhanced focus on chemical and gas barrier properties.

The expansion of the automotive industry is expected to drive the growth of the butyl rubber market in the coming years. The automotive industry encompasses the economic sector involved in the design, development, manufacturing, marketing, and sale of motor vehicles. Growth in the automotive sector is being supported by increasing global demand, driven by rising middle-class incomes and continuous technological advancements, including the adoption of electric vehicles that are attracting a broader customer base. Butyl rubber plays a critical role in automotive applications due to its excellent gas impermeability and durability, making it well suited for tire inner tubes and various sealing components. For instance, in May 2024, according to the European Automobile Manufacturers Association, a Belgium-based lobbying and standards organization representing the European Union automotive industry, new car registrations in the European Union rose by 13.7% between April 2023 and April 2024. Consequently, the continued expansion of the automotive industry is contributing to the growth of the butyl rubber market.

The butyl rubber market is witnessing a trend toward the development of advanced butyl waterproof tapes to deliver superior sealing performance across construction and automotive applications. Market participants are increasingly focused on introducing innovative butyl-based sealing solutions to enhance product durability and address rising demand from these industries. Butyl waterproof tapes are high-performance sealing materials manufactured from butyl rubber and are known for their strong waterproofing capabilities, excellent adhesion, and long-term durability, particularly under harsh environmental conditions. For example, in August 2024, Weifang Senke Waterproof Materials Co. Ltd., a China-based manufacturer in the waterproofing sector, launched a new range of advanced butyl waterproof tapes designed to provide superior sealing for applications including roofing, automotive, and construction. The product portfolio comprises standard butyl waterproof tape, multifunctional Senke waterproof tape, and aluminum foil butyl waterproof tape, all engineered to deliver high adhesion, flexibility, and resistance to weathering. These tapes are designed to effectively seal joints, seams, and cracks while withstanding extreme weather conditions and offering long-lasting protection against water, moisture, and air leakage. Their ease of application further supports efficient installation across residential and commercial settings.

In August 2024, H.B. Fuller Company, a US-based manufacturer of adhesives, acquired HS Butyl Limited for an undisclosed amount. Through this acquisition, H.B. Fuller aims to enhance its presence in the European waterproofing tape market and broaden its product portfolio by leveraging HS Butyl’s specialized technologies. HS Butyl Limited is a UK-based producer of butyl rubber.

Major companies operating in the butyl rubber market are ExxonMobil Corporation, Reliance Industries Limited, LG Chem, Michelin, Mitsui Chemicals Inc., Eastman Chemical Company, Sumitomo Rubber Industries Ltd., Sibur International GmbH, Versalis S.p.A., Kumho Petrochemical, Kuraray Co. Ltd., UBE Corporation, Synthomer plc, JSR Corporation, Nippon Zeon Co. Ltd., Nizhnekamskneftekhim, Zeon Corporation, Hexpol AB, Nynas AB, ARLANXEO, Kraton Corporation, Arakawa Chemical Industries Ltd., TSRC Corporation, Firestone Natural Rubber, Chang Horing Rubber Group, Lion Elastomers, Plasti Dip International, Tokyo Zairyo, Japan Butyl Co. Ltd.

Asia-Pacific was the largest region in the butyl rubber market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the butyl rubber market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the butyl rubber market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The butyl rubber market consists of sales of sealants, adhesives, inner tubes for tires, pharmaceutical closures, and protective gloves. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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