Thermoplastic Elastomer Market

According to Stratistics MRC, the Global Thermoplastic Elastomers Market is accounted for $24.70 billion in 2022 and is expected to reach $40.52 billion by 2028 growing at a CAGR of 8.6% during the forecast period. Thermoplastic elastomers is known as thermoplastic rubber, are materials with elastomeric and thermoplastic characteristics. These are elastic and soft fabrics that may be stretched and returned to their original length. These elastomers have outstanding features such as abrasion resistance, heat and chemical resistance, low permeability, and increased adhesion. These elastomers are widely used because of their excellent performance characteristics like cleanliness, shock absorption, flexibility, weather, chemical, and thermal resistance, easy sterilization, and dimensional stability. These have various applications such as healthcare industries, building and construction, and home appliances.

Growing automobile sector may drive the elastomers market in sealing systems, under hood components, exterior and interiors of vehicle. In 2014, the average car consists around 200 kg of plastics whereas it is projected that car will incorporate about 350 kg of plastics by 2020. Carbon fiber usage in automotive manufacturing was 3.4 kilo tons in 2013 and may increase up to 9.5 kilo tons by 2030. According to the International Organization of Motor Vehicle Manufacturers (OICA), automotive production witnessed a 10% increase to 57.26 million units in the first nine months of 2021 compared to 52.15 million units in the same period last year.



Market Dynamics:

Driver:

The recovery of automotive sector and increasing penetration of electric vehicles (EVs)

Since 2019, the conservative automobile production has been affected due to declining sales, shift toward car rentals and ride-sharing, changing regulatory scenarios, declining per-capita spending, shift in consumer preferences towards EVs, and economic downturn in several countries. Furthermore, COVID-19 pandemic resulted in the subsequent suspension of production operations, the demand in automotive industry declined in 2020. According to OICA, in 2021, sales of automotive vehicles increased by 3.1% and 5.0%, respectively as compared to previous year with the recovery from pandemic, and economic downturn, the production. Asian countries are largely involved in automobile production. Continuous technological developments in the automotive sector are expected to drive the thermoplastic elastomers market in such as China, India, Japan, and South Asia. To boost fuel economy, improve vehicle performance, and reduce CO2 emissions, automotive vehicle manufacturers are channelizing efforts to reduce the vehicle weight by replacing the metal part such as iron and steel components with lightweight high-performance elastomers. Thus, with the growth of automotive industry across the globe, the demand for thermoplastic elastomers is expected to increase during the forecast period. Thermoplastic elastomers are used to provide several high-performance characteristics in EVs as compared to traditional metals, thermoset rubbers, and other materials.

Restraint:

Superior cost of thermoplastic elastomers and increasing raw material prices

The fabrication procedure of these elastomers is a capital intensive and intricate process as compared to other materials such as PVC, polyethylene, rubbers, and polyurethane. In the process of these elastomers manufacturing devices are required to set at high temperature in the presence of technical expertise. Since, the requirement of high investments in thermoplastic elastomers process restricted its use in the high-end applications. There are several other products are developed to have properties like TPEs and are relatively cheaper than that of TPE such as compounding grades of polyethylene, polypropylene, acrylonitrile butadiene styrene, and polyurethane. All these factors make thermoplastic elastomers a competitive product in a few end-use industries such as building & construction, industrial machinery, and electronics. The fluctuating prices of oil play an importation role in the price dynamics of thermoplastic elastomers, as most of its raw materials derived from it. Owing to the OPEC+ strategy and the Russia-Ukraine war, there is a significant increase in the price of crude oil, which resulted in an increase in the prices of raw material across the world. The rapid increase in the prices of raw material will impact the profits margins of TPE products.

Opportunity:

Emerging market for biobased thermoplastic elastomers

The biobased thermoplastic elastomers are urbanized from renewable assets such as vegetable oils and fatty acids. It provides equal as well as enhanced properties than that of traditional thermoplastic elastomer, mainly for industries such as sporting goods, electronics, and footwear. The development of this thermoplastic elastomer reduces the use of non-renewable resources and improves the property of biodegradability. Innovations and commercialization of biobased thermoplastic elastomers are creating several new opportunities for thermoplastic elastomer manufacturers. Also, many synthetic thermoplastic elastomer manufacturers such as BASF and Lubrizol, have shifted their focus toward developing sustainable and eco-friendly products. For instance, BASF and Lubrizol started manufacturing biobased Thermoplastic elastomers for several industries included footwear, automotive, industrial, electronics, and textile. Various biopolymers in are used to manufacture biobased Thermoplastic elastomer such as corn starch, wheat starch, poly hydroxybutyrate (PHB), polylactide (PLA), castor oil, and palm oil. R&D for manufacturing biobased Thermoplastic elastomers is creating opportunity for manufacturers.

Threat:

Intra thermoplastic elastomer replacement

There are numerous types of elastomers available in the market which is differentiated on the basis of cost and performance requirement. A precise elastomer type is preferred as based on the profit margin of the applications. The increasing trend of simplifying the multifaceted choice process in choosing a precise elastomer type is challenging the demand for the rest of thermoplastic elastomers owing to the rising focus on specific types and enabling them to perform manifold functions. This situation has led to increase the versatility of a specific type of thermoplastic elastomer and reduce their costs. This situation mainly prevails in the automotive industry where thermoplastic elastomers are replacing costlier and heavier thermoplastic vulcanizates. Thermoplastic polyolefin is expected to replace by PVC and thermoplastic polyurethane films in automotive applications during the forecast period. Therefore, replacement in intra- thermoplastic elastomer segment is a challenge for the growth of the overall market.

Covid-19 Impact

COVID-19 epidemic impacted the demand of market owing to the interruption of supply chain, deferral of manufacturing operation, and deteriorating demand from end use industries such as automotive, construction and footwear industries. Though, the demand from medical industry increased due to Covid-19 pandemic, which, in turn, support for growth in the demand of market. Also, with the speed recovery of end-use industries, increasing disposable income, changing lifestyle, and rising awareness regarding the environment has increased the use of thermoplastic elastomers across several industries such as automotive, and footwear in the forecast period.

The thermoplastic polyolefin elastomers (TPO) segment is expected to be the largest during the forecast period

The thermoplastic polyolefin elastomers (TPO) segment is estimated to have a lucrative growth during the forecast period, as it is one of the most widely used materials in the automotive industry and is usually manufactured by blending polypropylene with elastic ethylene copolymers (polyolefin elastomers or POE) and adding other reinforcing fillers and additives. It can be processed using various techniques, including injection molding, profile extrusion, thermoforming, and blow molding. TPO is used in a variety of applications in the automotive industry. It is used to provide the quality of weather-resistant and it is non-degradable on exposure to solar radiation. Hence, it is significantly used in making roofs and other outdoor applications, included geomembrane insulation and corrosion protection of oil and gas pipelines.

The automotive & transportation segment is expected to have the highest CAGR during the forecast period

The automotive & transportation segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the increased in the competition between the market players to provide lightweight and growing demand for vehicles, development of transportation infrastructure, supportive government policies, robust auto parts, and rapid economic growth. Thermoplastic elastomer is used in several exterior body parts in automotive industry, such as body seals, exterior filler panels, wipers, automotive gaskets, door & window handles, rocker panels, and vibration damping pads.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period, due to the growth of construction sector and automotive industry, presence of large number of automotive production plants, the use of biodegradable products, rapid industrialization, and growing demand from various building & construction, wire & cable, engineering, and medical industries in India, China, Japan & south korea.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the growing construction activities across countries in this region, growth and expansion of automobile industry especially in the developing countries within the region, and high disposable incomes of the masses, coupled with the rising technological advancements in the field of thermoplastic elastomers. Canada is one of the biggest producers of crude oil globally. Declining prices of crude oil and increasing demand for plastic in the region are paving the way for the growth of the plastic market. Polymers and materials such as TPE are produced from various petrochemicals made from crude oil. Manufacturers are increasingly integrating additives into TPE to provide strength, durability, and lightweight when used in any product.



Key players in the market

Some of the key players profiled in the Thermoplastic Elastomers Market include E. I. du Pont De Nemours and Company, Covestro AG, BASF SE, Asahi Kasei Advance Corporation
Arkema S.A., Exxon Mobil Corporation, Huntsman Corporation, Celanese Corporation, LyondellBasell Industries, Bayer MaterialScience LLC, Lubrizol Corporation, Kraton Corporation, Kuraray America, Inc., Evonik Industries, Mitsubishi Chemical Corporation, LG Chemicals, Royal DSM NV, and SABIC (Saudi Basic Industries Corporation).

Key Developments:

In January 2022, Arkema announced a 25% increase in its global Pebax elastomer production capacity by investing in Serquigny in France. This investment will notably enable increased production of the bio-circular Pebax, Rnew, and traditional Pebax ranges.

In December 2021, Celanese Corporation has acquired the Exxon Mobil Corporation's Santoprene TPV elastomers business for a total purchase price of US$1.15 billion, which includes two world-scale production facilities in Pensacola, Florida, and Newport, Wales, United Kingdom, with a total annual production capacity of over 190 kt.

In August 2020, Lubrizol invested in its thermoplastic polyurethane business worldwide to support the high growth in surface protection applications. It would help the company to broaden its capacity in paint protection film (PPF) and surface protection, thereby delivering additional benefits to PPF supply chains, brand owners, and manufacturers.

In May 2020, Huntsman started producing thermoplastic polyurethane (TPU) elastomers for company manufacturing PPE globally. These are nowadays being extensively used to produce cable jackets, face masks, valves, hospital gowns, and tubes amid the COVID-19 pandemic.

Product Types Covered:
• Polyether Block Amide Elastomers (PEBA)
• Thermoplastic Polyolefin Elastomers (TPO)
• Styrene Block Copolymers (TPE-S)
• Thermoplastic Copolyester Elastomers (TPC)
• Copolyester Ether Elastomers (COPE)
• Thermoplastic Polyurethane Elastomers (TPU)
• Thermoplastic Polyamide Elastomers (TPA)
• Thermoplastic Olefins (TPE-O)
• Elastomeric Alloys (Thermoplastic elastomers -Vulcanizates (TPE-V) or Thermoplastic Vulcanizates (TPV))
• Thermoplastic/Elastomers Blend & Alloy
• Reactor-made Thermoplastic Polyolefin Elastomers (R-TPO)
• Polyolefin Elastomers (POE’s)
• Polyolefin Plastomers (POP’s)
• Poly Ether Imides
• Polystyrenes
• Polyesters

Production Processes Covered:
• Blow Molding
• Extrusion
• Rotational Molding
• Injection Molding

Applications Covered:
• Wires and Cables
• Automotive Parts
• Adhesive & Sealants
• Paving & Roofing
• Coating
• Home/Household Appliances
• Hose & Tubing
• Advanced Materials
• Fluid Handling

End Users Covered:
• Building & Construction
• Automotive & Transportation
• Medical
• Engineering
• Footwear
• Electrical & Electronics
• Consumer Goods
• Healthcare
• Heating, Ventilation, and Air Conditioning (HVAC)
• Packaging
• Leisure/Toys

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances