THERMOPLASTIC ELASTOMERS MARKET ANALYSIS

Thermoplastic elastomers are polymers having a blend of elastomeric and thermoplastic properties. These are commonly referred to as thermoplastic rubber. These are flexible and soft materials that are capable of returning to their original length after they are stretched. Such elastomers possess great properties including heat and oil resistance, tear resistance, low permeability, and improved adhesion.

Global thermoplastic elastomers market was valued at US$ 25.2 Billion in 2021 in terms of revenue, exhibiting a CAGR of  6.9% during the forecast period (2022 to 2030).

Drivers

Thermoplastic elastomers are adaptable materials, which can be extended without distorting their shape permanently. Thermoplastic elastomers are a physical blend of polymers, which is typically plastic and elastic, and they are manufactured by injection, molding, and extrusion. It is utilized in various applications in the automotive sector, such as airbags, anti-slip mats, window trims, cowl panels, spoilers, and seals & air duct components. Rising demand for automobiles and automotive parts along with increasing consumer spending on automobiles are expected to drive growth of the thermoplastic elastomers market.

Thermoplastic elastomers are used in electric vehicles due to their high-performance characteristics compared to traditional metals, thermoset rubbers, and other materials. The changing regulatory scenario and government policies to support Electric Vehicles (EVs) are expected to drive growth of the thermoplastic elastomers market. According to the federation of automobile dealer association of India in April 2022, retail sales of electric vehicles clocked 4,29,217 units in April 2021 to March 2022, as compared to 1,34,821 units in FY21 (April 2020-March 2021) and 1,68,300 units in FY20 (April 2019-March 2020). Growing demand for EVs in the India is driving market for thermoplastic elastomers.

In terms of revenue, Asia Pacific held dominant position in the thermoplastic elastomers market in 2021 and accounted for a market share of 47.1%, owing to increasing demand for thermoplastic elastomers from various industries such as automotive, packaging, medical, and others, with China, India, and Japan contributing the major revenue share in Asia Pacific thermoplastic elastomers market. As per the budget document published by the subsidy under the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) for fiscal year 2023 is projected at US$ 35.40 Million, or more than three-and-a-half times the allocation of US$ 100.84 Million for this fiscal year 2023 and almost nine times higher than FY21.

Figure 1. Global Thermoplastic Elastomers Market Value Share (%), By Region, 2021

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Market Restraints

High cost of thermoplastic elastomer (TPE) materials over conventional plastics, rubbers, and thermoset materials would restrict the use of TPE in case of fillers for products where large volume of materials are required at a low cost. However, TPE materials lose their surface hydrophobicity in short time when used in outdoor applications, especially in high voltage insulation applications, and they need to be disposed off properly and should not be burnt, as they emit harmful isocyanates and caprolactam, which are potential pollutants and carcinogenic agents. These restraints are expected to negatively affect growth of the thermoplastic elastomers market during the forecast period.

Market Trends

There are different types of thermoplastic elastomers available in market. They differ by cost and requirement of performance. A specific type of thermoplastic elastomers is chosen according to the profit margin of the applications. The emerging trend of simplifying the complexity in choosing a specific type of thermoplastic elastomer is challenging growth of other types of thermoplastic elastomers. By focusing on specific types and enabling them to perform other thermoplastic elastomers' functions is reducing the number of thermoplastic elastomers types available in the market.

Figure 2. Global Thermoplastic Elastomers Market Value Share (%), By Product Type, 2021

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Among application, automotive parts segment accounted for the largest market share, followed by housewares & appliances segment, owing to TPE’s heat resistance, shock absorption, vibration damping, and chemical resistance to various appliances such as refrigerators, ovens, electric kettles, and others. According to the India Brand Equity Foundation (IBEF), the Indian consumer electronics market was valued at US$ 9.84 billion in 2021 is expected to more than double to reach US$ 21.18 billion by 2025. Therefore, increasing adoption of housewares and appliances is expected to propel demand for TPEs during the forecast period.

Recent Developments

• In April, 2022, DowDuPont Inc. announced the launch of its Dupont Liveo pharma tubing, a thermoplastic elastomer tubing for the biopharmaceutical industry. With the launch of this new product DuPont is accelerating its investments for the future of the biopharmaceutical processing industry by expanding its supply capacity of silicone elastomers and tubing and by enlarging its single-use pharma product lines.
• On May, 2021, Avient a provider of specialized and sustainable material solutions, announced the addition of three proprietary, thermoplastic elastomer (TPE) formulations that contain antimicrobial additives to its general lightening services PE portfolio. Tested in accordance with JIS Z2801 and ASTM G21-15 standards, these additives protect molded plastic parts by inhibiting bacterial growth (99.9 percent or more) and resisting fungal and mold growth. The product seeks applications in consumer electronics, personal care item grips, and automotive applications such as cup holder mats and (HVAC) heating, ventilation and air conditioning seals. 
• In May 2019, RTP Company, a global compounder of custom engineered thermoplastics, had announced the acquisition of the Zeotherm TPV product line from Zeon Chemicals. Zeon chemicals is a provider of specialty nitrile elastomers. The acquisition will expand RTP Company’s thermoplastic elastomers business.

Competitive Section

Major players operating in the global thermoplastic elastomers market include DowDuPont Inc., Arkema Group, Asahi Kasei Corporation, PolyOne Corporation, Elastron Kimya SA, Kraton Corporation, Evonik Industries, Covestro AG., Lubrizol Corporation, Huntsman Corporation, Tosh Corporation, and Teknor Apex Company