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).
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
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.
|Base Year:||2021||Market Size in 2021:||US$ 25.2 Bn|
|Historical Data for:||2017 to 2021||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||6.9%||Forecast Period:||2022-2030|
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.
|Restraints & Challenges:||
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
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.
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
Thermoplastic elastomers are flexible materials, which can be stretched without permanently deforming their shape. Thermoplastic elastomers are a physical mix of polymers, which are usually plastic and rubber. Thermoplastic elastomers are manufactured by injection, molding, and extrusion. Various automobile parts such as window handles, gaskets, body seals, wipers, filler panels, rocker panels, and damping pads are manufactured from thermoplastic elastomers. Rising demand for automobiles and increasing consumer spending on automobiles is expected to drive growth of the thermoplastic elastomers market.
Due to increasing demand for lighter vehicles, thermoplastic elastomers is expected to find increasing applications in the automotive sector. Furthermore, growing demand for bio-based thermoplastic elastomers is driving growth of this market. Hence, players in market are manufacturing bio-based thermoplastic elastomer (TPE) compounds that contain raw materials from renewable resources such as plant and vegetable crops. This is expected to be a major growth opportunity for key players in market.
Growing automotive industry and high demand for electric vehicles is the major driver for the growth of global thermoplastic elastomers in the forecast period. Automotive parts segment accounted for the largest revenue share in the global thermoplastic elastomers market in 2021. This is due to the properties of TPE such as weather & temperature resistance, shock absorption, flexibility, abrasion resistance, and recyclability.
Growing medical equipment manufacturing industry is expected to drive growth of styrenic block co-polymers segment and in turn fuel growth of the thermoplastic elastomers market, globally. For instance, according to the India Brand Equity Foundation in April 2022, medical devices industry in India was valued at US$ 10.36 billion in 2020 and is expected to reach US$ 50 billion by 2025, with a CAGR of 37%.
Various key players are focused towards expanding the manufacturing of thermoplastic elastomers, which is a key factor driving growth of the thermoplastic elastomers market. For instance, in November 2018, DuPont had announced that it was investing over US$ 80 million to build a new manufacturing facility in Zhangjiagang, Jiangsu Province in East China. This new facility will produce compounded high-end engineering plastics and adhesives to serve customers in transportation, electronics, industrial and consumer products markets. This planned site become operational in 2020 with expansion through 2023, thereby driving the overall TPE market growth in the Asia Pacific region.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section