Polyolefin Elastomer (POE) Market, by End-use Industry (Automotive, Packaging, Adhesives, Plastic, Electrical and Electronics, and Others) - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

  • To Be Published : Mar 2019 |
  • Format : CMI Insight PPT Format CMI Insight PDF Format

Polyolefin Elastomer (POE) are produced by copolymerization of ethylene and different comonomers including butene, propylenehexane, and octane. It shows properties including low density, toughness, elasticity, low temperature ductility, UV resistance, and thermal stability. It is used in various end-use industries such as medical, electrical, electronics, and automotive.

Market Dynamics

Rise in applications of polyolefin elastomer in automotive, adhesives, masterbatches, consumer goods, packaging, molded rubber goods, pipes, footwear, hoses, and wire and cable is driving growth of the global polyolefin elastomers market. According to the Coherent Market Insights’ study, global athletic footwear market is projected to register a CAGR of 2.33% in terms of revenue, over the forecast period. This significant growth in footwear market is fuelling growth of polyolefin elastomer market as it finds applications in flexible foams in athletic footwear, sandal, and others, owing to its properties such as resiliency, softness, and light weight. Growing demand from automotive industry is propelling growth of the global polyolefin elastomers market.  According to the International Organization for Motor Vehicles Manufacturers (OICA), global motor vehicle production was around 90.78 million in 2015, which increased to 94.98 million in 2016. This rise in vehicle production is increasing demand for the polyolefin elastomer, owing to its applications in manufacturing automotive interior trim and automotive exterior parts such as automotive bumper fascia. Furthermore, polyolefin elastomers are utilized to modify polypropylene and polyethylene compounds or enhance flexibility of polypropylene and polyethylene molded products. According to a Coherent Market Insights’ study, molded plastic market is expected to surpass US$ 217.6 billion by 2025, which in turn is fuelling growth of the polyolefin elastomer market.

Market Outlook

  • Asia Pacific polyolefin elastomers market is growing rapidly and is expected to show substantial growth during the forecast period. According to the U.S. International Trade Administration (ITA), China was the largest vehicle producer between 2012 and 2014 and the average number of vehicles produced between 2012 and 2014 was 17.8 million. Also, vehicle production in China is expected to cross 27 million by 2020 thereby fuelling growth of the polyolefin elastomer market in this region. Furthermore, growing demand for molded plastic products such as toys and other household goods along with growing packaging industry is driving growth of the polyolefin elastomers market in Asia Pacific. According to the Coherent Market Insights’ study, Asia Pacific held the highest market share in molded plastic market in 2016 and is expected to exhibit highest CAGR of 6.7% during the forecast period (2017-2025).
  • North America held significant market share in the global polyolefin elastomers market, owing to increasing demand from the automotive industry. According to the U.S. Census Bureau, total sales of cars and car parts was US$ 1 trillion in 2014 and increased by 6.5% in 2015. Furthermore, according to the U.S. International Trade Administration (ITA), the U.S. was the second-largest market for vehicle production and sale in 2016. Applications of polyolefin elastomers in automotive radiator hoses is to enhanced high temperature performance and for auto interior modifier is driving growth of the market in this region. Moreover, use of polyolefin elastomers in the electrical and electronics industry such as cable and wire coatings is fuelling growth of the market in this region. According to the U.S. Census Bureau, annual U.S. retail sale of electronics and appliances in 2011 was US$ 99.93 billion in 2011, which increased to US$ 103.52 billion in 2014, thereby increasing growth of the polyolefin elastomers market in this region.
  • Europe is expected to be the lucrative market for polyolefin elastomers, due to its increasing applications in plastic, packaging, footwear, and automotive industries. Polyolefin elastomers are used in flexible foam technology such as in the athletic footwear. According to Coherent Market Insights’ study, Europe held highest market share in 2016 in the global athletic footwear market. Applications of polyolefin elastomers in plastic modifications is propelling growth of this market in the region. According to PlasticsEurope, a European trade association, polypropylene held highest demand of 19.3% from the plastic converting industry in 2016. This in turn is driving growth of the polyolefin elastomers market in this region.

Key Players and Business Strategies

Key players operating in the global polyolefin elastomer market are Mitsui Chemical, Inc., LG Chem Ltd., RTP Company, Inc., DowDuPont Inc., PolyOne Corporation, Siloxane Aggrandize Innovative Industries, Dalmia Polymers LLP, Tricon Energy Inc., Borealis AG, and SK Global Chemical Co., Ltd.  

Companies operating in the polyolefin elastomer market are adopting various strategies for business expansions. For instance, in June 2016, Borealis AG launched three new polyolefin elastomer grades namely Queo 6800LA, Queo 7007LA, and Queo 7001LA. Also, in June 2014, Saudi Basic Industries Corporation (SABIC) and SK Global Chemical Co. Ltd. formed a 50-50 joint venture involving operations of manufacturing plants including Nexlene polyolefin elastomers and plastomers production plants.

Market Taxonomy

Global polyolefin elastomer market is segmented into:

By End-use Industry

  • Automotive
  • Packaging
  • Adhesives
  • Plastic
  • Electrical and Electronics
  • Others (Medical, Rubber, Consumer Goods and Personal Care)

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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