The global polyolefin elastomer market was valued at US$ 1,723.8 million in 2018, according to Polyolefin Elastomer Market Report, by Application (Packaging, Automotive, Polymer Modification, Wires & Cables, Medical, and Others) and by Region (North America, South America, Asia Pacific, Europe, and Middle East & Africa).
The global polyolefin elastomer market is projected to reach US$ 3,602.5 million by 2027, exhibiting a CAGR of 8.7% during the forecast period (2019-2027). Increasing demand for polyolefin elastomer in automotive, packaging, medical, wires and cables industries is expected to drive growth of the global polyolefin elastomer market over the forecast period. For instance, being light weight, polyolefin elastomer (POE) is widely accepted in the automotive interior and exterior applications. According to the U.S Department of Energy, using lightweight materials such as plastic in one quarter of the U.S. vehicle fleet will result in fuel savings of up to 5 billion gallons by 2030. Moreover, 10% reduction in weight of the vehicle can account for 6-8% fuel economy improvement. The U.S. federal government’s Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) developed the National Program for Greenhouse Gas Emissions and Fuel Economy Standards. The program aims to reduce gasoline use in the country by 2 million barrels per day by 2025, by achieving superior fuel efficiency in automobiles. Polyolefin elastomer (POE) is a copolymer of ethylene and α- olefins, which has the lowest density among polyolefin (PO) series products. This product exhibits characteristics such as impact resistance, high elasticity, and low heat sealing temperature. Moreover, tensile strength, light weight, clarity, and flexibility offered by the product enables it to replace thermoplastics such as ethylene vinyl acetate (EVA), poly vinyl chloride (PVC), styrene-block copolymers (SBC), ethylene methyl acrylate (EMA), and ethylene propylene rubber (EPR).
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Key Takeaways of the Market:
- Polyolefin elastomer (POE) is used for wire and cable coatings, as they are used to enhance physical properties when combined with filler.
- The packaging industry witnessed significant growth in the Asia Pacific region, owing to increasing population, which is propelling demand for processed food. For instance, according to India Brand Equity Foundation (IBEF), in 2017, the food and grocery market in India was globally the sixth largest market, with retail contributing 70% of the sales. Moreover, the food processing industry in this country accounts for 32% of the country’s total food market, which is one of the largest industries in India and ranked fifth in terms of export, consumption, production, and expected growth. This further provides opportunities for the market players of polyolefin elastomers in this region.
- Among applications, packaging segment accounted for the largest revenue share in 2018, in the global polyolefin elastomer market. Favorable growth of food industries in South American countries such as Chile, Columbia, and Bolivia are projected to create immense opportunities for growth of polyolefin elastomers for application in food packaging. According to U.S. Department of Agriculture 2017 Report on food processing industry in Chile, Chile has a modern and developed food processing industry that represents 25% of its economy, and is forecasted to grow to over 35% by 2030.
- Europe is expected to be the lucrative market for polyolefin elastomers, owing 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 Plastics Europe, a European trade association, polypropylene held highest demand, around 19.3% from the plastic converting industry in 2016. This in turn is driving growth of the polyolefin elastomers market in this region.
- Major players operating in the global polyolefin elastomer market include, 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., and others.
- Key players in the market are focused on increasing research and development (R&D) investment in order to enhance their product offerings. For instance, The Dow Chemical Company, announced availability of its photovoltaic grades of ENGAGE Polyolefin for application in photovoltaic (PV) module encapsulation film in 2016. Moreover, in 2013, Dow Elastomers, a business unit of Dow Chemical Company (a part of DowDuPont Inc.) began production of AFFINITY GA Polyolefin Elastomers in Spain.