Thermoplastic Elastomers Market is Estimated to Witness High Growth Owing to Increasing Demand from the Automotive Industry & Growth Opportunities in the Medical Sector
The thermoplastic elastomers market is estimated to be valued at USD 15.34 billion in 2024, exhibiting a CAGR of 7.2% over the forecast period (2024-2031). The market is growing due to the increasing demand for thermoplastic elastomers from the automotive industry where it is used in the manufacturing of automotive components. Furthermore, growth opportunities exist in medical applications where thermoplastic elastomers are used for manufacturing catheters, medical tubing, and gloves.
The thermoplastic elastomers market is primarily driven by growing demand from the automotive industry. Thermoplastic elastomers find wide usage in the manufacturing of automotive components such as interior, exterior, under-the-hood components, and powertrain owing to its superior properties including flexibility, durability, and ease of processing. The global automotive production has grown significantly over past few years and increased consumption of vehicles is projected to boost the demand for thermoplastic elastomers during forecast period.
Second major driver is the expanding medical sector. Thermoplastic elastomers are increasingly replacing traditional rubbers in medical devices and equipment due to their attractive properties.
Growing Demand from the Automotive Industry is Driving the Thermoplastic Elastomers Market
The automotive industry is one of the largest end-use industries for thermoplastic elastomers. Thermoplastic elastomers are widely used in manufacturing various auto components like exterior body parts, interiors, electrical components, under-the-hood components, etc. Their properties like flexibility, shock absorption, and fatigue resistance make them an ideal material for automotive applications. With rising automobile production around the world, the demand for thermoplastic elastomers from the automotive industry is increasing steadily. According to numerous reports, global automobile sales are projected to grow at over 3% annually till 2025. This steady growth in automotive production directly translates to the increased consumption of thermoplastic elastomers by automakers. Their increasing use in more vehicle components like bumpers, mudguards, and exterior panels is further bolstering the market growth.
Growing Usage in Medical Devices is Propelling the Market Growth
Thermoplastic elastomers find numerous applications in the medical devices industry due to their biocompatibility. They are widely used for manufacturing components in surgical devices, respiratory devices, catheters, and other medical equipment. Properties like flexibility, durability, and clarity make thermoplastic elastomers suitable for use in medical applications. Additionally, the demand for thermoplastic elastomers is growing in the medical devices sector due to increasing emphasis on single-use disposable medical devices for infection control.
Fluctuating Raw Material Prices Pose a Challenge
The prices of key raw materials used in the production of thermoplastic elastomers like petrochemicals, polymers, and plasticizers are highly volatile. Petroleum is the main feedstock used to manufacture petrochemicals and polymers that are further processed to produce thermoplastic elastomers. Since petroleum prices are dependent on international crude oil rates, they exhibit significant fluctuations depending on global economic and geopolitical factors. Along with petroleum, prices of other raw materials also demonstrate uncertainty which directly impacts production costs for thermoplastic elastomer manufacturers. Unpredictable raw material costs pose operational and pricing challenges.
Intense Competition from Substitute Materials
Materials like polyvinyl chloride (PVC), thermoplastic polyurethanes (TPU), and natural rubbers pose strong competition to thermoplastic elastomers in certain application areas. Each substitute material has its own set of advantages over thermoplastic elastomers in terms functional properties, processing methods, production costs, etc.
Substitute materials capturing market share from thermoplastic elastomers depends on various factors such as relative pricing of materials, economic conditions, customers’ priorities, and new product developments. This competitive pressure from alternative materials acts as a key market restraint.
Growing Replacement Demand Drives Market Opportunities
As thermoplastic elastomers have longer life cycles when used in mechanical rubber goods, hoses, profiles, etc., the replacement demand for such components remains steady. Once installed, these components need to be replaced only after years of use. This replacement demand is a consistent opportunity source. Additionally, increasing R&D and new product development is expanding thermoplastic elastomers' application scope into newer industries like medical, consumer goods, and others. Industries shifting from conventional materials to thermoplastic elastomers also present commercialization prospects. Such replacement and expanded usage augments market growth opportunities.
Link: https://www.coherentmarketinsights.com/market-insight/thermoplastic-elastomer-market-847
Key Developments
- In 2023, Trinseo launched transparent thermoplastic elastomers
- 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.
- In 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 March 2020, Veloxis Pharmaceuticals Inc. was acquired by Asahi Kasei Corporation (US). This acquisition will boost the company's presence in the pharmaceutical industry.
Key Players
Arkema S.A., Asahi Kasei Corporation, Avient Corporation, Celanese Corporation, Covestro AG, DuPont de Nemours, Inc., Elastron Kimya A.S., Evonik Industries AG, Huntsman International LLC, Mitsui Chemicals, Inc., Kraton Corporation, Eastman Chemical Company, SIBUR, Versalis S.p.A., JSR Corporation, Kuraray Co., Ltd , LCY Chemical Corp, SK Chemicals, Tosoh Corporation, TSRC Corporation, and Interplast
