Thermoplastic Elastomers Market: Size, Dynamics, Regional Insights and Market Segment Analysis

Thermoplastic Elastomers Market was valued at USD 24.69 Billion in 2022, and it is expected to reach USD 38.37 Billion by 2029, exhibiting a CAGR of 6.5 % during the forecast period (2023-2029)

Thermoplastic Elastomers are elastic materials and a physical combination of polymers containing plastic and elastomer components with thermoplastic and elastomeric capabilities. These materials are widely utilized in the automobile sector, where they are used for car tyres and other auto parts. TPEs are also used in the construction sector for roofing, adhesives and sealants for industrial purposes, wire and cables in the electrical and electronic industries, and the manufacture of domestic goods. The growth of the plastics sector can be attributed to the growing demands for these materials from numerous end-use industries. The medical industry is a key contributor to the growth of the Thermoplastic Elastomers market. The increasing demand from the medical business can be ascribed to the spread of coronavirus, which would result in an increase in demand for medical equipment. These variables for increased demand mentioned above might be linked to prospective market growth.

Thermoplastic Elastomers industry consolidated, with the top four businesses, Dow Chemical Co., Kraton Polymers, Sinopec, and LyondellBasell, collectively accounting for more over 47% of total demand. Manufacturing skills are being shifted by major corporations to high-growth potential markets such as China, India, Brazil, and Southeast Asia. High TPE demand in the aforementioned locations, together with excellent manufacturing conditions such as cheap raw material procurement and low labour and operating expenses, might be ascribed to the shift in production. The Middle East and North Africa region is the world leader in crude oil production. Many major nations in the MEA area rely on the oil industry, including Kuwait, Saudi Arabia, Oman, Bahrain, Iraq, Libya, Angola, and Iran. Except for Venezuela and Ecuador, all OPEC nations are located in the MEA area. The OPEC region was previously founded to formulate global oil supply and to keep the global demand-supply chain and oil prices in check. The MEA region witnessed high demand for Thermoplastic Elastomers products in 2021, and this demand is expected to grow during the forecast period due to the region's enormous oil output.

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Thermoplastic Elastomers Market Dynamics
Increasing Usage in Automotive and Transportation Applications

Thermoplastic Elastomers is used in a variety of automotive applications, including the production of high-quality car instrument panels, wheel covers, dashboard components, pillar trims, door liners and handles, seat backs, and seat belt components. The automobile sector has especially stringent material requirements. Under high loads, the materials must be dimensionally stable and not warp, even when subjected to large temperature swings, hence meeting the requirement for thermoplastic elastomers. Thermoplastic elastomers are low-cost plastics that help make vehicles more energy-efficient by decreasing weight, offering durability, corrosion resistance, toughness, design flexibility, resilience, and excellent performance. Thermoplastic Elastomers reduced weight allows for more fuel-efficient automobiles. It is estimated that every 10% reduction in vehicle weight results in a 5-7% reduction in fuel consumption.

High-performance thermoplastic elastomers provide manufacturers with design benefits and equivalent strength to steel, allowing them to save weight and minimise greenhouse gas emissions. The automobile sector is rapidly recovering from the effects of covid-19. According to the International Organization of Motor Vehicle Manufacturers (OICA), automobile output increased by 10% in the first nine months of 2021 to 57.26 million vehicles, up from 52.15 million units in the same time previous year. Because of the increase in air freight, the entire commercial aircraft fleet is estimated to reach 8,270 by 2037. Furthermore, as the present fleet ages, the US mainliner carrier fleet is scheduled to increase at a rate of 54 aircraft each year. The report has covered all the drivers by region that are expected to boost demand for thermoplastic elastomer.

Emerging Market for Biobased Thermoplastic Elastomers

Biobased thermoplastic elastomers are made from renewable materials like fatty acids and vegetable oils. It has similar and even superior qualities than standard thermoplastic elastomers, making it ideal for sectors such as electronics, sporting goods, and footwear. The creation of biobased thermoplastic elastomers decreases the usage of non-renewable resources while improving biodegradability. Biobased thermoplastic elastomer innovations and commercialization are opening up a slew of new options for thermoplastic elastomer manufacturers.

Furthermore, several synthetic thermoplastic elastomer producers, such as BASF and Lubrizol, have changed their attention toward manufacturing environmentally benign and sustainable products. BASF and Lubrizol, for example, began producing biobased thermoplastic elastomers for a variety of sectors, including footwear, automotive, industrial, electronics, and textile. Biopolymers such as maize starch, wheat starch, poly hydroxybutyrate (PHB), polylactide (PLA), castor oil, and palm oil are utilised to make biobased thermoplastic elastomers. R&D for biobased thermoplastic elastomers is opening up new opportunities for producers.

Increasing Popularity in Wearable Electronics and Medical Devices

Wearable electronics are among the most enticing new technologies, offering prospects for increased connectedness, increased productivity, and improved lifestyles. In many respects, these technologies represent an extension of the human body, increasing our capacities and allowing us to communicate and connect with our surroundings and others. In recent years, the development of distinctive wearable and tiny electronics has also helped to market growth. Electronic producers have recognised the advantages of using lightweight and sustainable materials like TPE into wearable devices to deliver a non-tacky, soft-touch sensation of advanced materials into high-end consumer goods.

Increasing healthcare and medical facility expenditures are predicted to fuel investments in medical equipment such as plastic syringes, tools, surgical gloves, and other plastic goods used in consumer and industrial applications. As a result, the need for lightweight plastic materials such as TPE in these and other medical equipment and goods has increased. Medicines and other medicines are also using these materials for packaging since they reduce shipping weight and provide for sanitary protection of the inside contents.

Higher Cost of Thermoplastic Elastomers And Increasing Raw Material Prices

Compared to other materials such as PVC, rubbers, polyethylene, and polyurethane, the manufacturing of thermoplastic elastomers is a capital expensive and difficult process. In the production process of thermoplastic elastomers, devices must be set at high temperatures in the presence of technical experience. Since then, the expensive investment required in the thermoplastic elastomers process has limited its use in high-end applications. There are various additional goods that have similar qualities to TPEs but are less expensive, such as compounding grades of polyethylene, polypropylene, acrylonitrile butadiene styrene, and polyurethane.

All of these features combine to make thermoplastic elastomers a viable product in a number of end-use sectors, including industrial machinery, building and construction, and electronics. The pricing of thermoplastic elastomers are also affected by variations in raw material costs. Oil price fluctuations have an enormous effect on the price dynamics of thermoplastic elastomers since the majority of their raw ingredients are produced from it. The OPEC+ strategy and the Russia-Ukraine war have resulted in a large increase in crude oil prices, which has led in an increase in raw material costs throughout the world. The quick rise in raw material prices will have an impact on the profit margins of TPE goods.

Intra Thermoplastic Elastomer Replacement

There are various varieties of thermoplastic elastomers in the market, each with a particular cost and performance need. The profit margin of the applications is used to select a certain thermoplastic elastomer type. Because of the increased focus on certain kinds and enabling them to fulfil numerous duties, the rising trend of reducing the complicated selection process in picking a specific thermoplastic elastomer type is challenging the demand for the remainder of the thermoplastic elastomers.
This condition has led to a rise in the adaptability and cost-effectiveness of a certain type of thermoplastic elastomer. This is especially true in the automobile industry, where thermoplastic elastomers are replacing more expensive and heavier thermoplastic vulcanizates. During the projected period, thermoplastic polyolefin films are likely to be replaced by PVC and thermoplastic polyurethane films in automotive applications. As a result, replacement in the intra-thermoplastic elastomer category presents a challenge to the overall market's growth.
Thermoplastic Elastomers Market Segment Analysis
Based on Material Type, Styrenic Block Copolymers dominated the Thermoplastic Elastomers market and held the largest revenue share of over 37.1% in 2022. Styrenic Block Copolymer was the largest consumed material in 2022. In China and India, increasing demand for SIS is estimated to drive the segment growth over the forecast period. Increased use in automotive under-the-hood applications and fascia systems is expected to drive global TPE consumption. Because of its thermal and acoustic insulation qualities, TPE is gaining popularity in building applications.

Over the forecast period, TPU demand in construction is expected to be influenced by the growing importance of energy efficiency in buildings and consequent regulatory initiatives aiming at zero-energy buildings. Furthermore, the increased industrialisation in many locations is likely to promote industry growth. Rapid industrialization and the resulting demand from plastics, synthetic lubricants, and other industrial uses have been important market drivers in recent years. Rapid industrialisation in the United States has helped industry growth.

Based on Application, the automotive segment held the largest revenue share of over 40.0% in 2022. Thermoplastic Elastomers usage in automotive applications has grown tremendously due to the widespread use of electronic and electrical devices such as electric motor housings for seats and windows, passenger airbags, safety belt tensioners, and other components. Newly developed grades with improved hydrolytic stability are now finding use in engine components. Other automotive applications like as connectors, plugs, and housing components that must withstand the industry's increasingly harsh standards are also being moulded. Polyester resins have benefited from advances in mould design, a better knowledge of flow dynamics in moulds, more robotics, and enhanced computer simulation, all of which have improved the efficiency and cost of large, moulded parts manufacturing.

In 2022, the electrical and electronics category was the second-largest. Compounds with electrical insulating qualities and inherent high thermal distortion temperatures are being used by manufacturers in the home appliance industry for components such as circuit breakers, switches, connections, and housings. These polymers have comparable applications in the telecommunications and information technology industries, most notably in mobile phone shells to reduce weight and promote downsizing. Furthermore, advancements in injection moulding and comparable procedures are pushing the sector's desire for tougher grades.

Medical and healthcare spending has also increased significantly in recent years, necessitating speedier production of lightweight and durable medical gadgets and equipment. The industry is expected to grow at an exponential rate, particularly in emerging economies like India, Indonesia, Thailand, Argentina, and Mexico. Specialized impact-modified compounds are used in a variety of consumer goods, including convenience items, consumer durables, and soft goods. Sales of these commodities are strongly dependent on consumer purchasing patterns, and hence the latter has a significant influence on TPE production dynamics in the application.
Thermoplastic Elastomers Industry Regional Insights
The Asia-Pacific region is expected to dominate the Thermoplastic Elastomers market during the forecast period. China and India are the region's fastest growing economies, with each becoming one of the world's largest manufacturing powerhouses. The Asia Pacific area is the world's largest automobile manufacturing hub, accounting for about 60% of global output. The overall car production in the first nine months of 2021 was 32.67 million units, an 11% increase over the same period previous year. China's building industry is growing at a rapid pace. China's building production is expected to be worth around CNY 29.31 trillion in 2021.

The electronics sector is a major user of thermoplastic elastomers. Consumer electronics devices such as smartphones, OLED TVs, and tablets are seeing the greatest market growth. China's electronics sector is estimated to be worth USD 2,430 million in 2020, with growth rates of 11% and 8% year on year in 2021 and 2022, respectively. India is one of the top 20 medical equipment markets in the world. In 2020, the market was valued at INR 75,611 crore (USD 10.36 billion), and more government measures will help the industry. For example, the government authorised a medical devices park in Oragadam (Tamil Nadu) in September 2021, which is expected to attract an investment of INR 3,500 crore (USD 472.05 million).Thanks to significant demand in the automotive, electrical and electronics, packaging, and construction industries, the North American area is one of the greatest users of plastics. Because of its versatility, ease of moulding, and desired shape development, TPE and other polymers have various uses in every industry. Many automakers choose plastic car parts because they enable them achieve low-cost production and enhance their bottom line. The area is a slow-growing market because to end-use industry saturation and a comparatively low.

Canada is one of the world's largest crude oil producers. Declining crude oil costs and rising demand for plastic in the area are opening the way for the plastic sector to expand. Polymers and materials such as TPE are created from petrochemicals derived from crude oil. When utilised in any product, manufacturers are progressively incorporating additives into TPE to give strength, durability, and lightweight. When major automobile manufacturers such as BMW, Mercedes, and Toyota established manufacturing plants in Mexico, the country's automotive sector saw a significant boost. The great availability of raw resources, low labour costs, and low-cost production are the primary reasons for these corporations investing in the nation.

Europe is expected to be a major market in the coming years. Though regional development is projected to be constrained owing to several macroeconomic variables such as the debt crisis, rising unemployment, and stalled industrial production, an optimistic outlook for manufacturing and consumption across Eastern Europe would support its growth. Environmental restrictions from agencies such as ECHA, the European Commission, and different federal level authorities characterise the region. Other rising economies, such as those in Central and South America (CSA) and the Middle East and Africa (MEA), are growing at rates comparable to those in Asia Pacific. These locations benefit from increasing end-use industries and low thermoplastic compound penetration in comparison to other regions.
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Thermoplastic Elastomers Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 24.69 Bn.


Forecast Period 2023 to 2029 CAGR:
6.5%
Market Size in 2029:
US $ 38.38 Bn.


 Segments Covered:
by Material Type
• Styrenic Block Copolymers
• Thermoplastic Polyurethanes
• Thermoplastic Polyolefins
• Thermoplastic Vulcanizates
• Copolyester Ether Elastomers


by Type
• Block Copolymers
• Blends
• Others


by End-Use
• Automotive
• Electrical & Electronics
• Industrial
• Medical
• Consumer Goods
• Others



Thermoplastic Elastomers Market, by Region
• North America (United States, Canada and Mexico)
• Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
• Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
• Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
• South America (Brazil, Argentina, Columbia and Rest of South America)
Thermoplastic Elastomers Market Key Players are
• Arkema SA(France)
• Asahi Kasei Corporation(Japan)
• Zeon Corporation(Japan)
• Yantai Wanhua Polyurethane Co. Ltd.(China)
• China Petrochemical Corporation(China)
• Sinopec Group(China)
• Kraton Corporation(US)
• Huntsman International LLC.(US)
• The Dow Chemical Company(US)
• Teknor Apex Company(US)
• Celanese Corporation(US)
• Advanced Elastomer Systems L.P.(US)
• Lubrizol Corporation(US)
• PolyOne Corporation(US)
• LyondellBasell Industries N.V.(Netherlands)
• Tosoh Corporation(Japan)
• Apar Industries Ltd( India)
• Muller Kunststoffe(Germany)
• BASF SE(Germany)
• Covestro AG(Germany)
• Evonik Industries AG(Germany)
• Bayer Material Science LLC(Germany)

Frequently Asked Questions:

1] What segments are covered in the Global Thermoplastic Elastomers Market report?
Ans. The segments covered in the Thermoplastic Elastomers Market report are based on Material Type, Type and End-Use.

2] Which region is expected to hold the highest share in the Global Thermoplastic Elastomers Market?
Ans. The Asia Pacific region is expected to hold the highest share in the Thermoplastic Elastomers Market.

3] What is the market size of the Global Thermoplastic Elastomers Market by 2029?
Ans. The market size of the Thermoplastic Elastomers Market by 2029 is expected to reach USD 38.38 Bn.

4] What is the forecast period for the Global Thermoplastic Elastomers Market?
Ans. The forecast period for the Thermoplastic Elastomers Market is 2022-2029.

5] What was the market size of the Global Thermoplastic Elastomers Market in 2022?
Ans. The market size of the Thermoplastic Elastomers Market in 2022 was valued at USD 24.69 Bn.