April 20, 2024
Thermoplastic Elastomers Market

Increasing Demand from Automotive Industry to Fuel Growth of the Global Thermoplastic Elastomers Market

The global Thermoplastic Elastomers Market is estimated to be valued at US$ 28.8 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Thermoplastic elastomers (TPEs) are polymers that have both properties of elastomers and thermoplastics. They can be molded like thermoplastics but have elasticity and flexibility like rubber-based materials. Common types of TPEs include styrenic block copolymers (SBCs), thermoplastic polyolefins (TPOs), thermoplastic vulcanizates (TPVs), polyurethanes (TPUs), and others. TPEs offer advantages such as easy processing on standard thermoplastic equipment, recyclability, noise and vibration dampening properties, flexibility at low temperatures, and ability to fuse or bond with other plastics. They find applications in automotive, footwear, medical, wires & cables, and other industries where rubber components were traditionally used.

Market Key Trends:

One of the major trends driving the thermoplastic elastomers market growth is the increasing demand from the automotive industry. TPEs provide advantages over conventional rubbers and metals used in automotive components like reduced noise, improved design flexibility, lower weight, and simplified production processes. They are increasingly replacing EPDM and TPV in various automotive applications such as exterior trims, bumpers, spoilers, air ducts, hoses, seals, and others. Another key trend is the rising demand for TPEs in the medical sector. Properties like flexibility, elasticity, and easy processability make TPEs suitable for medical devices, tubes, films, non-implantable applications. Eco-friendly and recyclable nature of TPEs has garnered attention of medical device manufacturers. Rapid replacement of PVC and growth of minimally invasive surgeries present major opportunities to drive the market.

Porter’s Analysis

Threat of new entrants: Low capital requirements and established customers base make threat of new entrants low in this market.

Bargaining power of buyers: Buyers have moderate bargaining power due availability of substitute products and bargaining power of large buyers.

Bargaining power of suppliers: Established suppliers and availability of raw materials makes supplier power moderate.

Threat of new substitutes: Threat from new substitutes is low due to Thermoplastic Elastomers unique properties.

Competitive rivalry: Intense competition exists among existing players to gain market share.

Key Takeaways

The global Thermoplastic Elastomers Market Size is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing demand from automotive industry. Thermoplastic elastomers are replacing conventional rubber in various automotive applications owing to their versatility and recyclability.

Regional analysis: Asia Pacific dominates the global thermoplastic elastomers market with largest market share. Rapid industrialization and growth of automotive sector in China and India is driving the market in the region. North America is the second largest market for thermoplastic elastomers due to presence of major end use industries such as automotive and consumer goods.

Key players: Key players operating in the Thermoplastic Elastomers market are 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. DowDuPont Inc. and Arkema Group are the largest producers of thermoplastic elastomers globally.

*Note:
1.            Source: Coherent Market Insights, Public sources, Desk research
2.            We have leveraged AI tools to mine information and compile it