Thermoplastic Elastomers Market

Thermoplastic Elastomers Market Size-(2023-2028):

Thermoplastic Elastomers Market is expected to rise from USD 22.6 billion in 2022 to reach USD 28.5 billion by 2028, at a CAGR of about 8.2% throughout the foreseen period. 

The Thermoplastic Elastomers Market has a decent growth pace in the market, which is driven by the demand for the SBC type of thermoplastic elastomers as they can be used in a mixture with other polymers. Thermoplastic elastomers (TPE) have physical features of both thermoplastics and rubber that make them soft and flexible. Conventional thermoplastic techniques can make thermoplastic elastomers, for instance, extrusion, injection molding, and blow molding. Thermoplastic elastomers turn into plastic when shown to heat and elastic as soon as it is cooled. Thermoplastic elastomers are made owing to the physical cross-linking among the components. While the material is cooled, there is an emergence of new cross-links that forms the elastic blocks into firm three-dimensional networks. It is broadly employed in automotive, aerospace, and railway businesses owing to its high resilience, abrasion, tear resistance, cold temperature resistance, and waterproof features. Growth in the healthcare segment with a rise in customer awareness for quality healthcare products together with stringent policies may boost the market share. They are broadly employed in manufacturing medical-grade hospital equipment like tubing, catheters, surgical tools, vial closures, grips, and monitoring blotches due to economic viability, flexibility, slip resistance, and shock absorption nature, which may boost product call.

Thermoplastic Elastomers Market Drivers:

Thermoplastic elastomers have significant properties like heat stability, and smoothness, and are repellent to wear and scratch which is escalating their employment in different businesses. Rising consumption across various applications like footwear, customer goods, electronics, and construction has been influential in the global market development in the last few years. The thermoplastic elastomers market has been rising highly as it has emerged as a substitute for natural or artificial rubber, glass, or any traditional engineered plastic including PVC. Growing call for lightweight, low-cost, and SUV models and their significance on aesthetics and comfort result in improved use of thermoplastic elastomers in the automotive segment.

Governments across the world are highly funding in material research and growth activities. Innovation in plastics in the automotive business is a crucial factor driving the worldwide thermoplastic elastomers market. Thermoplastic elastomers are highly called from the automotive industry and have rising applications in the HVAC market. Expansion in end-use businesses is furthermore fuelling the development of the global thermoplastic elastomers market. The call for thermoplastic elastomers is also increasing in the building & construction segment. Rising applications in the medical business and an increasing call for bio-based thermoplastic elastomers will drive the market in the coming years. Rising customer preference for high-performance and lightweight passenger cars has been driving plastics innovation in automotive making. These factors have resulted in escalated consumption of thermoplastics in the mentioned application. Thermoplastic elastomer showcases high physical and chemical properties as compared to thermoset plastics, hence gaining preference on the basis of application. The high alteration rate of TPU & TPO as a substitute to ethylene propylene diene monomer (EPDM) in construction materials is estimated to boost the global market call in the foreseen period.

Restraints in the Thermoplastic Elastomers Market:

Changing costs of raw materials and technical problems included in the advancement of low-price and economical thermoplastic elastomer products are the factors estimated to restrain the expansion of the global thermoplastic elastomers market size.

Opportunities in the Thermoplastic Elastomers Market:

Thermoplastic elastomer's inherent flexibility and safety will show a chance for them to take over PVC’s past applications, like IV bags and tubing.

Challenges in the Thermoplastic Elastomers Market:

Unsteady and volatility in raw material costs are the factors that may pose a challenge to the expansion of this market in the outlook period.

THERMOPLASTIC ELASTOMERS MARKET REPORT COVERAGE

Thermoplastic Elastomers Market segmentation is categorized into the following terms:

Thermoplastic Elastomers Market On the Basis of Type:

• Co-polyester ether elastomers (COPE)

• Thermoplastic vulcanizates (TPV)

• Polyether block amide elastomers (PEBA 

• Thermoplastic polyurethanes (TPU) 

• Thermoplastic polyolefins (TPO)

• And styrene block copolymers (SBC)

Among the mentioned types of elastomers, the styrene block copolymers segment is the largest and is expected to lead the market in the proposed forecast period. The growth is mainly attributed to the fact that it is mostly used in the form of a mixture with other polymers making it applicable in a wide range of end-use industries.

Thermoplastic Elastomers Market On the Basis of End-Use:

• Automotive

• Building & Construction

• Footwear, Engineering

• Medical, Wires & Cables

Of the mentioned end-use industries, the automotive industry is the largest in terms of volume produces and value incurred. However, the buildings & construction segment is anticipated to have the fastest growth rate in the forecast period, mainly due to the rapid growth in this market driven by the need for commercial buildings in bulk.

Thermoplastic Elastomers Market On the Basis of Region:

• North America 

• Europe 

• Asia Pacific

• Latin America 

• Middle East & Africa 

In the Asia Pacific, China is one of the fastest-growing economies and has grown into one of the largest production houses in the world today. During the forecast period, automobile production in the country is expected to be driven by the increasing demand for SUVs and light and fuel-efficient vehicles. The electronics industry is one of the biggest consumers of thermoplastic elastomers. Despite volatile growth in the real estate sector, the significant development of rail and road infrastructure by the Chinese government to resist the growth of industrial and service sectors has resulted in significant growth of the construction industry in China in recent years. With the construction sector dominated by state-owned enterprises, increased public spending is boosting the industry in the country.

North America is characterized by intense R&D by domestic companies with the goal of product innovation and broader reach. Structured regulatory policies related to the consumption and disposal of plastics for specific applications are expected to have a significant impact on the growth of the regional market. Rising auto production in the United States and Mexico, along with growth in the construction and consumer sectors in Mexico, are expected to drive demand for these elastomers in North America during the forecast period.

The European market demand for thermoplastic elastomers, led by Germany, the UK, and France, could exceed $6 billion by 2026. Changing consumer perception of healthcare products and services' high quality could stimulate the demand for products. Strict health regulations to maintain high standards in public and private hospitals and increased awareness of the biocompatibility of synthetic materials can increase the market growth. Growing market demand for styrene block copolymers in the automotive and construction industries is expected to drive the growth of the regional industry.

Impact of COVID-19 on the Thermoplastic Elastomers Market:

The thermoplastic elastomers market is going through a period of weak demand for its downstream derivatives. The emergence of coronavirus, declared a pandemic by the World Health Organization, is having a notable impact on global economic growth. According to the International Monetary Fund, global GDP is supposed to decline by 0.5% in 2021. According to the World Trade Organization (WTO), global trade volumes are estimated to fall between 15% and 34% in 2021 due to the economic impact of COVID-19. The pandemic is affecting the operations of various industries, such as automotive, construction, electronics, and others, as most countries have published a guide to operating from home. And the coronavirus pandemic is supposed to continue for a few months in 2021.

Thermoplastic Elastomers Market Key players:

1. Sinopec Group (China)

2. PolyOne Corporation (U.S.)

3. Lubrizol Corporation (U.S.)

4. Covestro AG (Germany)

5. The Dow Chemical Company (U.S.)

6. Evonik Industries AG (Germany)

7. Arkema SA (France)

8. Kraton Corporation (U.S.)

9. Tosoh Corporation (Japan)

10. LyondellBasell Industries N.V. (Netherlands)