Thermoplastic elastomers (TPEs) are gaining significance owing to their versatility, low cost of production, simplicity of processing as well as recyclability. TPEs find wide application in automotive, medical, footwear, wires & cables and other industries due to their tunable properties including flexibility, durability and resistance to cracking.
Global Thermoplastic Elastomers Market is estimated to be valued at US$ 29.4 billion in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.
Thermoplastic Elastomers Market Size are polymer blends that process like thermoplastics yet behave like vulcanized rubbers. Their elasticity allows for flexibility and stretchability while their thermoplastic nature facilitates molding, extrusion and other high-volume automated processing techniques. Key advantages include design versatility for varied applications, longevity, energy absorption and feeling or acting like a vulcanized rubber product at a lower cost compared to thermosets. The global thermoplastic elastomers market volume stood at 4.2 million tons in 2020. Demand is projected to increase on account of growth in automotive, medical devices and construction industries where TPEs find usage in seals, hoses, tubing, cable jacketing and other components.
Key Takeaways
Key players operating in the Thermoplastic Elastomers market are Arkema SA, BASF SE, Dow Inc., Dynasol Group, Korea Kumho Petrochemical Co., Ltd. (KKPC) and SABIC. These companies have established a vast production capacity and distribution network as well as undertake investments in R&D for new product development.
Growing demand from the automotive industry acts as a key factor escalating market growth. Thermoplastic elastomers find application in automotive components such as exterior fascia, instrument panels, seals and gaskets owing to advantages like resilience, vibration damping and reduced weight.
Global expansion of thermoplastic elastomers market is expected through organic as well as inorganic growth strategies by industry majors. Manufacturers are increasing production facilities across regions with high growth potential such as Asia Pacific and Middle East & Africa during the forecast period. Joint ventures and acquisitions enable companies to enhance geographical presence and product portfolio.
Market key trends
Development of bio-based thermoplastic elastomers is a major trend being witnessed in the market. Bio-TPEs made from renewable feedstock like vegetable oils offer sustainability benefits over conventional petroleum-based variants. Ongoing R&D focuses on product innovation, performance improvement as well as lowering the cost of bio-TPEs to boost their adoption in end use industries. The emergence of hybrid TPE formulations combining properties of two or more base polymers to suit customized requirements of OEMs also presents lucrative opportunities over the coming years.
Porter's Analysis
Threat of new entrants: High initial investment and intellectual property rights prevent new entrants into this market.
Bargaining power of buyers: Large buyers can negotiate better deals due to high demands.
Bargaining power of suppliers: A few multinational corporations control majority of world's supply of thermoplastic elastomers.
Threat of new substitutes: No direct substitutes available at present but advancements in other polymeric materials pose a threat.
Competitive rivalry: Intense competition among few major players focused on product innovation and expanding applications.
Geographical Regions
North America accounts for the largest share of the overall thermoplastic elastomers market due to high demand from various end-use industries like automotive, medical and consumer goods in United States and copyright.
Asia Pacific region is expected to be the fastest growing market during the forecast period led by China, India and other Southeast Asian countries where increasing applications in automotive, Footwear, Wires & Cables and other industries are fueling market growth.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)