Europe, Middle East and Africa (EMEA) Elastomers Market- Growth, Trends, and Forecast (2019 - 2024)
The market is segmented by Product Type (Thermoset Elastomers, and Thermoplastic Elastomers), by Application (Automotive, Medical, Electronics, Construction, Industrial, and Others), and Geography
The EMEA elastomers market is expected to grow at a CAGR of 4.12 % during the forecast period of 2019 – 2024. Major factors driving the market studied are the growing demand from the automotive and electronics industries. Volatility in raw material prices is expected to hinder the growth of the market studied.
Automotive industry dominated the market in 2017 and is expected to continue its dominance during the forecast period.
Increasing demand for bio-based thermoplastic elastomers is likely to act as an opportunity in the future.
Germany dominated the market across the Europe with the largest consumption from the automotive industry.
Key Market Trends
Increasing Demand from Automotive Industry
The automotive sector is a major consumer of elastomers with 55.9% of sales in 2017. Elastomers are primarily used in the belts and hoses, bellows, gaskets, sound management inside the car, floors, and instrument panel skins. Moreover, outside the car, it can be used in tires (base tire, side walls, treads) and wire, cables and coatings in almost all parts of the car.
Growth in the automotive is partly a result of increased car builds and of polypropylene consumption per car particularly in Europe. Compounded Thermoplastic Olefin (TPO) products are being promoted to replace flexible PVC in instrument panel coverings and other interior applications.
Demand in the automotive industry in the Middle East region is anticipated to grow in the future as a result of the benefits from high disposable incomes combined with access to vehicle financing.
The Middle East region has one of the highest ratio of cars to households in the world, thus the average age of cars is expected to increase, leading to an increasing demand for spare parts.
Furthermore, the drive for lightweight vehicles is expected to benefit the Thermoplastic Elastomers (TPE) market growth.
Saudi Arabia to expand at a fastest rate
Europe region dominated the market share in 2017. However, due to the robust demand from Saudi Arabia and other Middle Eastern Countries, Middle East & Africa region is likely to expand at a fastest rate. Saudi Arabia is one of the largest automotive markets for both new and used vehicles among GCC countries. It is also one of the largest markets for car tires. Due to a lack of domestic tire production, the tire market of the country has been import driven. Styrene-butadiene rubber (SBR) is the most extensively used type of synthetic rubber and is chiefly consumed in the manufacturing of tires and tire products. SBR production commenced in 2017 with the establishment of the Saudi Elastomer Project. In 2018, ARLANXEO signed up an agreement with Saudi Aramco Products Trading Company, relating to the marketing and sales of EPDM (Ethylene Propylene Diene Monomer) rubber in the country. The Kingdom represents the region's largest IT market. Massive public investments in infrastructure, health, and education have paved the way for advanced technology and security systems in the country, with the government planning for the industry to raise its contribution to the GDP by 20%, by 2020, which may increase the usage of electrical and electronic products in the country. The purchasing power of consumers has increased, along with their awareness of technology implementation in various end-user industries. These growth plans are expected to progress at a faster rate, during the forecast period, which is expected to drive the demand for elastomers.
The EMEA elastomers market is partly fragmented in nature with the top six players accounting for around 49% revenue share in the market, in 2017. ARLANXEO emerged as the leading provider of elastomers in the EMEA region with an estimated share of 13%, in 2017. The company offers elastomers through both its high performance elastomers and tire & specialty rubber division and boost one of the largest portfolio of elastomers in the particular region.
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