Thermoplastic Elastomer (TPE) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Thermoplastic Elastomer (TPE) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global thermoplastic elastomer market is estimated to witness a healthy growth, at an estimated CAGR of over 5%, over the forecast period. The major factors driving the growth of the market studied are extensive demand from the automotive industry and growing application in the HVAC industry.

Key Highlights

• Growing demand for bio-based thermoplastic elastomers are likely to create opportunities for the market in the coming years.
• Volatility in raw material prices are expected to hinder the market demand in the future.
• Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.

Key Market TrendsIncreasing Usage in the Automotive and Transportation Applications

• Thermoplastic elastomers (TPE) are high-performance materials, whose application in the automotive industry is rapidly increasing. TPE serve the automotive industry in a myriad of applications, some of which include the manufacturing of high-quality automotive instrument panels, wheel covers, dashboard components, pillar trims, door liners and handles, seat backs, and seat belt components, among others.
• The automotive industry places particularly high requirements on the materials used. Under extreme stresses, the materials must be dimensionally stable and must not warp, even when faced with great temperature variations.
• TPEs are special types of plastic, which are not only cheaper than metals but also help to make automobiles more energy-efficient by reducing the weight, in addition to providing durability, corrosion resistance, toughness, design flexibility, resiliency, and high performance at low cost. The light weight of TPE enables more fuel-efficient vehicles. Every 10% reduction in vehicle weight is estimated to result in a 5-7% reduction in fuel usage.
• Growing demand for lightweight and high-performance plastics in the automotive industry, to provide increased efficiency and design flexibility, is primarily responsible for the growth of the TPE market. High-performance thermoplastic elastomers offer manufacturers advantages of design and the comparable strength of steel, which help in reducing the weight and controlling greenhouse gas emissions.
• All the aforementioned factors, in turn, are expected to drive the demand for thermoplastic elastomer during the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region is expected to dominate the market. In the region, China is the largest economy, in terms of GDP. China is one of the fastest emerging economies and has become one of the biggest production houses in the world, today. The country’s manufacturing sector is one of the major contributors to the country’s economy.
• The Chinese automotive industry caters to the demand for vehicles, in both domestic and foreign markets. During the forecast period, the automotive production in the country is expected to be driven by the rising demand for SUVs, and lightweight and fuel-efficient vehicles, along with the increasing popularity of electric vehicles across the world.
• The electronics industry is one of the largest consumers of thermoplastic elastomers. Electronic products such as smartphones, OLED TVs, tablets and so on, have the highest growth in the market in the consumer electronics segment. With the increase in the disposable income of middle-class population, the demand for electronic products is projected to grow in the near future, thereby driving the thermoplastic elastomers market.
• Despite the volatile growth in real estate sector, the significant development of rail and road infrastructure by the Chinese government to withstand the growing industrial and service sectors, has resulted in a significant growth of the Chinese construction industry in the recent years. As the construction industry is dominated by state-owned enterprises, the increased government spending is boosting the industry in the country.
• Owing to the aforementioned factors, the market for thermoplastic elastomer in the region is expected to witness huge demand in the coming years.

Competitive Landscape

The global thermoplastic elastomer market is consolidated in nature. The key players in the market include DuPont, BASF SE, Covestro AG, LCY GROUP, and KRATON CORPORATION, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

A. Schulman, Inc.
Apar Industries Ltd
Arkema Group
Asahi Kasei Corporation
BASF SE
Covestro AG
DSM
DuPont
Evonik Industries AG
Exxon Mobil Corporation
Grupo Dynasol
Huntsman International LLC
KRATON CORPORATION
LANXESS
LCY GROUP
LG Chem
LyondellBasell Industries Holdings B.V.
Mitsubishi Chemical Corporation
SABIC
Sumitomo Chemicals Co. Ltd
The Lubrizol Corporation

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