Thermoplastic Elastomer Market Size, Share & COVID-19 Impact Analysis, By Type (Styrenic Block Copolymers, Thermoplastic Polyurethane, Thermoplastic Vulcanizates, Thermoplastic Polyolefins, Copolyester Elastomers, and Others), By Application (Automotive, Building & Construction, Footwear, Electrical & Electronics, Medical, and Others), and Regional Forecast, 2020-2027

The global thermoplastic elastomer market size was USD 26,856.8 million in 2019 and is projected to reach USD 39,424.6 million by 2027, exhibiting a CAGR of 5.7% during the forecast period. Thermoplastic elastomers (TPEs) are elastic materials and a physical blend of polymers that includes plastic and elastomer materials with thermoplastic and elastomeric properties. These materials have major applications in the automotive industry, where they are used for tires of vehicles and other auto parts. Other applications also include the usage of TPEs for roofing in the construction industry, adhesive & sealants and coating for industrial applications, wire and cables in the electrical & electronic industry, and the manufacturing of household appliances. The high demand for these materials from various end-use industries can be attributed to the growth of the plastics industry.

One of the major contributors is the medical industry. The high demand from the medical industry can be attributed to the spread of coronavirus, which, in turn, would lead to the surging demand for medical equipment. These aforementioned factors for increasing demand can be associated with potential market growth.

Disruption in Supply Chain amid the COVID-19 Pandemic to Obstruct Growth

The COVID-19 pandemic has severely affected the market and has brought manufacturing and trade activities to a complete halt. This has led to a decline in the demand from consumers and end-user industries, further causing disruptions in the supply chain. The global lockdown has substantially impacted the economy of trading and production activities in several manufacturing sectors. It is set to affect the pricing of raw materials and finished goods. However, the market is expected to stabilize gradually due to the high demand for TPEs for medical applications. This rising demand for high-quality medical products is expected to improve the market significantly.

THERMOPLASTIC ELASTOMER MARKET TRENDS

Adoption of Bio-based Thermoplastic Elastomer is a Prominent Trend

The growing concept of bio-based thermoplastic elastomers is increasing from several industries due to their eco-friendly nature that supports environmental protection. These materials can be reshaped and reformed, which would provide a beneficial factor for eliminating waste while also offering multiple advantages such as chemical resistance, oxidation, UV rays, and others, thereby leading to the high demand from end-users. Bio-based TPEs are being used in medical and consumer goods industries for various applications, such as manufacturing medical equipment and household appliances.

The growing demand for appliances, including consumer products, such as small kitchen appliances, wires & cables, and tubes, will increase the consumption of thermoplastic type of elastomers globally. Moreover, the rapid population surge is also projected to lead to a rise in construction activities, thereby driving the market growth rate. 

THERMOPLASTIC ELASTOMER MARKET GROWTH FACTORS

Increasing Demand for Lightweight Vehicles from Automotive Industry to Aid Growth

The increasing demand for lightweight vehicles from consumers is leading to innovations in the automotive industry. It is hence acting as a driving factor for the Thermoplastic Elastomer Market growth. The increasing population can contribute to the surging demand for automobiles. These materials are used for various applications in vehicles such as wipers, door & window handles, exterior filler panels, automotive gaskets, and others. The usage of various types of thermoformed elastomers for making lightweight vehicles would create high demand and propel market growth.

For instance, Tesla introduced a fully functional electric vehicle having thermoplastic elastomers for various auto parts to lighten the weight of the automobile. The vehicle types include passenger cars, as well as cargo vehicles having an electric motor for better handling and control. Moreover, the rapid expansion of other industries, such as construction, medical, and electrical and electronics, is set to support market growth.

RESTRAINING FACTORS

Price Volatility of Raw Materials May Hinder Growth

The depletion of raw materials such as fossil fuel resources along with the fluctuating crude oil prices may act as a restraining factor for the market growth. This would limit the production of raw materials for TPEs, thereby hindering growth. Also, governmental regulations over environmental protection and the use of non-renewable sources would further risk the supply chain, which in turn, may affect the market growth.

THERMOPLASTIC ELASTOMER MARKET SEGMENTATION ANALYSIS

By Type Analysis

Styrenic Block Copolymers Segment to Hold Major Share during the Forecast Period

On the basis of type, the market is segmented into styrenic block copolymers, thermoplastic polyurethane, thermoplastic vulcanizates, thermoplastic polyolefins, copolyester elastomers, and others. The styrenic block copolymers segment dominated the market in 2019 due to the growing consumer demand from various industries such as automotive, construction, medical, footwear, electrical & electronics, and others. Moreover, the trend of lightweight automobiles is a factor that is set to further support the growth of this segment.

The thermoplastic vulcanizates segment is expected to show the fastest growth during the forecast period. This can be attributed to the expansion of the automotive industry, where these materials are used for interior designing as they provide numerous benefits such as color ability, reuse, and recycling. They are also used as a substitute for PVC in the medical industry for blood bags, catheters, and others due to their tough nature and ability to provide optical clarity. All these above factors are expected to surge the demand for thermoplastic vulcanizates.

By Application Analysis

Automotive Segment to Dominate Fueled by Ongoing Technological Advancements

On the basis of application, the market is segmented into automotive, building & construction, footwear, electrical & electronics, medical, and others. The automotive segment dominated the market due to the increasing demand for lightweight vehicles from the rising population worldwide. Thermoplastic elastomers are used in various auto parts such as wipers, exterior panels, bonnets & boots, and others. All the components together make up the total weight of the vehicle. The use of these materials provides lighter weight to vehicles, thus creating their high demand. Moreover, technological advancement in the industry is also expected to support the growth of this segment.

The electronic & electrical segment is expected to show significant growth during the forecast period. The materials provide several advantages such as soft texture, electrical and chemical resistance, aesthetics, and color. Rising applications of wiring and cables for commercial building and household structure is set to increase the demand for these materials. The medical segment is also expected to grow in the coming years on account of the high demand for medical equipment during the pandemic. It would, therefore, create multiple growth opportunities.

REGIONAL THERMOPLASTIC ELASTOMER MARKET ANALYSIS

North America is estimated to have a significant share in the global market, which can be attributed to the rapid technological advancement and high disposable incomes of people in the region. The increased demand for automobiles from consumers and the growth in the construction industry has been leading manufacturers towards innovation. This demand, along with the high economic status of countries within the region, would further drive the market. Moreover, the growth in the medical industry would affect the market for thermoplastic elastomers positively.

Asia Pacific dominated the Thermoplastic Elastomer Market and was estimated to generate a value of USD 14,226.7 million in 2019, which can be attributed to the increasing demand for these materials from various industries, including automobile, construction, footwear, and others. The economic development in countries such as China, India, and Japan would improve the lifestyle of consumers, thereby creating a high demand for vehicles and luxury footwear. Additionally, the growing middle-class population is further set to fuel the demand for construction activities and automobiles in the region. The automobile production in India grew by 2.36% in 2019 and replaced Germany in sales of passenger and commercial vehicles by 3.99 units sold.

The European market is expected to showcase significant growth during the forecast period. This growth can be associated with the high demand for automobiles from every consumer. Improving consumer lifestyle is one of the key drivers for the high demand for luxury automobiles, thus creating more market opportunities. Germany is one of the major countries for automotive manufacturing, which can be attributable to the growing technological advancements providing efficient solutions for lightweight vehicles.

Latin America and the Middle East & Africa are expected to have substantial growth during the forecast period. Brazil is set to exhibit rapid growth due to the increasing urbanization and ongoing developments of the country's economy. At the same time, the rising technological advancement would lead to the high consumption of thermoplastic type of elastomers for applications in construction and consumer goods industries. The Middle East & Africa is a major location for raw materials and therefore, it is likely to provide easy accessibility for manufacturers in the region. Owing to this, low-cost production is possible in the region. The development of the economy within the region would also result in the high disposable incomes of consumers. It would support the market growth.

KEY INDUSTRY PLAYERS

Joint Ventures and Capacity Expansions are Key Strategies Implemented by Renowned Companies

Key players operating in the industry are Arkema SA, Covestro AG, Evonik Industries AG, Teknor APEX Company, and others. Companies profiled are involved in product innovations, capacity improvement, merger and acquisition, and collaboration. They are thus trying to gain a competitive edge in the global market. For example, Arkema SA increased the manufacturing capabilities of these type of elastomers at its Birdsboro plant, where it manufactured TPE products under the brand Pebax. The company also expanded the production capacity of polyamide at its plant in China under the Rilsan brand.

In September 2018, Lubrizol Corp. introduced its new thermoplastic elastomer materials at the TPE Topcon conference hosted by the Society of Plastics Engineers. Ohio-based Lubrizol launched Tecobax, a thermoplastic polyurethane for medical applications.

LIST OF KEY COMPANIES PROFILED IN THERMOPLASTIC ELASTOMER MARKET:

• Arkema SA (Colombes, France)


• Covestro AG (Leverkusen, Germany)


• Evonik Industries AG (Essen, Germany)


• Teknor APEX Company (Rhode Island, U.S.)


• BASF SE (Ludwigshafen, Germany)


• Huntsman Corporation (Texas, U.S.)


• Sinopec Group (Beijing, China)


• Lubrizol Corporation (Ohio, U.S.)


• Kraton Corporation (Texas, U.S.)


• Tosoh Corporation (Tokyo, Japan)


• Other Key Players

KEY INDUSTRY DEVELOPMENTS:

• August 2020: Lubrizol invested in the thermoplastic polyurethane business globally. The investments include the increased production capabilities of surface paint protection film (PPF) and protection. At the same time, it would provide additional benefits to PPF manufacturers and supply chains.


• November 2020: Evonik announced the cooperation with HP for developing a new co-branded1 elastomer, a flexible high-performance specialty powder based on a thermoplastic amide grade (TPA) for 3D printing.

REPORT COVERAGE

The global thermoplastic elastomer market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, sources, applications, and products. Also, it offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years. 

Report Scope & Segmentation