Thermoplastic Elastomers Market by Type (Thermoplastic polyurethane, Styrene block copolymer, Thermoplastic vulcanizate, Thermoplastic polyolefin, Polyether block amide, and Polyester ether elastomer), By End-Use (Building & Construction, Automotive, Footwear, Medical, Wire & Cable, and Engineering), and By Region (North America, Europe, Middle East, Latin America, South Africa, Asia Pacific, and Rest of the world) – Key Insights and Impact of COVID-19 on Market Growth 2021-2026
Thermoplastic Elastomers Market Introduction:
Thermoplastic Elastomers Market size is estimated to be USD 19.9 billion in 2021 and is projected to reach USD 26.3 billion by 2026, at a CAGR of 5.7% between 2021 and 2026. The Thermoplastic Elastomers market is driven by the recovery of the automotive sector during the forecast period. APAC is dominating region for the automotive sector in the countries like China, India, and other Southeast Asian countries.
Thermoplastic elastomers are used in electric vehicles due to their high-performance characteristics compared to traditional metals, thermoset rubbers, and other materials. The changing regulatory scenario and government policies to support EVs support the growth of the thermoplastic elastomers market. During the COVID-19 pandemic, the sale of EVs in Europe increased by 137%, mainly driven by incentives offered under green recovery funds. In terms of sales, Europe has outpaced China and is expected to grow substantially in the coming years.
Thus, with the recovery of the automotive industry and increasing penetration of EVs worldwide, the demand for thermoplastic elastomers is expected to increase during the forecast period.
The Asia Pacific region accounts for more than 50% of global automobile production. China, India, Japan, and South Asian countries are largely involved in automobile production. Technological developments and innovations in the automotive sector will further enhance the Thermoplastic Elastomers Market in these countries. In the Asia Pacific region, the automotive industry is projected to make progress by 2022 with stable progress in the Chinese automotive market.
Thermoplastic Elastomers Market Opportunities:
Biobased TPE is made from renewable resources such as vegetable oils and fatty acids. It offers equivalent-to-better properties than the traditional TPE, mainly for the electronics, sporting goods, and footwear industries. The manufacturing of biobased TPE improves its biodegradability and reduces the use of non-renewable resources. Continuous innovation and commercialization of biobased TPE are creating new opportunities for the industry players. Also, many synthetic TPE manufacturers have shifted their focus toward developing sustainable and environment-friendly products.
Thermoplastic Elastomers Market Challenges:
There are different types of thermoplastic elastomers available in the market. They differ by cost and requirement of performance. A specific type of thermoplastic elastomer is chosen according to the profit margin of the applications. The emerging trend of simplifying the complexity in choosing a specific type of thermoplastic elastomer is challenging the growth of other types of TPE. By focusing on specific types and enabling them to perform other thermoplastic elastomers’ functions is reducing the number of thermoplastic elastomer types available.
The manufacturing process of TPE requires huge investments and is complex than that of conventional materials such as polyethylene, PVC, rubbers, and polyurethane. The manufacturing device functions at high temperatures with a high level of technical expertise to manufacture TPE. The vast investments and complex manufacturing processes have increased the cost of TPE. The high production cost of TPE has restricted its large-scale use, primarily in high-end applications. For example, compounding grades of polyethylene, polypropylene, acrylonitrile butadiene styrene, and polyurethane are developed to have properties similar to TPE and are available at a lower price than that of TPE. This creates high competition for TPE in a few end-use industries such as industrial machinery, building & construction, and electronics. Also, the increasing price of raw materials affects the price of TPE.
Thermoplastic Elastomers Market Segmentation:
Thermoplastic Elastomers Market segmented by Type, and by end-user. Based on the segment Type is sub-divided into Thermoplastic polyurethane, Styrene block copolymer, Thermoplastic vulcanizate, Thermoplastic polyolefin, Polyether block amide, and Polyester ether elastomer. Based on the segment End User divided into Building & Construction, Automotive, Footwear, Medical, Wire & Cable, and Engineering.
Report Covers regions and countrywide insights:
Geographically the global Thermoplastic Elastomers Market classified into North America into the USA, Canada. By Latin America into Brazil, Argentina, Mexico. By Europe into UK, Germany, Spain, France, London, Italy, and rest of the European countries. The Middle East and Africa into KSA, UAE, Qatar, & South Africa. The Asia Pacific into India, China, Japan, Malaysia, Singapore, Australia, and the Rest of the APAC countries.
APAC accounted for the biggest share in terms of volume and value of the TPE market in 2020, followed by North America and Europe. The employment of TPE is predicted to witness the very best growth within the APAC region during the forecast period. The market during this region is driven by the recovery of the automotive sector in China, India, and Southeast Asian countries. Global automobile manufacturers are investing in APAC countries to establish their production plants to reinforce their market presence within the region. China is that the significant marketplace for automobiles and also the largest consumer of TPE within the world. The main focus towards the event of the latest Energy Vehicles (NEVs) to scale back carbon footprint will drive the automotive industry in China which can further enhance the demand of Thermoplastic Elastomers Market during the forecast period.
Key Companies profiled in the Thermoplastic Elastomers Market:
Arkema S.A, Asahi Kasei Corporation, The Dow Chemical Company, BASF SE, Huntsman Corporation, Covestro AG, Lubrizol Corp, Teknor Apex Company, Kraton Corporation, Tosh Corporation, Mitsubishi Chemical Company, China Petroleum and Chemical Corporation (China), SIBUR (Russia), DuPont (The U.S), Dynasol Elastomers (Spain), and Evonik Industries AG (Germany).
- Thermoplastic polyurethane
- Styrene block copolymer
- Thermoplastic vulcanizate
- Thermoplastic polyolefin
- Polyether block amide
- Polyester ether elastomer
By End Use:
- Building & Construction
- Wire & Cable
- North America
- Latin America
- Middle East
- South Africa
- Asia Pacific
- Rest of the World
- Arkema S.A
- Asahi Kasei Corporation
- The Dow Chemical Company
- BASF SE
- Huntsman Corporation
- Covestro AG
- Lubrizol Corp
- Teknor Apex Company
- Kraton Corporation
- Tosh Corporation
- Mitsubishi Chemical Company
- China Petroleum and Chemical Corporation (China)
- SIBUR (Russia)
- DuPont (The U.S)
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