June 22, 2024
Thermoplastic Elastomers Market

Increased Usage In Automotive Industry Set To Drive The Growth Of Thermoplastic Elastomers Market

The global Thermoplastic Elastomers Market is estimated to be valued at US$ 36.7 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Thermoplastic elastomers (TPE) are polymers that can undergo deformation above their glass transition temperature and regain their original shape below that temperature. The glass transition temperature is below room temperature for these materials. They offer benefits of both thermoplastics and elastomers. As elastomers, TPEs exhibit rubber-like properties including flexibility, elasticity and high tensile strength. As thermoplastics, they can be processed and recycled like ordinary plastics. Some key applications of TPEs include automotive, footwear, wire and cable, medical and many other industrial sectors. Growing automotive industry is a major factor driving the demand for TPEs.

Market key trends:

One of the key trends in the thermoplastic elastomers market is the increasing usage in automotive industry. TPEs find wide application in automotive sector for manufacturing interior and exterior components that require flexibility and impact resistance. With growing automotive production globally, the demand for TPEs from this industry has increased tremendously. Furthermore, advancements in TPE material technology have enabled their use in more complex and safety critical components. Lightweighting is another important trend in the automotive industry and TPEs help in manufacturing lighter components. Their recyclability profile makes them an attractive alternative to metals. Growing demand from emerging economies with developing automotive sectors will further support the growth of thermoplastic elastomers market over the forecast period.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants is low due to the presence of well-established players and the requirement of high capital investment for production facilities and R&D.

Bargaining power of buyers: The bargaining power of buyers is moderate due to the availability of substitute products. However, the specialized properties offered by thermoplastic elastomers provide some differentiation.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are multiple raw material suppliers for thermoplastic elastomers.

Threat of new substitutes: The threat of substitutes is low as thermoplastic elastomers offer distinct mechanical properties compared to other alternative materials.

Competitive rivalry: The competitive rivalry is high due to the presence of major manufacturers globally.

Key Takeaways:

The Global Thermoplastic Elastomers Market Size is expected to witness high growth, exhibiting 5.3% CAGR over the forecast period, due to increasing demand from the automotive industry. Thermoplastic elastomers are widely used in manufacturing automotive interior and exterior parts owing to their properties like flexibility, elasticity and durability.

Regional analysis: Asia Pacific dominated the global market in 2023 and is expected to maintain its lead position during the forecast period. Rapid industrialization and growth of the automotive industry in China, India and other Asian countries are driving the demand for thermoplastic elastomers in Asia Pacific.

Key players: Key players operating in the thermoplastic elastomers market are DowDuPont Inc., Arkema Group, Asahi Kasei Corporation, PolyOne Corporation, Elastron Kimya SA, Kraton Corporation, Evonik Industries, Covestro AG., Lubrizol Corporation, Huntsman Corporation, Tosh Corporation, and Teknor Apex Company

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it