Thermoplastic Elastomers Is Estimated To Witness High Growth Owing To Rising Demand from Automotive Industry
The thermoplastic elastomers market is estimated to be valued at US$ 28.8 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Thermoplastic elastomers are a class of copolymers or a physical mix of plastic and rubber, which has both thermoplastic and elastomeric properties. They are replacing conventional thermosets in various applications such as automotive, medical, and construction industry owing to their recyclability. Thermoplastic elastomers find major applications as overmoulds, flexible films, and seals in the automotive industry.
Rising demand from automotive industry: Thermoplastic elastomers are increasingly replacing thermoset rubbers in automotive applications such as hoses, seals, grips, and mudguards owing to their recyclability and superior performance. The growing automotive industry globally is expected to drive the demand for thermoplastic elastomers over the forecast period.
Increasing usage in medical devices: Thermoplastic elastomers are used in the manufacturing of medical devices such as stopcocks, dialyzers, enteral access devices, drug delivery systems etc. owing to their flexibility, elasticity and durability. The rising healthcare spending across various countries is expected increase the demand for medical devices, thereby propelling the growth of thermoplastic elastomers market.
Strength: The thermoplastic elastomers market has witnessed strong growth in demand from various end-use industries such as automotive, consumer goods, medical, and others due to their superior properties over thermoset rubber. It provides flexibility in manufacturing and reduces production time and costs. Thermoplastic elastomers can be recycled without loss of properties which makes them environment friendly.
Weakness: Higher prices of thermoplastic elastomers compared to conventional rubbers limits their use in cost-sensitive applications. Processing technologies required for thermoplastic elastomers are more complex than traditional rubbers.
Opportunity: Growing demand from the automotive industry for advanced, high-performance elastomers to manufacture lightweight vehicles offers significant growth opportunities. Increasing applications in the healthcare industry for medical devices and equipment will drive market expansion.
Threats: Volatility in raw material prices such as petroleum-based feedstock impacts production costs. Stringent environmental regulations in some regions related to volatile emissions during processing pose challenges.
The global thermoplastic elastomers market is expected to witness high growth, exhibiting a CAGR of 6.9% over the forecast period, due to increasing demand from the automotive industry.
Regional analysis: Asia Pacific dominated the global market in 2023 and is expected to maintain its leading position during the forecast period, growing at a CAGR of over 16% between 2023-2030. China, India, Japan, and South Korea are major consumers in the region. North America is another prominent market owing to high demand from the automotive and healthcare industries in the US and Canada.
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. The market is fragmented in nature with top players accounting for around 35-40% of the total market share.