Global thermoplastic elastomers market forecast at $35.3 billion by 2028
Chicago, IL – The Global Thermoplastic Elastomers Market size is estimated to be USD 26.9 billion in 2023 and is projected to reach USD 35.3 billion in terms of value by 2028, at a CAGR of 5.6% between 2023 and 2028, as per the recent study by MarketsandMarkets™. The recovery of automotive sector across the world is driving the thermoplastic elastomers market during the forecast period.
Thermoplastic elastomers are a class of polymers having properties of both thermoplastics and elastomers. They are obtained by linking thermoplastics with elastomeric rubbers. Thermoplastic elastomers provide advantages of both plastics and rubber, and hence the new form created by their combination is adaptable in many applications. The high impact and tear strength of thermoplastic elastomers have increased their demand in the automotive and building & construction industries. Thermoplastic elastomers are recyclable, environment-friendly, and safe to use in medical and food packaging applications.
The TPE market is segmented on the basis of application as automotive, building & construction, footwear, wire & cables, medical, engineering, and others. In automotive sector, TPE is used in exterior filler for panels, wipers, rocker panels, body seals, automotive gaskets, door & window handles, other under-the-hood applications. In building & construction, TPE is mainly used as roofing membrane, bitumen modification, roofing membranes, weather-stripping, waterproofing, carpeting, wall coverings, window & weather seals.
Based on end-use industry type the automotive application accounted for 34.6% share of the overall TPE market in 2022, in terms of volume. Automotive is the largest end-use industry of TPE. In traditional internal combustion engine vehicles, automakers are increasingly focused on reducing weight to improve fuel efficiency and reduce emissions. TPEs are lightweight materials that can replace heavier components traditionally made from metal or other materials, contributing to these weight reduction efforts. Moreover, TPEs are commonly used for weather seals, gaskets, and other components that help ensure the integrity and performance of an automobile. With the increasing complexity of vehicle designs and the need for better sealing, TPEs play a crucial role in enhancing the overall quality of vehicles.
The widely used TPE in the automotive industry are thermoplastic vulcanizates (TPV), thermoplastic polyolefin (TPO), thermoplastic polyurethane (TPU), and SEBS. TPEs are now widely used in airbag doors, door seals, wiring, cable, and air ducts. In India, the Ministry of Road Transport and Highways (MoRTH) made dual airbags compulsory in all types of vehicles produced in the country from April 1, 2020. Thus, the demand for TPE is further propelled in India.
Based on product type, Thermoplastic Polyolefins is projected to register the highest CAGR during the forecast period. TPOs have gained considerable traction in the automotive sector due to their ability to replace traditional materials like rubber, thermosetting plastics, and metal. They are used in various automotive parts, including bumper fascias, interior trim, and weather seals. With the increasing emphasis on lightweight materials for improved fuel efficiency in vehicles, TPOs have become an attractive choice.
TPO is widely used in both exterior and interior applications as a replacement for more traditional materials, such as metal and engineering thermoplastics, such as acrylonitrile butadiene styrene (ABS) and polycarbonate (PC)/ABS in the automotive industry. They are used for applications such as bumper fascia, side & front body panels, interior door panels, interior roof pillar moldings, knee bolsters, and instrument panel components.
Based on region, Asia Pacific is expected to lead the thermoplastic elastomers market in 2023, with India the fastest market in the region during the forecast period recording a CAGR of 6.6% from 2023 to 2028 in terms of value. The region’s rapid industrialization and urbanization have led to increased requirements for versatile materials in both industrial and consumer product applications. TPEs’ adaptability is particularly appealing as they are used in diverse industries, including automotive, consumer electronics, construction, and healthcare. The automotive sector’s growth, the demand for cost-effective manufacturing, the drive for innovation, and a focus on sustainability align well with the properties of TPEs.