Thermoplastic elastomer market forecast at $38.8 billion by 2032

Pune, India – The market for thermoplastic elastomers (TPEs) is expected to reach US$ 38.8 billion by the end of 2032, from an anticipated US$ 21 billion in 2022. Over the next 10 years, global demand for thermoplastic elastomers is expected to rise at a CAGR of 6.3% according to Fact.MR.

The demand for lightweight and flexible materials in various end-use sectors such as automotive, construction, and medical is likely to drive the thermoplastic elastomers (TPE) market. Thermoplastic elastomers include features such as wear resistance, scratch resistance, a smooth finish, foldability, and heat stability, making them an excellent choice for a wide range of applications across industries.

A growing emphasis on sustainability is expected to drive demand for bio-based thermoplastic elastomers in the future. Other factors that could potentially boost market potential in the future include rising demand for electric vehicles, rapid industrialization, increasing demand for lightweight automotive components, surging construction activities around the world, and regulatory norms aimed at reducing carbon emissions.

The production of TPEs is a more capital-intensive process than its other alternatives such as polyurethane and PVC, which makes the end product an expensive one and thus, hampers sales of thermoplastic elastomers. Fluctuations in raw material pricing are also a major constraint for the overall market development going forward.

A robust manufacturing and industrial infrastructure in China makes it a highly lucrative market for thermoplastic elastomers and makes it the largest market in the Asia Pacific region. Robust manufacturing activity, increasing automotive production, and supportive government initiatives are some other factors that favour market potential in China. The market for thermoplastic elastomers in China is predicted to race ahead at a CAGR of 8% and accumulate a sales revenue of US$ 5.9 billion by the end of 2032. Polyester ether elastomers (COEPs), polyether block amide elastomers (PEBAs), thermoplastic polyurethane elastomers, and thermoplastic polyester elastomers are expected to witness noteworthy increase in demand in China over the coming years.