Global Thermoplastic Elastomer Market - 2024-2031

Global Thermoplastic Elastomer Market - 2024-2031

Global Thermoplastic Elastomer Market reached US$ 26.5 Billion in 2023 and is expected to reach US$ 40.7 Billion by 2031, growing with a CAGR of 5.5% during the forecast period 2024-2031.

Ongoing research to aggressively reduce weight of hybrid and electric vehicles will have a major impact on the demand for thermoplastic elastomers (TPEs). Some thermoplastic elastomers offer higher impact resistance for nearly 20 to 30% less weight as compared to other conventional plastic compounds. TPEs are likely to finder mainstream applications within the automotive industry over the next few years.

Difficulties in raising production capacity is likely to become a major factor in hindering global market growth. Given the high capital costs involved, only a few major players have made substantial investments in raising production. As long as global production remains below optimum levels, prices will remain high and will restrict TPE adoption.

Dynamics

Increasing Shift Towards Recycling TPE Materials

With concerns about environmental pollution and sustainability becoming increasingly common among plastic producers, there has been a major effort among plastic producers towards using recycled feedstock for TPE production. Some manufacturers like Lubrizol Corporation and BASF SE have developed a range of recycled TPE materials for footwear and automotive industries.

In January 2024, Teknor Apex debuted a new thermoplastic elastomer compound, branded as Monoprene, which is composed of 35% recycled content. Earlier, in October 2023, Celanese Corporation, a major producer of plastic materials, had announced that it was completely shifting toward sthe production of recycled TPEs for industrial applications.

Development of PVC Alternatives for Medical Applications

The medical equipment is currently exploring the possibility of expanding applications for TPE as a more bio-compatible alternative to latex and PVC. Gaskets and stoppers for medical masks and tubing make use of TPE. However, over the past decade, there has been growing research into the usage of TPEs for medical equipment used for blood and organ contact.

In June 2023, Teknor Apex, a plastics manufacturer, announced that it had developed a new thermoplastic elastomer compound that can be used as a substitute for silicone in medical implants. Similarly, in December 2023, Elasto Sweden, a manufacturer of specialized plastic compounds inaugurated a new production line for medical grade TPE.

Higher Cost of Thermoplastic Elastomers Over Conventional Materials

The manufacturing process for thermoplastic elastomers is relatively more complex than other conventional materials like PE, PU, PVC and rubbers. Manufacturers generally have to establish an independent production line which entails significant capital investment in new machinery and workforce training. As a result, the production costs of thermoplastic elastomers are generally higher than other conventional materials.

Manufacturers tend to pass on these higher production costs on their customers, which becomes detrimental for market growth. Due to their higher costs, most end-users restrict TPE usage in a few, niche, high-value segments. Until total production capacity is increased, it will be impossible to expand the usage of thermoplastic elastomers for new applications.

Segment Analysis

The global thermoplastic elastomer market is segmented based on type, application and region.

The Footwear Industry Will Have the Fastest Growth During the Forecast Period

The footwear industry is currently trending towards more lightweight and durable materials, given the increasing popularity of fast-casual lifestyle. Another factor behind the demand growth is the entry of new startups which are disrupting an industry completely dominated by large, multinational brands. New entrants are increasingly utilizing thermoplastic elastomers to market a more eco-friendly brand image. The marketing campaigns of such brands are also stressing on the recyclability of their products.

To fend off increasing competition, established brands are also launching their own line of eco-friendly footwear that make extensive usage of thermoplastic elastomers. Although it current accounts for a smaller share of the overall industry, sustainable footwear will become a major theme of the market in the coming years.

Geographical Penetration

Asia-Pacific Will Experience Difficult Market Conditions in the Short Term

Following the global trade liberalization of the late 1990s and early 2000s, many footwear manufacturers shifted production entirely to Asia-Pacific, with countries like Bangladesh, China, Vietnam, India and Cambodia capturing the most sizeable chunk of business. Low labor and feedstock costs are the two main factors behind the growth of the local footwear industry.

In recent years, instead of simply undertaking contract manufacturing for multinational brands, many footwear manufacturers have ventured into launching their own brands. Having mastery of the supply chain has allowed these startups to significantly undercut established brands on pricing and grab a major chunk of the market share. As newer local brands emerge, it will further augment the demand for TPEs during the forecast period.

COVID-19 Impact Analysis

The pandemic represented a tough phase for the global thermoplastic elastomers market. Demand from major sectors like automotive, footwear, building and construction came to a virtual halt due to lockdowns and other restrictions. A major crash in global oil prices created an opportunity for many petrochemical manufacturers to load up feedstocks at rock bottom prices.

With restrictions completely lifted, demands from most sectors returned to normalcy. However, market volatility due to the Russia-Ukraine war led to slower-than-expected demand recovery for most sectors. In the long-term, the pandemic and the war in Ukraine will not have a major impact on the growth trajectory of the global market.

Russia-Ukraine War Impact Analysis

The main impact of the war on the global markets was high volatility in energy prices. A sudden spike in crude oil prices in the immediate months following the start of the war led to an increase in feedstock prices for petrochemical producers. As a result, end-users had to temporarily contend with increased input costs.

Russian was mainly dependent on western imports of specific grades of thermoplastic elastomers, which ceased once tough economic sanctions went into effect. Therefore, the Russian government has instituted a program to step up domestic production of these elastomers. Russian traders are also sourcing stock from Chinese manufacturers to make up for domestic shortfalls.

By Type
• Styrene Block Copolymer (SBC)
• Thermoplastic Polyurethane (TPU)
• Thermoplastic Polyolefin (TPO)
• Thermoplastic Vulcanizate (TPV)
• Polyester Ether Elastomer (COPE)
• Polyether Block Amide (PEBA)

By Application
• Automotive
• Building & Construction
• Footwear
• Wire & Cable
• Medical
• Industrial Engineering
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In April 2024, Eastman Chemical Company and Lubrizol Corporation signed a partnership agreement to improve the adhesion strength of TPE for molding applications.
• In February 2024, Kraiburg TPE, a German manufacturer of thermoplastic elastomers, launched a new series of compounds for the automotive industry containing nearly 73% recycled content.
• In December 2023, Geon Performance Solutions LLC, a U.S.-based manufacturer of high-performance plastics, announced its entry into TPE production by acquiring PolymaxTPE, a local company having operations in U.S. and China.

Competitive Landscape

The major global players in the market include Arkema S.A., Asahi Kasei Corporation, BASF SE, Dow, Huntsman International LLC, The Lubrizol Corporation, Kraton Corporation, Evonik Industries AG, SIBUR Holding PJSC and Teknor Apex.

Why Purchase the Report?
• To visualize the global thermoplastic elastomer market segmentation based on type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of thermoplastic elastomer market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global thermoplastic elastomer market report would provide approximately 53 tables, 49 figures and 185 Pages.

Target Audience 2024
• Footwear Manufacturers
• Medical Equipment Manufacturers
• Automotive Manufacturers
• Petrochemical Companies
• Industry Investors/Investment Bankers
• Research Professionals