Middle-East and Africa Thermoplastic Elastomer (TPE) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Middle-East and Africa Thermoplastic Elastomer (TPE) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Middle-East and Africa thermoplastic elastomer market is estimated to witness a healthy growth, at an estimated CAGR of over 5.5%, over the forecast period. The major factors driving the growth of the market studied are extensive demand from the automotive industry and advancement in processing industry.

Key Highlights

• Growing demand for bio-based thermoplastic elastomers are likely to create opportunities for the market in the coming years.
• Market saturation in applications are expected to hinder the market demand in the future.
• Saudi Arabia is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.

Key Market TrendsIncreasing Usage in the Automotive and Transportation Applications

• Thermoplastic elastomers (TPE) are high-performance materials, whose application in the automotive industry is rapidly increasing. TPE serve the automotive industry in a myriad of applications, some of which include the manufacturing of high-quality automotive instrument panels, wheel covers, dashboard components, pillar trims, door liners and handles, seat backs, and seat belt components, among others.
• The automotive industry places particularly high requirements on the materials used. Under extreme stresses, the materials must be dimensionally stable and must not warp, even when faced with great temperature variations.
• TPEs are special types of plastic, which are not only cheaper than metals but also help to make automobiles more energy-efficient by reducing the weight, in addition to providing durability, corrosion resistance, toughness, design flexibility, resiliency, and high performance at low cost. The light weight of TPE enables more fuel-efficient vehicles. Every 10% reduction in vehicle weight is estimated to result in a 5-7% reduction in fuel usage.
• Growing demand for lightweight and high-performance plastics in the automotive industry, to provide increased efficiency and design flexibility, is primarily responsible for the growth of the TPE market. High-performance thermoplastic elastomers offer manufacturers advantages of design and the comparable strength of steel, which help in reducing the weight and controlling greenhouse gas emissions.
• All the aforementioned factors, in turn, are expected to drive the demand for thermoplastic elastomer during the forecast period.

Saudi Arabia to Dominate the Market

• The market openness and investment opportunities were limited in Saudi Arabia, when compared with other emerging economies. However, the government, in its 10th development plan, is reforming its economic strategies, with investments in diversified sectors, and trying to attract private investments into the country, in order to make it a diversified economy that is not dependent on oil.
• The country has generated large-scale projects worth USD 800 billion, to boost its infrastructure in the coming years. The government has expansive plans for the development of social infrastructure, transportation, and energy and utility construction in the country. The country’s primary growth in construction has been largely powered by the massive investments done by the government, and an increased inflow of FDI.
• The other major end-user industry is automotive. Saudi is focusing on establishing itself as the new automotive hub in the Middle East. Although the country is a large importer of vehicles and auto parts, it is now trying to attract original equipment manufacturers (OEMs) to open their production plants in the country, to develop the domestic auto industry.
• Moreover, the country is experiencing a steady growth in new car sales in the market, which is expected to reach one million units by 2020, growing at a rate of 6.7% per annum. According to the General Authority for Statistics, the automotive industry is expected to witness a growth rate of around 4-5% annually, over the next decade.
• Owing to the aforementioned factors, the market for thermoplastic elastomer in the country is expected to witness huge demand in the coming years.

Competitive Landscape

The Middle-East and Africa thermoplastic elastomer market is consolidated in nature. The key players in the market include DuPont, BASF SE, Covestro AG, and LCY GROUP, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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