Global Polyolefin Elastomers Market 2024-2031

Global Polyolefin Elastomers Market 2024-2031

Polyolefin Elastomers Market Size, Share & Trends Analysis Report by Type (Polyethylene, Polypropylene, and Ethylene Propylene diene monomer), by Manufacturing Methods (Solution Polymerization, Suspension Polymerization, Gas-Phase Polymerization, Slurry Polymerization, and Bulk Polymerization), by Application (Vehicle (Interior/Exterior), Films & Sheets, Wires & Cables, Roofing & Flooring, Syringe, and Other), and by (Automotive Industry, Packaging Industry, Construction Industry, Electrical & Electronics Industry, Healthcare & Medical Industry, and Others) Forecast Period (2024-2031)

Polyolefin elastomers market is anticipated to grow at a CAGR of 7.7% during the forecast period (2024-2031). The global polyolefin elastomers (POE) market is expected to grow owing to the demand for sustainable, high-performance materials in various industries. POEs are used in consumer goods, electronics, and healthcare owing to their flexibility, electrical properties, and biocompatibility.

Market Dynamics

Growing Automotive Industry

There are numerous new possibilities for POE applications in automobiles. The growing demand for lightweight materials to reduce emissions and improve fuel efficiency has led to a boom in the use of polyolefin elastomers in the automobile industry. According to the ACEA - European Automobile Manufacturers' Association, in May 2023 the global production of motor vehicles increased by 5.7% in 2022, with a total of 85.4 million vehicles being manufactured globally.

The growing automotive industry globally has promoted manufacturers to introduce advanced polyolefin elastomers to meet the demand of the automotive industry. For instance, in March 2024, Dow developed a POE-based artificial leather solution for the automotive industry, offering ultra-soft, color-stable, good aging, and low-temperature resistance. The solution is commercialized by HIUV Materials Technology and qualified by an electric car manufacturer. It also has low VOC and odor and is 25.0% to 40.0% lighter than PVC leather.

Market Segmentation

Based on type, the market is segmented into polyethylene, polypropylene, and ethylene propylene diene monomer.

Based on manufacturing methods, the market is segmented into solution polymerization, suspension polymerization, gas-phase polymerization, slurry polymerization, and bulk polymerization.

Based on application, the market is segmented into the printing industry, packaging industry, automotive industry, electronics, medical devices, and others (consumer goods).

Based on application, the market is segmented into the automotive industry, packaging industry, construction industry, electrical & electronics industry, healthcare & medical industry, and others (consumer goods industry, and agriculture industry).

Polyethylene is Projected to Emerge as the Largest Segment

The rise in complex environmental regulations is prompting manufacturers to adopt sustainable materials, especially renewable polyolefin elastomers, to meet the growing demand for eco-friendly alternatives. For instance, in May 2023, Borealis introduced a new line of polyolefin plastomers and elastomers based on renewable feedstock, aiming to provide high-quality, environmentally friendly packaging solutions.

Regional Outlook

The global polyolefin elastomers market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Increased Plastic Production In North America Region

Increased production of plastics can arise from manufacturing trends, the economic recovery, or rising consumer demand, prompting the import of increased machinery. According to the Plastics Industry Association, in January 2024, the US imported plastics machinery worth $1.8 billion, experiencing a decrease of 4.4% compared to the previous year. The projected import values for October and November are $129.4 million and $150.1 million, respectively. This data provides a key indicator for understanding the state of plastics manufacturing, as an upsurge in plastics machinery imports typically signifies robust plastic conversion. The reduced imports of plastics equipment this year align with the decline in plastics product manufacturing, and the possibility of an uptick in plastics equipment imports in 2024 depends on increased plastics production and a limited inventory of plastics equipment.

Asia-Pacific Holds Major Market Share

The high demand for POE across the region has made a significant contribution to the high share of the regional market. The demand for POEs is increased by investments in electric vehicle (EV) infrastructure, and development and diversification opportunities are generated by the global expansion of EVs and cooperated organizations. According to the Indian Brand Equity Foundation (IBEF), in March 2024, the EV market is projected to grow by 5 times to $1.3 trillion by 2028. India has achieved a significant milestone with the sale of 1.3 million EVs in FY24. The EV market is expected to reach $7.1 billion by 2025, with a potential $206.0 billion opportunity in India by 2030, requiring $180.0 billion investment in manufacturing and charging infrastructure.

Market Players Outlook

The major companies serving the polyolefin elastomers market include Borealis AG, Dow Chemical Co., Exxon Mobil Corp., LG Chem, Ltd., and Mitsui Chemicals, Inc. among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. For instance, in January 2023, SUMIKA and HEXAGON collaborated to reduce plastic carbon emissions by 60.0% for new vehicles by digitizing sustainable automotive-grade polypropylene compounds. This allows for more recyclable components and a lower carbon footprint.