Thermoplastic Elastomer Market (By Application: Automotive, Electrical & Electronics, Industrial, Medical, Consumer Goods; By Material) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030

The global thermoplastic elastomer market size was estimated at around USD 21.45 billion in 2021 and it is projected to hit around USD 40.3 billion by 2030, growing at a CAGR of 7.26% from 2022 to 2030.

Report Highlights

• The automotive segment held the largest revenue share of over 40.02% in 2021.
• Poly styrenes held the largest revenue share of over 35.31% in 2021. 
• North America dominated the market and accounted for a revenue share of over 35.4% in 2021. 

Superior properties of PCTFE and robust growth in end-use industries are some of the key factors that are presumed to drive the regional markets. R&D initiatives to develop superior robust products that have a wide application base across diverse industries offer ample opportunities for industry growth.

Thermoplastic elastomers are unique, eco-friendly thermoplastics that are not only recyclable but can also be re-molded and re-shaped, thereby eliminating wastage quite extensively. These offer various other advantages in terms of physical attributes and characteristics such as resistance to chemicals, UV, oxidation, and providing soft-touch to materials. These properties are increasingly driving rubber and conventional plastic material replacement by TPEs in their respective applications. Several federal bodies such as the FDA and US Pharmacopeia regulate product applications in numerous end-use industries to ensure utmost consumer health and safety. These regulations affirm TPE utilization for commercial applications by providing guidelines for prudent product usage.

Major applications of thermoplastic elastomers include automotive, electrical and electronics, industrial, medical, consumer goods, and others. Automotive dominated the market in 2021 and will continue its lead over the coming years. Prominent thermoplastic elastomer materials include poly styrenes, poly olefins, poly ether imides, poly urethanes, poly esters, poly amides. Poly styrenes led the global market in 2021. Asia Pacific occupied the second-largest revenue share in 2021. Increasing awareness regarding consumer safety and protection in electronics and electrical industries is also expected to drive the global market throughout the forecast period, thereby driving the demand for thermoplastic elastomers in the region.

Scope of The Report

Application Insights

The automotive segment held the largest revenue share of over 40.02% in 2021. TPE usage in automotive applications has increased exponentially as a result of high usage of electronic and electrical devices such as electric motor housings for seating and windows, passenger airbags, safety belt tensioners, and more. Newly developed grades with enhanced hydrolytic stability are also finding applications in under-the-hood components.

Other automotive applications such as connectors, plugs, and housing components that must endure increasingly stressful demands of the industry are also being molded. Polyester resins have benefited from improvements in mold design, a better understanding of flow behavior in molds, increased robotics, and increased computer simulation, which has improved the efficiency and economics of the production of large, molded parts.

The electrical and electronics segment emerged as the second-largest segment in 2021. Manufacturers are utilizing compounds with electrical insulation properties and inherent high heat distortion temperatures for components such as circuit breakers, switches, connectors, and housings in the home appliance market.

The telecommunications and IT sectors have similar uses for these polymers, notably used in mobile phone casings to lower weight and foster miniaturization. Furthermore, developments in injection molding and similar techniques are driving the demand for stronger grades in the sector.

Medical and healthcare expenditure has also risen considerably in recent years, driving the need for faster processing of lightweight and durable medical devices and equipment. The segment is anticipated to grow at an exponential pace, especially in emerging markets such as India, Indonesia, Thailand, Argentina, and Mexico.

Specialized impact-modified compounds find usage across a range of consumer goods that include convenience products, consumer durables, and soft goods. Sales of these goods are highly dependent on the buying habits of the consumer, and hence the latter has a huge impact on TPE production dynamics in the application.

Material Insights

Poly styrenes held the largest revenue share of over 35.31% in 2021. It was the largest consumed material in 2021. Increasing demand for SIS, particularly in China and India, is expected to drive the segment growth over the next eight years.

Increasing consumption in automotive under-the-hood applications and fascia systems is expected to be a major factor driving the global TPE consumption. TPE is gaining prominence in construction applications owing to its thermal and acoustic insulation properties. Growing importance of energy efficiency in buildings and subsequent regulatory policies aimed at zero-energy buildings are expected to drive TPU demand in construction over the next eight years.

Moreover, surge in industrialization across various regions is anticipated to benefit industry growth. Rapid industrialization and subsequent demand from plastics, synthetic lubricants, and other industrial applications have been major drivers for the market over the recent past. Rapid industrialization in the U.S. had been beneficial for industry growth.

Regional Insights

North America dominated the market and accounted for a revenue share of over 35.4% in 2021. The North American region is one of the largest consumers of plastics owing to high demand in the automotive, electrical and electronics, packaging, and construction sectors. TPE and other polymers have many applications in each industry due to their versatile benefits, easy molding, and desired shape formation. Many automobile manufacturers prefer plastic vehicle parts, which helps the companies to achieve low-cost production and increase their bottom line. The region is a slow-growing market owing to saturation of the end-use industries and a relatively lower customer base as compared to Asia Pacific.

Canada is one of the biggest producers of crude oil globally. Declining prices of crude oil and increasing demand for plastic in the region are paving the way for the growth of the plastic market. Polymers and materials such as TPE are produced from various petrochemicals made from crude oil. Manufacturers are increasingly integrating additives into TPE to provide strength, durability, and lightweight when used in any product.

Mexico's automotive industry witnessed a steep jump when major automobile manufacturers such as BMW, Mercedes, and Toyota started their production facilities in the country. The major reasons behind these companies investing in the country include the high availability of raw materials, cheap labor cost, and low-cost production. Mexico is a developing country that has its perks. Most of the products supplied by manufacturers in the country are cheap, which increases their competitiveness at the global level. Cheap products also result in a broad application base due to growing demand in the local market and increasing exports.

Asia Pacific occupied the second-largest revenue share in 2021. China, India, and Southeast Asia are expected to be the primary growth markets in Asia Pacific. The growing manufacturing sector shall drive the demand for TPE compounds in the automotive, industrial machinery, packaging, and electrical and electronics industries.

Europe is anticipated to remain an important market in the years to come. Though the regional growth is likely to be restrained due to various macro-environmental factors such as debt crisis, rising unemployment, and stalled industrial output, an optimistic scenario across Eastern Europe for manufacturing and consumerism shall boost its growth. The region is characterized by stringent environmental regulations from agencies such as ECHA, the European Commission, and various federal level agencies.

Other emerging economies such as Central and South America (CSA) and the Middle East and Africa (MEA) are also growing at high rates similar to Asia Pacific. These regions benefit from expanding end-use industries and relatively low penetration of thermoplastic compounds as compared to other regions.

TPE used in the medical sector is expected to remain important on account of its increasing usage in several medical devices, equipment, surgical instruments, and other medical products. Industrial machinery is anticipated to be the fastest-growing application segment in Europe due to the widening of scope in machine parts and accessories.

The MEA region is the world leader in crude oil production. Many major countries in the MEA region such as Kuwait, Saudi Arabia, Oman, Bahrain, Iraq, Libya, Angola, and Iran are dependent on the oil business. All the OPEC countries are located in the MEA region, excluding Venezuela and Ecuador. The OPEC region was once formed to formulate the global oil supply and maintain the global demand-supply chain and oil prices. The MEA region witnessed a significant demand for TPE products in 2016 and is expected to grow during the forecast period owing to massive oil production in the region.

Key Players

• Advanced Elastomer Systems L.P.
• Arkema S.A.
• BASF SE
• Bayer MaterialScience LLC
• China Petroleum & Chemical Corporation
• Dynasol Elastomers LLC
• EMS Group
• Evonik Industries
• Huntsman Corporation
• Kraton Polymers LLC
• LG Chemicals
• LCY Chemical Corporation
• Lubrizol Corporation
• LyondellBasell Industries
• Nippon Polyurethane Industry Company Ltd.
• Avient Corporation
• Teknor APEX Company
• The Dow Chemical Company
• TSRC Corporation
• Yantai Wanhua Polyurethane Co. Ltd.

Market Segmentation

• By Application Outlook

• Automotive
• Electrical & Electronics
• Industrial
• Medical
• Consumer Goods
• Others
• By Material Outlook
• Poly Styrenes
• Poly Olefins
• Poly Ether Imides
• Poly Urethanes
• Poly Esters
• Poly Amides
• By Regional Outlook
• North America

• U.S.
• Canada
• Mexico
• Europe
• Germany
• France
• U.K.
• Italy
• Asia Pacific
• China
• India
• Japan
• Central & South America
• Brazil
• Middle East & Africa
• Saudi Arabia