Automotive Elastomers Market Outlook:
Automotive Elastomers Market size was over USD 35.66 billion in 2024 and is projected to reach USD 59.77 billion by 2034, growing at around 5.3% CAGR during the forecast period i.e., between 2025-2034. In the year 2025, the industry size of automotive elastomers is evaluated at USD 37.27 billion.
Key Automotive Elastomers Market Insights Summary:
The automotive elastomers market in the Asia Pacific region is projected to generate the highest revenue share by 2034.
The tire segment is forecasted to hold a leading position in market share by the end of 2034.
Key Growth Trends:
- Rising Adoption of Lightweight Materials for Vehicles
- Increase in the Production of Motor Vehicles Globally
Key Players:
- Huntsman International LLC, The Dow Chemical Company, LANXESS, BASF SE, Exxon Mobil Corporation, E. I. du Pont de Nemours and Company, Motherson Automotive Elastomer Technology, Covestro AG, Kuraray Elastomer Division, Continental AG.
Market Size and Growth Projections:
- 2024 Market Size: USD 35.66 billion
- 2025 Market Size: USD 37.27 billion
- Projected Market Size: USD 59.77 billion by 2034
- Growth Forecasts: 5.3% CAGR (2025-2034)
- Largest Region: Asia Pacific
- Fastest Growing Region: Asia Pacific
The market growth can be ascribed to rapidly growing and expanding automobile industry, increasing manufacturers of automotive elastomers, and rising preference for light weight vehicles. For instance, from April 2021 to March 2022, automobile manufacturers produced nearly 22,930,200 units, including cars, trucks, three-wheelers, and quadricycles. That's an increase of 22,600,600 units since April 2020.
Furthermore, increased demand and adoption of fuel-efficient vehicles, the ongoing trend of electrification of the vehicle along with increasing disposable income is anticipated to be the dynamic factor behind the automotive elastomers market growth. Based on Bureau of Economic Analysis data, personal income increased by USD 47.0 billion (0.2%) and disposable personal income (DPI) rose by USD 37.6 billion (0.2%) in July 2022.
Automotive Elastomers Market Growth Drivers and Challenges:
Growth Drivers
- Rising Adoption of Lightweight Materials for Vehicles - By 2030, 25% of U.S. vehicles are expected to reduce fuel consumption by using lightweight components and high-performance engines enabled by advanced materials, saving more than 5 billion gallons of fuel annually.
- Modern automobiles require advanced materials to maximize fuel efficiency while maintaining safety and performance. Lightweight materials have the potential to increase vehicle efficiency. A 10% reduction in vehicle weight can improve fuel economy by 5%-7%. In the automotive field, thermoplastic elastomers and high-performance fiber composite materials have become key materials for lightweight design. These factors are estimated to propel the demand for automotive elastomers over the forecast period.
- Increase in the Production of Motor Vehicles Globally - According to data from the International Organization of Motor Vehicle Manufacturers (OICA), the global production of motor vehicles rose from 583,74,162 vehicles in 2000 to 917,86,861 vehicles in 2019.
- Growing Demand for Autonomous Vehicles and Autopilot Technology - For instance, industry analysts project an annual growth rate of 15% for self-driving vehicles. As many as 65% of all Chinese passenger vehicles will be automated by 2040. Also, 34% of Americans say self-driving vehicles are safer than traditional vehicles.
- Luxury Car Sales Increased Worldwide – It was observed that in the period January-May 2022, 16,500 luxury vehicles were sold in India, a 53% increase from 10,500 units sold in the previous year.
- Increasing Investment and Development in Electric Vehicles - For instance, a line-up of five electric vehicles will be produced by Mahindra & Mahindra in the next five years with an investment of USD 1 billion. With a goal to sell 2 lakh electric vehicles by FY-2027, they are taking a new approach to electric vehicles.
Challenges
- High Cost of the Elastomer
- Fluctuating Price of Raw Material for Thermoplastic Elastomers The changing price of raw materials that are made from petrol is estimated to restrain the market growth. Also, the change in the import and export cost has a great impact on the market prices. The shortage of raw materials and shipping delays can lead to a rise in prices.
- Strict Government Regulations
Automotive Elastomers Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2034 |
|
CAGR |
5.3% |
|
Base Year Market Size (2024) |
USD 35.66 billion |
|
Forecast Year Market Size (2034) |
USD 59.77 billion |
|
Regional Scope |
|
Automotive Elastomers Market Segmentation:
Application Segment Analysis
The tire segment is anticipated to dominate the automotive elastomers market share by 2034, due to rapid manufacturing of high-end vehicles and the increasing production volume of tires worldwide. It was observed that approximately 168 million tires were produced in India in 2021. A large portion of this volume was comprised of tires manufactured for trucks, buses, two-wheelers, three-wheelers, passenger cars, and light commercial vehicles. In order to improve vehicle performance, elastomers are used in the manufacture of tires. There are several intermediates that contribute to the chemical system in tire rubber which gives it the ability to seal reliably, be flexible, and be durable.
Our in-depth analysis of the global market includes the following segments:
|
By Type |
|
|
By Application |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Automotive Elastomers Market Regional Analysis:
Asia Pacific Market Insights
The Asia Pacific region automotive elastomers market is expected to account for largest revenue share by the end of 2034. The increasing auto components industry in the region. For instance, in March 2022, the automobile component industry had a turnover of USD 56 billion, an increase of 22% over the previous year. To a total of USD 18 billion, exports of auto components increased by 42% in FY22. Moreover, the rapid growth of the automotive industry, the largest vehicle production in emerging economies such as India and China, and the affordability of raw materials and labor are expected to drive the regional market over the forecast period.
Key Automotive Elastomers Market Players:
- ·Huntsman International LLC
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- The Dow Chemical Company
- LANXESS
- BASF SE
- Exxon Mobil Corporation
- E. I. du Pont de Nemours and Company
- Motherson Automotive Elastomer Technology
Covestro AG - Kuraray Elastomer Division
- Continental AG
Recent Developments
-
Continental AG has strengthened its position in China as one of the top tire original equipment manufacturers. For the first half of 2022, Continental tires were ranked first in terms of OE fitments by "China Tire Dealer"
-
Huntsman International LLC has announced the acquisition of Gabriel Performance Products from Audax Private Equity funds, a manufacturer of specialty additives and epoxy curing agents for coatings, adhesives, sealants, and composites in North America.
- Report ID: 311
- Published Date: Jun 13, 2025
- Report Format: PDF, PPT
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