Analysis by Type (SBC, TPU, TPO, COPE, PEBA); by End User (Automotive, Building & Construction, Footwear, Wire & Cable, Medical, Engineering); and by Material (Polystyrenes, Polyurethanes, Polyolefins, Polyesters, Polyether imides, and Polyamides) – Global Supply & Demand Analysis & Opportunity Outlook 2023 – 2033
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The global thermoplastic elastomer market is estimated to garner a revenue of ~USD 34 Billion by the end of 2033 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 25 Billion in the year 2022. The rising and aging world population is estimated to boost market growth during the forecast period. The population of people aged 60 years and older is estimated to double and reach 2.1 billion by 2050 across the world. Growing consumption in various industries including automotive, electrical and electronics, footwear, industrial, medical, and engineering is to drive the global market share in the forecast period. Increasing demand in automotive component manufacturing is expected to be a major factor that will drive the growth of the thermoplastic elastomer market in the future times.
Also, increasing consumer preference for high-performance cars is expected to fuel the growth of the market during the forecast period. Sports car sales in 2022 reached 830K vehicles as per estimations. These factors have led to growing thermoplastic consumption in end-user industries. Thermoplastic elastomers consist of both chemical and physical properties as compared to properties of thermosets, thereby gaining more preference in terms of application benefits. The high replacement rate of TPU and TPO as an alternative to ethylene propylene diene monomer in building materials is expected to drive the global thermoplastic elastomer market in the forecast period. TPEs are eco-friendly thermoplastics that can be reshaped and molded into any shape or size, therefore eliminating the wastage of materials. TPE offers more fuel efficiency in automobiles by lowering the car weight and density by substituting conventional components in and around the vehicle.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~6% |
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Base Year Market Size |
~USD 25 billion |
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Forecast Year Market Size |
~USD 34 billion |
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Regional Scope |
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Growth Drivers
Elevating Preference for Lightweight Vehicles – Lightweight vehicles are in demand owing to reduced fuel consumption. The replacement of cast iron with thermoplastic elastomers decreases the weight of the vehicle thereby increasing the efficiency of engines. The reduction of 10% weight of vehicles is estimated to enhance global fuel economy by 6-8%.
Increasing Automotive Industry – According to studies manufacturing of motor vehicles and parts in North America raised from ~USD 961 million in 2021 to USD 992.3 million in 2022.
High Use of Electronics and Electricals – The exported value of electrical machinery and equipment and parts in 2021 was approximate ~USD 3,594,456,634.
Reduction of Carbon Emission – The annual CO2 emissions raised from 35.45 billion tons in 2016 increased to 36.65 billion tons in 2018.
Rising Thermoplastic Consumption – The exported value of plastics across the world in 2021 was worth USD 799,110,485.
Challenges
The global thermoplastic elastomer market is segmented and analyzed for demand and supply by type into SBC, TPU, TPO, TPV, COPE, and PEBA. The TPV segment is anticipated to hold the largest market share by the end of 2035. This can be attributed to its eco-friendly and easy-to-recycle nature. Ethylene propylene diene monomer or polypropylene thermoplastic vulcanizate are the most similar kind of TPV. As per a report, about 60% of consumers are focusing on using eco-friendly and sustainable purchases globally
The global thermoplastic elastomer market is segmented and analyzed for demand and supply by application into automotive, building & construction, footwear, wire & cable, medical, and engineering. Among these, the automotive segment is projected to have the highest CAGR in the forecast period. Thermoplastic elastomers are utilized in the production of wipers, exterior filler panels, rocker panels, body seals, automotive gaskets, door and window, and vibration-damping pads of automobiles.
Our in-depth analysis of the global thermoplastic elastomer market includes the following segments:
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By Type |
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By End User Industry |
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By Material |
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The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 on the account of increasing the replacement of thermoset rubber with thermoplastic elastomers. A decrease in the rubber industry is been observed since COVID-19 and reducing 25 million metric tons every year. The demand for thermoplastic elastomers widely originated from the construction and automotive industry in the Asia Pacific region. China holds the largest market share of the thermoplastic elastomer market followed by Japan and South Korea in 2021. The Asia Pacific region is also anticipated to show the highest CAGR in the thermoplastic elastomer market in the forecast period. In addition, the manufacturing sector in Asia Pacific will increase the demand for TPE compounds in end-user industries such as automotive, packaging, electrical and electronics, and many others.
North America held a market share of 35% in the year 2021. The North America Region is one of the largest consumers of plastic high in demand in the automotive, electronics & electrical, packaging, and construction industry. Owing to thermoplastic elastomer properties such as versatility, easy molding, and customizable shape formation they are crucial for each and every industry. Many automobile companies look for plastic-made products as they are low in cost and they increase the bottom line as well.
The market in Europe is anticipated to hold significant growth in the forecast period. This can be attributed owing to the great demand of Thermoplastic Elastomer (TPE) in the medical sector. Its growing utilization in the medical devices, equipments, surgical instruments and other medical products are driving growth of market in this region. Also due, to high demand for machine parts and accessories in the European region, the market is expect to grow rapidly in this region.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The increasing automotive industry, high use of electrical and electronics, and reduction of carbon emissions are the major factors driving the growth of the thermoplastic elastomer market
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2033.
Ans: The high cost of materials and lack of experts are some of the major factors estimate to hinder the growth of the market.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Arkema, Huntsman International LLC, Covestro AG, KRAIBURG TPE GmbH & Co. KG, Kent Elastomer Products, ALTANA AG, Tosoh America, Inc., The Lubrizol Corporation, and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, end-user, application, and by region.
Ans: The TPV segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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