Global Thermoplastic Elastomers Market Is Estimated To Witness High Growth Owing To Increasing Demand from Automotive and Consumer Goods Industries

The global Thermoplastic Elastomers Market is estimated to be valued at US$ 25.2 Bn in 2021 and is expected to exhibit a CAGR of 6.9% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.

1. A) Market Overview:

Thermoplastic elastomers are a class of materials that combine the characteristics of thermoplastics and elastomers. They exhibit the ability to stretch and return to their original shape like elastomers, while also being easily processable and recyclable like thermoplastics. These materials find extensive applications in various industries such as automotive, consumer goods, medical, and others.

In the automotive industry, thermoplastic elastomers are used for manufacturing weather seals, gaskets, and interior and exterior components due to their durability, weather resistance, and cost-effectiveness. In the consumer goods industry, they are used for the production of soft touch grips, footwear, and sports equipment. Furthermore, the increasing focus on sustainability and environmental friendliness is driving the demand for recyclable thermoplastic elastomers.

1. B) Market Dynamics:

The global Thermoplastic Elastomers Market is driven by two main factors.

1. Growing Demand from the Automotive Industry: The automotive industry is a major consumer of thermoplastic elastomers. With the increasing demand for lightweight, fuel-efficient vehicles, the use of thermoplastic elastomers in automotive components has gained significant traction. These materials offer weight reduction, improved fuel efficiency, and enhanced performance, thereby driving their adoption in the industry. For example, thermoplastic elastomers are used in automotive weatherseals, such as door seals and window seals, to provide superior sealing properties and eliminate noise and vibration.

2. Increasing Demand from the Consumer Goods Industry: The consumer goods industry is another key driver of the thermoplastic elastomers market. The rising demand for soft touch grips, comfortable footwear, and sports equipment has led to the increased utilization of thermoplastic elastomers in the production of these products. These materials provide excellent softness, flexibility, and grip, enhancing the overall user experience. Additionally, the recyclability of thermoplastic elastomers aligns with the growing consumer preference for sustainable and eco-friendly products.

1. C) SWOT Analysis:

Strength:

1. Versatility: Thermoplastic elastomers offer a wide range of physical and chemical properties, making them suitable for various applications across industries.
2. Cost-effectiveness: These materials provide a cost-effective alternative to traditional elastomers, offering similar performance at a lower price point.

Weakness:

1. Limited High-Temperature Resistance: Thermoplastic elastomers have lower heat resistance compared to other materials, limiting their use in high-temperature applications.
2. Processing Challenges: Some thermoplastic elastomers require specialized processing techniques, which can be complex and expensive.

Opportunity:

1. Growing Adoption in the Healthcare Sector: The healthcare industry presents significant opportunities for thermoplastic elastomers, particularly in medical device manufacturing, due to their biocompatibility and chemical resistance.
2. Increasing Focus on Sustainability: The growing awareness and demand for sustainable materials provide an opportunity for thermoplastic elastomers, as they are recyclable and offer reduced environmental impact compared to other polymers.

Threats:

1. Competition from Thermoset Elastomers: Thermoset elastomers, such as natural rubber and synthetic rubber, pose a threat to the thermoplastic elastomers market, especially in applications requiring higher heat resistance and durability.
2. Volatility in Raw Material Prices: The fluctuating prices of raw materials used in thermoplastic elastomers production, such as polyolefins and styrenics, can impact the profitability of manufacturers.

1. D) Key Takeaways:

– The global thermoplastic elastomers market is expected to witness high growth, exhibiting a CAGR of 6.9% over the forecast period, due to increasing demand from the automotive and consumer goods industries.

– Asia Pacific is expected to be the fastest-growing and dominating region in the global market, driven by the significant growth of the automotive and consumer goods sectors.