Thermoplastic Elastomers Market is Estimated to Witness High Growth Owing to Increased Demand from Automotive Industry

Thermoplastic elastomers (TPEs) are a class of polymers which are sensitive to heat. They can be reheated and reshaped after solidifying. Some major advantages of TPEs include easy processability, excellent elasticity, resistance to low temperatures and weathering, and attractive appearance. They are widely used in the automotive industry to manufacture parts requiring flexibility and elasticity such as seals, hoses, gaskets, and bumpers.

The global thermoplastic elastomers market is estimated to be valued at US$ 28.8 Bn in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The increasing demand from the automotive industry is expected to drive growth of the thermoplastic elastomers market during the forecast period. TPEs find major application in manufacturing automotive components owing to their superior properties such as elasticity, strength and aesthetics. Moreover, use of TPEs helps reduce weight of vehicles, thereby improving fuel efficiency. With growing global automotive production and focus on lightweight vehicles, the demand for thermoplastic elastomers from the automotive industry is estimated to significantly rise during 2023-2030, presenting lucrative opportunities for players in the thermoplastic elastomers market.

Porter’s Analysis
Threat of new entrants: New entrants face high costs of production plants and R&D to develop new applications and products.

Bargaining power of suppliers: Due to dominance of a few large players, suppliers have moderate bargaining power over pricing and contracts.

Bargaining power of buyers: Numerous buyers, usage in various end use industries, and availability of substitutes provide moderate bargaining power to buyers.

Threat of new substitutes: Potential threat from substitutes like flexible plastics and engineered rubbers remains as substitutes offer comparable properties at lower costs.

Competitive rivalry: Intense competition among key players to expand product portfolios and gain larger shares through innovation and partnerships.

SWOT Analysis
Strengths: Thermoplastic elastomers offer attributes of both thermoplastics and thermosets. They process like plastics for recyclability and replace traditional rubbers in various applications.
Weaknesses: High initial investments and R&D costs. Vulnerable to fluctuations in raw material prices.
Opportunities: Growing applications in automotive, construction, footwear, and medical industries.Increasing demand for TPEs in 3D printing filaments and composites.
Threats: Stringent environmental regulations around plastic waste. Shift towards sustainability and biodegradable/recycled materials.

Key Takeaways
Global Thermoplastic Elastomers Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The market size for 2023 is US$ 28.8 Bn and is projected to reach over US$ 52 Bn by 2030, growing at a CAGR of 7.0%.

Regional analysis indicates Asia Pacific as the largest and fastest growing regional market owing to high consumption in China, India and other developing nations. Countries like India and China are witnessing growth in automotive and construction industries driving demand for thermoplastic elastomers.

Key players operating in the Thermoplastic Elastomers market are Graebel Companies, SIRVA, Relocation Management Company (RMC), Crown Worldwide, Santa Fe Group, FIDI Global Alliance, MSI Global Talent Solutions, Cartus, Atlas Van Lines, Allied Van Lines, NorthAmerican Van Lines, Arpin Van Lines, Wheaton World Wide Moving, United Van Lines, Mayflower Transit, Bekins, Beltmann Relocation Group, Corrigan Moving Systems, Clark & Reid, and Eclipse Relocation. Graebel Companies holds the largest market share being one of the largest international relocation management companies. SIRVA has a strong presence across Asia and Europe. The key players focus on expanding product portfolios and geographical presence through mergers and acquisitions.

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