Global Thermoplastic Elastomers Market Is Estimated To Witness High Growth Owing To Increasing Demand From Automotive and Footwear Industries

The global Thermoplastic Elastomers Market is estimated to be valued at US$25.2 billion in 2021 and is expected to exhibit a CAGR of 6.9% over the forecast period 2022-2030.

A) Market Overview:

Thermoplastic elastomers are versatile materials that have both the properties of rubber and plastic. These materials offer superior elasticity, flexibility, and recyclability, making them ideal for various applications in industries such as automotive, footwear, consumer goods, and medical. Thermoplastic elastomers find extensive use in automotive components, gaskets, seals, adhesives, and coatings. In the footwear industry, they are used for manufacturing shoe soles, straps, and comfort padding. The growing demand from these industries is driving the growth of the global thermoplastic elastomers market.

B) Market Dynamics:

The global thermoplastic elastomers market is driven by multiple factors. Firstly, the increasing demand from the automotive industry is fueling market growth. Thermoplastic elastomers are used in automotive components such as bumper fascia, door panels, interior trims, and weather seals. The lightweight nature of these materials helps in reducing the overall weight of vehicles, resulting in improved fuel efficiency. Additionally, the growing trend of electric vehicles is further boosting the demand for thermoplastic elastomers as they offer better insulation properties compared to traditional materials.

Another driver of market growth is the rising demand from the footwear industry. Thermoplastic elastomers are preferred over traditional materials like rubber and leather due to their superior comfort, durability, and affordability. They provide excellent cushioning and shock absorption properties, making them desirable for shoe soles and comfort padding. Moreover, the increasing focus on sustainable footwear production is also contributing to the adoption of thermoplastic elastomers.

C) Market Key Trends:

One key trend in the Thermoplastic Elastomers Market is the growing demand for bio-based and recyclable thermoplastic elastomers. As sustainability becomes a priority for industries across the globe, there is a shift towards eco-friendly materials. Bio-based thermoplastic elastomers are derived from renewable sources such as plants and have a reduced carbon footprint compared to their petroleum-based counterparts. These materials offer similar properties and performance as conventional thermoplastic elastomers but with the added advantage of being biodegradable and recyclable.

D) SWOT Analysis:

- Strength: Increasing demand from automotive and footwear industries.

- Strength: Superior properties such as elasticity, flexibility, and recyclability.

- Weakness: Dependency on petroleum-based raw materials.

- Weakness: Relatively higher cost compared to traditional materials.

- Opportunity: Growing adoption of bio-based and recyclable thermoplastic elastomers.

- Opportunity: Rising demand from the healthcare and medical devices industry.

- Threats: Volatility in raw material prices.

- Threats: Intense competition from alternative materials like thermosetting elastomers.

E) 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 footwear industries.

- In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the global thermoplastic elastomers market. The region has a strong presence of automotive and footwear manufacturing hubs, which drives the demand for thermoplastic elastomers.

- Key players operating in the global thermoplastic elastomers market include DowDuPont Inc., Arkema Group, Asahi Kasei Corporation, PolyOne Corporation, Elastron Kimya SA, Kraton Corporation, Evonik Industries, Covestro AG, Lubrizol Corporation, Huntsman Corporation, Tosh Corporation, and Teknor Apex Company. These players focus on product innovation, partnerships, and mergers to gain a competitive edge in the market.