Thermoplastic Elastomer Global Market Report 2024

The thermoplastic elastomer market size has grown strongly in recent years. It will grow from $27.04 billion in 2023 to $28.85 billion in 2024 at a compound annual growth rate (CAGR) of 6.7%. The growth observed in the historical period can be attributed to the expansion of the automotive industry, manufacturing of consumer goods, applications in medical devices, the substitution of traditional elastomers, and consumer preferences for materials with a soft-touch feel.

The thermoplastic elastomer market size is expected to see strong growth in the next few years. It will grow to $37.99 billion in 2028 at a compound annual growth rate (CAGR) of 7.1%. The anticipated growth in the forecast period can be attributed to the increasing demand for sustainable materials, the expansion of the electric vehicles (EV) market, advancements in the medical industry, the adoption of thermoplastic elastomers in e-commerce packaging solutions, utilization in 3D printing, and their resilience in harsh environments. Noteworthy trends in the forecast period include the emergence of bio-based thermoplastic elastomers, the integration of smart manufacturing and Industry 4.0 practices, the incorporation of TPEs in wearable technology, initiatives promoting circular economy practices, and the digitalization of supply chains.

The anticipated surge in demand for automotive components manufacturing is set to drive the growth of the thermoplastic elastomer market in the future. Automotive component manufacturing involves the production of various parts used in the manufacturing and assembly of automobiles, and these components extensively employ thermoplastic elastomer materials for various applications. Thermoplastic elastomers offer a blend of flexibility, durability, and ease of processing, making them well-suited for diverse automotive component requirements. For instance, as reported by the Economic Times in March 2023, the Indian automotive components industry is expected to grow by approximately 10-15%, projecting significant growth in the fiscal year 2023-24. The Indian automotive sector generated $56.5 billion in revenue in 2022, marking a 23% increase from the previous year, and the ongoing fiscal year is anticipated to conclude with a growth rate of 15%. Thus, the escalating demand for automotive components is a driving force behind the growth of the thermoplastic elastomer market.

The substantial growth of building and construction activities globally is a major contributing factor to the expansion of the thermoplastic elastomer market. Building and construction activities encompass the processes involved in constructing structures, buildings, infrastructure, and related facilities. Thermoplastic elastomers are favored in these activities for their versatility, durability, and ease of processing, making them ideal for applications such as seals, gaskets, roofing membranes, and insulation due to their resilient and weather-resistant properties. As highlighted in a 2022 report by the Bureau of Economic Analysis (BEA), the size of the U.S. construction industry increased from $1.916 trillion in the first quarter of 2021 to $2.016 trillion in the first quarter of 2022. Hence, the burgeoning building and construction activities worldwide are expected to propel the thermoplastic elastomer market.

A notable trend in the thermoplastic elastomer market is the adoption of product innovations by major companies. These companies are incorporating new product innovations to maintain their positions in the market. For instance, in April 2022, DuPont, a U.S.-based chemical company, introduced DuPont Liveo Pharma thermoplastic elastomer tubing, a new line of extruded pharma tubing. This addition signifies a significant advancement for the Liveo brand, expanding its product offerings to include thermoplastic elastomer technology for fluid transport and single-use bioprocessing applications. The Liveo pharma thermoplastic elastomer tubing is specifically designed for use in biopharmaceutical processes, offering aseptic connection and disconnection without the need for connectors, making it suitable for critical applications such as sampling where maintaining a sterile environment is imperative.

Major companies operating in the thermoplastic elastomer market are strategically focusing on product innovations, such as GLS thermoplastic elastomers (TPEs) with antimicrobial additives, to maintain their market positions. For example, in May 2021, Avient Corporation, a U.S.-based plastic material and resin manufacturing company, launched GLS thermoplastic elastomers (TPEs) with antimicrobial additives designed to protect against microbial growth. These TPEs contain EPA-registered antimicrobial additives, inhibiting bacterial growth by 99.9% or more and resisting fungal and mold growth. The additives, tested in accordance with JIS Z2801 and ASTM G21-15 standards, provide protection against bacterial, fungal, and mold growth, ensuring the longevity of molded plastic parts.

In January 2021, Huntsman Corporation, a U.S.-based manufacturer and marketer of chemical products, acquired Gabriel Performance Products, LLC for $250 million. This strategic acquisition enhances Huntsman's specialty chemicals portfolio, enabling the company to offer a broader range of products and solutions to its customers. By leveraging Gabriel's expertise and product offerings, Huntsman aims to fortify its position in the coatings, adhesives, sealants, and composite markets. Gabriel Performance Products, LLC, a U.S.-based chemical manufacturer, specializes in producing specialty additives and epoxy curing agents.

Major companies operating in the thermoplastic elastomer market report are China Petroleum & Chemical Corporation, ExxonMobil Chemical Company, BASF SE, Asahi Kasei Corporation, Covestro AG, DuPont de Nemours Inc., Arkema S.A., Huntsman Corporation, Lubrizol Corporation, Evonik Industries AG, Avient Corporation, Teknor APEX Company, TSRC Corporation, HEXPOL TPE AB, RTP Company, Nantex Industry Co. Ltd., KRAIBURG TPE, Pinnacle Polymers LLC, Americhem Inc., Applied Plastics Co. Inc., Audia Elastomers, Star Thermoplastic Alloys & Rubbers Inc., Advanced Elastomer Systems L.P., Dynasol Elastomers LLC, TPE Solutions Inc., Elastocon TPE Technologies Inc., Kraton Polymers LLC, Yantai Wanhua Polyurethane Co. Ltd., India Thermoplastics Engineers, Nippon Polyurethane Industry Company Ltd.

North America was the largest region in the thermoplastic elastomer market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the thermoplastic elastomer market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the thermoplastic elastomer market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of thermoplastic elastomers include thermoplastic polyurethane (TPU), styrenic block copolymer (TPE-S), thermoplastic vulcanizates, elastomeric alloys, thermoplastic copolyester, and other variants. Thermoplastic Polyurethane (TPU) is a specific type of synthetic polymer belonging to the family of thermoplastic elastomers (TPEs). This versatile material combines rubber-such as elasticity, flexibility, and durability with the processability of thermoplastics. Thermoplastic Polyurethane-based TPEs can undergo conventional thermoplastic processing techniques such as injection molding, extrusion, and blow molding. The constituent materials of thermoplastic elastomers include poly styrene, poly olefins, poly ether imides, poly urethanes, poly esters, and poly amides. These materials find applications in various industries such as automotive, building and construction, footwear, wire and cables, medical, engineering, and others.

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The thermoplastic elastomers market consists of sales of consumer goods, automotive applications, medical devices, industrial applications, electrical, and electronics, and footwear. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.