Thermoplastic Elastomers: A Boon For The Polymer Industry

India’s elastomers market is predicted to show substantial growth, with a forecasted CAGR of 8.41% until 2028, reaching USD 2519.16 million. This can be attributed to the growing utilization of elastomers in the automotive sector, due to their high performance and lightweight characteristics. The rise in vehicle sales is driving the production of automobiles, which is boosting the demand for elastomers in India.
The global market for thermoplastic elastomers was valued at USD 21.45 billion in 2021 and is expected to increase at a 7.2% CAGR from 2022-2030.

Applications

Thermoplastic elastomers have a wide range of applications due to their unique combination of properties, including:

• Construction: TPEs are used in construction materials like roofing membranes and sealing systems, as they exhibit resistance to weathering and UV radiation.
• Medical Devices: Due to their biocompatibility and ease of processing, TPEs are used in the production of medical devices such as blood bags, catheters, and prosthetics.
• Consumer Goods: TPEs are commonly utilized in the creation of consumer goods like toys, athletic equipment, and soft-touch grip materials, due to their versatility, durability, and elasticity.
• Automotive Industry: TPEs are utilized in automotive components such as hoses, gaskets, and seals, as they have the ability to endure high temperatures and harsh chemicals.
• Footwear: TPEs are used in the manufacture of shoes and boots, as they provide much-needed elasticity and support.
• Packaging: TPEs are used in packaging materials like films and seals, as they display resistance to punctures and tears.

These are just a few examples of the many applications of TPEs. Their unique combination of properties makes them a popular choice for a wide range of industries.

Major Companies And Market Share 

The thermoplastic elastomer market is moderately concentrated with the top four companies collectively accounting for over 47% of the demand:

• Dow Chemicals
• Kraton Polymers
• Sinopec 
• LyondellBasell

Companies like Muller Kunststoffe and Zeon have expanded their capacity in China and Japan, respectively.  Mitsubishi is investing in R&D to improve production by phasing out toxic ingredients like phosgene and developing plant-based bio-TPEs.

In terms of application-based market share, the automotive industry dominated with over 42% in the thermoplastic elastomer market in 2021. This dominance is due to supportive regulations promoting the use of thermoplastics as substitutes for metals and alloys in the industry.

Insight

Major companies are moving their production from the West to high-growth markets such as China, India, Brazil, and Southeast Asia, driven by the high demand for TPEs in these regions and favourable conditions for manufacturing, including easy raw material access and low labour and operational costs. The presence of many small domestic manufacturers in these regions is expected to intensify the competition.

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