Thermoplastic Elastomer Market Trends

Growth Drivers

• Elevating Preference for Lightweight Vehicles -With the increasing preference for lightweight vehicles to reduce overall fuel consumption, the demand for thermoplastic elastomers is increasing. These materials are lightweight yet strong and have the properties of both rubber and plastic, making them the ideal choice for the automotive industry. Also, it is estimated that by reducing vehicle weight by 10%, fuel economy could be increased by as much as 6-8 %.

• Increasing Production of Electric Vehicles - Electrified cars in the US accounted for 4.6 percent of total car sales in 2021, up from 0.2 percent in 2011. In 2030, electric vehicle sales are expected to reach 40% of total passenger car sales in the United States, and more optimistic projections anticipate reaching 50% of sales. Electric vehicles require a high amount of TPEs owing to their lightweight properties and resistance to wear and tear, making them ideal for automotive parts and components. Additionally, the increasing use of TPEs in the interiors of electric vehicles to reduce noise and vibration is driving the market growth.

• Growing Concern About Reducing Carbon Emissions - The global emissions of CO2 increased by 240 million tons per year between 2011-2015 compared to 2016-2019. As governments around the world are increasingly enacting laws and regulations to reduce carbon emissions, the demand for materials that are sustainable and recyclable has grown. Thermoplastic elastomers are a type of polymer that can be recycled and reused, making them an attractive option for reducing carbon emissions.

• Increasing Plastic Production- Plastic production in the world is expected to grow from 9 billion tons in 2017 to 35 billion tons by 2050. Plastic is a cost-effective and versatile material that can be used in a wide range of applications. As such, the demand for plastic has been increasing, leading to a corresponding increase in the demand for thermoplastic elastomers, which are used to make plastics such as polypropylene and polyethylene.

• Rising Consumer Electronics Sales - Globally, consumer electronics sales grew much faster for computers 35% and TV sets 15% globally in the past three years, owing to COVID-19 restrictions and more time spent at home working and learning. Thermoplastic Elastomer (TPE) is used in a wide range of consumer electronics, such as smartphones, tablets, laptops, and other gadgets. With the increasing demand for consumer electronics, manufacturers are turning to TPE as a preferred material for their products, leading to an increase in sales of TPE.

Challenges

• Price Volatility of Raw Materials – The exhaustion of raw materials such as fossil fuels resources along with indefinite crude oil prices performs as the biggest challenge for the market growth. This would restrict the production of raw materials for TPEs, therefore affecting the market growth. Additionally, strict regulations by governments and usage of non-renewable resources will pose a risk to the supply chain which will again hinder market growth.
• High Cost of Thermoplastic Elastomers
• Lack of Technical Expertise