Elastomers Market

Market Overview

The global elastomers market size was valued at USD 94.15 billion in 2023. It is estimated to reach USD 141.73 billion by 2032, growing at a CAGR of 4.65% during the forecast period (2024–2032). The growing construction industry primarily boosts the global elastomers market. In addition, the development of bio-based and renewable elastomers to cater to the growing demand for sustainable materials across various industries is, in turn, estimated to augment the global market growth. Moreover, innovations in the elastomers by primary market players and researchers are estimated to create market expansion opportunities.

Elastomers are a type of polymer known for their elastic properties, characterized by the ability to return to their original shape after stretched or deformed. Unlike rigid plastics, elastomers exhibit significant flexibility and resilience, making them ideal for applications requiring both durability and elasticity. Common elastomers include natural rubber, synthetic rubber (such as neoprene, silicone, and polyurethane), and elastomeric compounds used in various industries like automotive, construction, and consumer goods.

The unique properties of elastomers stem from their molecular structure, which typically consists of long, coiled chains that can easily slide past one another when subjected to force. This molecular arrangement enables them to stretch under stress and revert to their original form when the stress is removed. This versatility makes elastomers invaluable in manufacturing processes like tires, seals, gaskets, and flexible hoses.

Highlights

• Thermoset elastomer dominates the type segment
• Automotive dominates the application segment
• Asia-Pacific contributed to the largest market share

Market Dynamics

Market Drivers

Demand from the Construction Sector

The demand from the construction sector serves as a key driver for the elastomers market. Elastomers find extensive applications in construction, including sealants, adhesives, roofing materials, and waterproofing membranes. With rapid urbanization and infrastructure development globally, there is a growing need for durable, weather-resistant, and energy-efficient construction materials. Elastomers fulfill these requirements, offering flexibility, durability, and excellent weathering properties. 

Additionally, the increasing focus on sustainability in construction has boosted the demand for eco-friendly elastomeric materials, further driving market growth. The construction market was estimated to be valued at USD 14,393.63 billion in 2022 and is projected to increase at a 6.2% annual rate from 2023 to 2032, reaching USD 25,928.27 billion by 2032. As construction activities continue to expand globally, the demand for elastomers in this sector is expected to witness sustained growth. 

Innovations in Renewable Elastomers

The emergence of innovations in renewable elastomers is estimated to drive the market growth. With growing environmental consciousness and the need for sustainable materials, there is a heightened demand for elastomers derived from renewable sources, such as bio-based or plant-derived materials. These renewable elastomers offer several advantages, including reduced carbon footprint, biodegradability, and decreased reliance on fossil fuels.

Moreover, advancements have enabled the development of renewable elastomers with properties comparable to traditional synthetic rubber, expanding their applicability across various industries. As a result, there is a growing market niche for eco-friendly elastomers in the automotive, construction, and consumer goods sectors. Investments in research and development to enhance the performance and scalability of renewable elastomers, coupled with favorable government policies promoting sustainable practices, further bolster the market expansion.

Market Restraint

Environmental Concerns and Regulations

Environmental concerns and regulations pose a significant restraint to the elastomers market. Stringent regulations, particularly regarding using and disposal of elastomers containing hazardous chemicals, have intensified due to growing environmental awareness and concerns about pollution. Regulatory bodies worldwide are restricting the production and usage of elastomers with potentially harmful constituents, such as certain types of synthetic rubber. Moreover, the disposal of elastomers presents a challenge, as traditional rubber materials are non-biodegradable and contribute to environmental pollution when discarded.

Furthermore, efforts to mitigate these concerns have led to increased scrutiny and pressure on manufacturers to develop sustainable alternatives or improve recycling methods. Navigating through complex regulatory landscapes while ensuring product compliance adds operational costs and complexities for elastomer manufacturers, impacting their profit margins. Thus, environmental concerns and stringent regulations constitute a significant restraint for the elastomers market, necessitating innovation and sustainable practices to address these challenges effectively.

Market Opportunities

Technological Advancements 

In recent years, ongoing research and development efforts have led to the introduction of innovative elastomer products with improved performance characteristics. For instance, in September 2023, a team of researchers from many universities in Shanghai, China, published a study in the journal Polymer International. They successfully created a new type of elastomer using poly (vinyl alcohol) (PVA) that can repair itself after sustaining damage, preserving its shape and performance. The flexible polymer offers a resolution to a persistent problem concerning the resilience of flexible electronic devices.

Furthermore, in April 2024, DOW developed an innovative alternative to leather using polyolefin elastomers ("POE"), which fulfills the automotive industry's need to transition to animal-free materials. Dow's POE leather has several benefits, such as a remarkably soft texture and enhanced color stability, which enables designers to explore a wider range of color options, particularly lighter shades. Additionally, it exhibits favorable resistance to aging and maintains its performance even in low temperatures, satisfying the requirements set by the automobile sector. Such factors are estimated to create opportunities for market growth.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global elastomers market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Asia-Pacific is the most significant global elastomers market shareholder and is expected to expand substantially during the forecast period. This is due to the presence of major automotive manufacturing hubs like China, Japan, and India. For instance, China is the world's largest producer of passenger automobiles, with a production of over 26 million vehicles in 2023. This accounts for about one-third of the global production of passenger vehicles. Furthermore, governmental initiatives to curb pollution have led to the adoption of new stringent emission initiatives. For instance, in 2016, the Indian government declared its intention to bypass the Bharat Stage V emission regulations and instead implement the Bharat Stage VI emission standards by 2020. In 2020, the Supreme Court rendered a verdict prohibiting the sale and registration of automobiles adhering to BS-IV standards in the country starting from April 1, 2020. Thus, enhanced emission standards are estimated to drive the lightweight materials, thereby boosting the elastomers market in the Asia-Pacific region.

Furthermore, the key players in this region are involved in strategic partnerships like mergers and acquisitions, expansions, collaborations, etc. For instance, in August 2023, Covestro commenced production at its newly established Shanghai facility for polyurethane elastomer systems subsequent to the commencement of construction in the summer of 2022. The investment, amounting to several million Euros, is part of a series of investments made by the company in recent years in elastomers raw materials. These investments have been made in various locations, including Thailand and Spain. The new plant is being constructed to cater to the demand for materials in the APAC area, specifically for renewable energy applications such as offshore cable protection and silicon wafer-cutting rollers used in photovoltaic panels. All these factors are expected to boost the regional market growth.

Europe's robust infrastructure development projects, especially in sectors like construction and transportation, further contribute to the demand for elastomers. Europe's construction sector provides employment for over 20 million individuals, contributing to over 9 percent of the continent's GDP. It is anticipated that increased public and private investments will accelerate the construction industry in the coming years, thereby boosting the elastomers market in the region. Moreover, the key regional players are investing in research and development to innovate sustainable elastomeric solutions, aligning with Europe's sustainability goals and reinforcing the region's position as a significant market for elastomers.

For instance, in December 2023, The Fraunhofer Institute for Microstructure of Materials and Systems IMWS is collaborating with partners to develop a commercially viable, fully bio-based, and non-toxic plasticizer for application in elastomers and thermoplastics. By utilizing rapeseed oil as a primary ingredient, it is feasible to develop more environmentally friendly alternatives for tires and packaging. The project partners also aim to create a matching prototype facility in central Germany as a component of the "Biocerine" initiative. Thus, the aforementioned aspects are expected to augment the regional market growth.

Segmental Analysis

The global elastomers market is bifurcated into types and applications.

Based on type, the global elastomers market is segmented into thermoplastic and thermoset elastomers. 

The thermoset elastomers segment dominates the global market. Thermoset elastomers represent a significant segment within the global elastomers market, offering unique properties and diverse applications. These elastomers undergo irreversible cross-linking during the curing process, resulting in a three-dimensional network structure that imparts excellent mechanical strength, durability, and resistance to heat and chemicals. Common types of thermoset elastomers include vulcanized rubber, silicone rubber, and polyurethane elastomers. Thermoset elastomers are extensively used in various industries like automotive, aerospace, and electronics due to their superior performance in demanding environments.

For instance, vulcanized rubber compounds are widely employed in tire manufacturing, gaskets, and seals. In contrast, silicone rubber is favored for its heat resistance in high-temperature applications like electrical insulation and automotive gaskets. Despite facing competition from thermoplastic elastomers, the thermoset elastomers segment continues to thrive, driven by ongoing innovations, expanding applications, and the need for high-performance materials in specialized industries.

Based on the application, the global elastomers market is bifurcated into automotive, medical, industrial, consumer goods, and others.

The automotive segment is estimated to own the highest market share. The automotive segment is a prominent driver for the elastomers market, accounting for a significant portion of the demand globally. Elastomers are extensively used in the automotive industry for various applications such as tires, seals, gaskets, hoses, belts, and vibration-dampening components. With the automotive industry witnessing continuous growth fueled by increasing disposable income, urbanization, and technological advancements, the demand for elastomers is expected to remain robust.

Moreover, stringent regulations aimed at reducing vehicle emissions have prompted automakers to focus on lightweight materials to improve fuel efficiency, driving the adoption of elastomeric materials in vehicle manufacturing. The shift towards electric vehicles (EVs) and hybrid vehicles presents new opportunities for elastomer manufacturers, as these vehicles require specialized elastomeric components for battery sealing, insulation, and thermal management.

Recent Developments

• February 2024- Arkema expanded its global manufacturing capacity for Pebax® elastomers by 40% at its Serquigny factory in France to accommodate its customers' significant growth, particularly in the sports and consumer goods sectors.
• March 2024- ARLANXEO, a prominent multinational company specializing in high-performance elastomers, introduced its environmentally friendly and cutting-edge rubber collections at India Rubber Expo 2024. This demonstrates the company's dedication to providing top-notch products and exceptional services to consumers in the Indian market and the broader Asia-Pacific region.