Thermoplastic Polyester Elastomer Market

Market Overview

The Global Thermoplastic Polyester Elastomer Market size was valued at 1229.14 million tons in 2021 and is predicted to reach at 2240.78 million tons by 2030, increasing at a CAGR of 6.9% from 2022 to 2030.

Thermoplastic polyester elastomer is made up of hard and soft segments. Crystalline polybutylene terephthalate is a hard segment, while soft polyether is an amorphous segment. Elastomers made from thermoplastic polyesters are flexible, strong, and easy to mould. They can be easily processed using convectional thermoplastic techniques such as injection moulding, calendaring, rotational moulding, extrusion and melt casting. Thermoplastic elastomers are utilised in the production of electrical equipment, vehicles, and other items requiring high temperatures. It can withstand tearing, flex cut growth, creep, and abrasion with no problems at all. Many different industries, including the automotive and electronic, benefit from the unique chemical features. Elastomers are also very resistant to hydrocarbons and other lubricants due to their chemical characteristics.

Many novel solutions have been created by thermoplastic polyester elastomer manufacturers, including the substitution of thermosets and other heavy materials, such as wood and other metals, for thermoplastic polyester. The thermoplastic polyester elastomer market is predicted to grow as a result of this. The thermoplastic polyester elastomer market has remained relatively niche due to a lack of manufacturers and consumer awareness; nevertheless, these elastomers are fast receiving attention due to their excellent features, such as good dimensional stability and high stiffness. In addition, this market is now seeing competition from alternative elastomers, as well as significant restructuring and divestment actions from suppliers.

Market Dynamics

Market Drivers

• Driving Force: The Boom in the Automobile Industry

Although the share of the automotive elastomers market is expected to be fairly stable over the automotive elastomers market forecast period, the industry remains one of the most promising on a worldwide scale. The demand in the automotive elastomer market has increased, which has led to the expansion of the industry at extremely high rates. This increase in demand has been seen for both passenger and commercial vehicles. Additionally, there has been a growth in the demand for lightweight components in vehicles, and as rubber is the finest component to use for these lightweight components, its demand in the automotive sector has expanded even further. In the most recent few years, there has also been a significant rise in the utilization of recycled rubber. This is due to the fact that many of the industry's most reputable makers of automotive elastomers employ recycled rubber. Not only this, but the recycled rubber may also be used to help generate electricity, which is a significant benefit.

• A Rise in Costs Incurred by Healthcare Providers and Medical Establishments

Investments in medical equipment, such as plastic syringes, instruments, surgical gloves, and other plastic goods employed for consumer and industrial uses, are anticipated to be driven by rising costs associated with healthcare and medical facilities. As a consequence of this, there has been an increase in demand for lightweight plastic materials such as TPEE in these and other medical devices and products. These materials are also being used for the packaging of medicines and other pharmaceuticals since they facilitate the reduction of weight during transportation and enable for the hygienic protection of the product's internal components.

Market Restraints

• TPE Is More Expensive Than Other Materials

TPE manufacturing is more expensive and time-consuming than the production of common materials like polyethylene, PVC, rubbers, and polyurethane. TPE is manufactured using a high-tech production device that operates at extremely high temperatures. TPE has risen in price due to the large investments and sophisticated manufacturing procedures. Because of its high production costs, TPE has only found widespread application in high-end settings. As an example, lower-priced synthetic versions of TPE-like polymers like as polyethylene, polypropylene, acrylonitrile butadiene styrene, and polyurethane have been produced. A few end-use industries, such as equipment, construction, and electronics, face a high level of competition from TPE. TPE's price is also affected by the rising cost of raw materials.

Key Future Opportunities

• Biobased TPE Has a Growing Market

Plant oils and fatty acids are used to produce biobased TPE. Electronics, sporting goods and footwear industries are the primary beneficiaries of this new technology. Biobased TPE's production improves biodegradability while using fewer nonrenewable resources. Commercialization of biobased TPE is generating new revenue streams for the industry's participants. A few of the synthetic TPE manufacturers are now developing environmentally friendly and sustainable products as a priority.

Biobased TPU is made by BASF and Lubrizol, for example, and is used in the footwear, automotive, industrial, electronic, and textile industries. Polyhydroxybutyrate (PHB), polylactic acid (PLA), castor oil, and palm oil are among the biopolymers utilized to make biobased TPUs.

Improved biobased TPU is on par with traditional TPU in terms of characteristics, but it has an advantage due to the high cost of diisocyanates and polyols as raw materials. Developing a biobased TPU provides manufacturers with new opportunities.

Regional Analysis

The Global Thermoplastic Polyester Elastomer Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

With a revenue share of over 40% in 2021, North America dominated the thermoplastic polyester elastomer market. Due to the significant demand for plastics in the construction, automotive, electrical & electronics, packaging, and region of North America. Due to its numerous advantages, simplicity in moulding, and ability to take on desired shapes, TPEE & other polymers are used extensively across all industries. Due to its numerous advantages, simplicity in moulding, and ability to take on desired shapes, TPEE & other polymers are used extensively across all industries. Plastic car parts are preferred by many automakers because they enable low-cost production and boost revenue.

One of the world's largest producers of crude oil is Canada. The region's growing need for plastic combined with falling crude oil prices is fostering the expansion of the plastic market. Various petrochemicals generated from crude oil are used to manufacture polymers and materials like TPEE. Manufacturers are gradually incorporating additives into TPEE to give strength, durability, and lightweight when employed in any product.

Due to the abundance of raw materials, affordable labour, and low-cost manufacturing, Mexico's automotive industry saw a sharp increase when major automakers like BMW and Mercedes established manufacturing operations there.

The preference for plastic vehicle parts by many automakers, which enables the business to produce its products at a lower cost and boost its profitability, is also anticipated to remain a major factor in North America. Due to end-use industry saturation and a smaller client base than in Asia Pacific, the region has a moderate growth rate.

The main markets for growth in the Asia Pacific are anticipated to be China, India, and Southeast Asia. The need for TPEE compounds in the automotive, industrial machinery, packaging, and electrical & electronics industries will be fuelled by the expanding manufacturing sector. The thermoplastic polyester elastomer market is continuously expanding at over 5.85 percent CAGR, with Asia Pacific accounting for the greatest share of over 35 percent of volume in 2021.

With over 28% of the revenue share in 2021, Europe is expected to continue to be a significant market. Despite the fact that the region's growth is likely to be constrained by a number of macroenvironmental factors, including the debt crisis, rising unemployment, and stagnant industrial output, the region's growth will be fuelled by an upbeat outlook for manufacturing and consumerism across Eastern Europe. Strict environmental restrictions from organisations like ECHA, the European Commission, and numerous federal level authorities define the region.

Due to their expanding application in a variety of medical devices, equipment, surgical instruments, and other medical products, TPEE used in the medical sector is anticipated to maintain their significance. Due to the expanding range of machine components and accessories, industrial equipment is predicted to be the application sector in Europe with the greatest growth.

Similar to the Asia Pacific, other emerging economies such as those in Latin America, Middle East and Africa (LAMEA) are also increasing rapidly. These regions gain from growing end-use sectors and relatively low thermoplastic compound penetration compared to other regions.

In terms of producing crude oil, the MEA region leads the world. Kuwait, Saudi Arabia, Oman, Bahrain, Iraq, Libya, Angola, and Iran are just a few of the key oil-dependent nations in the MEA region. With the exception of Venezuela and Ecuador, all of the OPEC nations are found in the MEA region. To create the world's oil supply, maintain the balance between supply and demand, and control oil prices, the OPEC region was originally established. Due to the region's extensive oil production, the MEA region had a sizable demand for TPEE goods in few years back and is anticipated to see an increase during the projection period.

Segmental Analysis

The Global Thermoplastic Polyester Elastomer Market is divided into different segments according to the End-Use and Region (Geography).

By End-Use, the Global Thermoplastic Polyester Elastomer Market is segmented into Automotive, Electrical & Electronics, Industrial, Medical, Consumer Goods, and Others. Here, the Automotive sector dominates the market. Increases in electronic and electrical devices, such as seat and window motor housings, airbags for passengers, safety belt tensioners, and more, have caused a dramatic rise in the use of TPEE in automotive applications over the past decade. There has been a rise in the use of hydrolytic-resistant grades in automotive components in the last several years. As the demands of the automobile sector continue to get more intense, other automotive applications such connectors, plugs, and housing components are being molded.

A respectable 22% of the market was occupied by electronic devices in 2021. Components such as circuit breakers, switches, connections, and housings in the home appliance industry are being manufactured employing compounds with electrical insulating qualities and inherent high thermal distortion temperatures.

Faster processing of lightweight and durable medical devices and equipment is also needed as medical and healthcare costs have increased significantly in recent years. Especially in developing countries like India, Indonesia, Thailand, Argentina, and Mexico, this industry is expected to rise at an exponential rate.

Convenience, consumer durables, and soft goods all use impact-modified chemicals that are specialized for use in these products. As a result, TPEE production dynamics in the application are heavily influenced by the consumer's purchasing behavior.

By Region, the Global Thermoplastic Polyester Elastomer Market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Furthermore, many automakers in North America are likely to continue using plastic vehicle parts, which allow them to produce their products at a lower cost and hence boost their profits. The thermoplastic polyester elastomer market in North America was dominated by this polymer. Automotive, electrical and electronic, packaging and construction are among the most common uses of plastic in North America.

The Asia Pacific region's three largest economies — China, India, and Southeast Asia — are predicted to grow at the fastest rates. TPEE compounds will be in high demand in the automotive, industrial machinery, packaging, and electrical & electronic industries as a result of the rising manufacturing sector.

According to forecasts, Europe will remain a significant market. A positive outlook for manufacturing and consumption in Eastern Europe is expected to fuel the region's economy, despite macro-environmental challenges like the financial crisis, rising joblessness, and stalled industrial output.

There is a lot of crude oil produced in the Middle East and North Africa (MEA). Oil is an important source of income for many nations in the Middle East and North Africa (MEA), including Kuwait, Saudi Arabia, Oman, Bahrain, Iraq, Libya, Angola, and Iran, among others.

Recent Developments

April 2022 - SK Chemicals and Oncobix develop pharmaceuticals. Under the agreement, Oncobix will develop new drug candidates and conduct synthesis research using TOPFOMICS. SK Chemicals will also verify, develop, and licence the derived candidate chemicals for commercialization.

February 2022 - DuPont has agreed to sell Celanese Corporation a majority of its Mobility & Materials segment, including the Engineering Polymers business line and certain Performance Resins and Advanced Solutions product lines, for $11.0 billion in cash, subject to customary transaction adjustments.