Asia Pacific Thermoplastic Elastomer (TPE) Market

Asia Pacific Thermoplastic Elastomer Market Outlook

The Asia Pacific Thermoplastic Elastomer (TPE) market was valued at USD 9,095.3 Mn in 2020 and is projected to reach USD 16,273.16 Mn by 2028, expanding at a CAGR of 7.8% during the forecast period. In terms of volume, the Asia Pacific Thermoplastic Elastomer (TPE) was 3,493.9 K Tonne in 2020 and is projected to reach 5,947.2 K Tonne by 2028, expanding at a CAGR of 7.1% during the forecast period.

A thermoplastic elastomer (TPE) have strong resistance against corrosion, are UV-resistant, and have several other positive attributes that contribute to their demand.

Asia Pacific Thermoplastic Elastomer (TPE) Market Dynamics

Thermoplastic elastomers have an extensive range of applications in dental materials, instrument cables, catheters, airbag doors, tires, gaskets, sound management, window profiles, roofing air ducts, shock mounts, flexible hose, and several others. These applications stem from several end-use industries such as medical, automotive, HVAC, building & construction, and others. Companies engaged in manufacturing activities across this broad range of industries are utilizing thermoplastic elastomers, due to their benefits and properties such as chemical resistance, UV resistance, wide flexibility spectrum, and others. This wide range of applications is inducing demand from various end-use industries for TPEs and is expected to drive the Asia Pacific thermoplastic elastomer market.

Governments across Asia Pacific are initiating policies that aim to increase fuel efficiency of cars in order to cut down carbon emissions. For instance, Phase V standards set by the Ministry of Industry and Information Technology in China entail regulations that direct automakers to reduce the average fuel efficiency for passenger vehicles fleets from 5.0L/100 km in 2020 to 4.0 L/100 km by 2025. Additionally, the Ministry of Power in India issued standards to reduce the weight of passenger vehicles. For this purpose, manufacturers across the automotive industry are producing vehicles that are light in weight. This is expected to create a chain effect where competitors create vehicles that are light in weight (for fuel efficiency) to comply with regulations and stay in the competition by providing economical options to customers. This demand for light-weight automotives is expected to boost the market as thermoplastic elastomers have significant utility for light weight applications in the industry.

Thermoplastic elastomers are used in the medical industry for several applications such as dental materials, instrumental cables, catheters, tubing, grips (toothbrushes, razors, surgical tools), and others. Need for these materials is rising as manufacturers in the medical industry are faced with stringent regulatory standards regarding safety. TPEs can be sterilized with autoclaves, gamma irradiation, and ethylene oxide. Moreover, TPEs can be designed to be biocompatible and have low levels of leachable and extractable standards, which results in low chances of harmful reactions. Manufacturers provide TPE compounds that are tested for irritation, cytotoxicity, and acute systemic toxicity in compliance with the standard for cytotoxicity of medical devices named ISO 10993-5/10/11. This flexibility in the nature of thermoplastic elastomers and the need for smooth regulatory compliance in the medical industry is propelling the market.

Demand for footwear in Asia Pacific is expected to rise during the forecast period, due to increasing disposable income, tendency of consumers to keep up with the latest trends, high demand for sports shoes, and presence of online shopping portals. Thermoplastic elastomers are mainly used by manufacturers in the footwear industry in applications such as midblock, soles, foamed pads, upper, and heel for its benefits such as soft/elastic hand feel, good chemical resistance, good heat resistance, and others, which encourage footwear producers to utilize TPEs in the manufacturing process. This rising demand for footwear is expected to propel the Asia Pacific thermoplastic elastomer market during the forecast period.

Thermoplastic elastomers provide high utility; however, high costs are associated with them and the cost is higher than one of their alternatives, which is thermosets rubbers. Raw materials required to manufacture thermoplastics cost more than the materials used in thermosets. Moreover, tooling expenses associated with thermoplastics are higher than thermosets. High prices of thermoplastic elastomers in comparison to its alternatives act as restraining factors of the market.

One of the main disadvantages of thermoplastic elastomers in comparison to conventional rubber materials is that if they are exposed to relatively high temperatures, these materials tend to creep and lose their rubbery features. Moreover, TPE materials usually have to be dried before processing, which is rarely the case for conventional rubber materials. These disadvantages of TPEs are expected to hinder the market during the forecast period.

Manufacturers are shifting from silicone to thermoplastic elastomers, as TPEs are superior in comparison to silicone in terms of temperature resistance, strength, abrasion resistance, chemical resistance, and flexibility/stiffness. Moreover, they can be repeated melt processed thereby facilitating reduction of material waste. Such competitive advantages of TPEs over silicone increased the attention of manufacturers towards TPEs and this trend is anticipated to persist during the forecast period and act as an opportunity for the growth of the market.

Asia Pacific Thermoplastic Elastomer (TPE) Market Segmentation Outlook

By Types

In terms of types, the Asia Pacific Thermoplastic Elastomer (TPE) market is segmented into thermoplastic styrenic block copolymers (TPE-S), thermoplastic polyurethanes elastomers (TPU), thermoplastic elastomer polyolefins (TPO), thermoplastic copolyester elastomers (COPE), thermoplastic polyether block amides (COPA), thermoplastic vulcanizates (TPV), bio-based thermoplastic elastomers, and others.

The thermoplastic styrenic block copolymers (TPE-S) segment is further divided into Styrene Isoprene Styrene (SIS), Styrene Ethylene Butylene Styrene (SEBS), Styrene Isobutylene Styrene (SIBS), and Styrene Ethylene Propylene Styrene (SEPS). The thermoplastic copolyester elastomers (COPE) segment is expected to account for a substantial share of the market during the forecast period, owing to its good heat and chemical resistance.

By End-use Industries

Based on end-use industries, the market is segregated into medical, automotive, building & construction, footwear, wire & cable, and others. The automotive industry is anticipated to account for a key share of the market during the forecast period, due to rising disposable income and growing population.

Country Wise Outlook

On the basis of countries, the market is divided into China, Japan, South Korea, India, Australia, and Rest of Asia Pacific. China is expected to account for a substantial share of the market during the forecast period, due to the presence of a robust automotive industry in the country.

Key Benefits for Industry Participants & Stakeholders

• In-Depth Analysis of Asia Pacific Thermoplastic Elastomer (TPE) Market.
• Historical, Current and Projected Market Size in Terms of Value.
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Asia Pacific Thermoplastic Elastomer (TPE) Market Performance

Segments

By Types

• Thermoplastic Styrenic Block Copolymers (TPE-S)
  • Styrene Isoprene Styrene (SIS)
  • Styrene Ethylene Butylene Styrene (SEBS)
  • Styrene Isobutylene Styrene (SIBS)
  • Styrene Ethylene Propylene Styrene (SEPS)
• Thermoplastic Polyurethanes Elastomers (TPU)
• Thermoplastic Elastomer Polyolefins (TPO)
• Thermoplastic Copolyester Elastomers (COPE)
• Thermoplastic Polyether Block Amides (COPA)
• Thermoplastic Vulcanizates (TPV)
• Bio-Based Thermoplastic Elastomers
• Others

By End-use Industries

• Medical
• Automotive
• Building & Construction
• Footwear
• Wire & Cable
• Others

By Countries

• China
• Japan
• South Korea
• India
• Australia
• Rest of Asia Pacific

Key Players 

• Arkema
• Asahi Kasei Corporation
• BASF SE
• Dow Inc.
• Covestro AG
• Huntsman International LLC
• The Lubrizol Corporation
• Tosoh Corporation
• Mitsubishi Chemical Corporation
• DuPont
• Kingfa Science & Technology (India) Limited
• Multibase India Limited

Competitive Landscape

Key players in the Asia Pacific Thermoplastic Elastomer (TPE) Market includes BASF SE, The Lubrizol Corporation, Mitsubishi Chemical Corporation, Tosoh Corporation, KRATON CORPORATION, and Asahi Kasei Corporation. These companies are considered as key producers of Asia Pacific Thermoplastic Elastomer (TPE) Market based on their revenue, research & development (R&D) activities, regional presence, and supply chain management system.