POE Market Overview
The global Polyolefin Elastomers market size is estimated to surpass USD 3 billion by 2032 at a CAGR of 7% from 2023 to 2032. The global polyolefin elastomer market is dominated by the Asia-Pacific in terms of consumption and production. China, Japan, South Korea, Taiwan and India are the major POE consumers in the region. The POE market is mainly driven by the increasing demand from the end-use industries including automotive, packaging and wires & cables
Introduction to POE
Polyolefin Elastomers (POEs) are a class of polymers produced by the polymerization of ethylene and various monomers including octane, butane, propylene, and hexane. POEs offer properties like superior elasticity, low-temperature ductility, good toughness, and high flexibility. POE possesses properties that make it suitable to be used as a substitute for styrene block copolymers (SBC) and styrene-isoprene-styrene (SIS). They can also be used as an alternative for flexible-
poly vinyl chloride (PVC)for halogen-free compounds. POE compounded
TPOs have improved flow, impact, and compression sets that can replace
EPDM,
Thermoplastic Vulcanizates (TPVs) and SEBS.
POEs are also successfully displacing
SBC and
ethylene vinyl acetate (EVA) in consumer applications ranging from footwear to hygiene products and housewares. In footwear, POEs provide improved resilience, softness, and durability. It increases cushioning performance by reducing overall shoe weight. This has seen a strong demand for athletic and running sports shoes amongst consumers in recent years. The global Polyolefin Elastomers market is estimated to cross USD 3 billion by 2032 from the current market size of USD 1.6 Billion at a CAGR of 7% from 2023 to 2032. The strong growth is set to be fueled by notable improvements in solar panel encapsulation, increasing the use of POE as an impact modifier in polypropylene (PP) compounds used in automotive and sealant layers for flexible packaging.
Global Polyolefin Elastomers Demand By Application - 2016-2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Polyolefin Elastomers Application Overview
The major Polyolefin Elastomers applications include Automotive (Interior, Exterior), Footwear, Wires & cables, Packaging (Food and Industrial), Foam, Industrial and Construction, Medical Devices, and others. Automotive is the major end-use application of Polyolefin Elastomers. Automotive, foam, and wires & cable applications together account for over 70% of the global demand for these elastomers.
Automotive application accounts for the largest market of Polyolefin Elastomers market and it is anticipated to maintain its dominance throughout the forecast period. This demand in most end-use is projected to grow at significant growth in the forecast period till 2032. The fastest growth is expected in the automotive interior and exterior applications. Excellent impact resistance, flexibility, toughness, and great processing characteristics whether compounding, molding or blending properties make Polyolefin Elastomers valuable for automotive interior and exterior applications.
In terms of volume consumption, the automotive segment accounts for the largest end-use for both the Polyolefin Elastomers. The automotive industry has a wide array of opportunities for these elastomers. Automotive makers are constantly optimizing their engine performance; by reducing the automotive weight. This helps them achieve more efficiency. Reducing weight also decreases fuel consumption helping reduce pollution.
Polyolefin Elastomers are used in the manufacturing of automotive parts like body panels, instrument panels, bumper fascia, airbag covers, etc. In 2022, interior automotive applications accounted for more than 30% of the total global Polyolefin Elastomers consumption in automotive sector, while exterior applications accounted for more than 65% of the total global POE automotive consumption.
Global Polyolefin Elastomers Demand, By Applications -2022 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Polyolefin Elastomers Demand Supply Overview
In 2022, Asia-Pacific accounted for more than 50% of the global Polyolefin Elastomers capacity. This prominent position is driven by the presence of major markets such as China, Japan, South Korea, and fast-growing India. Asia-Pacific is expected to witness the major addition of new Polyolefin Elastomer capacity by 2032. There are 5 players in the region having 6 plants located at different locations. The Dow Chemical Company, Mitsui Chemicals, ExxonMobil, LG Chem, and SSNC (SABIC SK Nexlene Company) are the major polyolefin elastomers manufacturers in the Asia Pacific region.
Polyolefin Elastomers demand is expected to be strong especially in countries with large populations such as China, India, Indonesia, Thailand, Philippines, and Vietnam. Further, the increase in living standards and increasing purchasing power among consumers due to economic growth will keep the regional Polyolefin Elastomers demand high. Asia-Pacific is the world’s largest producer and exporter of footwear accounting for more than 45% of footwear in 2019.
China accounts for around 30% of the global Polyolefin Elastomers demand and more than 60% of the Asia-Pacific POE market. Asia will see the strongest level of demand growth spurred on by high growth in the automotive and manufacturing industry in China. This surge in consumption is primarily due to the increasing demand for Polyolefin Elastomers in applications within the automotive, solar, and footwear industries.
In the Asia-Pacific region, China is the largest manufacturer of footwear, followed by India, Vietnam, and Indonesia. India is the second largest manufacturer of footwear accounting for more than 12% of global production. India produces around 2 billion pairs of different categories of footwear annually. India is the third largest consumer of footwear, followed by China and the United States. The footwear industry is one of a most important parts of the Asia-Pacific manufacturing industry. Asia Pacific is the largest exporter of footwear in the world. The Majority of Asia-Pacific’s footwear output are directed towards North America, Europe, the Middle East & Africa, and Latin America.
In terms of demand by application, packaging is forecast to witness the highest growth of 11% on the back of industrial packaging. The use of POEs in solar PVs is forecast to push the packaging application in the long-term forecast to 2032. The Polyolefin Elastomers market in India is import driven. The largest consumption of Polyolefin Elastomers in India in 2022 was in the automotive application followed by wires & cables. The automotive segment is expected to witness a CAGR of 9.6% whereas wires & cables is forecast to grow at a CAGR at 11.4% during the forecast period till 2032.
Asia Pacific Polyolefin Elastomers Demand, By Country 2022 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
North America is the second biggest consumer of Polyolefin Elastomers. Dow Chemicals and ExxonMobil are the two POE manufacturers with POE manufacturing facility in Texas and Louisiana. The country is a net exporter of POE to the Americas and Western Europe. In terms of the Polyolefin Elastomers market, the United States is the largest consumer of Polyolefin Elastomers in the region. The country accounted for more than 90% of the regional Polyolefin Elastomers demand in 2022. Canada is a net importer of Polyolefin elastomers. The country’s demand for Polyolefin Elastomers is likely to grow at an average of 3.1% CAGR to reach 10 kilo tons by 2032.
With the introduction of hybrid vehicles that use gasoline and diesel, the Polyolefin Elastomer market is further projected to witness strong growth in the forecast period. Unexplored opportunities of replacing metals in automotive and global tightening of environmental regulations for automobiles to improve fuel mileage, control emissions, and reduce fuel permeation are expected to drive the POE market. Growth in the production of automobiles and initiatives taken by original equipment manufacturers to increase fuel efficiency, reduce emissions, eliminate fluid leaks, and improve efficiency by reducing the weight of the vehicles will drive the demand for elastomers like POE in the long-term forecast.
The COVID-19 pandemic has impacted most of the applications in each of the regions. The automotive industry has been one of the major hits in all of the regions. In terms of Value the global Polyolefin Elastomers market declined by almost 5% owing to the COVID-19 pandemic. Favorable government policies and economic booster packages by governments for various sectors have resulted in a positive environment for investments in the developing economies in the Asia Pacific region.
POE Market Recent Developments
In June 2023, Hanwha TotalEnergies Petrochemical (JV between Hanwha Group and TotalEnergies) completed constriction work at a POE pilot plant. The company started construction of the POE plant in August 2021 and built it in 18 months within the Daesan Complex. The new 200 tons/year POE pilot plant and the comprehensive testing of key processes at this new facility will serve as the building blocks for the establishment of a commercial 100-kilo tons polyolefin elastomers production. The company is planning to start a 100 kilo tons POE plant by next year.
In June 2023, Satellite Chemicals announced its plant to invest around $3.6 billion to build alpha olefin complex in Lianyungang, Jiangsu, China. The company is planning to construct three units with each capacity of 200 kilo tons of Polyolefin elastomer. The construction is scheduled to start by the end of 2024.
Wanhua Chemical is planning to construct two 2000 kilo tons polyolefin elastomer plant in China. The project has received approval from the the Development and Reform Commission of Shandong Province and the company is expected to start the production by the end of 2024.
Polyolefin elastomers are used in the Photovoltaic (PV) module encapsulation film industry as Polyolefin elastomers based encapsulant film shows, increased power generation, improved performance, electrical efficiency and durability. LG Chem is the largest Polyolefin Elastomer manufacturer in South Korea with production capacity of 280 kilo tons. The company has announced expansion plans at its Daesan facility which would raise the company’s Polyolefin Elastomers capacity to 380 kilo tons by 2024 to cater the growing Polyolefin Elastomers demand from solar industry. Once the projected is completed LG Chem is estimated to be one of largest POE producer in the world.
SABIC SK Nexlene Company (SSNC), joint venture between SABIC and SK Geo Centric in South Korea has announced to expands its production capacity of POE in South Korea using NEXLENE technology. The company is planning to expand the production capacity of Polyolefins elastomers by 60 kilotons. The capacity expansion is estimated to be completed by second quarter of 2024 to meet the growing demand of POE from application such has film for use in photovoltaics, lighter weight & resilient footwear, enhanced packaging solutions, enabling energy transition and innovations in new mobility.
ExxonMobil is one of the leading Polyolefin Elastomer manufacturers in the world. The company operates Polyolefin Elastomer plants in the United States and Singapore. In United States, the company operates a ~140 kilo tons plant located in Baton Rouge, LA. The company also operate a 150 kilo tons plant in Singapore and another joint venture facility in Saudi Arabia. In September 2023, – ExxonMobil announced the startup of 400 kilo tons Vistamaxx™ (Polyolefin Elastomers) and Exact™ polymer modifiers facility at its Baytown, Texas.
Mitsui Elastomers Singapore Pte Ltd, wholly-owned subsidiary of Misui Chemicals is set to raise its POEs/POPs capacity. The company is planning to increase high-performance elastomers production facility in Singapore by nearly 50%. Currently company operates a 225 kilo tons Tafmer polyolefin plastomers and elastomers plant located in Jurong Island. The company is planning to add 120 kilo tons of capacity which is scheduled to be completed by first quarter of 2025. Once the project is completed the groups POEs/POPs capacity is estimated to reach 345 kilotons in Singapore.
Need help
How can we help you?
Reach us with your research requirements and we shall provide the optimum solution to suit your needs.