The thermoplastic copolyester market report says the thermoplastic copolyester market is USD 1.35 billion in 2023 forecast to reach USD 2.2 billion by 2032, at a CAGR of 5.5 % from 2023 to 2032. Thermoplastic elastomers (TPE) are a versatile type of plastic that exhibit properties of both plastics and rubbers. TPCs have become increasingly popular in many high-strength applications as a substitute for metals and rubbers, thanks to their exceptional physical, mechanical, and dynamic properties

Global Thermoplastic Copolyester Elastomers production capacity was estimated to be around 345 kilotons in 2022. Countries like the USA, Japan, South Korea, and Western Europe witnessed higher capacity utilization rates. However, lower capacity utilization rates in China and ideal production facilities in the country have brought down the global average capacity utilization rates to around 55% between 2016 and 2021. Capacity utilization rates were further hit due to the global COVID-19 pandemic which led to a decline in demand from the automotive sector which was the worst hit in 2020. Nationwide lockdowns and lower consumer confidence impacted global car production which declined by around 16% as per OICA. The industry faced another setback due to the global semiconductor chip shortage, adding to the woes for automotive manufacturers. Asia-Pacific accounted for around 60% of the global Thermoplastic Copolyester Elastomers capacity in 2022 which is further projected to reach 67% by 2032.

The global Thermoplastic Copolyester Elastomers demand in 2023 was estimated to be over 155 kilotons and global demand is expected to grow to cross 230 kilotons by 2032, at a CAGR of 4% between 2023 and 2032. Key demand drivers for TPC have been their application in automotive applications especially, CVJ boots and air ducts, and medical and industrial applications.

Automotive remains the largest application of Thermoplastic Copolyester Elastomers with major use in making high-performance engineering components occupying around 50% of the overall Thermoplastic Copolyester Elastomers demand globally. Metal replacement has been a key driver of the use of Thermoplastic Copolyester Elastomers in the automobile industry. CVJ boots are the largest area with a share of 40% and air-ducts with a share of 27% globally. Other parts of automobiles such as airbag covers, torque couplings, door latch bumpers, gears, steering gear bellows, oil & gas cap seals, hinges, air brake tubing, air dams, body panels, weather stripping and armrests accounted for the remaining 33%. The stiffness and abrasion resistance of TPC makes it suitable for snowmobile tracks. The shifting trend from conventional thermoset rubbers like EPDM to TPCs is driving the demand for Thermoplastic Copolyester Elastomers in the automotive sector.

The growth opportunities for most of performance elastomers and other engineering plastics in the automotive industry are primarily linked with the industry’s drive for lower emissions and increased fuel efficiency. Thermoplastic Copolyester Elastomers to an extent also provide the option of replacement of metals with elastomers to reduce some weight of the vehicle to achieve fuel efficiency. These high-performance materials in coming years are more likely to play an important role across the automotive sectors to help meet the objectives of the Paris Climate Agreement like reducing the greenhouse gases in the environment.