Thermoplastic Elastomers (TPE) show advantages of both rubber and plastic material, and is also known as thermoplastic rubbers. Six major types of thermoplastic elastomers are Styrenic Block Copolymers, Thermoplastic Polyurethanes, Copolyester Ether Elastomers, Thermoplastic Polyolefins, Thermoplastic Vulcanizates and Polyether Block Amide Elastomers. Growing demand for high class and low weighted materials in the ever-growing automobile market and the large scale replacement PVC by thermosetting elastomers in numerous end user segments are the major driving factors for TPE market. Largest consumption of TPE is in United States, Europe and China. China is the largest importer despite having the capacity to produce as the operating rates remain at low levels because of the high technical requirements and rather complicated production processes.
Thermoplastic Elastomers (TPE) are a class of polymers having properties of both thermoplastics and elastomers. They are generally low modulus, flexible materials that can be stretched repeatedly to at least twice their original length at room temperature. TPE is obtained by linking thermoplastics with elastomeric rubbers. In addition to use in their basic form, they are widely used to modify the properties of rigid thermoplastics, usually improving impact strength. Major applications of TPEs are in Automotive, Industrial, Footwear, Electricals & Electronics, Medical, and other industries.
Styrene Block Copolymers (SBC) was the most important and major TPE in the year 2017 accounting for a market share of around 45%. SBC is likely to continue to be the dominant TPE in the long-term forecast on account of increasing demand from the footwear industry in the country especially for SBS. Other applications such as polymers and asphalt modification are likely to provide an impetus to the growth. Global demand of SBCs is expected to grow at CAGR of 3.5% during 2016-2020. China is the world s largest market for SBC. TPOs and TPVs are estimated to grow at an annual average of 6-7% per annum from 2018 to 2025. TPU account for around 10% share of the total; while COPE and PEBA together account for approximately 10% of the total demand.
Automotive industry is the largest market for TPO, TPV and R-TPO and accounted for around 68% at a global level. The market is likely to grow on account of continued use in the automotive industry for under the hood applications for passenger car and trucks. In addition to their ability to withstand minor impacts, Olefinic thermoplastic elastomers are used for automotive applications as a result of the cost, recyclability during fabrication, environmental image, low specific gravity, wide range of stiffnesses available, excellent outdoor weather ability.
Thermoplastic Copolyester (TPC)/ COPE Elastomers account for around 10% of the total TPE demand and it is expected to grow at a CAGR of around 3.2% from 2018-2025. TPC has combined properties of both thermoplastics and rubbers. As of 2016, automotive applications account for more around 52% of the global consumption. Industrial applications account for a 14% share followed by medical devices (11%), wire and cable (11%), and other applications (14%). The strongest demand driver continues to be automobile production where it is used to achieve overall weight reduction.
Polyurethane elastomers (TPU) are used in various end-uses such as footwear & sporting goods, automotive, building & construction, industrial products, wire & cable, and medical products. It is also used in small volumes in adhesives & sealants, aerospace and marine equipments. The global TPU demand in 2017 was estimated to be around 504 kilo tons and it is forecast to grow at a CAGR of 5.3% between 2017 and 2025 to reach 761 kilo tons in 2025. Asia-Pacific was the biggest market at global level in 2017 accounting for almost 61% of the demand on account of increase in footwear & sporting goods and improved automotive production. The primary driver for growth in demand of TPU in Asia-Pacific has been the migration of labor intensive downstream conversion industries, shifting of footwear production from developed high labor cost regions like North America and Western Europe, apart from burgeoning population growth and increasing living standards, both of which are driving growth in domestic demand for consumer goods also.
Asia pacific leads the PEBA consumption with a strong compound annual growth of 6.7% during 2018-2025 due to flourishing automotive and footwear industry which are major markets for PEBA. Other two important demand driving regions for PEBA are Western Europe and North America due to its solid automotive infrastructure. USA and Germany hold a major share of PEBA demand and will continue to dominate their respective regions. The trend for high end cars is at peak with Germany leading the production of premium cars with a share of 41% followed by China and USA. This trend reflects in the PEBA demand as it is mostly used in high-end cars.
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