Thermoplastic Elastomers Market Size & Forecast

The Thermoplastic Elastomers Market is expected to reach $40.6 billion by 2031, at a CAGR of 6.4% from 2024 to 2031. The growth of this market is driven by the rising use of TPE in medical devices and the automotive industry. In addition, rapid industrialization and the rising use of TPE in the building and construction sector are expected to provide opportunities for market growth. However, the high cost of TPE materials can restrain the growth of the market. Low melting temperature poses challenges for market growth. However, Growing demand for biobased TPE is a trend in the thermoplastic elastomers market.

Thermoplastic Elastomers Market Growth Drivers

Rising Use of TPE in Medical Devices

Demand from manufacturers of medical devices for thermoplastic elastomers (TPEs) has been rising for years. Medical device manufacturers are increasingly turning to thermoplastic elastomers (TPEs) for applications that require flexibility or rubber-like elasticity. These compounds have replaced alternative materials such as thermoset rubber and PVC in standard applications such as tubing, bags, pouches, drip chambers, masks, cushions, syringe tips, ventilator bags, luers, stoppers, gaskets, seals, and dropper bulbs.

TPEs are excellent candidates for medical applications due to their chemical inertness or ‘clean’ ingredients. Medical-grade TPEs are made with FDA-compliant raw materials and are free of phthalates and latex proteins. Besides versatility, TPEs are highly used in the manufacturing of medical devices as they have thermoplastic properties. They process more efficiently and economically than thermoset rubber, provide greater design freedom, exhibit a wider range of color options, and, unlike rubber, can be recycled.

Medical device manufacturers are increasingly using TPE, which is expected to drive the growth of the market during the forecast period. For instance, in November 2022, Freudenberg Medical (U.S.), a manufacturer of medical and pharmaceutical devices, components, and tubing, launched HelixFlex, a high-purity thermoplastic elastomer TPE tubing designed for use in biopharmaceutical fluid transfer applications.

Increasing Use of TPE in the Automotive Industry

The global automotive industry has witnessed major developments and innovations in vehicle design, technology, and manufacturing over the past 50 years. As consumer demand for more affordable and efficient products increased over the years, industry leaders improved by developing new materials and their associated manufacturing processes.

Automobile manufacturers are increasingly shifting from conventional materials to soft-touch thermoplastic elastomers (TPEs). Such materials impart a luxurious feel and aesthetic appeal to various interior car structures. The fastest-growing soft-touch TPE applications for the automotive sector are instrument panel skins, seat backs, door trim, armrests, handles, knobs, and airbag doors. In a few applications, the harder plastics or rubber are being replaced by soft-touch elastomers. In other applications, they are replacing alternate soft-touch materials containing PVC, which are being phased out by some automakers for environmental and legislative reasons.

Furthermore, the rising focus of market players on developing TPE for automotive applications is expected to drive market growth. For instance, in May 2022, KRAIBURG TPE (Germany) developed an innovative material technology that enables the production of thermoplastic elastomers (TPE) suitable for various applications in the automotive market, including low-density TPE for extremely weight-saving components.

Thermoplastic Elastomers Market Growth Opportunity

Rising Use of TPE in the Building and Construction Sector

The building and construction industry plays a key role in achieving sustainability through the continuous foray into the latest construction technology and materials. Among a new class of materials, thermoplastic elastomers (TPEs) are garnering wide adoption owing to their recyclability, durability, flexibility, cost-effective production, and a host of other properties that make them suited for exterior and interior building parts.

In construction, TPEs are used in the form of extruded weather seals for doors and windows as well as other seals such as glazing and pipe seals. TPEs are an economical choice for the building and construction industries. Using TPEs in traditional materials such as pipes, plastics, and other components offers extended durability. Its extreme temperature resistance, lack of corrosive properties, lightweight, and quality of outlasting the counterparts make the TPE an apt solution for the building and construction industry. Thus, all such applications of TPE in the building and construction sector are expected to provide opportunities for market growth.

Thermoplastic Elastomers Market Growth Trend

Growing Demand for Bio-based TPE

Bio-based elastomers are thermoplastics produced from renewable biomass. The bio-based content can result from raw materials such as polymers, fillers, plasticizers, or additives that have been produced from renewable feedstocks. Bio-based TPEs provide neutral odor, touch, grip, and adhesion properties that are highly comparable to those of fossil-based TPEs. Using bio-based TPEs can reduce a product’s carbon footprint (PCF) by up to 50 percent as compared to TPEs made of fossil-based materials. Several players operating in the market are focused on launching bio-based TPEs to meet the rising demand.

Some of the recent developments:

• In January  2023, Teknor Apex (U.S.) launched the new Monprene® S3 CP-15170 BLK, an eco-conscious thermoplastic elastomer (TPE) made with 35% sustainable content that includes UBQ™ and post-consumer recycled material. UBQ™ is a sustainable plastic substitute converted entirely from organic and unrecyclable waste. Biobased and highly recyclable, UBQ™ offers a climate-positive solution towards a circular economy.
• In May 2022, Avient Corporation (U.S.) launched nine new reSound™ BIO thermoplastic elastomers (TPEs) formulated with bio-renewable content from plants. These new grades contain 35 to 75 percent bio content, validated using ASTM C6866-21 method B.

Thermoplastic Elastomers Market Analysis: Key Findings

By Type: In 2024, the Styrenic Block Copolymers (SBC/TPE-S) Segment to Dominate the Thermoplastic Elastomers Market

Based on type, the thermoplastic elastomers market is broadly segmented into styrenic block copolymers (SBC/TPE-S), thermoplastic polyurethane elastomers (TPE-U/TPU), thermoplastic vulcanizates (TPE-V/TPV), thermoplastic copolyesters elastomers (COPE/TEEE/TPE-E), polyether block amide (TPE-A), and thermoplastic polyolefin elastomers (TPO). In 2024, the styrenic block copolymers (SBC/TPE-S) segment is expected to account for the largest share of above 25.0% of the global thermoplastic elastomers market. The large market share of this segment is attributed to its rubber-like elastic properties, excellent thermal stability combined with excellent softness, and growing applications of SBC in various industries, such as sporting goods and footwear, consumer goods, mobility, electronics, and medical applications.

However, the thermoplastic polyurethane elastomers (TPE-U/TPU) segment is expected to record the highest CAGR during the forecast period. This segment's growth is driven by the rising use of thermoplastic polyurethane in the automotive industry, increasing demand for TPU in the footwear industry, and growing demand for biodegradable plastic to reduce environmental pollution.

In addition, the rising focus of market players on product development and enhancement is expected to drive segment growth. For instance, in September 2023, Trinseo (U.S.), a specialty materials solutions provider, launched a new transparent thermoplastic elastomer (TPE) grade for footwear applications. The APILON™ 52 XB-75A CRISTALLO is Trinseo’s first ester-based transparent thermoplastic polyurethane (TPU) and an important addition to the company’s growing portfolio of solutions for fashion & footwear.

By Sector: In 2024, the Automotive Segment to Dominate the Thermoplastic Elastomers Market

Based on sector, the thermoplastic elastomers market is segmented into automotive, building & construction, medical devices, electrical & electronics, footwear, sports & leisure, packaging, food & beverage, transportation & logistics, and other sectors. In 2024, the automotive segment is expected to account for the largest share of above 47.0% of the global thermoplastic elastomers market. The large market share of this segment is attributed to the rising use of TPE in automotive applications due to its flexibility, excellent wear, chemical and electrical resistance, and UV stability, increasing demand for lightweight material in the automotive industry to increase fuel efficiency, growth of electric vehicles (EV) and hybrid electric vehicles (HEV) and rising focus of market players to launch TPE for automotive applications. For instance, in September 2023, KRAIBURG TPE (Germany), a global manufacturer of thermoplastic elastomer materials, launched its revolutionary TPE compound series, tailored exclusively for automotive exterior applications.

However, the footwear segment is expected to register the highest CAGR during the forecast period. The growth of this segment is driven by the rising demand for durable and comfortable shoes, rising consumer spending on footwear, rising focus of manufacturers to use thermoplastic elastomers in footwear manufacturing, and increasing focus of market players to launch TPE for footwear applications. For instance, in September 2023, Trinseo (U.S.) launched a new transparent thermoplastic elastomer (TPE) grade for footwear applications.

Geographical Analysis

In 2024, Asia-Pacific is expected to account for the largest share of above 44.0% of the thermoplastic elastomers market. This region's large market share is attributed to the rising demand for thermoplastic elastomers from the automotive, construction, and consumer goods industries, rising infrastructure developments, rapid industrialization, increasing household income, rising urbanization, and growing footwear and apparel production.

Moreover, the Asia-Pacific region is expected to register the highest CAGR of 8.0% during the forecast period. The rising focus of market players to expand their presence in the region is expected to drive market growth in the region. For instance, in February 2023, Covestro AG (Germany) announced an investment to build its largest TPU site in China. The new site is to be built in Zhuhai, South China, with an annual capacity of 120,000 tons of TPU per year after the final phase of expansion.

Thermoplastic Elastomers Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the thermoplastic elastomers market are Arkema S.A.(France), BASF SE (Germany), Dow Inc. (U.S.), Convestro AG (Germany), Huntsman Corporation (U.S.), Teknor Apex (U.S.), The Lubrizol Corporation (U.S.), Tosoh Corporation (Japan), Kraton Corporation (U.S.), China Petroleum and Chemical Corporation (China), Mitsubishi Chemical Group Corporation (Japan), DuPont (U.S.), Evonik Industries (Germany), Asahi Kasei Corporation (Japan) and Zeon Corporation (Japan).           

Thermoplastic Elastomers Industry Overview: Latest Developments from Key Industry Players

• In January 2024, Novoloop (U.S.) announced the construction of a pilot plant in India to trial its process for manufacturing chemically upcycled thermoplastic polyurethane (TPU) from post-consumer plastic waste.
• In October 2023, CRP Technology (Italy) launched a new material of the TOP-LINE range for industrial 3D printing service, the rubber-like Windform TPU.
• In November 2022, Hexpol TPE (Sweden) launched medical mass balance thermoplastic elastomers.
• In March 2022, Avient Corporation (U.S.) launched reSound™ REC thermoplastic elastomer (TPE) formulation for use in certain food-contact applications. This grade incorporates post-consumer recycled (PCR) material that received a no-objection letter (NOL) from the U.S. Food and Drug Administration (FDA).
• In May 2021, Avient Corporation (U.S.) launched GLS™ thermoplastic elastomers, which have antimicrobial technology that protects against microbial growth.

Thermoplastic Elastomers Market Research Summary

Key questions answered in the thermoplastic elastomers market report: