Innovative TPEs driving growth towards €32bn elastomers market

London - The global market for elastomers was worth $21.52 billion (€19.67bn) in 2014 and is expected to grow to $34.73 billion (€31.75bn) in 2021 with growth being led by the thermoplastic elastomers (TPEs), according to new Frost & Sullivan (F&S) data.

In a new report, ‘Analysis of the Global Elastomers Market’, F&S said the sector is all set for an era of innovation with original equipment manufacturers (OEMs) increasingly demanding high-performance materials.

F&S identified the TPE segment as the “torchbearer for technological advancements,” due to its focus on improving the processing properties and design flexibility, as well as its inherent recyclability. These materials, it noted are gaining traction in a wide range of end-user markets, especially consumer electronics.

“Meanwhile, OEMs are also making a beeline for non-latex solutions due to escalating environmental concerns and biohazard and skin sensitization issues in the medical and hygiene industry,” said F&S chemicals, materials & food research analyst Shubhayan Sarkar. “This bodes well for SE [synthetic elastomer] compounds, as they offer superior flexibility and tactile sensitivity.”

While competition from alternative materials such as PVC and more speciality plastics remains, there is a clear move among OEMs to replace these established materials in several applications. Elastomers, noted F&S, are part of drive to substitute PVC and metals with competing plastic compounds as well as reinforced and composite materials.

On a regional market basis, F&S said that the saturation of the manufacturing bases in North America and Western Europe is being effectively countered by growth in Asia-Pacific and rest of the World.

On the other hand, the report commented that “factors such as the declining demand of solid wire and cable for external insulation and the high cost of switching to TPE can dampen the growth of the elastomers market.”

Another serious concern for the market is a possible raw material shortage, though F&S said this can be mitigated through vertical integration. Consolidations with regional participants with specialised product capabilities will also allow larger companies to boost their market share and regional visibility.

Partnership agreements involving compound/component manufacturers and OEMs will become more prevalent for specific application segments, the report also predicted.

“Polymer manufacturers that are backwardly integrated will have better control over the volatility of raw material prices, which will help them maintain a competitive edge in the long run,” concluded Sarkar. “Overall, a consistent supply of high-performance products will be the key differentiator among market participants.”

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