GVR Report cover Thermoplastic Elastomer Market Size, Share & Trends Report

Thermoplastic Elastomer Market Size, Share & Trends Analysis Report By Application (Automotive, Electrical & Electronics, Industrial, Medical, Consumer Goods), By Material, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: 978-1-68038-478-9
  • Number of Pages: 102
  • Format: Electronic (PDF)

Report Overview

The global thermoplastic elastomer market size was valued at USD 21.45 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.2% from 2022 to 2030. Increasing consumption across various applications such as automotive, electrical and electronics, industrial, medical, and consumer goods has been instrumental in the global industry growth over the last few years. Increasing demand in automotive component manufacturing is expected to be a major factor driving the global industry over the forecast period. Regulatory intervention by environmental agencies aimed at carbon emission reduction through an increase in fuel efficiency has forced major automotive OEMs to incorporate plastics as a substitute for metals and alloys in automotive components.

U.S. thermoplastic elastomer market size, by application, 2020 - 2030 (USD Billion)

Increasing consumer preference for high-performance and lightweight passenger cars has been driving plastic innovation in automotive manufacturing. These factors have led to increased thermoplastics consumption in the aforementioned application. Thermoplastic elastomers (TPEs) exhibit superior physical and chemical properties compared to thermoset plastics, thus gaining preference in terms of application. High substitution rate of TPU and TPO as an alternative to ethylene propylene diene monomer (EPDM) in construction materials is expected to complement global industry demand over the forecast period.

TPEs are unique, eco-friendly thermoplastics that are not only recyclable but can also be re-molded and re-shaped, thereby eliminating wastage quite extensively. These offer various other advantages in terms of physical attributes and characteristics such as resistance to chemicals, UV, oxidation, and providing soft-touch to materials. These properties are increasingly driving rubber and conventional plastic material replacement by TPEs in their respective applications. Several federal bodies such as the FDA and US Pharmacopeia regulate product applications in numerous end-use industries to ensure utmost consumer health and safety. These regulations affirm TPE utilization for commercial applications by providing guidelines for prudent product usage.

The U.S. Environment Protection Agency (EPA) has also determined control techniques and guidelines regarding carbon emissions from various automotive vehicles, mentioned in the Clean Air Act, effective from October 2008. Thus, the corresponding demand for fuel-efficient cars and industrial machinery created from thermoplastic elastomer components has also increased. Rapidly developing automobile markets are also projected to boost the demand for thermoplastic elastomers in interiors, exteriors, sealing systems, and underhood components.

Thermoplastic Elastomer Market Trends

TPE facilitates increased fuel efficiency in automotive applications by lowering car weight and density by substituting conventional components inside and around the vehicle. To reduce the impact of carbon emissions and greenhouse gases (GHG) on the environment and human health, regulatory bodies across various nations have imposed numerous stringent regulations.

Rapidly developing automobile markets are also projected to boost TPE demand in exterior, interiors, sealing systems, and under-the-hood components. Increasing application in the automotive industry is spurred by demand for safe, lightweight, and inexpensive MUV/SUV models with high fuel efficiency and an emphasis on comfort and aesthetics.

Wearable electronics are among the most compelling new technologies that present opportunities for added connectivity, enhanced productivity, and enriched lifestyles. In many ways, these devices are an extension of the human body, expanding our capabilities and enabling us to communicate and interact with our environment and with others.

The development of unique wearable and miniaturized electronics has also contributed to market growth in recent years. Numerous electronic manufacturers have realized the benefits of integrating lightweight and sustainable materials such as TPE into wearable electronics to provide a non-tacky, soft-touch feel of advanced materials into high-end consumer gadgets.

Increasing expenditure on healthcare and medical facilities is expected to drive investments in medical devices such as plastic syringes, instruments, surgical gloves, and other plastic items utilized for consumer and industrial applications. This, in turn, has driven the demand for lightweight plastic materials such as TPE in these and other medical devices and products. Medicines and other pharmaceuticals are also utilizing these materials for packaging since they foster weight savings in transportation and allow hygienic protection of the inner contents.

Thermoplastic elastomers are prepared with various polymers depending on the grade or type of the desired end-product. TPE-S is two block copolymers with SBS rubber as the base element. TPO are blends of polypropylene (PP) and un-cross linked EPDM rubber, whereas TPV is also made of the same compounds with additional dynamic vulcanization.

Hence, raw materials differ based on prices and availability. However, since most plastic polymers are processed from crude oil, their prices are dependent on the global crude oil market and price trends. Crude oil is a commodity that sees large price fluctuations owing to supply and demand factors, natural disasters, seasonal variations, and other influencers, ultimately creating a price impact on its by-products such as plastic polymers.

Application Insights

The automotive segment held the largest revenue share of over 40.0% in 2021. TPE usage in automotive applications has increased exponentially as a result of high usage of electronic and electrical devices such as electric motor housings for seating and windows, passenger airbags, safety belt tensioners, and more. Newly developed grades with enhanced hydrolytic stability are also finding applications in under-the-hood components.

Other automotive applications such as connectors, plugs, and housing components that must endure increasingly stressful demands of the industry are also being molded. Polyester resins have benefited from improvements in mold design, a better understanding of flow behavior in molds, increased robotics, and increased computer simulation, which has improved the efficiency and economics of the production of large, molded parts.

The electrical and electronics segment emerged as the second-largest segment in 2021. Manufacturers are utilizing compounds with electrical insulation properties and inherent high heat distortion temperatures for components such as circuit breakers, switches, connectors, and housings in the home appliance market.

The telecommunications and IT sectors have similar uses for these polymers, notably used in mobile phone casings to lower weight and foster miniaturization. Furthermore, developments in injection molding and similar techniques are driving the demand for stronger grades in the sector.

Medical and healthcare expenditure has also risen considerably in recent years, driving the need for faster processing of lightweight and durable medical devices and equipment. The segment is anticipated to grow at an exponential pace, especially in emerging markets such as India, Indonesia, Thailand, Argentina, and Mexico.

Specialized impact-modified compounds find usage across a range of consumer goods that include convenience products, consumer durables, and soft goods. Sales of these goods are highly dependent on the buying habits of the consumer, and hence the latter has a huge impact on TPE production dynamics in the application.

Material Insights

Poly styrenes held the largest revenue share of over 35.0% in 2021. It was the largest consumed material in 2021. Increasing demand for SIS, particularly in China and India, is expected to drive the segment growth over the next eight years.

Increasing consumption in automotive under-the-hood applications and fascia systems is expected to be a major factor driving the global TPE consumption. TPE is gaining prominence in construction applications owing to its thermal and acoustic insulation properties. Growing importance of energy efficiency in buildings and subsequent regulatory policies aimed at zero-energy buildings are expected to drive TPU demand in construction over the next eight years.

Global thermoplastic elastomer market share, by material, 2021 (%)

Moreover, surge in industrialization across various regions is anticipated to benefit industry growth. Rapid industrialization and subsequent demand from plastics, synthetic lubricants, and other industrial applications have been major drivers for the market over the recent past. Rapid industrialization in the U.S. had been beneficial for industry growth.

Regional Insights

North America dominated the market and accounted for a revenue share of over 35.0% in 2021. The North American region is one of the largest consumers of plastics owing to high demand in the automotive, electrical and electronics, packaging, and construction sectors. TPE and other polymers have many applications in each industry due to their versatile benefits, easy molding, and desired shape formation. Many automobile manufacturers prefer plastic vehicle parts, which helps the companies to achieve low-cost production and increase their bottom line. The region is a slow-growing market owing to saturation of the end-use industries and a relatively lower customer base as compared to Asia Pacific.

Canada is one of the biggest producers of crude oil globally. Declining prices of crude oil and increasing demand for plastic in the region are paving the way for the growth of the plastic market. Polymers and materials such as TPE are produced from various petrochemicals made from crude oil. Manufacturers are increasingly integrating additives into TPE to provide strength, durability, and lightweight when used in any product.

Thermoplastic Elastomer Market Trends by Region

Mexico's automotive industry witnessed a steep jump when major automobile manufacturers such as BMW, Mercedes, and Toyota started their production facilities in the country. The major reasons behind these companies investing in the country include the high availability of raw materials, cheap labor cost, and low-cost production. Mexico is a developing country that has its perks. Most of the products supplied by manufacturers in the country are cheap, which increases their competitiveness at the global level. Cheap products also result in a broad application base due to growing demand in the local market and increasing exports.

Asia Pacific occupied the second-largest revenue share in 2021. China, India, and Southeast Asia are expected to be the primary growth markets in Asia Pacific. The growing manufacturing sector shall drive the demand for TPE compounds in the automotive, industrial machinery, packaging, and electrical and electronics industries.

Europe is anticipated to remain an important market in the years to come. Though the regional growth is likely to be restrained due to various macro-environmental factors such as debt crisis, rising unemployment, and stalled industrial output, an optimistic scenario across Eastern Europe for manufacturing and consumerism shall boost its growth. The region is characterized by stringent environmental regulations from agencies such as ECHA, the European Commission, and various federal level agencies.

Other emerging economies such as Central and South America (CSA) and the Middle East and Africa (MEA) are also growing at high rates similar to Asia Pacific. These regions benefit from expanding end-use industries and relatively low penetration of thermoplastic compounds as compared to other regions.

TPE used in the medical sector is expected to remain important on account of its increasing usage in several medical devices, equipment, surgical instruments, and other medical products. Industrial machinery is anticipated to be the fastest-growing application segment in Europe due to the widening of scope in machine parts and accessories.

The MEA region is the world leader in crude oil production. Many major countries in the MEA region such as Kuwait, Saudi Arabia, Oman, Bahrain, Iraq, Libya, Angola, and Iran are dependent on the oil business. All the OPEC countries are located in the MEA region, excluding Venezuela and Ecuador. The OPEC region was once formed to formulate the global oil supply and maintain the global demand-supply chain and oil prices. The MEA region witnessed a significant demand for TPE products in 2016 and is expected to grow during the forecast period owing to massive oil production in the region.

Key Companies & Market Share Insights

The market is moderately concentrated with the top four companies, namely, Dow Chemical Co., Kraton Polymers, Sinopec, and LyondellBasell accounting for over 47% share of the total demand collectively. Major companies are shifting their manufacturing capabilities to high-growth potential markets such as China, India, Brazil, and Southeast Asia. The shift in production can be attributed to high TPE demand in the aforementioned regions, coupled with favorable manufacturing conditions such as easy raw material procurement and low labor and operational costs.

Key manufacturers such as Muller Kunststoffe and Zeon have started capacity expansions in China and Japan respectively. The presence of a large number of small-scale domestic manufacturers in these regions is expected to strengthen competition among companies. Mitsubishi is actively investing in R&D to improve production processes by eliminating toxic ingredients (phosgene) and developing plant-based bio-based thermoplastic elastomers. Some prominent players in the global thermoplastic elastomer market include:

  • Advanced Elastomer Systems L.P.

  • Arkema S.A.


  • Bayer MaterialScience LLC

  • China Petroleum & Chemical Corporation

  • Dynasol Elastomers LLC

  • EMS Group

  • Evonik Industries

  • Huntsman Corporation

  • Kraton Polymers LLC

  • LG Chemicals

  • LCY Chemical Corporation

  • Lubrizol Corporation

  • LyondellBasell Industries

  • Nippon Polyurethane Industry Company Ltd.

  • Avient Corporation

  • Teknor APEX Company

  • The Dow Chemical Company

  • TSRC Corporation

  • Yantai Wanhua Polyurethane Co. Ltd.

Thermoplastic Elastomer Market Report Scope

Report Attribute


Market size value in 2022

USD 22.91 billion

Revenue forecast in 2030

USD 40.06 billion

Growth Rate

CAGR of 7.2% from 2022 to 2030

Base year for estimation


Historical data

2019 - 2020

Forecast period

2022 - 2030

Quantitative units

Volume in kilotons, revenue in USD million/billion, and CAGR from 2022 to 2030

Report coverage

Volume forecast, Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, material, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; France; U.K.; Italy; China; India; Japan; Brazil; Saudi Arabia

Key companies profiled

Advanced Elastomer Systems L.P.; Arkema S.A.; BASF SE; Bayer MaterialScience LLC; China Petroleum & Chemical Corporation; Dynasol Elastomers LLC; EMS group; Evonik Industries; Huntsman Corporation; Kraton Polymers LLC; LG Chemicals; LCY Chemical Corporation; Lubrizol Corporation; LyondellBasell Industries; Nippon Polyurethane Industry Company Ltd.; Avient Corporation; Teknor APEX Company; The Dow Chemical Company; TSRC Corporation; Yantai Wanhua Polyurethane Co. Ltd.

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Global Thermoplastic Elastomer Market Segmentation

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2030. For the purpose of this report, Grand View Research has segmented the global thermoplastic elastomer market report based on application, material, and region:

Global Thermoplastic Elastomer Market Segmentation

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

    • Automotive

    • Electrical & Electronics

    • Industrial

    • Medical

    • Consumer Goods

    • Others

  • Material Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

    • Poly Styrenes

    • Poly Olefins

    • Poly Ether Imides

    • Poly Urethanes

    • Poly Esters

    • Poly Amides

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • U.K.

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Saudi Arabia

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