The global thermoplastic polyester elastomer market size was estimated at USD 1.47 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 5.2% from 2022 to 2030. Increasing adoption of thermoplastic polyester elastomer (TPEE) for lightweight automobiles, wearable electronics, and others is expected to drive the market.
The U.S., which is a major market in North America, is characterized by technological advancements in TPEE production methods and high awareness among consumers regarding the health and environmental effects of plastics. Regulatory policies framed by EPA, FDA, and other relative agencies are likely to act as a restraint force for growth, but the impact of this factor is expected to be mitigated by sustainability and alternative production processes through the life cycle of the product.
There is a growing demand for TPEE in electronic housings, connectors, electronic devices, and gadgets among other similar applications. The sector is expanding at a rapid pace in the U.S. on account of the increasing preference for lightweight wearables and electronics, along with technological innovations that have transformed the landscape.
TPEE compounds facilitate increased fuel efficiency by reducing the vehicle’s weight and density by substituting conventional components inside and around the vehicle. In order 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.
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 TPEE components has also risen.
The injection molding segment dominated the market and accounted for a revenue share of more than 68.0% in 2021. Thermoplastic polyester is a hard and versatile material that is suitable for different applications. Thermoplastics are polymers that soften when heated which allows molding and solidifying again when they are cooled. Owing to their properties they can be recycled and remolded without negatively affecting its physical properties making it an ideal material for injection molding.
Extrusion molding is employed by manufacturers to produce products with a consistent cross-section. The process includes pressing melted plastic through a die which further provides the desired shape. Extrusion molding is an economical process when compared to other molding processes. It uses thermoplastics which can undergo melting and hardening repeatedly. In this process, the leftover materials can be reused which lowers raw material and disposal costs.
Blow molding is significantly used for producing hollow plastic products such as containers, bottles, and others. Further, it is used to produce automobile parts, accessories, toys, different engineering components, and others. There are two different techniques of blow molding which include extrusion blow molding and injection blow molding. Extrusion blow molded process is preferable as compared to its counterpart, injection blow molding owing to the low production cost and the ability to mold complex shapes.
The automotive segment dominated the market and accounted for a revenue share of more than 40.0% in 2021. Increasing plastics incorporation in automotive components and simultaneous rise in passenger car production, heavy-duty vehicle production, and rising demand for electric vehicles, particularly in the Asia Pacific is expected to drive growth over the forecast period. Standardization of emission norms and vehicular weight regulations shall aid in the development of the automotive segment in the future.
TPEE compounds are the plastics used in automotive applications with their scope extending from interior components to engine parts. Owing to their moldability and superior mechanical properties, these compounds are being used as a replacement for metals and other engineering plastics. Several grades of TPEE compounds have been developed over the past to meet diverse performance requirements. The growing demand for sustainable materials in this segment has been a major driver for lightweight plastic.
Industrial machinery such as process equipment, heavy-duty machinery, and tools are often composed of plastics in conjunction with metals with high durability, corrosion & heat resistance, and structural rigidity. Several components of machinery such as shells, encapsulation components, filters, and tubing often are made of plastics that are modified accordingly to meet operational specifications.
TPEE compounds are also increasingly being utilized in industrial equipment, protective materials, components, and other industrial applications to foster weight savings, energy efficiency, and other advantages.
Asia Pacific dominated the market with a revenue share of more than 32.0% in 2021. China and India are anticipated to be the primary growth markets in the region. Growing manufacturing sector is expected to drive the demand for TPEE compounds in industrial machinery, automotive, packaging, and electrical and electronics industries. Further, a flourishing electrical and electronics manufacturing base in China and South Korea shall provide further impetus for growth. India, on the other hand, has a strong chemical industry which strengthened its plastic production.
TPEE 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 have a significant share in the end-use segment in Europe owing to the widening of scope in machine parts and accessories. A large number of industrial parts such as switches, plugs, meters, dashboards, and more are made from plastic. Advanced technology is playing a significant role in the replacement of steel components with TPEE components as a considerable number of machine parts such as covers, hood, panels, and others are getting replaced by plastics.
North America is one of the largest consumers of plastics owing to high demand in the automotive, electrical and electronics, packaging, and construction sectors. TPEE & other polymers have many applications in each industry owing to their versatile benefits, easy molding & desired shape formation. In addition, automobile manufacturers prefer plastic vehicle parts, which help them to achieve low-cost production.
The market is fragmented as a large number of global and regional players are operating in the market. Key global players face acute competition from regional players, who have robust distribution networks and an adequate understanding of suppliers and regulations.
Major players in the market are involved in the research and development for the production of superior-quality thermoplastic elastomers that provide improved features. Mergers and acquisitions are witnessed in the thermoplastic polyester elastomer market to carry out R&D activities related to thermoplastic polyester elastomers. For instance, in December 2021, Pexco LLC a plastic extruder announced the acquisition of Performance Elastomers Corporation (PEC). PEC is engaged in manufacturing elastomer products including thermoplastic elastomers used in the automotive aftermarket, equipment applications, and others. Some of the prominent players operating in the global thermoplastic polyester elastomer market include:
SABIC
DuPont
A. Schulman
Teijin Plastics
BASF SE
Entec Polymers
Covestro
Celanese Corporation
LG Chemicals
Mitsubishi Engineering Plastics Corp.
Arkema
Chang Chun Group
TOYOBO CO., LTD.
RadiciGroup
Sunshine Plastics
Report Attribute |
Details |
Market size value in 2022 |
USD 1.52 billion |
Revenue forecast in 2030 |
USD 2.3 billion |
Growth rate |
CAGR of 5.2% from 2022 to 2030 |
Base year for estimation |
2021 |
Historical data |
2019 - 2020 |
Forecast period |
2022 - 2030 |
Quantitative units |
Volume in kilotons, revenue in USD billion, and CAGR from 2022 to 2030 |
Report coverage |
Volume forecast, revenue forecast, competitive landscape, growth factors and trends |
Segments covered |
Type, end-use, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America, Middle East & Africa |
Country Scope |
U.S.; Canada; Mexico; Germany; U.K.; France; Italy; Spain; China; India; Japan; South Korea; Brazil; Argentina; Saudi Arabia |
Key companies profiled |
SABIC; DuPont; A. Schulman; Teijin Plastics; BASF SE; Entec Polymers; Covestro; Celanese Corporation; LG Chemicals; Mitsubishi Engineering Plastics Corp.; Arkema; Chang Chun Group; TOYOBO CO., LTD.; RadiciGroup; Sunshine Plastics |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, Grand View Research has segmented the global thermoplastic polyester elastomer market report on the basis of type, end-use, and region:
Type Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)
Injection Molding Grade
Extrusion Molding Grade
Blow Molding Grade
End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)
Automotive
Electrical & Electronics
Industrial
Medical
Consumer Goods
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)
North America
U.S.
Canada
Mexico
Europe
Germany
U.K.
France
Italy
Spain
Asia Pacific
China
India
Japan
South Korea
Central & South America
Brazil
Argentina
Middle East & Africa
Saudi Arabia
b. The global thermoplastic polyester elastomer market size was estimated at USD 1.47 billion in 2021 and is expected to reach USD 1.52 billion in 2022.
b. The global thermoplastic polyester elastomer market is expected to grow at a compound annual growth rate of 5.2% from 2022 to 2030 to reach USD 2.3 billion by 2030.
b. The automotive segment dominated the thermoplastic polyester elastomer market with a share of 40.8% in 2021. This is attributable to the high usage of TPEE in seating & windows, passenger airbags, safety belt tensioners, and more.
b. Some of the key players operating in the thermoplastic polyester elastomer market include SABIC; DuPont; A. Schulman; Teijin Plastics; BASF SE; Entec Polymers; Covestro; Celanese Corporation; LG Chemicals; Mitsubishi Engineering Plastics Corp.; Arkema; Chang Chun Group; TOYOBO CO., LTD.; RadiciGroup; and Sunshine Plastics.
b. Key factors driving the thermoplastic polyester elastomer market growth include increasing adoption of TPEE for lightweight automobiles, wearable electronics, and expanding medical & healthcare facilities.
b. The Asia Pacific dominated the thermoplastic polyester elastomer market with a share of 32.15% in 2021. China and India are expected to have a significant market share in the region. The growing manufacturing sector in the region is expected to drive TPEE compounds demand in industrial machinery, automotive, packaging, and electrical & electronics industries.
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The global COVID-19 pandemic has led to a sudden pause to manufacturing activities across the globe, affecting the demand for plastics and also production & processing of them. The most critically impacted end-use segments of the plastics industry include automotive & transportation, consumer goods, industrial equipment, construction, and electronics. The report will account for Covid19 as a key market contributor.
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