Thermoplastic Polyester Elastomer Market Size, Share & Trends Analysis Report By Type (Injection Molding Grade, Extrusion Molding Grade, Blow Molding Grade), By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

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.

Type Insights

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.

End-use Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

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

Thermoplastic Polyester Elastomer Market Report Scope

Global Thermoplastic Polyester Elastomer Market Segmentation

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