Thermoplastic Vulcanizates Market Size, Share & Trends Analysis Report By Application (Automotive, Fluid Handling, Consumer Goods, Medical, Footwear, Others), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global thermoplastic vulcanizates market size was valued at USD 1.56 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 7.6% from 2023 to 2030. The market for thermoplastic vulcanizates (TPV) is expected to grow during the forecast period due to the rising demand for lightweight, environmentally friendly solutions that offer exceptional durability as well as increased safety.

High-performance elastomers known as thermoplastic vulcanizates (TPV) provide exceptional flexibility, processing ease, durability, and resistance to heat, fluids, and chemicals. Due to these qualities, they may be used to create lightweight automobile parts including car doors, weather seals, and engine-related elements.

Thermoplastic Vulcanizates (TPV) are now increasingly being used as an alternative to PVC plastic due to the several stringent regulations regarding the use of PVC in the automotive industry, which in turn is expected to increase market demand in the coming years. In addition, a strong shift towards replacing metals with lightweight materials such as thermoplastic vulcanizates (TPV) to improve fuel efficiency in automobiles is expected to increase demand for thermoplastic vulcanizates (TPV) during the forecast period.

TPVs are widely used for making automobiles' interior and exterior components such as wiper systems, air guides and dams, spoilers and trims, and flappers. The inclination of consumers toward fuel-efficient vehicles across the globe is leading to rising demand for TPV in the automotive application and is expected to drive market growth during the forecast period.

Favorable federal regulations set by the agencies such as the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) on carbon emissions, along with EU initiatives to develop a TPV app to build light and fuel-efficient vehicles, are likely to boost the growth of the world market. The high raw material costs associated with EPDM are expected to hinder profitability.

Favorable government policies for encouraging lightweight and recyclable materials application in various industries including automotive and construction are expected to support the demand for thermoplastic vulcanizates during the forecast period. The investment of USD 2.0 trillion by the U.S. government as a part of the coronavirus outbreak responsible for the development of infrastructure including hospital building and construction is expected to further propel the demand for thermoplastic vulcanizates (TPV) in medical and fluid handling applications in the coming years.

Application Insights

In terms of revenue, automotive emerged as the largest application segment and accounted for 58.70% share of the market in 2022, and this trend is projected to continue during the forecast period. Throughout the forecast period, the growing demand for lightweight and high-performance materials in the automotive industry is estimated to boost demand for thermoplastic vulcanizates (TPV). Furthermore, favorable government regulations regarding the application of lightweight materials and better fuel efficiency are expected to drive the global market for TPVs in the automotive industry.

In the automotive sector, thermoplastic vulcanizates (TPVs) are increasingly used as an alternative for thermoset rubbers, such as chlorosulfonated polyethylene, styrene-butadiene rubber (SBR), and ethylene propylene diene monomer (EPDM), owing to their properties such as low maintenance, better reliability, low cost of manufacturing the parts, and safety.

Some of the applications of TPVs in the automotive segment include weather seals for glass run channels, sunroofs, windshields, and roof lines. They are also used for manufacturing various lightweight interiors and exteriors such as flapper door seals, air guides and dams, spoilers and trims, wiper systems, handles and grips, and mats and cup holders.

Increasing utilization of thermoplastic vulcanizates (TPVs) in OEMs coupled with rising demand for lightweight vehicles and passenger cars is expected to boost the segment growth during the forecast period. Vehicular weight standardization and regulations of emission norms are anticipated to help boost the demand for thermoplastic vulcanizates (TPVs) in the automotive application segment.

However, the outbreak of coronavirus has immensely affected the production of automobiles and has caused disruption across the value chain of the automotive industry. Manufacturing activities, apart from essential goods, are halted in various countries to contain the spread of coronavirus. This is expected to impact the demand for plastics in automotive applications during the forecast period.

Regional Insights

North America dominated the market and accounted for more than 33.0% share of the global revenue in 2022. The large market share is attributed to strong demand from the automobile industry as well as from other end-use industries such as healthcare and consumer goods. Favorable government regulations pertaining to thermoplastic vulcanizates (TPV) consumption in automotive applications as an alternative for alloys and metals along with growing passenger car production in the U.S. and Mexico are the factors expected to further propel the regional demand for TPV over the forecast period.

Furthermore, technological advancements and the increasing trend of electric vehicles have increased the need for durable, lightweight, and recyclable products. The market for North American thermoplastic vulcanizates (TPV) is anticipated to develop as there are steadily growing electric vehicles on the road. Europe is the second largest region and is expected to hold its position throughout the forecast period.

The rising demand for hybrid vehicles and lightweight electric along with the presence of major automotive manufacturers including Volvo Car Corporation, Mercedes-Benz AG, AUDI AG, BMW AG, FCA Italy S.p.A., Volkswagen, and Porsche Austria GmbH & Co. in the region is likely to result in automotive industry expansion which, in turn, is expected to drive the demand for thermoplastic vulcanizates (TPV) in the automotive industry during the forecast period.

Throughout the forecast period, it is anticipated that the growth of the construction industry in a number of nations, including Germany, the UK, the Netherlands, Sweden, Hungary, Poland, and Ireland, will drive up product demand. The expansion of the construction industry in the region is predicted to be aided by increased funding from the EU along with supportive actions (such as subsidies, tax breaks, and incentives) implemented by the regional governments.

Key Companies & Market Share Insights

Companies in the market compete based on the quality of products offered. Leading market players compete based on their product development capabilities and new technologies used in product formulations.

Established players such as Exxon Mobil Corp., DuPont de Nemours, Inc., and Mitsui Chemicals, Inc. are investing in the development of innovative and sustainable solutions for formulating new and advanced resins that give them an edge over their competitors. For instance, in June 2021, Celanese Corp. signed an agreement to acquire Exxon Mobil Corp. Santoprene business for USD 1.15 billion. In the acquisition, ExxonMobil's two manufacturing facilities in the U.S. and the U.K. are included. Some of the prominent players in the global thermoplastic vulcanizates market include:

• JSR Corporation

• Exxon Mobil Corp.

• RTP Company

• DuPont de Nemours, Inc.

• Mitsui Chemicals, Inc.

• Celanese Corp.

• Lyondell Basell Industries Holdings B.V.

• Mitsubishi Chemical Corp.

• Ravago Manufacturing

• KUMHO POLYCHEM

• Avient Corporation

• FM Plastics

• Elastron TPE

• Ravago

• LCY GROUP

Thermoplastic Vulcanizates Market Report Scope

Global Thermoplastic Vulcanizates Market Segmentation

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

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

  • Automotive

  • Fluid Handling

  • Consumer Goods

  • Medical

  • Footwear

  • Others

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • UK

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa