Thermoplastic Vulcanizates Market Size, Share & Trends Analysis Report By Application (Automotive, Medical), By Region (APAC, North America), And Segment Forecasts, 2020 - 2027

Report Overview

The global thermoplastic vulcanizates market size was valued at USD 1.5 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 6.5% from 2020 to 2027. Increasing demand for lightweight and sustainable solutions that provide extreme durability coupled with improved safety is projected to assist the market growth over the forecast period. Thermoplastic Vulcanizates (TPVs) are high-performance elastomers that offer excellent flexibility, ease of processing, durability, and resistance to heat, fluids, and chemicals. These features make them suitable for use in the production of lightweight automotive parts, such as car doors, weather seals, and under-the-hood components. TPVs are now increasingly being used as an alternative for PVC plastic owing to several stringent regulations regarding the usage of PVC in the automotive sector, which, in turn, is expected to boost the product demand in the coming years.

In addition, rising preference for lightweight materials, such as TPV, over metals to increase fuel efficiency in automobiles is expected to increase the product demand over the forecast period. Favorable federal regulations laid down by various agencies, such as the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA), regarding carbon emissions along with the EU initiatives to develop TPV’s application for the creation of lightweight and fuel-efficient cars are likely to augment the growth of the global market. High raw material costs associated with EPDM are expected to pose hindrances, in terms of profitability.

Furthermore, the outbreak of COVID-19 across the globe has also caused a sharp slowdown in the manufacturing industries owing to the imposition of nationwide lockdowns in major cities, to contain the spread of coronavirus, which is expected to further hinder the market growth in the third and fourth quarters of 2020.

Application Insights

The automotive segment led the market and accounted for more than 58% share of the global revenue in 2019. The growing demand for lightweight and high-performance materials in the automotive industry is projected to boost the demand for thermoplastic vulcanizates (TPV) over the forecast period.

TVPs are increasingly used as an alternative for thermoset rubbers, such as SBR, EPDM, and chlorosulfonated polyethylene, owing to their better reliability, safety, low maintenance, and low cost of manufacturing the parts. In addition, their increasing adoption for manufacturing lightweight interiors and exteriors, such as air guides and dams; wiper systems; spoilers and trims; flapper door seals; handles and grips; mats, and cup holders, is expected to fuel the segment growth over the forecast period.

Apart from this, TPV’s are widely used for various fluid handling applications in several end-use industries, including building & construction and general industries, owing to their excellent seal and weathering resistance. They also offer superior durability, improved safety, better aesthetics, and greater energy efficiency.

This makes them highly suitable for applications in the building and construction industry. The rising adoption of TPVs for general seals; riser tubes and supply lines; pullout sprayer hose; flapper valves and toilet flush valves; deck plate seals; and diaphragms and plumbing parts for potable water in various industries is expected to drive the product demand over the forecast period.

Regional Insights

North America dominated the market and accounted for over 33% share of global revenue in 2019. The maximum market share is attributed to strong product demand from the automobile industry as well as from other end-use industries, such as healthcare and consumer goods, in the region. Favorable government regulations pertaining to 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 expected to further propel the regional market growth over the forecast period.

Furthermore, technological advancements and increasing demand for electric vehicles have increased the need for lightweight, durable, and recyclable products. A gradual increase in electric vehicles on roads is expected to propel the growth of the market in North America. However, the lockdown imposed by various governments in the region to contain the spread of the coronavirus has led to a decline in TPV consumption, thus, negatively impacting its demand in various applications. Order cancellations, restrictions on exports and imports, and shipping complications are further hampering the market growth.

Europe is the second-largest regional market and is expected to hold its position over the forecast period. The rising demand for lightweight electric and hybrid vehicles along with the presence of major automotive manufacturers including AUDI AG, BMW AG, Mercedes-Benz AG, Jaguar Land Rover Limited, Aston Martin, Volkswagen, Volvo Car Corporation, FCA Italy S.p.A., Ferrari S.p.A., Automobili Lamborghini S.p.A., and Porsche Austria GmbH & Co. in the region is projected to result in the growth of the automotive industry. This, in turn, is expected to drive the demand for TPV in the automotive application segment in the region over the forecast period.

Key Companies & Market Share Insights

Companies in the market compete on the basis of quality products offered and technology used for the production of TPV. Manufacturers are also actively involved in the development of innovative technologies and the implementation of product strategies to enhance their product positioning in various markets. For instance, in June 2016, KRAIBURG TPE GmbH & Co. KG developed a high-performance polymer, HIPEX, in collaboration with LANXESS, for application in dual-component injection molding of high-end plastic components. The polymer offers exceptional adhesion properties to engineering plastics in the elastomer materials market and helps in manufacturing cost-effective flexible connections for the automotive sector. The global market is significantly fragmented in nature owing to the presence of a large number of manufacturers across the globe. Some of the prominent players in the thermoplastic vulcanizates market include:

• JSR Corporation

• Exxon Mobil Corp.

• RTP Company

• DuPont de Nemours, Inc.

• Mitsui Chemicals, Inc.

• Celanese Corp.

• LyondellBasell Industries Holdings B.V.

• Mitsubishi Chemical Corp.

• Ravago Manufacturing

• KUMHO POLYCHEM

Thermoplastic Vulcanizates Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global thermoplastic vulcanizates market report on the basis of application and region:

• Application Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • Automotive

  • Fluid Handling

  • Consumer goods

  • Medical

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa