Elastomers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Elastomers Market is segmented by Product Type (Thermoset Elastomers and Thermoplastic Elastomers), Application (Automotive, Sports, Electronics, Industrial, Adhesives, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East & Africa). The report offers market size and forecasts for Elastomers in revenue (USD million) for all the above segments.

Market Snapshot

Global Elastomers Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: >5 %
Global Elastomers Market Key Players

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Market Overview

The Global Elastomers Market is projected to register a CAGR of over 5% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Declining automotive industries along with the temporary halt on the construction and automotive manufacturing activities owing to government-imposed lockdowns in several countries have led to a decline in the demand for the elastomers used in manufacturing automotive and construction materials such as tires, gaskets, plastics, tubes, adhesives, coatings, belts, and hoses, and others. According to the European Tyre and Rubber Manufacturers’ Association (ETRMA), the association member countries had produced 15,739 tires in the March of 2020, registering a decline rate of 26% compared to the March of 2019 mainly due to the COVID-19 impact, which in turn has negatively impacted the market demand for elastomers. However, the usage of gowns, drapes, gloves, and other medical products based on elastomers has been increased in the current situation, which has enhanced the demand for the market studied.

  • Over the short term, increasing demand for elastomers from the heating, ventilation, and air conditioning (HVAC) industry and rising demand for elastomers for producing construction industry materials such as adhesives, tubes, coatings, and others are expected to drive the market's growth.
  • Biocompatibility concerns regarding the medical application of elastomers are expected to hinder the market's growth.
  • Shifting focus toward the development of bio-based products and increasing application in the fabrication of medical instruments are likely to act as opportunities.
  • Asia-Pacific dominated the market across the globe with the largest consumption in a country such as India, China, etc.

Scope of the Report

The elastomer is a high molar mass polymeric material that poses elasticity characteristics, which allows the material to regain its original shape after deformation. The thermoset elastomers are widely used in the production of tire rubbers, and thermoplastic elastomers are used in the manufacturing sealants, hoses, and tubes by injection molding. The elastomers market is segmented by product type, application, and geography. By product type, the market is segmented into Thermoset Elastomers and Thermoplastic Elastomers. By application, the market is segmented into Automotive, Sports, Electronics, Industrial, Adhesives, and Other Applications. The report also covers the market size and forecasts for the elastomers market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

Product Type
Thermoset Elastomers
Nitrile Rubber (NBR)
Carboxylated Nitriles (XNBR)
Hydrogenated Nitrile (HNBR)
Ethylene Propylene (EPR)
Fluorocarbon Elastomers (FKM)
Thermoplastic Elastomers
Styrenic Block Copolymers (TPS)
Polyolefin Blends (TPO)
Thermoplastic Polyurethanes (TPU)
Elastomeric Alloys (TPV)
Other Thermoplastic Elastomers
Application
Automotive
Sports
Electronics
Industrial
Adhesives
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa

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Key Market Trends

Increasing Usage in the Automotive Segment

  • Elastomers are primarily used in belts and hoses, bellows, gaskets, sound management inside the car, floors, and instrument panel skins. Moreover, outside the car, it can be used in tires (base tire, sidewalls, treads) and wire, cables, and coatings in almost all parts of the car.
  • Advancement in the automotive is partly a result of increased car builds and of polypropylene consumption per car. Compounded Thermoplastic Olefin (TPO) products are being promoted to replace flexible PVC in instrument panel coverings and other interior applications.
  • Thermoset rubber is a type of elastomer which is mainly used to make automotive tires. According to the European Tyre and Rubber Manufacturers’ Association (ETRMA), the European tire industry had produced 1,67,576 consumer vehicle tires in the first three quarters of 2019 and reached 1,43,464 consumer vehicle tires in the first three quarters of 2020, with a decline rate of 14.4%, thus leading to a decrease in demand for thermoset rubber, which in turn stimulates the market demand for the elastomer.
  • Due to properties such as lightweight, ease-of-processing, greater design freedom, versatility, and ability to be recycled, thermoplastic elastomers (TPEs) are predominantly used in the automotive and transportation industry. About 40% of all TPE products consumed worldwide are used in vehicle manufacturing. Therefore, the development of the automotive and transport industries, as well as their parts, components, and OEM suppliers, is an important indicator for future TPE demand.
  • Growing demand for lightweight materials in the automotive industry to provide increased efficiency and design flexibility is primarily responsible for the growth of the TPE market. High-performance thermoplastic elastomers offer manufacturers the advantages of design and comparable strength of steel, which help in reducing the overall weight and controlling greenhouse gasses emissions.
  • Moreover, in 2020, the global automotive production was about 77.62 million units, which declined by 15.8% compared to 92.18 million units of 2019. The declining automotive industry is likely to affect the demand for automotive parts like hoses, gaskets, and belts, which in turn negatively impacts the market growth of elastomers.
  • However, the development of electric vehicles is expected to continue to gain momentum in the future, especially in Europe and China, owing to government programs that are promoting the move away from fossil fuels, owing to various environmental concerns, thus, prompting designers in all automotive segments to discover new possibilities. The lightweight material research has been increasing to further reduce the weight of electric vehicles, which is driving the market studied.
Global Elastomers Market Key Trends

The Asia-Pacific Region to Dominate the Market

  • Asia-Pacific is projected to lead the market due to growing automotive production and sales through different countries, such as China, India, Taiwan, Thailand, and Indonesia.
  • China is the leading market regarding the consumption of elastomers in the construction, automotive, electrical and electronics, and footwear industries.
  • The automotive industry is one of the major consumers of elastomers. China was the leading producer of vehicles with a total production volume of 25.75 million vehicles as of 2019 and reached 25.23 million vehicles by the end of 2020, registering a decline rate of about 2%, thus leading to a decrease in demand for automotive parts like tires, belts, hoses, and others, in turn, negatively impacting the market demand for elastomers.
  • Elastomers are used in the manufacturing of various construction materials such as adhesives, sealants, and caulking. According to deliberations on the 14th five-year plan (2021-26), China has intended to increase the permanent urban residents to 65% by 2025, which is expected to stimulate the demand for the market studied in the coming years.
  • Increased Public-Private Partnership (PPP) initiatives have further led to the growth of the Chinese construction industry. For instance, according to the National Development and Reform Commission, the Chinese government approved 26 infrastructure projects at an estimated investment of about USD 142 billion in 2019, estimated to be completed by 2023. However, being the epicenter of the pandemic, China's priorities have changed drastically in 2020, leading to a compromise in its infrastructure development growth.
  • However, the country set a higher bar to achieve in 2021, with overall GDP growth of 6%. Thus, construction activities are also likely to witness a spike in the coming years, propelling the demand for elastomers in the country.
  • Regions, such as ASEAN countries, India, Taiwan, and Pacific Islands, among others, with emerging economies have witnessed increased demand for automotive, consumer durables, and electronics products, mainly due to the increasing disposable income, and the growing middle class contributes to the high demand for used products.
  • However, the automotive industry in India is relaying otherwise, and the production declined sharply and recorded an overall -25% downfall in 2020. The total number of units produced in 2020 stood at 3.39 million decreased from 4.52 million units in 2019. Moreover, the trend is likely to remain a similar quadrant for 2021 as well, owing to slow industrial growth and shooting unemployment in the country.
  • The recent government guidelines for scrapping old cars exceeding 20 years of age to control the pollution generated through automobiles are likely to push a large chunk of the total parked vehicles to retirement. This is expected to generate demand for new vehicles in the country, which is anticipated to propel automotive production alongside the elastomers' demand.
  • Furthermore, Japan’s construction industry registered minimal growth in 2018 and 2019 compared to 2017. Residential construction was the largest market in the Japanese construction industry, accounting for over 30% of the industry’s total value in 2019, whereas commercial construction comprises nearly 13% share in the industry. Japan also hosts various high-rise buildings (nearly 290), with Tokyo being a major hub for such buildings. The growing construction activities in the country are expected to boost the demand for the market in the country. The Japanese construction industry is expected to be blooming owing to events to be hosted in the country. Tokyo will host the Olympics in 2020 (postponed to 2021 due to the pandemic), and Osaka will host the World Expo in 2025.
  • Therefore, the aforementioned factors are expected to significantly impact the regional elastomers market in the coming years.
Global Elastomers Market Growth by Region

Competitive Landscape

The elastomers market is partially consolidated. Some of the major players include BASF SE, Dow, Covestro AG, KURARAY CO. LTD, and Huntsman International LLC.

Recent Developments

  • In September 2020, Ace Midwest LLC, a subsidiary of Ace Elastomer, announced to acquire all the operating assets of the Elastomer Processing Group rubber manufacturing business of RotaDyne, in turn enhancing the company's product portfolio and its elastomers business.
  • In December 2019, Sirmax SpA started a thermoplastic elastomer (TPE) compounding plant with an annual capacity of 30 kilotons of TPE in Poland to strengthen its position in Northern and Eastern Europe.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Rising Demand from the Construction Industry

      2. 4.1.2 Increasing Application from the HVAC Industry

    2. 4.2 Restraints

      1. 4.2.1 Biocompatibility Concerns of Some Medical Elastomers

      2. 4.2.2 Unfavorable Conditions Arising due to the Impact of COVID-19

      3. 4.2.3 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Thermoset Elastomers

        1. 5.1.1.1 Nitrile Rubber (NBR)

          1. 5.1.1.1.1 Carboxylated Nitriles (XNBR)

          2. 5.1.1.1.2 Hydrogenated Nitrile (HNBR)

        2. 5.1.1.2 Ethylene Propylene (EPR)

        3. 5.1.1.3 Fluorocarbon Elastomers (FKM)

      2. 5.1.2 Thermoplastic Elastomers

        1. 5.1.2.1 Styrenic Block Copolymers (TPS)

        2. 5.1.2.2 Polyolefin Blends (TPO)

        3. 5.1.2.3 Thermoplastic Polyurethanes (TPU)

        4. 5.1.2.4 Elastomeric Alloys (TPV)

        5. 5.1.2.5 Other Thermoplastic Elastomers

    2. 5.2 Application

      1. 5.2.1 Automotive

      2. 5.2.2 Sports

      3. 5.2.3 Electronics

      4. 5.2.4 Industrial

      5. 5.2.5 Adhesives

      6. 5.2.6 Other Applications

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/ Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Ace Elastomer

      2. 6.4.2 Argotec

      3. 6.4.3 Avient Corporation

      4. 6.4.4 Arkema

      5. 6.4.5 BASF SE

      6. 6.4.6 Coim Group

      7. 6.4.7 Exxon Mobil Corporation

      8. 6.4.8 Bailey-Parks Urethane

      9. 6.4.9 Brenntag SE

      10. 6.4.10 Covestro AG

      11. 6.4.11 DingZing Advanced Materials Inc.

      12. 6.4.12 Dow

      13. 6.4.13 HEXPOL AB

      14. 6.4.14 HUAFENG GROUP

      15. 6.4.15 Huntsman International LLC

      16. 6.4.16 KURARAY CO. LTD

      17. 6.4.17 Miracll Chemicals Co. Ltd

      18. 6.4.18 Sirmax SpA

      19. 6.4.19 Suzhou Austin Novel Materials Technology Co. Ltd

      20. 6.4.20 Trinseo SA

      21. 6.4.21 The Lubrizol Corporation

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Shifting Focus toward the Development of Bio-based Products

    2. 7.2 Increasing Application in Fabrication of Medical Instruments

**Subject to Availability

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Frequently Asked Questions

The Elastomers Market market is studied from 2016 - 2026.

The Elastomers Market is growing at a CAGR of >5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

BASF SE, Dow, Convestro AG, KURARAY CO., LTD., Huntsman International LLC are the major companies operating in Elastomers Market.

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