2016 - 2026
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The Europe Thermoplastic Elastomer (TPE) Market was valued at over USD 4.9 billion in 2020 and the market is projected to register a CAGR of over 3.5% 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 during the government-imposed lockdown has led to a decline in the demand for the thermoplastic elastomers used in manufacturing automotive and construction materials such as gaskets, plastics, pipes, coatings, belts, and hoses, and others, which in turn has negatively impacted the demand for the thermoplastic elastomer market in Europe. However, the usage of gowns, drapes, gloves, and other medical products based on thermoplastic elastomers has been increased in the current situation, thereby stimulating the demand for the market’s growth.
- Over the short term, increasing demand of thermoplastic elastomers for the construction industry materials like rubber-based tool grips, pipes, plastics, and gaskets is expected to drive the market’s growth.
- However, market saturation in the applications of thermoplastic elastomers is expected to hinder the market’s growth in the future.
- Growing demand for bio-based thermoplastic elastomers are likely to create opportunities for the market in the coming years.
- Germany is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.
Scope of the report
Thermoplastic elastomers (TPEs) are elastic materials that pose elasticity similar to the cross-linked rubber and find its major application the end-user industries such as construction, automotive, and electronics. It is mainly produced from two processes including, mechanical blend and dynamically vulcanized blend. The Europe thermoplastic elastomer (TPE) market is segmented by product type, application, and geography. By product type, the market is segmented into Styrenic Block Copolymer, Thermoplastic Olefin, Elastomeric Alloy, Thermoplastic Polyurethane, Thermoplastic Copolyester, and Thermoplastic Polyamide. By application, the market is segmented into Automotive and Transportation, Building and Construction, Footwear, Electrical and Electronics, Medical, Household Appliances, HVAC, Adhesive, Sealant and Coating, and Other Applications. The report also covers the market size and forecasts for the thermoplastic elastomer (TPE) market in 5 countries across the Europe region. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).
|Styrenic Block Copolymer (TPE-S)|
|Thermoplastic Olefin (TPE-O)|
|Elastomeric Alloy (TPE-V or TPV)|
|Thermoplastic Polyurethane (TPU)|
|Automotive and Transportation|
|Building and Construction|
|Electrical and Electronics|
|Adhesives, Sealants and Coatings|
|Rest of Europe|
Key Market Trends
Increasing Usage in the Automotive and Transportation Applications
- Thermoplastic elastomers (TPE) are high-performance materials, whose application in the automotive industry is rapidly increasing. TPE serves the automotive industry in a myriad of applications, some of which include the manufacturing of high-quality automotive instrument panels, wheel covers, dashboard components, pillar trims, door liners and handles, seatbacks, and seat belt components, among others.
- The automotive industry places particularly high requirements on the materials used. Under extreme stresses, the materials must be dimensionally stable and must not warp, even when faced with great temperature variations.
- TPEs are special types of plastic, which are not only cheaper than metals but also help to make automobiles more energy-efficient by reducing the weight, in addition to providing durability, corrosion resistance, toughness, design flexibility, resiliency, and high performance at low cost. The lightweight of TPE enables more fuel-efficient vehicles. Every 10% reduction in vehicle weight is estimated to result in a 5-7% reduction in fuel usage.
- Growing demand for lightweight and high-performance plastics 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 advantages of design and the comparable strength of steel, which help in reducing the weight and controlling greenhouse gas emissions.
- The automotive industry in Europe has seen slowdown from past few years. According to the International Organization of Motor Vehicle Manufacturers (OICA), the automotive production witnessed a 21.6% decline from 21,579,464 units in 2019 to 16,921,311 units in 2020. Also, the sales of the automobiles has declined in 2019 by around from 20.93 million units in 2019 to 16.71 million units in 2020.
- The outlook for 2020 continued to be bleak, further impacted by the COVID-19 pandemic, which resulted in a shutdown in automotive production in every country at least for a few weeks to curb the ongoing virus spread. Companies, such as Hyundai, Renault, Volkswagen, BMW, and Daimler, were among the ones to shut down their plants in Europe for a specified period.
- According to the Oxford Economics forecast, the European automotive sector is further expected to remain weak in 2021, forecasting a more than 10% decline in vehicle production in the European Union and the United Kingdom in 2021, compared to 2019 levels.
- Such factors are expected to negatively effect the consumption of TPE in the segment studied on a short/mid term basis.
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Germany to Dominate the Market
- Germany was among the most affected countries in Europe due to COVID-19 in 2020. However, the low mortality rate in rate in Germany proved to be the silver lining for the country in the pandemic. A healthy recovery and strong medical management have kept the growth prediction of the German economy entangled, as expected over the end of 2020. However, the government now expects a 3% expansion in 2021, down from 4.4% forecast at the end of 2020 owing to slow recovery in the key industries on the global scale.
- According to industry experts, the demand for new houses was estimated to be around 350,000 per year until 2020, which is expected to boost the construction sector. The non-residential and commercial buildings in the country are expected to witness significant growth prospects during the forecast period. The growth is supported by lower interest rates, an increase in real disposable incomes, and numerous investments by the European Union and the German Government.
- It is also expected that Germany may spend more on the public infrastructure, and an increase in investments through public-private partnerships at the municipal level.
- In 2021, the German construction industry output is expected to pick up the pace owing to the significantly focused German government towards country’s transport and energy infrastructure. The industry is expected to grow by 2.8% and further at a CAGR of 2.3% till 2025, which is likely to stimulate the demand for the thermoplastic elastomers from the construction industry.
- Germany leads Europe’s automotive market with 41 assembly and engine production plants that contribute to one third of the total automobile production in Europe. Germany, being one of the leading manufacturing bases for the aircraft industry, is the home to manufacturers from different segments, such as equipment manufacturers, material and component suppliers, engine producers, and whole system integrators.
- The German automotive production declined by -24.4% in the year 2020 and stood at 3.7 million units from 4.9 million units in 2019 as per the data published by International Organization of Motor Vehicle Manufacturers, which led to decrease in the consumption of thermoplastic products such as bellows, gaskets, vehicle floors, belts and hoses, which in turn has negatively impacted the demand for the thermoplastic elastomer market.
- However, the demand for gowns, drapes, gloves, and other medical products in medical applications have grown at a robust rate in the entire Europe and the same has been experienced in the German market as well, in turn stimulating the demand of TPE in the country.
- Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.
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The Europe thermoplastic elastomer market is partially consolidated in nature. The key players in the market include DuPont, BASF SE, Covestro AG, KRATON CORPORATION, and SABIC, among others.
- In December 2019, Sirmax S.p.A. has started a thermoplastic elastomer (TPE) compounding plant with an annual capacity of 30 kilotons of TPE in Poland, for strengthening its position in Northern and Eastern Europe.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Growing Demand from the Construction Industry
4.1.2 Growing Applications in the HVAC Industry
4.2.1 Market Saturation in Applications
4.2.2 Unfavorable Conditions Arising due to the Impact of COVID-19
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Styrenic Block Copolymer (TPE-S)
5.1.2 Thermoplastic Olefin (TPE-O)
5.1.3 Elastomeric Alloy (TPE-V or TPV)
5.1.4 Thermoplastic Polyurethane (TPU)
5.1.5 Thermoplastic Copolyester
5.1.6 Thermoplastic Polyamide
5.2.1 Automotive and Transportation
5.2.2 Building and Construction
5.2.4 Electrical and Electronics
5.2.6 Household Appliances
5.2.8 Adhesives, Sealants and Coatings
5.2.9 Other Applications
5.3.2 United Kingdom
5.3.6 Rest of Europe
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Apar Industries Ltd
6.4.3 Asahi Kasei Corporation
6.4.4 BASF SE
6.4.5 Covestro AG
6.4.8 Evonik Industries AG
6.4.9 Exxon Mobil Corporation
6.4.10 Grupo Dynasol
6.4.11 Huntsman International LLC
6.4.12 KRATON CORPORATION
6.4.13 KURARAY CO., LTD.
6.4.15 LG Chem
6.4.16 LyondellBasell Industries Holdings B.V.
6.4.17 Mitsubishi Chemical Corporation
6.4.18 Mitsui Chemicals, Inc.
6.4.20 Sirmax S.p.A.
6.4.21 Sumitomo Chemicals Co. Ltd
6.4.22 The Lubrizol Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Demand for Bio-based Thermoplastic Elastomers
7.2 Increasing Applications in the Medical Industry
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Frequently Asked Questions
What is the study period of this market?
The Europe Thermoplastic Elastomer (TPE) Market market is studied from 2016 - 2026.
What is the growth rate of Europe Thermoplastic Elastomer (TPE) Market?
The Europe Thermoplastic Elastomer (TPE) Market is growing at a CAGR of >3.5% over the next 5 years.
What is Europe Thermoplastic Elastomer (TPE) Market size in 2016?
The Europe Thermoplastic Elastomer (TPE) Market is valued at 4.9 Billion USD in 2016.
Who are the key players in Europe Thermoplastic Elastomer (TPE) Market?
- BASF SE
- Covestro AG
- KRATON CORPORATION
Are the major companies operating in Europe Thermoplastic Elastomer (TPE) Market.