|Study Period:||2016 - 2026|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The European 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 and the temporary halt on the construction and automotive manufacturing activities during the government-imposed lockdown led to a decline in the demand for the thermoplastic elastomers used in manufacturing automotive and construction materials, including gaskets, plastics, pipes, coatings, belts, and hoses, which, in turn, has negatively impacted the demand for the European thermoplastic elastomer market. However, the usage of gowns, drapes, gloves, and other medical products based on thermoplastic elastomers has increased in the current situation, thereby stimulating the demand for the market’s growth.
- Over the short term, the increasing demand for thermoplastic elastomers in 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.
- The growing demand for bio-based thermoplastic elastomers is likely to create opportunities for the market in the coming years.
- Germany is expected to dominate the market and is also likely to witness the 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 their major applications in end-user industries, such as construction, automotive, and electronics. It is mainly produced from two processes, namely mechanical blend and dynamically vulcanized blend. The European 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 five countries across the European 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 cheaper than metals and help 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.
- The 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 weight and controlling greenhouse gas emissions.
- The automotive industry in Europe has seen a slowdown in the past few years. According to the International Organization of Motor Vehicle Manufacturers (OICA), automotive production witnessed a 21.6% decline from 21,579,464 units in 2019 to 16,921,311 units in 2020. Additionally, sales of automobiles declined in 2019 by around 20.93 million units 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 affect the consumption of TPE in the segment studied on a short/mid-term basis.
To understand key trends, Download Sample Report
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 Germany proved to be the silver lining for the country during the pandemic. A healthy recovery rate and strong medical management kept the growth prediction of the German economy entangled, as expected, at the end of 2020. However, the government now expects a 3% expansion in 2021, down from a 4.4% forecast at the end of 2020, owing to the slow recovery rate of 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 public infrastructure and witness an increase in investments through public-private partnerships at the municipal level.
- In 2021, the German construction industry output is expected to pick up, owing to the government's significant focus on the country’s transport and energy infrastructure. The industry is expected to grow by 2.8% and witness a CAGR of 2.3% by 2025, which is likely to stimulate the demand for 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 European automobile production. Germany, one of the leading manufacturing bases for the aircraft industry, is 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 2020 and stood at 3.7 million units, from 4.9 million units in 2019, as per the data published by the International Organization of Motor Vehicle Manufacturers. The decline in automotive production led to a decrease in consumption of thermoplastic products, such as bellows, gaskets, vehicle floors, belts, and hoses, negatively impacting the demand for the thermoplastic elastomer market.
- However, the demand for gowns, drapes, gloves, and other medical products in medical applications has grown at a robust rate in the entire European region, and the same has been experienced in the German market as well, stimulating the demand for TPE in the country.
- Therefore, the aforementioned factors are expected to significantly impact on the market in the coming years.
To understand geography trends, Download Sample Report
The European thermoplastic elastomer market is partially consolidated in nature. The key players in the market include DuPont, BASF SE, Covestro AG, KRATON CORPORATION, and SABIC.
- In December 2019, Sirmax SpA 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 BV
6.4.17 Mitsubishi Chemical Corporation
6.4.18 Mitsui Chemicals Inc.
6.4.20 Sirmax SpA
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
You can also purchase parts of this report. Do you want to check out a section wise price list?
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 Billion USD in 2016.
Who are the key players in Europe Thermoplastic Elastomer (TPE) Market?
DuPont, BASF SE, Covestro AG, KRATON CORPORATION, SABIC are the major companies operating in Europe Thermoplastic Elastomer (TPE) Market.