Market Trends of Thermoplastic Vulcanizate (TPV) Industry
The Automotive Segment to Dominate the Market
- Automotive lightweight materials grew robustly over the past couple of years due to the increasing demand for luxurious, low-on-emission, safe, and high-performance vehicles.
- As a result, suppliers and manufacturers introduced various solutions that help OEMs meet continually tightening regulations and satisfy the widening range of consumers' tastes.
- The major applications of TVP in the automotive industry include hose coverings, air inlet duct covers, gaskets, seals, convoluted boots, vibration dampeners, strut covers, ignition components, bushings, and window seals.
- TPV flexible automotive under-the-hood components include air intake tubes and bellows, wheel well flares, steering system bellows, and sound abatement parts.
- Cost is the biggest advantage, with TPVs being 10-30% lower than EPDM, coupled with lower weight, improved design flexibility, and recyclability. Furthermore, the lightweight of TPV enables more fuel-efficient vehicles.
- In 2022, According to the International Organization of Motor Vehicle Manufacturers (OICA), global automobile production increased by 6% compared to the previous year due to increasing global demand for private mobility.
- In China, the total vehicle production was 27.02 million units with an increase of 3% in 2022 compared to 2021. Also, in Canada, the total vehicle production was 1.22 million units in 2022, with an increase of 10% in the production of vehicles in the country compared to 2021.
- Thus, based on the factors above, the automotive segment is expected to dominate the market.
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Asia-Pacific to Witness the Fastest Growth
- Extensive demand from China, Japan, and India is one of the key reasons driving the demand in the market in Asia-Pacific.
- China is the world's largest automotive producer. However, the country witnessed a decline in the production of vehicles in the recent past. The economic shifts and China's trade war with the United States affected the automotive industry's performance.
- China is focusing on increasing the production and sales of electric vehicles. For this purpose, the country planned to increase the production of electric vehicles (EVs). It targeted to reach the share of electric vehicles to 20% of China's total new car production by 2025, stated the International Energy Agency (IEA).
- Moreover, according to the International Organization of Motor Vehicle Manufacturers (OICA), in 2022, the total vehicle production in China stood at 27,020,615 units, which increased by 3% compared to 2021.
- China's booming economy offered consumer product companies some of the world's greatest growth opportunities. Attracted by the huge potential of China's consumer goods market, many foreign companies entered China and set up production units. With the growth of consumer goods production, thermoplastic vulcanizate consumption may also see an increased demand.
- According to World Resources Institute (WRI), China is in the middle of a construction mega-boom. The country includes the largest building market in the world, making up 20% of all construction investment globally. The country alone is expected to spend nearly USD 13 trillion on buildings by 2030.
- In Japan, Tokyo emerged as a top market among the rest of the major cities in the region for investments and development prospects, of which the residential sector accounted for the major share.
- Thus, the anticipated growth in the automotive, construction, and consumer goods industries will likely drive the domestic demand for thermoplastic vulcanizate during the forecast period in Asia-Pacific.
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