Olefinic Thermoplastic Elastomers Market size is forecast to reach $7.26 Billion by 2025, after growing at a CAGR of 4.42% during 2020-2025. In many different applications such as auto, medical, etc., olefinic thermoplastic elastomers emerge as one of the fastest growing classes of synthetic polymers replacing various traditional polymer compounds like ethylene propylene polymers, ethylene vinyl acetate and polyvine chlorides (PVC). For an alternative to styrene butadiene rubber are widely used the Olefinic thermoplastic elastomers. Olefinic thermoplastic elastomers offer a good resistance to impact and can be recycled (as opposed to rubber). These polymers are also known by alternative names such as alkene based thermoplastic elastomers. These factors will positively influence the Olefinic Thermoplastic Elastomers Market over the forecast timeframe.
The silicone elastomer has an outstanding impact ability and are lightweight and lightweight components and are also used in a number of industries. In comparison, olefinic thermoplastic elastomers, such as casting, wire or film, may be formed in any shape. Olefinic thermoplastic elastomers often have chemical and electric separation resistance. Tight and resilient olefinic thermoplastic elastomers offer flexibility at the same time.
The global COVID-19 pandemic resulted in a sudden halt to manufacturing operations worldwide which affected the demand for and development of these products. Automotive & transport, household products, heavy machinery and manufacturing are the most significantly impacted end usage categories of the plastics market.
Type – Segment Analysis
Thermoplastic polyolefin (TPO’s) segment holds the largest share in Olefinic Thermoplastic Elastomers Market in 2019. Thermoplastic Polyolefin (TPOs) are polypropylene based materials that have been modified to provide better ductility and impact resistance compared to standard off-the-shelf Polypropylene (PP) grades. TPOs retain the ease of processing, lightweight nature, and chemical resistance of PP. However, they do not require drying prior to molding, which saves on both cost and time. TPO compounds can be formulated for increased UV weathering and scratch/mar resistance when needed. The UV grades of RTP Company’s TPO compounds were designed to be compatible with common paint systems to provide an all-in-one solution for situations where some parts are painted, and some are not.
Application – Segment Analysis
Automotive sector holds the largest share in Olefinic Thermoplastic Elastomers Market in 2019, by growing at a CAGR of 10.25% during forecast period 2020-2025. Olefinic thermoplastic elastomers are high-performance materials which are being rapidly increased in the automotive sector. The automobile sector uses olefinic thermoplastic elastomers in multiple products for the production of high-quality vehicle instrument panels, tire covers, dashboard parts, pillar trims, door liners and handles, seat backs, as well as protective belt parts. Particularly strong standards are rendered for the products used for the automotive industry. Dimensionally rigid, except though confronted with large temperature fluctuations, the materials do not warp under severe stress.
Olefinic thermoplastic elastomers are different plastic forms which, in addition to being cheaper than metals, help to improve the energy-efficiency of automobiles by reducing weight, providing longevity, corrosion resistance, resilience, structural versatility, resiliency and high performance at low cost. Olefinic thermoplastic elastomers provide a lightweight which allows vehicles to be more carburized. An estimated 5-7% reduction in fuel consumption is achieved by each 10% decrease in vehicle weight. The growth of the Olefinic thermoplastic elastomer market is mainly guided by growing demand for lightweight and high-performance plastics within the automotive industry to improve productivity and design versatility. The advantages of design and comparable strength of steel, which contribute to weight reduction and control of greenhouse gas emissions, are offered by high-performance Olefinic thermoplastic elastomers.
Geography – Segment Analysis
APAC dominated the Olefinic Thermoplastic Elastomers share with more than 56.25% in 2019, followed by North America and Europe. China is one of the strongest developing markets and also one of the world’s biggest industrial companies. One of the main contributors to the nation’s economy is the manufacturing sector. In the domestic and foreign markets, the Chinese automotive industry meets demand for vehicles. Over the forecast era, domestic automobile development would be powered by rising demand for SUVs, lightweight and fuel-efficient automobiles, and the growing popularity of electric vehicles worldwide. The electronics industry is one of Olefinic Thermoplastic Elastomers’ largest consumers. The fastest increase in the consumer electronics market is seen in electronic goods, including smartphones, OLED TVs and tablets, etc. In the near term the demand for electronic products is expected to increase, driving thus the Olefinic Thermoplastic Elastomers market, with increasing available incomes for the middle-class population.
The Chinese government’s significant growth in train and road infrastructure in recent years has led to a significant growth of the Chinese construction industry, despite the volatile growth in the real estate sector. Since state-owned firms control the building sector, higher policy investment is improving the country’s sector. These factors will positively influence the Olefinic Thermoplastic Elastomers Market over the forecast timeframe.
Drivers – Olefinic Thermoplastic Elastomers Market
Increasing demand from end use industry
A rising demand from numerous end-use industries, in particular the automotive industry, is driving the global market for olefinic thermoplastic elastomers. In order to improve the energy economy, the world market for olefin thermoplastic elastomers has been driven by an increasing demand for the use of lightweight products in automotive manufacture. The production of bumpers, interior and exterior trimmings and floor matting as well as handles and screws was made possible through the use of olefinic thermoplastic elastomers. However, owing to the flexibility of the material, the global demand for thermoplastic elastomers is driven by growing usage as films in the packaging industry.
Increasing product innovations
The trend in the global olefinic thermoplastic elastomer industry is product innovation by major market players. A large number of the key players in the market are consolidating the chemical market. The manufacturers have invested steadily in research and developments, developing materials for instance advanced olefin thermoplastic elastomers to replace conventional elastomers for a wide range of applications, for example rubber and thermoplastics.
Challenges – Olefinic Thermoplastic Elastomers Market
Presence of alternatives and high cost of raw materials
Olefin thermoplastic elastomers are deformed and are not easily recovered under certain extreme temperature and environmental conditions. Therefore, traditional materials are favored under these circumstances over olefin thermoplastic elastomers, which serve as a constraint on market development. The instability of raw material costs, which in effect causes demand increases for producers, is one significant factor limiting the development of the olefinic thermoplastic elastomer industry.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Olefinic Thermoplastic Elastomers Market. Major players in the Olefinic Thermoplastic Elastomers Market are The Dow Chemical Company, BASF SE, DuPont, Evonik Industries AG, Exxon Mobil Corporation, Mitsui Chemicals Inc., Preferred Plastics, Inc. and Hallstar among others.