Performance Elastomers Market size is forecast to reach $20.8 billion by 2025, after growing at a CAGR of 7.4% during 2020-2025. Increasing demand of performance elastomers for designing lightweight products, soft actuating materials, mechanical coupling products and curved materials are fueling the performance elastomers market growth. Performance elastomers are being used in products such as action cameras, drones and video surveillance to increase its high load bearing and high resilience characteristics stability. The demand for performance elastomers is continuously increasing from the automotive and transportation sector for the production of drive belts, tires, chassis, fuel cell gaskets, air bags and fuel seals. Thus, the increasing demand of performance elastomers from various end-use industries is driving the Performance Elastomers market during the forecast period.
- Asia-Pacific dominates the performance elastomers market, owing to the rising demand for lightweight and lifelong materials in the automotive, electronics and healthcare sectors in the region. Increased urbanization and industrialization are also the key factors driving the performance elastomers market in the region.
- Technologies, such as the new aggressive fuel additives, introduction of fuel injection systems, and higher engine compartment temperature and so on have resulted in upgrading to performance elastomers market.
- Increasing demand of performance elastomers for production of O-rings, gaskets, performance seals, turbocharger hoses, oil-filter gaskets, air filters, fan couplings, radiator hoses, spark plug boots, and connector seals, enhance the overall market growth of performance elastomers during the forecast period.
- High manufacturing cost of performance elastomers because of complex production process involved in different end-use industries is hampering the performance elastomers market growth.
By Type – Segment Analysis
The Silicone elastomers holds the largest share in the performance elastomers market in 2019, owing to its outstanding resistance to weathering and ozone, good compression set, high physiological inertness, resistance to bacteria and fungi, and high temperature stability. Silicone elastomers exist in various forms, such as closed cell sponges, solids, thermally conductive and open cell foams which increase its demand in packaging, biomedical, automobiles and pharmaceuticals industry. These factors have led to the rapid growth of silicone elastomers in the market during the forecast period.
By End User – Segment Analysis
The automotive and transportation sector holds the largest share in the performance elastomers market in 2019 and is growing at a CAGR of 8.10%, owing to improved heat and chemical resistance, low intermolecular strength and low modulus elasticity of high-performance elastomers in the applications of automotive and engine construction. Also, the demand of automotive products in various regions is gradually increasing because of infrastructural development and urbanization growth. There is an increasing demand of performance elastomers from the manufacturers for the production of interior units of automobile such as air bags due to recent sanctions levied on automotive manufacturers, which made airbags compulsory for all cars across the globe. Thus, driving the performance elastomers market in the automotive and transportation sector.
By Geography – Segment Analysis
Asia Pacific region holds the largest share in the performance elastomers market in 2019 up to 30%, owing to rising demand of performance elastomers from the automotive and transportation industries. In 2015, the Australian federal government Implemented stringent regulations to adopt vehicle emission standards in the region. Regulations regarding emission levels led the manufacturers to design vehicles to be compact, lightweight, and more efficient. Manufacturing of such vehicle requires various components to be in close proximity with each other, resulting in increased heat levels. Thus, to operate under such rough conditions there is a demand for performance elastomers in the automotive and transportation sector in the region, which will likely propel the performance elastomer market in the APAC.
Drivers – Performance Elastomers Market
- Increasing Demand from End-Use Industries
Rapid industrialization in various regions are increasing the demand for performance elastomers in the market. They are extensively being used as modifiers for plastic and adhesive raw materials in gas & oil sectors for exploration and production. Performance elastomers such as neoprene and silicone are being widely used in electronic and food & beverage sectors as they offer good dielectric properties, excellent abrasion, impact, water, flame resistance and Outstanding UV, ozone and weather resistance properties. All these varied properties are leading to rise in demand of performance elastomers from various end use industries. Healthcare industries are also anticipated to grow the performance elastomers market due to increasing utilization of performance elastomers in the orthotic and prosthetic applications.
- Superior Properties than Standard Elastomers
The standard elastomers are being replaced by performance elastomers because of their unique set of properties such as durability, flexibility, heat resistance, chemical resistance, aging resistance, huge variety oil & gas resistance, outstanding performance and long life cycle. Performance elastomers such as silicone elastomers are boosting heat resistance over 300°C by using polysiloxane additive. These superior properties of performance elastomers over standard elastomers are anticipated to drive the global performance elastomers market during the forecast period.
Challenges – Performance Elastomers Market
Expensive components are needed during the manufacture of silicone such as copper metal and hydrogen fluoride. Performance elastomers such as silicone elastomers costs more due to the high energy costs associated with its manufacturing process i.e. transformation of sand to high purity silica, then further refinement of silica to polymerize it. The prices of elastomers may vary widely due to differences in compounding, filings, raw material and processing costs. High production cost may act as a restraint to the market growth.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the performance elastomers market. In 2019, the market of performance elastomers has been consolidated by the top five players accounting for xx% of the share. Major players in the performance elastomers market are E.I. du Pont de Nemours and Company (U.S), Arlanxeo (Netherlands), Zeon Chemicals L.P. (U.S), Solvay S.A. (Belgium), Mitsui & Co. Ltd. (Japan), Dow Corning Corporation (U.S), Wacker Chemie AG (Germany), JSR Corporation (Japan), Momentive Performance Materials Inc. (U.S), Showa Denko K.K. (Japan), Minnesota Mining and Manufacturing Company (U.S), Shin-Etsu Chemical Co. Ltd. (Japan) and Daikin Industries Ltd. (Japan).