The Thermoplastic Elastomers Market is estimated to be valued at US$ 28.8 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Thermoplastic elastomers have high elasticity property and provides advantages such as easy recyclability and melt processability. They exhibit elastic behavior at room temperature and melt at higher temperatures making them suitable for injection molding and extrusion processes. Major applications include overmolding, films & sheets and others. The rising use of TPEs in areas requiring flexibility, resilience and durability such as seals, gaskets, hoses and belts drives the market growth.

Market key trends:
Styrene Block Copolymers (SBC) is one of the key trends gaining traction in the thermoplastic elastomers market. SBC offer advantages such as UV resistance, good low temperature flexibility and easy recyclability. They are used in production of products such as conveyor belts, hoses, wires and cables. Block copolymers provide better processability than conventional rubbers along with high elasticity making them suitable for applications requiring flexibility, durability and easy recyclability. The growing automotive industry especially in emerging economies along with increasing demand for SBC based products will drive the market growth over the forecast period.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the thermoplastic elastomers market is moderate as it requires huge capital investments and technical expertise to build manufacturing facilities for thermoplastic elastomers. Bargaining power of buyers: The bargaining power of buyers is high since thermoplastic elastomers have numerous substitutes and buyers can switch to alternatives if prices rise significantly. Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material suppliers for thermoplastic elastomers have high switching costs involved. Threat of new substitutes: New substitutes can pose potential threat as R&D is continuously carried out to develop new alternatives. Competitive rivalry: Intense competition exists among existing players.

SWOT Analysis
Strength: Thermoplastic elastomers have excellent mechanical properties, resistance to chemicals and solvents. They offer design flexibility and can be processed using existing plastic processing technologies.
Weakness: High production costs and limited supply of raw materials. Thermoplastic elastomers have inferior resistance to heat and aging compared to thermoset rubber.
Opportunity: Growing demand from automotive, construction and medical industries due to increasing usage of lightweight and flexible materials. New application areas like footwear and cables offer opportunities.
Threats: Stringent environmental regulations around plastic waste disposal and rising raw material prices are key threats. Substitution threat from bioplastics.

Key Takeaways
The global thermoplastic elastomers market is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing demand from automotive industry. Thermoplastic elastomers find extensive application in automotive industry for manufacturing bumpers, instrument panels, door panels and other components due to benefits like lightweight properties, flexibility and recyclability. Asia Pacific dominates the global thermoplastic elastomers market and is expected to maintain its leading position throughout the forecast period. This is attributed to huge automotive manufacturing base, rapid industrialization and growing construction industry in major economies like China and India. Key players operating in the thermoplastic elastomers market are DowDuPont Inc., Arkema Group, Asahi Kasei Corporation, PolyOne Corporation, Elastron Kimya SA, Kraton Corporation, Evonik Industries, Covestro AG., Lubrizol Corporation, Huntsman Corporation, Tosh Corporation, and Teknor Apex Company. These players are focused on capacity expansion strategies to meet the growing demand from various end-use industries.

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