Industry Outlook

In terms of revenue, the global market for elastomers was valued at US$ 68.52 Bn in 2017, which is expected to reach US$ 104.17 Bn by 2026, witnessing CAGR of 5.1% during the period from 2018-2026. Asia Pacific led the elastomers market in 2017, followed by Europe. However, Asia Pacific also expected to project the fastest growth during the forecast period. Elastomers are materials that are made from rubber and are composed of long chains of polymers of molecules that are capable of resorting to the original shape after being stretched to great extents. Under usual circumstances, the long molecules that make up as elastomeric material are coiled in an irregular manner, and they stretch to the desired direction upon the application of force. However, they retract to their original form when the force is reduced. The demand for elastomers has witnessed a growth trajectory over the past few years owing to properties such as greater tensile strength, higher resistance to chemical abrasion, high thermal stability, and flexibility among others.

Rising demand for automotive vehicles is one of the key factors driving the demand for elastomers at present. The automotive industry is the largest end-user for elastomers. Worldwide car sales crossed the 86 million units mark in 2017, with passenger cars leading the market. Radiator is an imperative component in a vehicle and is responsible for effective cooling of the engine at high temperatures. Thermoplastic elastomers are widely used in radiator hoses due to its excellent chemical resistive properties and thermal properties. Radiator hoses allows the coolant to flow from the engines water pump to the heater. Global sale of radiators amounted to approximately US$ 6.2 Bn in 2017. These factors are greatly responsible for the growth of the elastomers market in the automotive segment. Further, rising sales of mobile phone cases and covers is another major factor responsible for the growth of the elastomers market. Such covers are manufactured from a broad range of elastomers such as rubber, TPU and various others. Some of the key players operating in the elastomers market include BASF S.E., Covestro A.G., Huntsman Corporation, DowDupont Inc., and Lanxess A.G. among others.

Thermoset Elastomers Emerged as the Largest Segment and Expected Continue Dominating the Elastomers Market

Thermoset elastomers accounted for the major market share in 2017 and expected to continue dominating the market throughout the forecast period. High usage of natural and synthetic rubber is a key factor responsible for the growth of this segment. Rubber finds wide application in automotive tires, gloves, automotive airbags, clothing, adhesives and coatings and various others. Nitrile gloves are witnessing heavy demand from several end-use industries such as healthcare, construction, and manufacturing among others as a suitable alternative to latex gloves. Nitrile gloves are made from synthetic rubber and are considered as an ideal replacement when latex allergies are a concerning factor. Further, such gloves provide superior puncture resistance as well. The global market for nitrile gloves expected to grow at a CAGR of more than 7% during the forecast period from 2018-2026. Owing to the highly lucrative nature of this industry, several manufacturers operating in the nitrile gloves industry have engaged themselves in research and development activities to bring out new offerings for their customers. In January 2018, Unigloves Ltd. a nitrile glove manufacturer based in the U.K. introduced a new range of nitrile gloves with antimicrobial protection, suitable for use in hospitals, treatment centers, and pharmaceutical facilities. Further, in June 2018, Hartalega Holdings Bhd launched antimicrobial nitrile gloves that is effective in restricting the spreading of infections. These developments in the nitrile gloves industry majorly attributed to the growing demand for such gloves across the globe, which in turn is fuelling market growth of thermoset elastomers.

However, the thermoplastic elastomer segment expected to witness the fastest growth during the forecast period. Thermoplastic elastomers are gaining rapid acceptance as a suitable replacement to thermoset elastomers in end-use industries such as automotive, and construction among others. The automotive industry is the largest end-user for thermoplastic elastomers. Such elastomers are widely used in application areas such as bumper fascia, radiator hose, under hood, wires & cables, window encapsulation, body/glazing seals and coated fabrics.

Further, demand for thermoplastic elastomers is witnessing a growth trajectory in the construction sector due to their high durability, superior performance, and easy handling. Thermoplastic elastomers are majorly responsible for extending the lifespan of pipes and plastic components that are used in the construction sector owing to their anti-corrosive properties, resistance to extreme temperatures, and lightweight. Asia Pacific is a lucrative market for thermoplastic elastomers due to the robust growth of the construction sector in developing nations such as China and India. India expected to become the world’s third largest construction sector by the end of 2024. Further, the construction chemicals market in India expected to garner more than US$ 2.5 Bn by the end of 2026.

Healthcare Industry Expected to Witness the Fastest Growth for Elastomers during the Forecast Period

The healthcare industry is expected to be the fastest growing segment for elastomers during the forecast period on account of rising applications of elastomers in medical devices. Thermoplastic elastomer compounds considered as a suitable replacement to phthalate-based plasticized compounds, polyvinyl chloride and other rubber materials and gaining rapid acceptance in medical devices. Thermoplastic polyurethane (TPU) is more durable than silicone and can be melt processed via molding, extrusion and several other secondary processes. Thermoplastic polyurethanes are more compatible as compared to other polymers and thus find wide applications in implantable medical devices. The global implantable medical devices market expected to cross the US$ 120 Bn mark by the end of 2024. Improved healthcare facilities in the developed nations such as U.S., Canada, and Germany among others, and rising per capita expenditure on healthcare are some of the key reasons fuelling market growth of elastomers in the healthcare industry. Per capita healthcare expenditure in the U.S. amounted to more than US$ 9,500 in 2016, while the per capita healthcare expenditure in Germany amounted to more than U.S$ 5,500 in the same year.

Asia Pacific Expected to Continue Dominating the Elastomers Market throughout the Forecast Period

Asia Pacific dominated the elastomers market in 2017 and expected to retain market dominance throughout the forecast period.. High production of automotive components in countries such as India and China is one of the key factors driving demand for elastomers in these countries. China is the world’s leading producer for aftermarket automotive components. China imported automotive components worth US$ 34.5 billion in 2016 while its exports accounted for more than US$ 80 billion in the same year. In the same year, mechanical & electrical parts accounted for the major chunk of the automotive component market in China, contributing to more than 85% of the revenue. In addition, according to the Automotive Component Manufacturers Association of India (ACMA), the automotive components industry in India was valued at US$ 43.5 Bn during the period of 2016-2017, maintaining an average growth of 7%.

Product Innovation is one of the Key Strategy of the Companies Operating in the Elastomers Market

The global elastomers market is marked by intense competition from the major players operating in this market. Tactical mergers & acquisitions, product innovations, joint ventures and partnerships, and geographical expansions are some of the key strategies adopted by the leading players to ensure long-term sustenance in the market. Key players operating in the field of elastomers include BASF S.E., Covestro A.G., Huntsman Corporation, DowDupont Inc., Lanxess A.G., Zeon Corporation, JSR Corporation, Kurara Co. Ltd., Teknor Apex, Evonik Industries, Arkema S.A., and ExxonMobil Corporation among others

In 2018, Huntsman Corporation, one of the key players operating in the field of elastomers launched the AVALON AB DI range of thermoplastic polyurethanes, specifically designed for the footwear industry. This new range of TPU material will allow the footwear manufacturers to enhance their productivity. Further, this range of TPU has been designed to ease up production of thick walled parts and improve the cycle time as well. Further, in 2018, BASF S.E. formed a collaboration with Biesterfield International GmbH, a global trader of specialty chemicals, agrochemicals, industrial chemicals, etc. Biesterfield International GmbH has acquired the distribution rights for BASF’s Elastollan TPU. Biesterfield will be responsible for the distribution of Elastollan TPU in Southern, Western and Central Europe. This collaboration expected to perfectly position BASF’s Elastollan TPU in the European market.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Elastomers market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Elastomers market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Elastomers market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Elastomers market?
• Which is the largest regional market for Elastomers market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Elastomers market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Elastomers market worldwide?