World Thermoplastic Elastomers

Global demand to rise 5.9% annually through 2013

World demand for thermoplastic elastomers (TPEs) is forecast to rise 5.9 percent per year through 2013 to 4.75 million metric tons. Value gains will expand 6.6 percent per year over the same period. Gains will be exaggerated to some extent by the fact that growth will be arising from a weak recession-plagued 2008. Growth prospects through 2013 will be very strong in the BRIC nations of Brazil, Russia, India and China. Some developed nations such as Canada will see strong growth in their TPE sectors due to a healthy projected recovery in their respective motor vehicle industries from heavy declines experienced during 2008. Growth in the US, Japan and Western Europe will lag the global average through 2013.

China to expand share of global TPE market

China will expand its share of the world TPE market from 32 percent in 2008 to 36 percent in 2013. In the largest volume styrenic block copolymer (SBC) product segment, China will see an increase in its share of world demand to 47 percent in 2013, indicative of the country's dominance in the manufacturing of SBC consuming products such as footwear. The US will remain the world's leading national market for thermoplastic vulcanizates (TPVs).

Sales to remain concentrated in developed markets

Excluding China, global TPE sales will remain heavily concentrated in the developed markets of the US, Western Europe and Japan, particularly for higher performance materials such as copolyester elastomers (COPEs) and TPVs. Most developing markets have initially focused on low cost SBCs due to their existing positions in styrene-butadiene and polybutadiene rubber, but some such as China are also significantly diversifying into compounded thermoplastic polyolefins (TPOs) and thermoplastic polyurethanes (TPUs).

Motor vehicles to continue as largest market for TPEs

Motor vehicles will remain the largest market for TPEs at the global level, with demand of around 1.2 million metric tons in 2013. Through 2013, olefenics (TPOs and TPVs) will continue to see increasing penetration in motor vehicles in both interior and exterior applications. Specific areas of growth include soft-touch TPO trim, TPO airbag covers, TPV body seals, two-shot TPO or TPV overmolding of larger parts such as door panels, TPV weather seals and TPO exterior panels that eliminate the need for paint.