Europe Thermoplastic Elastomer (TPE) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Over the short term, the increasing demand for thermoplastic elastomers in the construction industry materials, like rubber-based tool grips, pipes, plastics, and gaskets, is expected to drive the market’s growth.
• However, market saturation in the applications of thermoplastic elastomers is expected to hinder the market’s growth in the future.
• The growing demand for bio-based thermoplastic elastomers will likely create opportunities for the market in the coming years.
• Germany is expected to dominate the market and will likely witness the highest CAGR during the forecast period.

Europe Thermoplastic Elastomer Market Trends

Increasing Usage in the Automotive and Transportation Applications

• The automotive and electric vehicle sectors utilize thermoplastic elastomers (TPEs) because they combine the manufacturing convenience of thermoplastics with the elasticity and durability of elastomers. Due to their low-temperature flexibility, chemical resistance, toughness, and ability to be molded into complex shapes,
• TPEs are used for sealing, hoses and tubing, cables, interior and exterior components, and many more applications. TPEs are used in EVs for cables, wiring, hoses, tubing, seals, gaskets, and interior and exterior components due to their lightweight, flexibility, and durability in extreme climatic conditions.
• The automotive sector includes very rigorous standards for the materials utilized. Even when subjected to extreme loads, the materials must be dimensionally stable and not distort, even when subjected to wide temperature differences.
• TPEs are plastics that are less expensive than metals and help make automobiles more energy-efficient by lowering weight and providing durability, corrosion resistance, toughness, design flexibility, resiliency, and good performance at a low cost. TPE's reduced weight allows for more fuel-efficient automobiles. It is anticipated that every 10% reduction in vehicle weight results in a 5-7% reduction in fuel consumption.
• The growing demand for lightweight and high-performance polymers in the automotive industry to give better economy and design flexibility is driving the TPE market's rise. High-performance thermoplastic elastomers provide manufacturers with design advantages and equivalent strength to steel, which aids in weight reduction and greenhouse gas emissions control.
• The European automotive sector is a key segment of the worldwide automotive industry and a substantial contributor to the European economy. The sector is distinguished by a long history of engineering and invention, a highly skilled workforce, and a big automotive market. In 2021, Europe's automobile sector was worth more than USD 75 billion.
• In recent years, Europe is a major player in the global electric vehicle market, with nations such as Germany, France, and Norway leading the way in EV adoption and production. According to Eurostat, Europe's electric car exports in 2021 reached USD 12.53 billion, a 45% increase over the previous year.
• All the abovementioned factors are expected to augment the demand for thermoplastic elastomers in the region over the coming years.

Germany to Dominate the Market

• TPE (thermoplastic elastomer) is a type of polymer material utilized in the aerospace industry due to its elasticity, durability, flexibility, and resistance to temperature, chemicals, and UV light. TPEs are used in various airplane applications, such as sealing and cushioning, hoses and tubing, and electrical and engine components.
• TPE offers a versatile material with a combination of physical qualities and processing simplicity, making it suitable for usage in various regions of an airplane. Germany produces more than 6% of the world's automobiles and 12% of the world's aircraft manufacturing, bolstering the region's TPE market.
• Germany includes the largest automobile industry. According to OICA, the country produced 33,08,692 vehicles by the end of 2021. Germany leads the European automotive market, with around 40 assembly and engine production plants contributing to one-third of Europe's total automobile production.
• TPE (thermoplastic elastomer) is employed in the housing industry because of its resilience to temperature, chemicals, and UV radiation. TPEs are widely utilized in flooring, roofing, windows & doors, and bathroom fixtures. They are suitable for house use because they combine durability, flexibility, and ease of upkeep. According to the Federal Statistical Office, building permits in Germany increased by 7% in 2021 to 248,688 permits (Destatis).
• Therefore, the above factors are expected to significantly impact the market in the coming years.

Europe Thermoplastic Elastomer Market Competitor Analysis

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• The market estimate (ME) sheet in Excel format
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