Thermoplastic Elastomer Market Report 2026

The thermoplastic elastomer market size has grown strongly in recent years. It will grow from $30.28 billion in 2025 to $32.62 billion in 2026 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to expansion of automotive production volumes, increasing use of flexible polymer components, growth in footwear manufacturing, rising demand for durable consumer goods, availability of thermoplastic processing technologies.

The thermoplastic elastomer market size is expected to see strong growth in the next few years. It will grow to $44.81 billion in 2030 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to increasing adoption in electric vehicle systems, rising demand for sustainable elastomer materials, expansion of medical device manufacturing, growing use in wire and cable insulation, increasing focus on material lifecycle efficiency. Major trends in the forecast period include increasing adoption of lightweight elastomeric materials, rising demand for recyclable rubber alternatives, growing use in automotive sealing applications, expansion of medical-grade elastomers, enhanced focus on material durability.

Growing building and construction activities worldwide are significantly contributing to the growth of the thermoplastic elastomer market. Building and construction activities refer to the processes and operations involved in creating structures, buildings, infrastructure, and related facilities. Building and construction activities use thermoplastic elastomers for their versatility, durability, and ease of processing, providing an ideal material for applications such as seals, gaskets, roofing membranes, and insulation due to their resilient and weather-resistant properties, contributing to enhanced performance and longevity of construction materials. For instance, in June 2023, according to Construction Digital, a UK-based company that connects all construction brands, the construction industry in the UK is projected to grow by 12% in 2024, followed by a further increase of 3% in 2025. Therefore, growing building and construction activities worldwide will drive the thermoplastic elastomer market.

Major companies operating in the thermoplastic elastomer market are focusing on developing advanced products, such as transparent thermoplastic elastomer (TPE) grades, to meet the increasing demand for versatile and high-performance materials across various industries. Transparent thermoplastic elastomer (TPE) grade is a type of TPE that combines the properties of elastomers (rubber-like flexibility and elasticity) with the processing advantages of thermoplastics. For September 2023, Trinseo, a US-based manufacturer of plastics, launched APILON 52 XB-75A CRISTALLO. APILON 52 XB-75A CRISTALLO is a transparent thermoplastic elastomer (TPE) grade specifically designed for footwear applications. This product marks the first ester-based transparent thermoplastic polyurethane (TPU), expanding their portfolio in the fashion and footwear sectors. It is engineered for excellent processability with fast cycle times, making it compatible with injection molding technology.

In December 2023, Geo Performance Solutions, a US-based manufacturer of thermoplastic material, acquired Polymax TPE for an undisclosed amount. With this acquisition, GEON Performance Solutions aims to enhance its capabilities in the thermoplastic elastomer market by leveraging advanced technology and manufacturing expertise, enabling better service to customers in both the Asia-Pacific and North American regions. PolymaxTPE is a US-based manufacturer of thermoplastic elastomers (TPEs).

Major companies operating in the thermoplastic elastomer market are China Petroleum & Chemical Corporation, ExxonMobil Chemical Company, BASF SE, Asahi Kasei Corporation, Covestro AG, DuPont de Nemours Inc., Arkema S.A., Huntsman Corporation, Lubrizol Corporation, Evonik Industries AG, Avient Corporation, Teknor APEX Company, TSRC Corporation, HEXPOL TPE AB, RTP Company, KRAIBURG TPE, Americhem Inc., Audia Elastomers, Star Thermoplastic Alloys & Rubbers Inc., Advanced Elastomer Systems L.P., Dynasol Elastomers LLC, TPE Solutions Inc., Elastocon TPE Technologies Inc., Kraton Polymers LLC, Yantai Wanhua Polyurethane Co. Ltd., Nippon Polyurethane Industry Company Ltd.

North America was the largest region in the thermoplastic elastomer market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the thermoplastic elastomer market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the thermoplastic elastomer market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The thermoplastic elastomers market consists of sales of consumer goods, automotive applications, medical devices, industrial applications, electrical, and electronics, and footwear. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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