Elastomers Market- By Elastomer Type , By End User , By Automotive Vehicle Type , By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030

Elastomers Market Overview

Elastomers Market size is forecast to reach $ 102 billion by 2030, after growing at a CAGR of 5.9% during 2024-2030. Elastomers, due to their extensive properties, such as high thermal stability, greater chemical resistance, high tensile strength, low shrinkage, and greater design flexibility, are used in a wide range of applications, in various industries including automotive, medical, consumer goods, industrial, and others. Rising demand from key application areas, combined with advances in processing technologies, is expected to fuel market growth during the forecast period. Elastomers are witnessing high demand from the automotive industry on account of rising need for high-performance and lightweight materials in vehicle production. Furthermore, the usage of recycled elastomers is likely to provide various opportunity for the elastomer market in the coming years. 

Sustainability became a dominant theme as the industry shifted toward eco-friendly elastomers. Manufacturers increasingly focused on developing elastomers sourced from renewable materials or recycling processes. Bio-based elastomers, derived from natural sources like soybeans or corn, gained traction due to their reduced environmental impact. Additionally, the emphasis on recyclability and biodegradability led to the development of elastomers that could be easily repurposed or disposed of without causing harm to the environment. Regulatory pressures and growing consumer demand for environmentally responsible products were key drivers pushing the indutsry towards sustainable elastomers. 

The market observed a surge in demand for advanced performance elastomers catering to a wide array of applications. High-performance elastomers capable of withstanding extreme temperatures, harsh chemicals, and maintaining durability found increased use in industries such as automotive, aerospace, healthcare, and electronics. Tailored elastomers with improved mechanical properties, chemical resistance, and enhanced flexibility were developed to meet the specific demands of each sector. This trend was fueled by the need for specialized materials offering superior performance in demanding environments, driving innovation in elastomer technology. 

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Report Coverage

The report: “Elastomers Market– Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Elastomers Industry. 
By Elastomer Type: Thermoset Elastomers (Natural Rubber (NR) and Synthetic Rubber (SR)), Thermoplastic Elastomers (TPEs) (Styrenic Block Copolymers (SBC), Vulcanized Thermoplastic Elastomer (TPV), Copolyester Thermoplastic Elastomers (COPEs), Thermoplastic Polyamides (COPA-Copolyamides), Thermoplastic Olefins (TPE-O), Thermoplastic Polyurethane Elastomers (TPU), Thermoplastic PVC Elastomers and others).
By End User: Automotive, Medical, Industrial, Construction, Consumer Electronics, Consumer Goods and others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Denmark, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Taiwan, Malaysia, and Rest of APAC), and South America (Brazil, Argentina, Colombia, Chile, Peru and Rest of South America), and Rest of the World (Middle East and Africa)

Key Takeaways

• Asia-Pacific dominates the global elastomers market, The country witnessed a significant increase in the production of passenger vehicles. China is the hub of manufacturing automobiles. According to OICA, China manufactured approximately 30% of the global vehicles in the year 2022. It is anticipated that China will maintain its dominance in the upcoming years as well. 
• Elastomers demand in consumer goods market is increasing continuously owning to its excellent physical properties, such as high flexibility, low weight, good printability, enormously robust, excellent temperature resistance, high surface quality, high impact strength, and so on. Therefore, elastomers are used in wide range of applications in consumer goods, which includes closures, toys, kitchenware, food containers, handles, cosmetic packaging, lids, furniture, sporting goods, and household goods. 
• BASF has been developing, producing, and selling custom-tailored polyurethane systems and thermoplastic polyurethane elastomers (TPU) for making all types of soles.

Raw Material - Segment Analysis

The thermoset elastomer segment held the largest share in the elastomers market in 2023. Thermoset Elastomer offers high thermal stability, well-defined microphase-separated morphology, superior and tunable mechanical strength, and controlled hydrolytic degradability were systematically investigated, when compared to those of the triblock prepolymers. The hard domain crosslinked thermoset elastomers with tunable mechanical strength and degradation capability can be practical candidates for sustainable elastomers to satisfy distinct and high-performance applications. They are cost-effective materials and offer excellent aesthetic appearance and aid in improving the mechanical properties of materials by enhancing the structural integrity as well as heat and chemical resistance. 

End User - Segment Analysis

The automotive segment held the largest share in the elastomer market in 2023 and is growing at a CAGR of 4.6% in terms of revenue from 2024 to 2030. The market for elastomers in the automotive industry is mainly driven by its excellent physical properties, such as durability, impact resistance, low weight, elasticity, softness, strength, superior optics, enhanced thermal resistance, thermal stability, adhesive properties and improved vehicle safety. Therefore, elastomer is used in wide range of applications in the automotive industry including door handles, automotive gaskets, rocker panels, dashboards, seating fabrics, vibration damping pads, rear windows, bumpers, gear knobs, interiors, wipers, body seals, exterior filler panels and tyre. Being a lightweight material, the elastomer decreases the weight of the vehicle, which in turn adds to the fuel efficiency of the vehicle. As a result, the demand for elastomers in the automotive industry to replace traditional metals is increasing.

Automotive Vehicle Type - Segment Analysis

Passenger vehicle segment held the largest share in the elastomer market in 2023. The global demand for passenger vehicles is seeing tremendous growth in the crossover category, as they provide a better value for money compared to sedans and SUVs. According to JATO Dynamics data, registrations across all SUV types  (small, compact, midsize, luxury) totalled 464,900 units, up by 14% compared to January 2022. With a market share of 51.3%, January marked the first time that SUVs have accounted for more half of total new car registrations in Europe.

Geography - Segment Analysis

Asia Pacific held the largest share in the Elastomers market in 2023, up to 45%, owning to rising automotive production in countries such as India, Malaysia and others, as more than half of elastomer is used in manufacturing tires. Government investment, liberalization policies coupled with private players focusing on technology enhancement are expected to fuel the demand. Furthermore, rising replacement of ethylene propylene diene monomer by TPE in construction equipment is likely to fuel the product market. Major automotive OEMs are shifting their production bases to these markets due to low operational costs and escalating demand for passenger cars. This factor is expected to drive the product demand over the coming years.

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Drivers – Elastomers Market

Rapidly expanding market of footwear in the emerging countries is anticipated to propel the demand for elastomers

Elastomers are extensively used by the footwear industry in order to produce soles which can be molded as units or directly on the shoe. Polyurethanes are used in footwear to provide high abrasion-resistance which are suitable for hardwearing shoe soles, with excellent long-term mechanical properties. Elastomers find there use in a broad spectrum of footwear types from sports and trekking boots to business and fashion shoe soles, without hampering the design potential. Many major manufacturing companies are producing elastomers for the usage in footwear. For instance, BASF has been developing, producing, and selling custom-tailored polyurethane systems and thermoplastic polyurethane elastomers (TPU) for making all types of soles. Footwear, including ski boots and soccer shoes, often contain a substantial fraction of TPE. Athletic shoe soles are an especially large application for TPEs. Athletic equipment, such as skis and golf ball covers, is another area where TPEs are used Hence growing footwear industry is expected to drive the elastomers market as elastomers are widely used in the shoe soles.

Increasing usage of elastomers and continuous developments with regards to polyurethane production in developing regions is expected to drive the elastomers market.

Continued inputs by the government in terms of investments in polyurethane production and support by way of encouraging regulations is likely to contribute towards growth of the market. APAC is the established markets for elastomers, both in terms of production as well as consumption owing to the rapid industrialization in countries like China and India. Europe and America are emerging markets for elastomers. In the European region, Germany and France are the largest markets for elastomers. Germany is the largest manufacturing hub for machinery manufacturing; this is one of the reasons for high consumption of Elastomers in the country. The industry participants are undergoing extensive research & development activities to develop newer blends and effective processing methodologies to gain competitive strength. This is expected to drive the elastomers market 

Challenges – Elastomers Market 

The volatility in crude oil prices, causing fluctuations in prices of synthetic rubber

Prices of crude oil and synthetic rubber have moved in tandem as synthetic rubber is produced from crude oil. However, it has severely affected the prices of natural rubber, being the substitute product of synthetic rubber. The price of synthetic rubber naturally firms up when the crude oil price rises. The impact of COVID-19 and the oil prices war are proving to be a two-pronged crisis for oil, gas, and chemicals companies. Oil prices are dropping due to failed agreements on production cuts and the need for chemicals and refined products is slowing from industrial slow-downs and travel restrictions in the wake of this global pandemic. Hence, fluctuations in crude oil is a major challenge pertaining to the growth of elastomers industry owing to the fact that petrochemicals (derivative of crude oil) act as a key raw material for synthetic rubber. Therefore, crude oil price movements do have a significant impact on synthetic rubber prices and also affect its consumption pattern.

Disposal of elastomers propels environmental concerns, due to the emission of hazardous waste

Disposal of elastomers proves to be one of the major concerns for the environmental agencies, as the disposal emits a lot of hazardous compounds into the environment. Recycling options for elastomers are limited and are possible only in the case of uncured elastomers, while most of them are cured. Disposal of these materials can be done either through incineration or through landfills, either of which would create environmental hazard. Burning of elastomers results in emissions of carbon monoxide and hydrogen cyanide, both of which are harmful for the environment.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Elastomers Market. In 2023, the top five players in the elastomers market accounted for 11% of the total share. Major players in the Elastomers market are BASF SE, JSR Corporation, Lanxess AG, Covestro AG, PJSC Nizhnekamskneftekhim, E.I. DuPont De Nemours and Company, DoW Chemical, Lanxess AG, among others.

Developments

• Materials manufacturer Covestro today broke ground on two new plants in Shanghai to meet the rising demand for polyurethane dispersions (PUDs) and elastomers. The new facility for polyurethane elastomers, which are widely used in industries ranging from offshore wind to solar energy as well as material handling, is expected to become operational already in 2023.
• In February 2022, Celanese has agreed to acquire the majority of DuPont's Mobility and Materials unit for USD 11 billion, combining two of the world's leading engineering polymer businesses. Celanese will also acquire DuPont's long-chain and performance nylons, as well as polybutylene and polyethylene terephthalates. The deal also includes DuPont's polyester and ethylene acrylic elastomers, as well as its Mylar and Melinex Polyster films.

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