Global TPE market is predicted to witness a steady growth at a CAGR of around 8%

21-Jan-16

The TPE market is predicted to witness a steady growth at a CAGR of around 8%, in terms of revenue, until 2019, as per Technavio market research a. The increased use of TPE products as a replacement for traditional materials in the automotive industry is driving the market growth. TPE, in comparison to natural rubber and EPDM, provides the manufacturer with increased design flexibility and reduced cost and enhanced long-term weather-resistance advantages. It also helps the manufacturers in reducing the overall weight of the vehicle and addressing the demand for lighter vehicles with increased fuel efficiency. The growth of the construction sector in China is also anticipated to fuel the market growth during the forecast period. TPE is used for paving and roofing applications and in adhesives and sealants within the construction sector. The entry of major construction players from the EU in the Chinese market has further fueled the growth of this industry, thereby creating a demand for TPE products. Segmentation by end user and analysis of - transportation, construction, healthcare, packaging The transportation industry accounted for the around 35% of the consumption in the TPE market during 2014. The rising use of various TPE products as a replacement for traditional rubber and EPDM in the automotive segment is driving the growth of this segment. Styrenics accounted for nearly 38% of the overall market during 2014. The increased infrastructural developments in the emerging economies and the growing demand for styrenic from China is driving the growth of this segment. APAC accounted for around 42% of the global market share during 2014 and is expected to grow at a CAGR of 6% during the forecast period. The increased consumption by the automotive industry in the emerging economies, especially India, is driving the market growth in this region. Competitive landscape and key vendors - Dow Chemical, Dynasol, PolyOne, LCY Chemicals The global TPE market is highly fragmented with the four key vendors accounting for around 25% of the global market share in terms of capacity. The market experienced high levels of capacity additions and is currently facing the issue of overcapacity and supply.