Automotive sector has been one of the major end users of thermoplastic elastomers (TPE) for the last two decades. However, the recent drive from material suppliers to enhance processability, provide several colours and improved bondability to different substrates at a lower cost, have stimulated their growth in the automotive sector. Automotive sector accounts for 40-50% of demand for most TPEs and is a process and materials technology driver. It is also the sector in which major rubber substitution opportunities (body and glazing seals, hose, belting, underhood, bellows) and PVC substitution opportunities (coated fabrics, skins, foams) can be found.

Automotive companies are increasingly becoming global and to ensure success in the competitive global economy, these companies demand materials that will enable in designing vehicles with greater performance capabilities at lower costs. Cost reduction is a leading driver in the automotive market that is shaping new developments in TPEs as automotive companies will not compromise on performance even though they are relatively more concerned about price . Automotive OEMs are moving to modular assembly systems for parts consolidation, especially for applications like car doors, weather seals and for under-the-hood components where new grades of TPE provide significant advantage.

The potential in automotive applications results from TPE's thermoplastic characteristics and its ability to be processed into a broad range of shapes, both alone and in combination with rigid members, in a cost-effective system. The high-flow and super high-flow grades in the market have given TPEs a boost for long and thin parts like exterior ear dams below bumper fascia and roof gaskets. Roof gaskets injection-molded with thermoplastic vulcanizate (TPV) can be used for sealing and scratch-resistance when placed under a roof rack. Under hood applications are the target of the new s-TPVs in which high oil/chemical resistance, temperature resistance and long-term dimensional stability are critical.

The olefin based TPE (TPO) has a bigger role in the automotive sector. TPV among the thermoplastic elastomer is expected to show the fastest growth in the automotive sector. Global thermoplastic elastomer (TPE) demand is forecast to expand 6.4% pa to 2.15 million tons in 2006, valued at more than $10,000 million, as per Freedonia.