United States Thermoplastic Elastomer Market

United States Thermoplastic Elastomer Market Is Estimated To Witness High Growth Owing To Rising Demand From Automotive Industry

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The United States thermoplastic elastomer market is expected to grow rapidly in the coming years owing to the increasing demand from the automotive industry. Thermoplastic elastomers are widely used in automotive applications such as hoses, seals, and gaskets due to their outstanding properties such as flexibility, durability, and weather resistance. These materials are also lightweight in nature and can be recycled easily.

The United States thermoplastic elastomer market is estimated to be valued at US$ 1.77 Bn in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024-2031.

Key Takeaways

Key players operating in the United States thermoplastic elastomer market are Girard Rubber Corp, Aero Rubber Company, Inc, Dunnage Engineering, Alliance Rubber Company, Alpine Elastomer Products, LLC, CS Hyde Company, Ames Rubber Manufacturing Company, VIP Rubber and Plastic, and WARCO.

The United States thermoplastic elastomer market is expected to witness significant growth opportunities owing to the growing demand from the automotive, consumer goods, and medical industries. The demand from the automotive industry is anticipated to increase substantially over the forecast period.

Advancements in polymer technologies have enabled the development of novel grades of thermoplastic elastomers with improved properties. Continuous silicone thermoplastic elastomers with self-lubricating properties are gaining popularity in the medical device industry. Research is also ongoing on the use of bio-based materials for developing sustainable thermoplastic elastomers.

Market Drivers

The primary driver fueling the growth of the United States thermoplastic elastomer market is the growing automotive production and sales in the country. Thermoplastic elastomers find wide applications in automotive components such as exterior panels, hoses, seals, gaskets, and bumpers due to their excellent impact resistance and weatherability. The demand from the automotive industry is expected to increase significantly over the next few years, supported by factors such as rising vehicle ownership and new product developments. This will consequently boost the consumption of thermoplastic elastomers.

Current Challenges In United States Thermoplastic Elastomer Market

The United States thermoplastic elastomer market is facing challenges due to rising raw material costs. Increasing prices of crude oil which is a key feedstock for plastic manufacturing has resulted in inflated prices of thermoplastic elastomers. Geopolitical uncertainties and supply chain disruptions caused by the ongoing Russia-Ukraine conflict have further exacerbated the issue. Additionally, stringent environmental regulations regarding the use of plastic materials pose compliance challenges for market players. Transitioning to eco-friendly product formulations requires huge investments in R&D which adds to production costs. On the demand side, sluggish growth of key end-use industries like automotive and construction during COVID-19 pandemic led to decline in volume sales. Recovery in these sectors depends on the broader economic revival.

SWOT Analysis

Strength: Thermoplastic elastomers offer benefits like recyclability, flexibility in fabrication and integration with other materials. They can mimic properties of thermoset rubbers.

Weakness: High raw material dependency makes prices volatile. Processing requires specialized equipment.

Opportunity: Growing demand for lightweight and flexible components in automotive, consumer goods boosts use of TPEs. Regulatory push for sustainable polymers opens up opportunities.

Threats: Stiff competition from conventional rubber and plastics. Economic slowdowns affect automotive and electronics industries.

Geographical Regions

The United States holds the major share of over 40% of the global thermoplastic elastomer market in terms of value. This is due to the strong presence of automotive, consumer goods and medical devices industries in the country which are major end-use sectors. The Midwest and southern states like Michigan, Ohio, Indiana, Tennessee and Texas have emerged as hubs for automotive production and housing manufacturing facilities of leading OEMs. This concentrates demand for TPEs in the region.

The Asia Pacific region has been witnessing fastest growth and is projected to surpass North America to become the largest market during forecast period. Countries like China, India, Indonesia and Vietnam offer attractive opportunities due to rising manufacturing activities, growing per capita incomes and increasing automotive ownership. Low input and labor costs give competitive advantage to manufacturers based in Asia.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

What Are The Key Data Covered In This Keyword Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the Keyword’s growth between 2024 and 2031.

:- Accurate calculation of the size of the Keyword and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- Keyword Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of Keyword vendors

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About Author – Alice Mutum
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Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice’s dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. LinkedIn