Global Automotive Elastomers Market - 2023-2030

Overview

Global Automotive Elastomers Market reached US$ 32.5 billion in 2022 and is expected to reach US$ 51.4 billion by 2030, growing with a CAGR of 5.3% during the forecast period 2023-2030.

Automotive elastomers are utilized in the manufacture of high-performance vehicles to lighten their total weight. Due to their durability, impact resistance, low weight, softness, improved thermal conductivity and increased vehicle safety, elastomers are utilized in automobile vehicles. Elastomer materials are utilized in both the interior and outside of automobiles because they are lightweight and increase fuel efficiency.

Examples include thermoplastic polyolefins, thermoplastic copolyesters, styrene block copolymers and others. They are frequently employed in the automotive industry as a result of their capacity to lower emissions, improve safety and have better paintability. Consequently, it is anticipated that more use (about 40% of the market) of recyclable rubber elastomers will spur automotive elastomers market growth.

Due to their wide range of variations and unique properties, thermoplastic elastomers account for over 40% of the materials used in the production of automobiles worldwide. These materials are utilized for everything from coatings to bumpers, upholstery and sealing components. Approximately 30,000 of the parts in cars nowadays are composed of plastic. As a result, the automotive elastomers market has expanded significantly and is predicted to continue to do so.

Dynamics

Rising Demand for Performance Enhanced Materials

Around 3% of the global GDP is contributed by the automotive industry, with a higher percentage in developing nations like China and India, where the sector accounts for 7% of GDP. In Europe, the output of light commercial vehicles climbed by 0.2% from 2,249,348 in 2018 to 2,254,153 in 2019. The demand for automotive elastomers is anticipated to rise as the automotive sector expands, which will boost the market.

Automotive elastomers are utilized for side mirror gaskets and soft-touch instrument panels inside passenger cars. They are used outdoors for sidewalls, base tires and other things. Due to a number of elastomer characteristics, including as noise reduction, performance enhancement, safety enhancement, enhanced interior air quality, increased comfort and affordability, it is projected that the market for automotive elastomers would expand.

Automotive elastomers such thermoplastic copolyesters, thermoplastic polyolefins, styrene block copolymers and thermoplastic polyurethane are frequently used in automobiles to reduce weight, increase safety and give remarkable durability. Automotive elastomers are utilized for sound management at the partition between the engine compartment and the interior.

The Australian Bureau of Statistics reports that 1.8 Million new passenger cars, SUVs and commercial vehicles were sold in Australia in 2020, a 0.9% rise over 2019. The International Organisation of Motor Vehicle Manufacturers (OICA) reports that in 2018, the output of light commercial vehicles in the APAC region climbed by 10.2%. The demand for automotive elastomers is anticipated to rise as the automotive sector expands, which will boost the market.

Advantages associated with Elastomers in the Automotive Industry

In the automotive sector, elastomers are frequently utilized in sealing and gasketing applications. They offer reliable seals that keep liquids, gases and other things from leaking. Examples include the gaskets and O-rings used in various components like engines, transmissions and fuel systems as well as door and window seals. Government regulations mandating pollution reduction, enhanced vehicle efficiency and passenger safety have also contributed to the widespread adoption and demand for automotive elastomers. In automotive applications, elastomers are employed to minimize vibration and noise.

For example, elastomer mounts prevent fans from transmitting vibrations to surrounding structures. Elastomers, used in the manufacturing of windshield wipers, effectively conform to the windscreen's shape, ensuring efficient water and debris removal. The market for various types of automotive elastomers is anticipated to expand as awareness grows regarding their benefits, which encompass noise reduction, emissions control, enhanced performance and improved safety in automotive settings.

Price Volatility for Raw Materials

Crude oil is the source of automotive elastomers like synthetic rubber (a petroleum-based monomer). The variation in oil prices will consequently have a detrimental effect on the market for automotive elastomers. According to projections from the American Energy Information Administration (EIA), the price of crude oil decreased from US$ 64.34 per barrel in 2019 to US$ 41.69 per barrel in 2020.

Typically, the profit margins for the automotive industry are small. Manufacturers might have a hard time maintaining their intended profit margins as elastomer prices rise, especially if they can't transfer the higher costs onto consumers because of pressure from the competition, which could impede market growth.

Consumers are sensitive to price changes. Supplier connections must be reliable and constant in order for automotive manufacturers to succeed. These connections may be strained by frequent price changes, which can also make it challenging for businesses to build trustworthy supply chains. Price fluctuation could take resources and focus away from research and development projects targeted at enhancing elastomer characteristics or creating more affordable substitutes.

Stringent Environmental Regulations

The stringent environmental regulations imposed on the automotive elastomers market act as a significant hindrance to its expansion. These regulations, driven by the imperative to curtail the automotive industry's ecological impact, encompass stringent standards governing the composition and manufacturing procedures of elastomeric materials. While these regulations are pivotal for environmental protection, they present considerable challenges to elastomer manufacturers.

Moreover, the disposal of elastomeric waste is another area significantly influenced by strict regulations. End-of-life tires, a substantial source of elastomeric waste, have come under increased scrutiny due to their ecological ramifications. Governments and environmental agencies worldwide have introduced regulations designed to incentivize tire recycling and responsible disposal practices. For instance, the European Union has set ambitious targets for tire recycling and the reclamation of materials from tires, with the ultimate objective of achieving a 100% tire recycling rate by 2030.

These regulations result in escalated disposal costs and necessitate the development of innovative recycling methods like devulcanization and pyrolysis, aimed at recovering valuable materials from elastomers. While these approaches represent environmentally conscientious practices, they require considerable investments in research and development, a factor that can decelerate the expansion of the automotive elastomers market.

Segment Analysis

The global automotive elastomers market is segmented based on type, vehicle, application and region.

Rising Demand For Automotive Elastomers in Non-Tire Application

The non-tire segment held the largest automotive elastomers market share of 51.5% in 2022 in the automotive elastomers market analysis report. The growth is due to the employment of elastomers in the interior and exterior expertise of automobile vehicles, including thermoplastic copolyesters, thermoplastic polyolefins, styrene block copolymers and others.

Due to their strength-to-weight ratios, sound-absorbing qualities and excellent viscoelasticity, elastomers are commonly employed in automobiles. Automotive elastomers are used in many different applications, such as seat covers, radiator hoses, bumper guards and under the hood, owing to their excellent abrasion-resistant properties. These materials are used in instrument panels, car seat covers because they are lightweight and fuel-efficient.

The market for automotive elastomers is expected to rise as a result of the benefits described above. According to the Federation of Automobile Dealers Associations (FADA), passenger vehicle sales in India increased from 2,79,365 units in November 2019 to 2,91,001 units in November 2020.

Geographical Penetration

Presence of Key Players and Severe Pollution Regulations of Asia-Pacific

Asia-Pacific automotive elastomers market held the largest market share of 38.3% in 2022 in the automotive elastomers market analysis. The growth can be linked to the region's expanding automotive market, where the main future producers of automotive elastomers will likely be China and Japan, among others. Due to rising auto manufacturing, these nations are also predicted to hold the greatest market share for automotive elastomers.

The market for automotive elastomers is also predicted to be driven by severe pollution regulations and an increase in the usage of light automobiles. Additionally, India's automobile sector is expanding. The nation saw a substantial increase in the production of passenger cars. For instance, the number of passenger vehicles produced in FY 2021-2022 increased by 19% from FY 2020-21 to 3,650,698. These characteristics suggest that the region will lead the market.

Competitive Landscape

The major global players include LG Chem Ltd., BASF SE, ExxonMobil Corporation, Lanxess AG, Zeon Corporation, Kumho Petrochemical Co., Ltd., Dow, Mitsui Chemicals, Inc., SABIC (Saudi Basic Industries Corporation) and Avient Corp.

COVID-19 Impact Analysis

The market declined as a result of the COVID-19 pandemic. In 2020, the pandemic compelled governments to lock down international borders and temporarily restrict trade and businesses. The regions under lockdown have suffered a considerable loss of revenue and business as a result of the closure of manufacturing facilities, as well as fluctuations in the cost and availability of raw materials.

Since the demand for automotive elastomers depends on the demand and sales of the automotive industry, the disruption in global supply chains had a negative impact on product sales, delivery schedules and manufacturing. This caused a significant decline in automotive sales. Over the projected period, the market is anticipated to quickly recover and return to its pre-COVID levels.

Russia- Ukraine War Impact

The Russo-Ukrainian war caused significant disruptions throughout the automotive elastomers' value chain and forced OEMs and suppliers to postpone or halt business with Russia. As a result of a shortage of parts from suppliers based in Ukraine, several OEMs in Europe and Eastern Europe have stopped or reduced their production. The immediate effects of this crisis include a production halt and a lack of auto parts.

The crude oil imports and exports were abrupted. Due to the scarcity of these energy sources in European nations, the invasion of Ukraine had an impact on the world's energy markets, notably those in Europe. Therefore, by extension, Europe is likewise Russia's primary source of income and the European Union recognizes its reliance on Russia's hydrocarbon industry.

Scope

By Type

• Thermoset Elastomers
  • Natural Rubber
  • Synthetic Rubber
  • Polyisoprene
  • Styrene-Butadiene Rubber
  • Polybutadiene
  • Nitrile Butadiene Rubber
  • Others

• Thermoplastic Elastomers
  • Thermoplastic Polyolefin
  • Thermoplastic Polyurethane
  • Thermoplastic Vulcanizates
  • Styrene block copolymer
  • Copolyester Ether
  • Thermoplastic polyamide
  • Others

By Vehicle

• Passenger Cars
• Light Commercial Vehicles
• Medium & Heavy Commercial Vehicles

By Application

• Tire
• Non-tire

• Interior
  • Airbags
  • Hoses
  • Breaks & Suspensions
  • Door Panels
  • Conveyor Belts
  • Soft Touch Panels
  • Others

• Exterior
  • Front Body Panel
  • Bumpers
  • Window Shields
  • Others
  • Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On May 2, 2023, the Bornewables line of Queo, a selection of plastomers and elastomers based on renewable feedstock, was introduced by Borealis. The International Sustainability and Carbon Certification (ISCC PLUS) of Borealis' production facility for the QueoTM range, located in Geleen, the Netherlands, is described after the introduction.
• On July 31, 2023, the addition of two reSound REC Thermoplastic Elastomers (TPEs) with recycled content was announced by Avient Corporation. The new grades for car interior applications are designed with post-consumer recycled (PCR) content, providing a more environmentally friendly TPE choice with performance on par with conventional TPEs.
• On February 13, 2020, a new type of high heat- and oil-resistant acrylic elastomer was introduced by Japanese rubber manufacturer Denka Corp., specifically for automotive applications. The new Denka ER grade, intended for use in automotive hoses and gaskets, is resistant to high temperatures of up to 190° C.

Why Purchase the Report?

• To visualize the global automotive elastomers market segmentation based on type, vehicle, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of automotive elastomers market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Technology mapping available as Excel consisting of key technologies of all the major players.

The global automotive elastomers market report would provide approximately 61 tables, 56 figures and 181 Pages.

Target Audience: 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies