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Global Elastomers Market to Reach USD 34.73 Billion in 2021: Frost & Sullivan

Published on 2015-06-01. Author : SpecialChem

LONDON, UK -- New analysis from Frost & Sullivan, Analysis of the Global Elastomers Market, finds that Global Elastomers total market was worth $21.52 billion in 2014 and is expected to grow to $34.73 billion in 2021.Compared to synthetic elastomer (SE), the thermoplastic elastomers (TPE) segment is expected to grow faster.

The global elastomers market is all set to usher in an era of innovation with original equipment manufacturers (OEMs) increasingly demanding high-performance materials. Owing to the profusion of choice, customers are likely to base their purchase decisions on performance metrics such as durability, product finish, and flexibility of use. This, in turn, compels smaller companies to focus on product development to stay competitive.

Currently, the TPE segment is the torchbearer for technological advancements. Its primary focus is on improving processing attributes and enhancing design flexibility, while the product’s inherent advantage of high recyclable content makes it the material of choice for sustainable solutions. As TPE enables a wide range of applications, it is rapidly attracting business from a diverse range of end-user markets, especially the fast-growing consumer electronics market.

“Meanwhile, OEMs are also making a beeline for non-latex solutions due to escalating environmental concerns and biohazard and skin sensitization issues in the medical and hygiene industry,” said Frost & Sullivan Chemicals, Materials & Food Research Analyst Shubhayan Sarkar. “This bodes well for SE compounds, as they offer superior flexibility and tactile sensitivity.”

Despite the vibrancy of the market, it is facing competition from alternative materials such as polyvinyl chloride (PVC) and specialty plastics. The market can take heart from OEMs’ evident desire to replace these materials in several applications. This has opened up the market to elastomers vendors that are able to substitute PVC and metals with competing plastic compounds as well as reinforced and composite materials.

The global market for elastomers is expected to thrive even with the saturation of the manufacturing bases in North America and Western Europe, as the burgeoning of end industries in Asia-Pacific and Rest of the World has restored balance to the market. Still, factors such as the declining demand of solid wire and cable in external insulation and the high cost of switching to TPE can dampen the growth of the elastomers market.

Another serious concern for the market is a possible raw material shortage. However, participants can stave off this challenge through vertical integration. Consolidations with regional participants with specialized product capabilities will also allow larger companies to boost their market share and regional visibility. Partnership agreements involving compound/component manufacturers and OEMs will become more prevalent for specific application segments.

“Polymer manufacturers that are backwardly integrated will have better control over the volatility of raw material prices, which will help them maintain a competitive edge in the long run,” noted Sarkar. “Overall, a consistent supply of high-performance products will be the key differentiator among market participants.”

Analysis of the Global Elastomers Market is part of the Chemicals & Materials Growth Partnership Service program. Frost & Sullivan’s related studies include: European Market for High Performance Polymers and Phenolics in Automotive and Aviation Applications, Global Tire Materials Market, Opportunities for Additives in the European and North American Engineering Plastics Industry, and Opportunities for Materials in the Global Consumer Electronic Industry. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.

The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Source: Frost & Sullivan
 


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