Thermoplastic Elastomer Market Growth
TPE Products Must Penetrate Traditional Rubber Markets to Sustain Growth
21-Nov-2002
Thermoplastic elastomer (TPE) producers must break down barriers to market development
and raise awareness of end-users about the total system cost and marketing benefits
from using TPE rather than natural and thermoset rubber, claims a new report from
international market consultants Frost & Sullivan.
Total revenues from TPE compounds in technical thermoplastic applications were $913
million in 2001 against $776 million in 1998. Market revenues are projected to reach
$1,299 million in 2008. This represents a compound annual growth rate of 5.2 percent
during the period 2001 to 2008.
The replacement of traditional materials such as natural and thermoset rubbers has been
successful owing to the ease of processing, performance properties and recyclability of
TPE. This replacement is likely to continue to drive demand during the next five years.
However, there may be significant barriers to the further replacement of rubber by TPE.
"Rubber processors have been reluctant to invest in thermoplastic processing
technology because of high switching costs, and are generally unconvinced about TPE
performance versus traditional rubbers. In addition, the rubber processors have
long-standing relationships with OEMs in many traditional markets where TPEs need to
penetrate in order to sustain growth. This will raise entry barriers for thermoplastic
elastomer producers," explains Brian Balmer, Research Analyst in the Performance
Materials team.
As penetration rates for TPE in existing applications increase, it will become more
difficult to find new areas for market development. TPE producers are responding to
this challenge by expanding the range of performance properties to permit entry into
new market sectors where rubber still dominates. Improving compression set, adhesion to
other polymers and metals, softness, UV resistance, chemical and oil resistance and
vibration damping, are the principal properties on which TPE producers are focusing
attention.
In the future, manufacturers should look to automotive sealing systems, medical
products and "soft touch" consumer products, where there is still scope for further
rubber replacement. Success will depend on the close co-operation between end-users
and the suppliers^Ò R&D and technical service teams.
The report examines the key trends for technical applications in the Automotive,
extrusion, Consumer goods, Regulated products and Wire & cable market sectors. Six
broad TPE types are examined:
- styrenics (mainly SEBS: Styrene-Ethylene-Butylene-Styrene)
- Thermoplastic polyolefin elastomers (TPO)
- Thermoplastic vulcanizates (TPV)
- Thermoplastic polyurethane elastomers (TPU)
- copolyester thermoplastic elastomers (COPE)
- Copolyamide thermoplastic elastomers (COPA)
The report "European Technical Applications for Thermoplastic Elastomers Markets B103"
is available to purchase from: Frost & Sullivan, 4100 Chancellor Court,
Oxford Business Park, Oxford, OX4 2GX, UK. Contact: Bill Stringer +44 (0) 1865
398651,bill.stringer@frost.com
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