Market Report
The Future of Automotive Elastomers to 2027
Automotive elastomer market set to grow at 3.10% year-on-year as industry adjust to post-Covid market place Smithers data show
LEATHERHEAD, Surrey, UK and AKRON, Ohio, USA – March, 01 2022 – Worldwide demand for thermoset, thermoplastic and tire-grade elastomers will reach a projected 23,824 tonnes in 2022, according to the latest research from Smithers.
Published today, its brand new report – The Future of Automotive Elastomers to 2027– forecasts a compound annual growth rate (CAGR) of 3.10% for 2022-2027. This will push total consumption to 27,759 tonnes in 2027.
Smithers’ analysis tracks the market outlook for 22 different elastomer grades across 44 distinct applications in tires, engine components, exterior and internal fixtures; and six geographic regions.
Even as automotive manufacturing recovers from the severe disruption caused by the Covid pandemic, there are supply chain challenges that elastomer suppliers will need to negotiate. More positively there are emergent demands for new higher performing elastomers in vehicle construction – including electric vehicles and charging infrastructure – as car makers adjust their portfolios to a global landscape reshaped by the experience of the past two years.
The core technology trends for 2022-2027 identified by Smithers expert survey of this segment are:
- The increasing replacement of thermoset grades with thermoplastic elastomers, that are easier to process and recycling at end-of-life. In particular wider use of thermoplastic grades will support the implementation of greater automation and industry 4.0 concepts in factories.
- In tires specifically, elastomer suppliers will need to answer increased demand for butadiene rubber, and solution styrene-butadiene rubber (SBR) materials. In 2022, their share of the market is limited – just 22.2% combined – while natural rubber (NR) accounts for 48.6% of total sales by weight, and emulsion SBR represent a further 15.6%.
- Non-tire applications provide opportunities for a wider range of thermoset elastomers. NR represents 30.4% of the 2022 market, followed by ethylene propylene diene monomer (EPDM) with a 17.3% share.
- Of the six thermoplastic grades tracked in Smithers forecasts TPS and TPV’s have the best growth outlooks through to 2027. As this happens cross-linked TPS – which has superior heat-resistance when combined with high-flow SEBS – will progressively displace PP/EPDM-based TPVs in the market.
- The impending deployment of chemical recycling technologies at tire recovery facilities is a key step in the journey to a realising a fully circular economy for elastomers; which is set to be reinforced by a new raft of vehicle recyclability legislation.
- Many automakers are focussed on expanding their electric vehicle ranges to reposition their businesses for a greener post-Covid economy. This will benefit elastomer suppliers, especially those selling thermoplastic elastomers, for use in electric power train and battery systems.
- The sustainability agenda is supporting new interest in bio-monomers built from non-petroleum feedstocks.
Asia is also the hub for global elastomer manufacture and cultivation. This is highlighted in ongoing disruptions of exports to North American and Europe leading to high cost and low availability of transportation. In response both tire and vehicle OEMs are reappraising their supply chains as a strategic priority.
The Future of Automotive Elastomers to 2027, provides unparalleled detail of future market growth and technical demands for elastomers in both conventional and electric vehicles. Its exclusive dataset presented in over 150 tables and figures is supported by expert qualitative analysis of legislative developments, sustainability requirements, and the future evolution of supply chains for global automotive production.
The report is available to purchase now priced $6,750 (€5,950, £4,950).