Global Thermoplastic Elastomers Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Thermoplastic Elastomers Market Size

• The global thermoplastic elastomers market size was valued at USD 23.83 billion in 2024 and is expected to reach USD 38.55 billion by 2032, at a CAGR of 6.20% during the forecast period
• This growth is driven by factors such as rising demand for lightweight automotive parts, increased use in medical and consumer goods, sustainability and recyclability, growth in construction and electrical sectors, and ongoing material innovations

Thermoplastic Elastomers Market Analysis

• Thermoplastic elastomers (TPEs) are versatile materials that combine the properties of thermoplastics and elastomers, offering flexibility, durability, and easy processability. Widely used across automotive, medical, consumer goods, and construction industries, TPEs support lightweight design, product durability, and enhanced performance
• The thermoplastic elastomers market is witnessing strong growth driven by increasing demand for lightweight automotive components, rising use in medical and consumer applications, growing focus on sustainability and recyclability, and expanding applications in construction, electrical, and industrial sectors
• North America is expected to dominate the thermoplastic elastomers market with a share of 35.2%, due to the growing adoption of TPEs across a wide range of industries such as automotive, medical, construction, and electronics
• Asia-Pacific is expected to be the fastest growing region in the thermoplastic elastomers market during the forecast period due to increasing industrialization, rising demand for sustainable materials, and growing awareness of TPE's superior properties
• Automotive segment is expected to dominate the market with a market share of 41.2% due to increasing demand for lightweight and durable materials that enhance fuel efficiency, reduce emissions, and improve vehicle performance. Thermoplastic elastomers offer superior flexibility, recyclability, and ease of processing, making them ideal for automotive applications such as seals, gaskets, interior trims, and under-the-hood components

Report Scope and Thermoplastic Elastomers Market Segmentation

Thermoplastic Elastomers Market Trends

“Rising Adoption of Bio-based Thermoplastic Elastomer”

• One prominent trend in the global thermoplastic elastomers market is the rising adoption of bio-based thermoplastic elastomer
• This trend is driven by the increasing environmental regulations, growing consumer preference for sustainable materials, and heightened demand from industries seeking to reduce their carbon footprint
  • For instance, companies such as Arkema and BASF are investing in the development of bio-based TPEs derived from renewable resources such as vegetable oils and starch-based feedstocks
• These materials are gaining traction in automotive, consumer goods, and medical applications due to their comparable performance, lower environmental impact, and potential for recyclability
• As industries worldwide prioritize green manufacturing and sustainable product design, the shift toward bio-based TPEs is expected to significantly influence innovation and long-term growth in the thermoplastic elastomers market

Thermoplastic Elastomers Market Dynamics

Driver

“Expansion of Automotive Industry”

• The expansion of the automotive industry is a key driver of growth in the thermoplastic elastomers (TPE) market, as automakers increasingly adopt lightweight, durable materials to improve fuel efficiency and reduce emissions in vehicles
• This shift is particularly prominent in automotive applications, such as seals, gaskets, interior trims, and under-the-hood components, where TPEs provide superior flexibility, strength, and weather resistance
• As the automotive sector shifts toward electric vehicles and stricter environmental regulations, the demand for high-performance, sustainable materials such as TPEs is accelerating
• Manufacturers are responding by developing advanced TPE formulations with enhanced properties, such as improved temperature resistance, lower weight, and better recyclability, to meet evolving industry needs
• The push for eco-friendly materials, cost-effective production, and regulatory compliance is further driving adoption of TPEs in the automotive sector
  • For instance, Ford is incorporating TPEs into vehicle components to reduce weight and improve energy efficiency
  • BASF and Dow Chemical are investing in new TPE technologies to cater to the growing demand for sustainable automotive solutions

• As the automotive industry continues to evolve, this driver is expected to significantly influence product innovation and market growth in the thermoplastic elastomers sector

Opportunity

“Emerging Applications in Healthcare and Medical Devices”

• Emerging applications in healthcare and medical devices present a significant opportunity for the thermoplastic elastomers (TPE) market, enabling the development of flexible, durable, and biocompatible materials for medical products such as implants, surgical tools, and drug delivery systems
• Medical device manufacturers are increasingly leveraging TPEs to create next-generation devices that offer comfort, flexibility, and ease of use, while meeting strict regulatory standards for biocompatibility and safety
• This opportunity aligns with the growing demand for innovative, patient-friendly healthcare solutions that can improve comfort and enhance treatment outcomes in both clinical and home care settings
  • For instance, Medtronic has developed flexible TPE-based components for medical devices, such as tubing and catheter applications, improving patient comfort and device performance
• Researchers at Harvard University are exploring TPEs in the development of soft robotics for minimally invasive surgeries, demonstrating the material’s potential for future medical applications
• As the healthcare industry embraces new technologies and materials, the TPE market is poised to benefit from these emerging opportunities, driving innovation in medical device manufacturing and patient care solutions

Restraint/Challenge

“Fluctuating Raw Material Prices”

• Fluctuating raw material prices present a major challenge for the thermoplastic elastomers (TPE) market, as the production of TPEs requires a wide range of petrochemical-based and bio-based materials whose costs can vary significantly
• The need to maintain consistent quality, performance, and durability drives up both raw material and production expenses, making it difficult for manufacturers to offer cost-effective solutions, particularly during periods of price volatility
• This challenge is particularly pressing for manufacturers who rely on stable pricing to maintain competitive pricing structures, especially in industries such as automotive and healthcare, where price sensitivity is high
  • For instance, SABIC has faced challenges with raw material price fluctuations, impacting its ability to offer competitive pricing in the TPE market while maintaining product quality and performance
• Without advancements in cost-efficient sourcing and production methods, fluctuating raw material prices may hinder market growth, particularly in cost-sensitive industries and emerging markets

Thermoplastic Elastomers Market Scope

The market is segmented on the basis of product type and application.

In 2025, the automotive is projected to dominate the market with a largest share in application segment

The automotive segment is expected to dominate the thermoplastic elastomers market with the largest share of 41.2% in 2025 due to increasing demand for lightweight and durable materials that enhance fuel efficiency, reduce emissions, and improve vehicle performance. Thermoplastic elastomers offer superior flexibility, recyclability, and ease of processing, making them ideal for automotive applications such as seals, gaskets, interior trims, and under-the-hood components.

The styrene block copolymers (TPE-S) is expected to account for the largest share during the forecast period in product type segment

In 2025, the styrene block copolymers (TPE-S) segment is expected to dominate the market with the largest market share of 32.1% due to their excellent elasticity, processability, and cost-effectiveness, which make them widely used in applications such as adhesives, sealants, footwear, and automotive parts. Their ability to be processed such as plastics while maintaining rubber-like properties drives strong demand across diverse end-use industries.

Thermoplastic Elastomers Market Regional Analysis

“North America Holds the Largest Share in the Thermoplastic elastomers Market”

• North America dominates the thermoplastic elastomers market with a share of 35.2%, driven by the growing adoption of TPEs across a wide range of industries such as automotive, medical, construction, and electronics
• U.S. holds a significant share of 75.5% due to its robust manufacturing base, technological advancements, and a high demand for TPEs in applications such as automotive components, medical devices, and consumer goods
• The region’s dominance is further supported by substantial investments in research and development, a strong regulatory environment, and the presence of leading manufacturers such as BASF, Dow Chemical, and Momentive that focus on advancing TPE technologies
• As industries continue to prioritize sustainability and performance, North America is projected to maintain its leadership position in the global thermoplastic elastomers market

“Asia-Pacific is Projected to Register the Highest CAGR in the Thermoplastic elastomers Market”

• Asia-Pacific is expected to witness the highest growth rate in the thermoplastic elastomers market, driven by increasing industrialization, rising demand for sustainable materials, and growing awareness of TPE's superior properties
• China holds a significant share due to its expanding automotive and construction sectors, increasing focus on eco-friendly materials, and large-scale investments in the manufacturing of thermoplastic elastomers
• The region’s growth is further supported by rapid urbanization, government initiatives promoting the use of advanced materials, and a rising adoption of TPEs in consumer goods, medical devices, and electrical components
• With increasing demand for high-performance, cost-effective, and recyclable materials, Asia-Pacific is poised to become the fastest-growing region in the global thermoplastic elastomers market

Thermoplastic Elastomers Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

The Major Market Leaders Operating in the Market Are:

• Arkema (France)
• Asahi Kasei Corporation (Japan)
• BASF (Germany)
• Dow (U.S)
• Covestro AG (Germany)
• Huntsman International LLC. (U.S.)
• Teknor Apex (U.S.)
• The Lubrizol Corporation (U.S.)
• Tosh Corporation (Japan)
• KRATON CORPORATION (U.S.)
• CNPC (China)
• Mitsubishi Chemical Group Corporation (Japan)
• DuPont (U.S.)
• SIBUR HOLDING PJSC (Russia)
• Corporate. Evonik (Germany)
• Dynasol Group (Spain)

Latest Developments in Global Thermoplastic Elastomers Market

• In April 2023, Asahi Kasei Plastics North America, Inc., a key player in advanced engineered polymers and polypropylene, merged with Asahi Kasei Asaclean Americas, a leading supplier of purging compounds and concentrates. This merger, resulting in the formation of APNA headquartered in Fowlerville, Michigan, is expected to enhance their manufacturing capabilities, streamline operations, and strengthen their position in the thermoplastic elastomers market by offering more efficient and high-quality production services
• In January 2023, Arkema signed a long-term agreement with ENGIE to supply 300 GWh/year of renewable biomethane in France, one of Europe’s largest private biomethane deals. This partnership aligns with Arkema's commitment to sustainability, as it will significantly reduce the carbon footprint of its bio-based Rilsan polyamide 11 and Pebax Rnew elastomers. The deal positions Arkema to meet growing demand for eco-friendly materials, strengthening its market presence in the bio-based thermoplastic elastomers segment
• In May 2021, Avient announced the addition of three proprietary thermoplastic elastomer (TPE) formulations with antimicrobial additives to its GLS TPE portfolio. These formulations, tested in accordance with JIS Z2801 and ASTM G21-15 standards, provide enhanced protection for molded plastic parts by inhibiting bacterial growth (99.9% or more) and resisting fungal and mold growth. This innovation strengthens Avient's position in the TPE market by addressing growing demand for antimicrobial materials, particularly in industries such as healthcare, consumer goods, and food packaging 

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