Thermoplastic Vulcanizate Market

Thermoplastic Vulcanizate Market Outlook (2023 to 2033)

The global thermoplastic vulcanizates market size reached a size of US$ 1.65 billion in 2022. Worldwide demand for thermoplastic vulcanizates (TPVs) is forecasted to increase at a CAGR of 5.1% and end up at a market valuation of US$ 2.86 billion by 2033.

TPVs are used widely in the automotive sector owing to their excellent durability, heat resistance, and weather resistance. They are utilized in window encapsulation and various other critical automotive components. Substantial growth in the automotive sector and the rising need for economical, high-performance, and lightweight materials are fueling demand for TPVs.

Key Market Growth Drivers

• Thermoplastic vulcanizates find applications in seals and gaskets for multiple applications, including industrial machinery. The need for efficient sealing solutions in the automotive sector is predicted to widen the application scope of thermoplastic vulcanizates.
• Excellent adhesive properties of thermoplastic vulcanizates make them more suitable for over-molding onto some rigid substrates. This TPV feature is valuable in the production of items with improved grip, aesthetics, and soft-touch feel, therefore gaining attention for consumer & industrial goods.

Demand for TPVs is growing due to their reduced environmental impacts and recyclability compared to conventional rubber. The implementation of more stringent regulations and focus on sustainability is projected to stimulate demand for eco-friendly materials, including TPVs.

Research and development endeavors are underway in TPV technology to create more efficient products while exhibiting improved adhesion and chemical resistance. In addition, they are also adopted as pocket-friendly solutions in multiple industries, including automotive, by reducing maintenance and manufacturing costs. Their ease of processing, longer service life, and reduced scrap rates are projected to make them more attractive options for customers.

Thermoplastic vulcanizates can be developed according to specific application requirements. Manufacturers can develop custom thermoplastic vulcanizates to match the unique requirements of products, which is further forecasted to drive market growth.

Report Attributes	Details
Thermoplastic Vulcanizates Market Size (2022A)	US$ 1.65 Billion
Estimated Market Value (2023E)	US$ 1.74 Billion
Forecasted Market Value (2033F)	US$ 2.86 Billion
Global Market Growth Rate (2023 to 2033)	5.1% CAGR
North America Market Share (2022)	33.1%
Automotive Segment Share (2022)	59%
Key Companies Profiled	LyondellBasell Industries; DuPont de Nemours, Inc.; RTP Company; HEXPOL AB; Lotte Chemical Corporation; Mitsui Chemicals, Inc.; Celanese Corporation; Trinseo PLC; ExxonMobil Corp.; JSR Corporation; Ravago Manufacturing; Avient Corporation; Kumho Polychem; FM Plastics; LCY Group; Ravago

Why is Worldwide Demand for Thermoplastic Vulcanizate Increasing Steadily?

“Durability and Heat Resistance of TPVs Driving Their Adoption in Automotive Sector”

Thermoplastic vulcanizates are utilized as indispensable materials in the automotive sector owing to their excellent durability, heat resistance, and weather resistance. These attributes make them a widely preferred choice for multiple applications, where longevity and reliability are paramount.

Gaskets are one of the prominent applications of thermoplastic vulcanizates. TPV materials form a tight seal between multiple engine components to ensure gases and fluids are available within desired spaces. It is very crucial to maintain the efficiency and optimal performance of vehicles to offer resistance to extreme temperatures and harsh weather conditions to enhance their suitability.

Weather seals in automobiles are generally found around sunroofs, windows, and doors, which are made from thermoplastic vulcanizates. These seals offer a dual purpose while preventing the entry of some external elements, including dust, rain, and wind, and ensuring a quiet and comfortable interior environment. Thermoplastic vulcanizates excel in their role owing to the feature of maintaining sealing and structural integrity over extended periods even when exposed to temperature fluctuations and various weather conditions.

Thermoplastic vulcanizates have established themselves as a significant material in the automotive sector. They are pivotal contributors to weather seals, window encapsulation, gaskets, and many other components. TPVs help maintain the performance, comfort, and integrity of vehicles.

“Rising Traction for Eco-friendly Materials across Industry Verticals”

Adoption of thermoplastic vulcanizates is generally driven by the exceptional environmental attributes that make them a superior choice compared to traditional rubber materials. Reduced ecological footprints and recyclability associated with their manufacturing process and use are projected to contribute to their adoption.

With growing environmental concerns, sustainability and recycling are pivotal. Thermoplastic vulcanizates are becoming popular because of their ability to be reused and recycled in multiple applications. Unlike some conventional rubber materials that require energy-intensive processes and can be challenging to recycle, thermoplastic vulcanizates are reprocessed without any quality compromise.

The sustainability features of TPVs align well with regulatory and corporate efforts to minimize the environmental impact of industrial products and processes. Moreover, the production of thermoplastic vulcanizates requires energy-intensive processes. They can be reprocessed without any significant loss in quality. TPV products contribute to a decrease in the demand for virgin materials, promote waste reduction, and facilitate effective recycling processes.

Which Roadblocks Do Producers of Thermoplastic Vulcanizates Encounter?

“Wide Availability of TPV Alternatives with Optimal Performance”

Various end users of thermoplastic vulcanizates are inclined to use styrenic block polymer, which is a type of high-performance thermoplastic elastomer. This alternative to TPVs is predicted to gain traction because of its optimal performance in many pressure-sensitive applications. This is projected to create noticeable challenges for suppliers of thermoplastic vulcanizates.

“Poor Wear Resistance of TPVs”

The poor wear resistance of thermoplastic vulcanizates after repetitive use is one of the prominent drawbacks that are limiting its adoption. This is predicted to exert high pressure on thermoplastic vulcanizate manufacturers to offer wear-resistant material with enhanced shelf-life.

What is Predicted to Assist New Manufacturers in This Competitive Environment?

“Adoption of Super TPVs as Replacement for High-cost Thermoset Rubbers”

Technological advancements are predicted to open up opportunities for increased adoption of thermoplastic vulcanizates for various challenging industrial applications. The development of “super thermoplastic vulcanizates” is one such initiative adopted by industrial operators as a replacement for high-cost thermoset rubbers. Development of super TPVs is expected to create new opportunities for start-ups, especially with their increasing adoption in the automotive sector.

Country-wise Insights

North America accounted for 33.1% share of the global market in 2022 with their extensive use in heavy industries. Moreover, the recyclability and easy application of TPVs are estimated to boost their demand in Asia Pacific in multiple sectors, including packaging, consumer goods, etc.

Why are Sales of Thermoplastic Vulcanizates Comparatively Higher in the United States?

“Implementation of Stringent Regulations against Plastic Use”

Stringent regulations are in place in the United States, including Corporate Average Fuel Economy, to prompt manufacturers to replace metal with plastics in the automotive sector. Therefore, there is a noticeable inclination toward thermoplastic vulcanizates for automobiles. This change is owing to the optimal performance and efficiency of thermoplastic vulcanizates.

Which Countries in Asia Pacific are Generating More Demand for Thermoplastic Vulcanizates?

“Increasing Focus on Sustainable Materials in India, China, and Japan”

Thermoplastic vulcanizates are gaining traction in India, China, and Japan owing to their recyclability, easy application, and feature to produce minimal waste. Healthcare, consumer goods, packaging, etc., are some key application sectors of TPVs. In addition, availability of raw materials for the production of thermoplastic vulcanizates is predicted to prompt investors and manufacturers from different end-use sectors, including energy, industrial machinery, construction, and automotive, to shift from heavy plastics and metals to lightweight thermoplastic vulcanizates.

Category-wise Insights

TPV materials are used widely in the automotive sector owing to their high durability, good heat resistance, and elasticity. This sector held 59% share of the global market revenue in 2022, as per the study published by Fact.MR, a market research and competitive intelligence provider.

Which Method is Widely Used to Process Thermoplastic Vulcanizate?

“Wide Use of Injection Molding Due to Reduced Need for Manual Labor”

Injection molding stands out as a widely adopted processing technique due to its high productivity, cleanliness, and the absence of residues. Therefore, the method can be used to maintain tolerance values, reduce the requirements for manual labor, and make complex shapes that too at economical prices.

Which Application of Thermoplastic Vulcanizate is Most Popular?

“Increasing Use of TPVs in Automotive Sector for Functional and Aesthetic Benefits”

Adoption of thermoplastic vulcanizates in the automotive sector is predicted to get an uptick during the assessment period (2023 to 2033). TPVs are used in several automotive exterior parts for performance, functional, and aesthetic benefits.

Good chemical and heat resistance, high durability, and good elasticity are some pivotal properties of thermoplastic vulcanizates. They are light in weight and recyclable in nature. In addition, the extensive use of thermoplastic vulcanizates in the manufacturing of various automobile parts, including gaskets, panel hole plugs, air inlet duct covers, headlamp seals, vibration dampeners, etc. is predicted to widen the scope for market growth.

Many countries are concentrating on decreasing carbon emissions. In line with this, automotive manufacturers are focusing on using products made from thermoplastic vulcanizates.

Market Competition

Market participants are implementing effective strategies for various objectives, such as ensuring product quality control, fostering new developments, and optimizing the management of supply chain systems. Mergers, acquisitions, collaborations, product launches, etc., are some more prominent strategies adopted by key players across geographies.

For instance :

• Mitsui Chemicals, in July 2022, developed an environment-friendly grade TPV called MILASTOMER that uses recycled polyolefin as a key component. Currently, it is used in different sectors, including building & construction, automotive, etc.

LyondellBasell Industrie, B.V., DuPont de Nemours, Inc., RTP Company, HEXPOL AB, Lotte Chemical Corporation, Mitsui Chemicals, Inc., Celanese Corporation, Trinseo Plc., Exxon Mobil Corp., JSR Corporation, Ravago Manufacturing, Avient Corporation, Kumho Polychem, FM Plastics, LCY Group, and Ravago are key players in the thermoplastic vulcanizate market.

Segmentation of Thermoplastic Vulcanizate Market Research

• By Processing Method :

  • Injection Molding
  • Extrusion

• By Application :

  • Automotive
  • Building & Construction
  • Consumer Goods
  • Medical & Healthcare
  • House Hose/Tubing

• By Region :

  • North America
  • Europe
  • East Asia
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania