SAN FRANCISCO – According to a new report released by Grand View Research Inc., the global thermoplastic elastomers (TPE) market is expected to reach $19.76 billion by 2022. The high substitution rate of thermoplastic elastomers, such as TPU and TPO, as an alternative to ethylene propylene diene monomer (EPDM) in construction materials is expected to drive TPE demand over the forecast period. Growing demand for lightweight, high-performance materials from the automotive industry in order to improve fuel efficiency by reducing overall weight of automobiles is also expected to fuel TPE demand. Volatile prices of key raw materials, such as styrene, propylene and polyurethane, are expected to remain a key challenge for market participants.

Styrene block copolymers (SBC) were the single-largest product segment and accounted for 47.1 percent of total market volume in 2014. Increasing demand for styrene isoprene styrene (SIS), particularly in China and India, in automotive applications is expected to drive product segment growth over the next seven years. Paving and roofing was the leading application segment for SBC and accounted for almost 35 percent of product volume in 2014.

The study reports that the global thermoplastic elastomers market was 4.01 million tons in 2014 and is expected to grow at a CAGR of 4.8 percent from 2015 to 2022. The market for thermoplastic vulcanizates (TPV) is expected to witness the highest growth of 6.7 percent from 2015 to 2022. Increasing demand for specialty high-performance plastics in the automotive industry is expected to drive TPV demand.

According to the report, Asia Pacific was the largest regional market and accounted for over 40 percent of total consumption in 2014. The regional market is characterized by high industrial growth as a result of favorable government policies and monetary framework encouraging private investments in the manufacturing sector. China and India are major TPE consumers and are expected to grow over the forecast period. These two countries accounted for approximately 66 percent of the regional demand in 2014.

North America was the leading TPO consumer and accounted for 35.5 percent of product volume in 2014. Its increasing demand in industrial and construction applications is expected to drive regional growth.

The global TPE industry is moderately concentrated, with four companies accounting for over 45 percent of the overall market share in 2014. Major companies operating globally include Arkema, Bayer MaterialScience, Dynasol Elastomers, Evonik, Kraton and Dow Chemical Co.

For additional information about the report, Thermoplastic Elastomers (TPE) Market Analysis By Product (Styrenic Block Copolymers (SBC, SBS, SIS, HSBC), Thermoplastic Polyurethanes (TPU), Thermoplastic Polyolefins (TPO), Thermoplastic Vulcanizates (TPV), Copolyester Elastomers (COPE)), By Application (Automotive, Footwear, Construction, Medical, Electronics, Industrial, Advanced Materials) And Segment Forecasts To 2022, visit http://www.grandviewresearch.com/industry-analysis/thermoplastic-elastomers-market.