Despite the global recession, global demand for thermoplastic elastomers (TPEs) is forecast to rise 6% pa through 2013 to 4.2 mln metric tons. According to Freedonia Group, gains will be exaggerated to some extent by the fact that growth will be arising from a weak, recessionary 2008, particularly in many major developed countries. China will account for 42% of new TPE demand between 2008 and 2013. In 2008, China accounted for 32% of world TPE demand, and an even higher 42% of global styrenic block copolymer (SBC) demand, indicative of the country’s dominance in the manufacturing of SBC consuming products such as footwear. Although smaller than China in overall TPE and SBC demand, USA was the world’s leading national market for thermoplastic polyolefins (TPOs) and thermoplastic vulcanizates (TPVs) in 2008, due to these products’ higher penetration rates in motor vehicles produced in the US. Excluding China, global TPE sales will remain heavily concentrated in the developed markets of the US, Western Europe and Japan, particularly for higher performance materials such as TPVs and copolyester elastomers (COPEs). Most developing markets focus on low cost SBCs due to their existing positions in styrene-butadiene and polybutadiene rubber, but some such as China are also diversifying into thermoplastic polyurethanes (TPUs) and, to a lesser extent, TPOs. Growth prospects through 2013 will be strongest in developing nations such as the BRIC countries. Some developed nations such as Canada will see strong growth in their TPE sectors due to a healthy projected recovery in their motor vehicle industries from heavy declines experienced in 2008. Growth in the US, Japan and Western Europe will lag the global average through 2013. Motor vehicles will remain the largest market for TPEs at the global level, with demand of 1.2 mln tons in 2013. Through 2013, olefenics (TPOs and TPVs) will continue to see increasing penetration in motor vehicles in both interior and exterior applications. Specific areas of growth include soft-touch TPO trim, TPO airbag covers, TPV body seals, two-shot TPO or TPV overmolding of larger parts such as door panels, TPV weather seals and pre-colored TPO exterior panels that eliminate the need for paint. Thermoplastic Polyolefin Elastomer has a lion share of all elastomers in automotive market. TPE is improved to provide enhanced stiffness-impact balance. As per SRI Consulting, they share with all TPEs the fundamental characteristics of having elastomeric properties, yet they process like a thermoplastic material. They can be fabricated using standard thermoplastic equipment (extruded, injection- and blow-molded, calendered). A curing step is not necessary to develop optimum properties and scrap can be recycled. Other major types of TPEs include styrenics, polyurethanes, copolyesters and polyamides. Thermoplastic olefins are at the lower end of the price-performance spectrum for thermoplastic elastomers. TPOs are blends or physical mixtures of a semicrystalline polyolefin and an amorphous elastomer. Thermoplastic vulcanizates (TPVs) are mechanically compounded mixtures of a polyolefin (usually polypropylene) and an elastomer (specialty elastomer or EPDM) that is vulcanized during processing. Reactor-made products (R-TPOs) are propylene-ethylene copolymers made directly in sequential reactors. In 2010, the combined world consumption of TPOs, TPVs and R-TPOs represented an 8% increase from that of 2009. In retrospect, the 2008–2009 global recession had a depressing effect on demand for almost all end uses of thermoplastic polyolefin elastomers, but especially in the automotive sector, its largest end use. The following pie chart shows world consumption of thermoplastic polyolefin elastomers: Despite the economic downturn, high growth rates are still pushing forward in terms of thermoplastic polyolefin elastomer demand. TPOs/TPVs have a better environmental profile than, for example, PVC, so they are finding increasing popularity in passenger car interiors. In addition, thermoplastic polyolefin elastomers have been used instead of traditional thermoset rubbers - a winning competing factor in certain applications. Of equal importance, thermoplastic polyolefin elastomers can also be fully recycled. These benefits will increase the growth in consumption of TPOs and TPVs. From 2009 to 2015, TPOs, TPVs and reactor-made TPOs will exhibit between 6-10% average annual growth in demand. During this forecast period, the highest growth rates will be seen in China, India, Central and South America, and the United States. In fact, the United States will remain the largest consumer of thermoplastic polyolefin elastomers, having a 36% share of the world market for thermoplastic elastomers in 2010. The TPO market is at risk from new plant capacity being added in China (including new Chinese TPE compounders), and there will be a continued market shift to China and India. In addition, there are numerous factors that lend an element of uncertainty to market forecasts, including the health of the global automotive industry, the continuing evolution of new high-impact polypropylene polymers, and the global recovery rate from the 2008–2009 world recession, to name but a few. As per BCC Research: • The automotive exterior plastics market is estimated at almost 1.2 bln lbs and is expected to grow at an average annual rate (AAGR) of 3% to almost 1.4 bln lbs by 2006. • Thermosets, comprising about 31% of the total volume, will experience the largest growth rate of 4.4%, through 2006. • The second largest group, TPEs, will grow at an AAGR of 2.9% to 365 bln lbs in 2006, or 27% of the total market. • Commodity thermoplastics will hold on to third spot, but growing at an AAGR of only 1.7%, will see their share shrink to 14.4% from 15.4% in 2001. • Engineering resins will see meager growth, rising from 160 bln lbs in 2001 to 166 bln lbs in 2006. The Indian Thermoplastic elastomers (TPE) compounding market is expected to exhibit a compound annual growth rate (CAGR) of around 23% for the period 2010-14. The report by Allele Life Sciences Pvt. Ltd. assesses the commercial potential applications of thermoplastic elastomers (TPE) in soft-touch applications, footwear applications, automotive applications and others as well as uses various matrixes to identify market barriers to entry strategy as well as key market drivers and challenges and profiles market leaders. According to report, In FY-09, the Indian Thermoplastic elastomers (TPE) compounding market accounted for around 601.5 Kt by volume shipment consisting of footwear industry largest market share of 60% of the total TPEs consumption and thereafter consumer goods retains second position with 13% market share. The growth drivers would be soft-touch overmoulding as well as multishot moulding in a wide range of automotive, footwear, consumer goods, and other applications. Footwear continues to be the largest market for TPEs, with the foaming and strap applications and the substitutes of PVC and rubbers, while TPOs and TPVs continue to grow in automotive interiors because they are less expensive than TPU and save processing costs when used in two-shot moulding. TPVs are expected to penetrate under-the-hood automotive applications, where their improved heat and oil resistance allows them to compete with thermoset rubbers. A new growth area is the medical market, where increasing requirements for design flexibility, new regulatory restrictions of additives such as phthalates, and the potential for replacing PVC are opening up opportunities for TPEs.