Thermoplastic Vulcanizate (TPV) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for Thermoplastic Vulcanizate (TPV) globally is expected to grow at a CAGR of over 6% during the forecast period. Major factors driving the market studied are the increase in the use of Thermoplastic Vulcanizate in Consumer Goods Industry.

Key Highlights

• On the flip side, the sudden decline of the automotive industry in major countries, is expected to hinder the growth of the market studied.
• Growing use in Healthcare industry is expected to be a major opportunity for the market to grow.

Key Market Trends

Extensive Demand from Automobile Industry

• Automotive lightweight materials have been witnessing robust growth during the past couple of years, due to the increasing demand for luxurious, low-on-emission, safe, and high-performance vehicles. As a result, suppliers and manufacturers have introduced various solutions that not only help OEMs meet continually tightening regulations, but also satisfy the widening range of consumer personal taste.
• The major applications of TVP in the automotive industry include hose coverings, air inlet duct covers, gaskets, seals, convoluted boots, vibration dampeners, strut covers, ignition components, bushings, and window seals. TPV flexible automotive under-the-hood components include air intake tubes and bellows, wheel well flares, steering system bellows, and sound abatement parts.
• Cost is the biggest advantage, with TPVs being 10-30% lower than EPDM, coupled with lower weight, improved design flexibility, and recyclability. Furthermore, the light weight of TPV enables more fuel-efficient vehicles. Every 10% reduction in vehicle weight is estimated to result in a 5-7% reduction in fuel usage.
• Thus, increasing demand for Thermoplastic Vulcanizates from Automotive industry is expected to drive the Thermoplastic Vulcanizate(TPV) market.

Asia Pacific to witness fastest growth

• Extensive demand form China and Japan is one of the key reasons driving the demand for the market studied ion Asia-Pacific.
• China is the world's largest automotive producer. However, the country witnessed a decline in the production of vehicles in the recent past. The performance of the automotive industry was affected by the economic shifts and China's trade war with the United States.
• China is majorly focusing on increasing the production and sales of electric vehicles in the country. For this purpose, the country has planned to increase the production of electric vehicles (EVs) to 2 million per year by 2020, and 7 million per year by 2025. The target, if achieved, may increase the share of electric vehicles to 20% of the total new car production for China, by 2025.
• China's booming economy has offered consumer product companies some of the world's greatest growth opportunities. Attracted by the huge potential of China consumer goods market, many foreign companies have entered China and set up production units. With the growth of consumer goods production, thermoplastic vulcanizate consumption may also see an increased demand.
• In Japan, Tokyo emerged as a top market among the rest of the major cities in the region, for investments and development prospects, of which, the residential sector accounted for the major share.
• Apart from this, the impending 2020 Tokyo Olympics is also expected to significantly increase the construction activities in providing accommodations for the Olympic athletes, which include sports complex and the Olympic village.
• Thus, the anticipated growth in the automotive, construction, consumer goods, and electronics industries is likely to drive the domestic demand for thermoplastic vulcanizate during the forecast period.

Competitive Landscape

The Thermoplastic Vulcanizate (TPV) market is partially consolidated with top 7 players competing globally for an estimated 70% of the market. The major companies include Exxon Mobil corporation, Mitsubishi Chemicals Inc, Teknor Apex, Ravago, KUMHO POLYCHEM and others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support