Automotive Elastomers Market
The rise in fuel prices and the environmental impact of conventional gasoline vehicles have paved the way for alternative fuel vehicles across the globe. Buyers are gradually getting inclined to use battery-powered or hybrid automobiles, which is anticipated to boost the demand for electric vehicles. According to the International Energy Agency’s annual Global Electric Vehicle Outlook, over 10 million electric cars were sold worldwide in 2022, and the number is projected to grow by 35% in 2023 to reach 14 million. As the automotive industry witnesses a transformative shift toward electric vehicles (EVs), the role of elastomers has become more crucial. To promote the sales of EVs, governments are providing attractive laws and incentives, including reduced selling costs, no registration fees or minimal registration fees, and free EV infrastructure charging at various charging points. Furthermore, due to various subsidies, many countries worldwide exclude import, purchase, and road taxes. These auto industry incentives have led to a rise in the manufacture of electric vehicles. Governments have also created beneficial policies and invested heavily in infrastructure. For example, the U.S. government plans to spend US$ 87 billion on new highway construction over the next five years. Additionally, the government will be installing EV charging stations across the country to encourage the development of these automobiles. Such government initiatives propel the demand for electric vehicles. Automotive elastomers are increasingly used in various parts of electric vehicles. Elastomers are used for recyclability, reducing the weight of the vehicles, and enhancing tire rolling resistance for improved EV performance and energy efficiency. Thus, the growing adoption of electric vehicles drives the demand for automotive elastomers.
Automotive Elastomers Market: Segmental Overview
Based on type, the automotive elastomers market is segmented into thermoset elastomers and thermoplastic elastomers. In 2023, the thermoset elastomers held a larger market share. The thermoplastic elastomers segment is expected to record a significant CAGR during the forecast period. The thermoset elastomers segment is significantly growing owing to the increasing demand for synthetic and natural rubber from the automotive industry. Thermoset elastomers offer thermal stability, safety, and reliability. Automotive tires are made using natural and synthetic elastomers, which provide flexibility and durability on the road. Thermoset elastomers include natural rubber, synthetic rubber, butyl rubber, styrene-butadiene rubber, and neoprene rubber.
Based on application, the automotive elastomers market is segmented into tire, interior, exterior, and under the hood. The tire segment held the largest share of the global automotive elastomers market in 2023. The interior segment is expected to record a significant CAGR during the forecast period. Natural and synthetic elastomers are used to make tires. Since tires need low rolling resistance, grip, and resistance to tread wear, tires are the most popular application for elastomers. Leakage of oil, coolant, and lubricant is prevented by elastomeric gaskets and seals, which guarantees optimal engine performance.
Based on vehicle type, the automotive elastomers market is segmented into passenger vehicles, light commercial vehicles (LCV), heavy commercial vehicles, and two wheelers and others. The passenger vehicles segment held the largest share of the global automotive elastomers market in 2023. Rising disposable income and a growing middle-class population in emerging nations have led to an increase in car ownership. The growing urbanization trends influence passenger car sales as more people reside in cities and rely on their vehicles for transportation. Elastomers are frequently used in automotive sealing and insulation applications, including window seals, door seals, and under-the-hood components, to stop leaks and reduce noise. Elastomers effectively dampen vibrations and reduce noise, enhancing passenger car comfort and driving experience. Additionally, they offer superior resistance to chemicals, heat, and wear, which makes the parts last longer and require less maintenance. Thus, the increasing demand for passenger vehicles globally is driving the market growth for the segment.
Automotive Elastomers Market: Competitive Landscape
KRAIBURG TPE, APAR Industries Ltd, Arkema SA, Asahi Kasei Corp, BASF SE, DuPont de Nemours Inc, Evonik Industries AG, Kraton Corp, Huntsman International LLC, LG Chem Ltd, LyondellBasell Industries NV, Mitsui Chemicals Inc, Saudi Basic Industries Corporation, Sumitomo Chemical Co Ltd, and The Lubrizol Corporation are among the key players operating in the global automotive elastomers market. Players operating in the market focus on providing high-quality products to fulfill customer demand.
