(MENAFN- GetNews) Increasing Demand for Lightweight vehicles To Reduce Carbon Oxides Emission Will Enhance the Adoption of Automotive Elastomers Market
Automotive Elastomers market size is forecast to reach $96.6 billion by 2026, after growing at a CAGR of 4.6% during 2021-2026. Automotive elastomers reduce the overall weight of vehicles and are used in high-performance vehicle production. Elastomers are used in automotive vehicles due to various applications such as durability, impact resistance, low weight, softness, enhanced thermal resistance, and improved vehicle safety. Elastomer materials such as thermoplastic polyolefins, thermoplastic copolyesters, styrene block copolymers, and others are light in weight and improve fuel efficiency thus they are used in interior and exterior automotive expertise. They help to reduce emissions, enhanced safety, and superior paintability thus, widely used in the automotive sector. Hence, increasing the use of recyclable rubber elastomers is expected to boost the market growth for automotive elastomers.
Due to COVID-19, the automotive elastomer market got affected in the entire world. Synthetic rubber thermoset is used as vehicles material, which is derived from crude oil. But due to pandemic production of crude oil and other material has been stopped. Due to this, all manufacturing of thermoset material was held, which is limiting the production of automotive elastomer.
Automotive Elastomers Market Segment Analysis By Type
Thermoset automotive elastomer held the largest share in the automotive elastomers market in 2020 as these are widely used in vehicles due to their thermal stability. Thermoset helps to reduce the cost of material, improve tear resistance, abrasion resistance, and tensile strength. Synthetic rubber has low-temperature flexibility, thus it is used for tires, wire insulation, gaskets, and so on. Natural rubber thermoset is used as a vehicle material due to its various properties such as excellent processability, excellent elastic properties, high tensile strength, high tear resistance, low heat build-up in dynamic stress, and excellent electrical insulator. Synthetic and natural rubber is used to make gaskets in cars. Hence, these properties of thermoset elastomers are estimated to grow the consumption of automotive elastomers.
Automotive Elastomers Market Segment Analysis By Application
Non-tire segment dominated the automotive elastomers market in 2020 and is growing at a CAGR of 4.8% during 2021-2026 due to elastomers such as thermoplastic polyolefins, thermoplastic copolyesters, styrene block copolymers, others used in the interior and exterior expertise of automotive vehicles. Elastomers offer excellent strength-to-weight ratio, excellent viscoelasticity, and sound-absorbing capabilities thus they are widely used in vehicles. Automotive elastomers are easily molded and used in radiator hoses, bumper guards, under the hood, seat covers, and others due to their excellent abrasion-resistant properties. They are light in weight and fuel-efficient, thus these are used in caster wheels and instrument panels, and car seat covers. Thus, the rising automotive industry is estimated to grow the demand for automotive elastomers. For instance, according to the Federation of Automobile Dealers Associations (FADA), in India sales of passenger vehicles increased to 2,91,001 units in November 2020, compared with 2,79,365 units in November 2019. Hence, increasing production of vehicles is expected to grow the automotive industry which, in turn, increasing the demand for automotive elastomers.
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Automotive Elastomers Market Segment Analysis By Geography
Asia Pacific region dominated the global automotive elastomers market with more than 34% in 2020 due to the growth in passenger and commercial vehicles in the region. Increasing usage of high-performance lightweight materials in India and China with strict regulations to reduce carbon emission has been cited as a potential growth opportunity for automotive elastomers in the region. According to India Brand Equity Foundation (IBEF), the Indian automotive industry (including component manufacturing) is expected to reach US$ 251 to US$ 282 billion by 2026. Also, the Indian Government expects the automobile sector to attract US$ 8 to US$10 billion in local and foreign investments by 2023. Furthermore, according to Automotive Aftermarket Suppliers Association (AASA) and the Auto Care Association, in China, light-duty aftermarket sales will grow from US$281 billion in 2020 to US$314 billion in 2021. Hence, such factors are increasing the demand for automotive elastomers.
Automotive Elastomers Market Drivers
Increasing Adoption of Elastomers in the Automotive Industry
Automotive elastomers thermoplastic polyolefins, thermoplastic copolyesters, styrene block copolymers, thermoplastic polyurethane, others are widely used in vehicles to reduce weight, enhanced safety, and excellent durability. At the separation between the engine compartment and the interior, automotive elastomers are used for sound management. Inside the passenger vehicles, automotive elastomers are used for instrument panels for a soft touch and gaskets for side mirrors. They are used outside for base tires, sidewalls, and so on. Hence, various properties of elastomers such as emissions reduction, noise reduction, performance improvement, safety improvement, interior air quality, greater comfort, and affordability are expected to enhance the market for automotive elastomers. According to the Australian Bureau of Statistics, the Australian market sold 1.2 million new passenger cars, SUVs, and commercial vehicles in 2017, an increase of 0.9 % from 2016. According to the International Organization of Motor Vehicle Manufacturers (OICA), the production of light commercial vehicles has increased in the APAC region by 10.2 % in 2018. Light commercial vehicle production has increased from 2,249,348 in 2018 to 2,254,153 in 2019, an increase of 0.2% in Europe. The increasing automotive industry is expected to increase the requirement for automotive elastomers, which will act as a driver for market.
Automotive Elastomers Market Challenges
Volatility in Raw Material Prices
Automotive elastomers such as synthetic rubber (petroleum-based monomer) are derived from crude oil. Thus, the volatility in oil prices will be hampering the market of automotive elastomers. According to the U.S. Energy Information Administration (EIA), crude oil prices decreased by US$ 41.69 per barrel in 2020 compared to US$ 64.34 per barrel in 2019. Hence, the volatility of raw materials may hamper the market growth.
Automotive Elastomers Market Landscape
Technology launches, acquisitions, and R & D activities are key strategies adopted by players in the automotive elastomers market. Major players in the Automotive Elastomers Market are Huntsman International LLC, The Dow Chemical Company, LANXESS, BASF SE, Exxon Mobil Corporation, E. I. du Pont de Nemours and Company, Motherson Automotive Elastomer Technology, Kuraray Elastomer Division Co., Ltd., Continental AG, and among others.
Acquisitions/Technology Launches
In September 2019, JSR Corporation launched a new styrene-butadiene copolymer rubber (SBR) for automotive tires. It offers mechanical strength, wear resistance, and durability to improve fuel efficiency for CO2 emission reduction.
Key Takeaways
Asia-Pacific dominates the automotive elastomers market due to the increasing production of passenger cars, lightweight commercial vehicles, and heavy-duty commercial vehicles in Asian countries.
Increasing adoption of eco-friendly products, implementation of stringent government regulations related to carbon emissions, is estimated to grow the demand for automotive elastomers in the future.
Increasing demand for lightweight vehicles to reduce carbon oxides emission will enhance the adoption of automotive elastomers.
Relevant Reports
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B. Aerospace & Defense Elastomers Market
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