Worldwide demand for thermoplastic elastomers (TPEs) is forecast to rise 6.3% annually, reaching 5.6m t in 2015, according to a recently published study, “World thermoplastic elastomers”, from US market research group Freedonia (Cleveland, Ohio; www.freedoniagroup.com). Demand gains have increased since the 2005 to 2010 period, representing rising levels of motor vehicle production, the largest market for TPEs and accounting for 30% of consumption, rebounds in the US and western Europe and further efforts to reduce vehicle weights. Advances will also be fuelled by the increasing use of TPEs in new applications in developing countries.

The Asia Pacific region will continue to be the largest and fastest growing market for TPEs in the period to 2015, accounting for almost half of world demand. China, which has become the world’s largest consumer of TPEs, will continue to see robust growth in demand with increasing use in its growing motor industry. Paradoxically, the Chinese footwear industry – which produces 65% of global output – accounts for the largest share of TPE consumption.

Demand for TPEs in Brazil will benefit from gains in manufacturing output and construction spending as well as the regional output of motor vehicles. Rising incomes in Central and South America are adding demand for consumer durables, which are important markets for TPEs, Freedonia said. Production of TPEs in Brazil is forecast to reach 80,000 t in 2015, accounting for the vast majority of output in Central and South America.

Regional gains will also benefit from nearly double-digit expansion in India and an acceleration in the Japanese market. TPE demand in North America and western Europe, too, will see substantial improvement over the 2005 to 2010 period.

SBCs will remain the leading TPE product type in the study period. However, because of their high degree of market saturation in many applications, they will also be the slowest growing, the study says. The fastest growth is expected for POEs as they attain rapid acceptance as a performance additive for plastics. Strong gains are also forecast for TPVs and TPOs.