Automotive Elastomers Market is expected to reach US$ 66.57 Billion by 2031

Asia Pacific Dominated Automotive Elastomers Market in 2023

According to our latest market study on "Automotive Elastomers Market Forecast to 2031 – Global Analysis – by Type, Application, and Vehicle Type," the market was valued at US$ 42.98 billion in 2023 and is projected to reach US$ 66.57 billion by 2031; it is anticipated to record a CAGR of 5.6% from 2023 to 2031. The report highlights key factors driving the automotive elastomers market growth and prominent players along with their developments in the market.

In 2023, Asia Pacific accounted for the largest automotive elastomers market share. According to a report published by Fastener World Inc., Asia Pacific—the world's largest automobile-producing region—experienced a significant increase in production volume from over 46 million units in 2021 to over 50 million units in 2022 and over 55 million units in 2023. Asia Pacific is a rapidly growing car market driven by the rising middle class and disposable income. It is the largest regional base for automobile production and home to the largest number of vehicle buyers. The top 5 automobile producing countries are China, with more than 30 million vehicles; Japan, with nearly 9 million vehicles; India, with ~5.9 million vehicles; South Korea, with more than 4 million vehicles; and Thailand, with nearly 1.9 million vehicles. Automotive elastomers are used in the door panels, airbags, front-end body panels, breaks and suspensions, hoses and nozzles, and other body parts. Thus, the growing automotive industry in Asia Pacific is expected to create lucrative business opportunities for the automotive elastomers market players in the region during the forecast period.

Automotive Elastomers Market Breakdown – by Region

According to a report published by Fastener World Inc., Asia Pacific—the world's largest automobile-producing region—experienced a significant increase in production volume from over 46 million units in 2021 to over 50 million units in 2022 and over 55 million units in 2023. Asia Pacific is a rapidly growing car market driven by the rising middle class and disposable income. It is the largest regional base for automobile production and home to the largest number of vehicle buyers. The top 5 automobile producing countries are China, with more than 30 million vehicles; Japan, with nearly 9 million vehicles; India, with ~5.9 million vehicles; South Korea, with more than 4 million vehicles; and Thailand, with nearly 1.9 million vehicles. Automotive elastomers are used in the door panels, airbags, front-end body panels, breaks and suspensions, hoses and nozzles, and other body parts. Thus, the growing automotive industry in Asia Pacific is expected to create lucrative business opportunities for the automotive elastomers market players in the region during the forecast period.

China accounts for the largest automotive elastomers market share in Asia Pacific. China's government aims to increase the cumulative production capacity of automobile manufacturers in the country to 35 million units by 2025. It has taken several initiatives to fulfill this goal. According to a report published by Fastener World Inc, in 2023, vehicle production in China was 30 million vehicles. According to the 2022 report by the China Association of Automobile Manufacturers, China recorded electric vehicle sales of 9.5?million in 2023. The overall car market's growth was primarily driven by the rise in electric car sales. Such a progressive automotive industry is anticipated to propel the automotive elastomers market in China during the forecast period. The country marks the presence of major car manufacturers such as Hyundai Motor Company, Tesla Inc, Automobili Lamborghini SpA, and Dr. Ing. h.c. F. Porsche AG. The rise in vehicle sales in the country is a key enabler of the automotive elastomers market growth in China.

According to a report published by the National Investment Promotion & Facilitation Agency in 2023, the automotive market in India is likely to rank third among the world's largest country markets in terms of volume by 2030. According to a report by ITI Securities Broking Limited, in FY2023, India sold 3.9 million passenger vehicles and exported 4.76 million automobiles. Moreover, the Government of India declared a Production-Linked Incentive (PLI) Scheme for the automobile and automotive component businesses, providing 18% of financial incentives to boost the domestic manufacturing of advanced automotive products. Therefore, rising production rates and increasing investments in the automotive industry are projected to boost the demand for automotive elastomers.

Suzuki, Hyundai, Kia, Toyota, Honda, Ford, Skoda, Renault, Nissan, MG Motor, and Mercedes are key international players. Key Indian firms are Tata Motors and Mahindra & Mahindra. Emerging players in the EV space, such as Ola Electric and Ather Energy, are making their mark in the country. Thus, the proliferating automotive industry contributes to the growing automotive elastomers market size in India.  

Automotive Elastomers Market: Trends

The use of environmentally friendly elastomer solutions, especially recycled-content thermoplastic elastomers (TPEs), is rising among automakers. Companies are matching the automotive industry's commitment to lowering its environmental effect by investing in research and development to develop high-performance TPEs utilizing recycled materials. This change is a reaction to growing consumer demands for environmentally friendly products and laws that place a strong emphasis on sustainable manufacturing. Thus, the demand for elastomers that adhere to stringent regulations on volatile organic compounds (VOCs) and general environmental compliance is increasing.

With the increasing demand, manufacturers are now developing different sustainable options. For instance, in February 2023, A novel thermoplastic elastomer (TPE), known as an "eco-conscious thermoplastic elastomer," was created by Teknor Apex. Its 35% sustainable component comprises UBQ, a biobased, recyclable substance derived from organic and non-recyclable waste and post-consumer recycled material. Similarly, in July 2023, Avient's Resound REC, a new line of automotive-grade thermoplastic elastomers (TPEs) with 35-45% recycled content, meeting OEM standards for VOCs and fogging. This sustainable solution is available in North America. Therefore, the rising demand for sustainable elastomers is expected to bring significant automotive elastomers market trends in the coming years.

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 profiled in the automotive elastomers market report.

Automotive Elastomers Market Segmentation:

The automotive elastomers market analysis is based on type, application, vehicle type, and geography. By type, the market is segmented into thermoset elastomers and thermoplastics elastomers. In terms of application, the market is categorized into tire, interior, exterior, and under the hood. The vehicle type segment consists of passenger vehicles, light commercial vehicles (LCV), heavy commercial vehicles, and two wheelers and others. The geographic scope of the automotive elastomers market report encompasses North America (US, Canada, and Mexico), Europe (Germany, France, UK, Italy, Russia, and Rest of Europe), Asia Pacific (China, India, Japan, Australia, and Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America).

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