Thermoplastic elastomer (TPE) is a global standard environmental protection material. It not only has the characteristics of aging resistance and high elasticity of traditional cross-linked rubber, but also has the characteristics of convenient plastic processing and reduced processing costs. Thermoplastic elastomers are classified according to the type of hard chain segment in the structure, which can be classified as styrene thermoplastic elastomer (TPE-S, also known as TPS or SBC), vinyl thermoplastic elastomer (TPO, TPV), polyurethane thermoplastic elastomer (TPU), polyester thermoplastic elastomer (TPEE), amide thermoplastic elastomer (TPAE), vinyl chloride thermoplastic elastomer (TPVC), etc.

Thermoplastic elastomer is a new type of polymer material between resin and rubber. because of its excellent chemical and physical properties, its application field is expanding. Thermoplastic elastomers are widely used in the rubber industry and the modification of engineering plastics. They are used in many fields, such as petrochemical industry, automobile manufacturing, aviation, civil construction, electromechanical, transportation, medical care, agriculture, etc., promoting the rubber industry and plastic industry to present a new market situation.

Main development characteristics of thermoplastic elastomer (TPE) industry

The development of thermoplastic elastomer material industry is relatively unbalanced worldwide. The thermoplastic elastomer industry in developed countries in Europe and the United States and Taiwan, China region of China is relatively mature, occupying the middle and high-end market of the industry. China's thermoplastic elastomer industry has a broad market space and huge development potential. However, due to the late start of the industry, insufficient product categories and relatively low level of technology and process, multinational companies have occupied a large market share in China. Most multinational companies are large-scale chemical enterprises integrating upstream raw materials, production and processing, and product sales. They have great advantages in raw materials and scale, and their products are rich in variety. At the same time, due to sufficient R&D funds and years of technology accumulation, multinational companies are in a leading position in the formulation of high-performance thermoplastic elastomer, leading the development direction of the industry by continuously introducing high-end products.

Relatively speaking, TPES products in China are more mature in the SBS and SIS fields, and the number of domestic enterprises with large scale and strong R&D capability is gradually increasing. Over the years of development, enterprises in the industry have continuously expanded their production scale and improved their technical and scientific research level through continuous investment in capital, talent, technology and other aspects, which has enhanced the overall competitiveness of enterprises. The trend of domestic products replacing imported products is increasingly obvious, and the industry development is relatively mature and stable. The hydrogenation products SEBS and SEPS in TPES products have relatively high technical barriers. At present, only a few enterprises with strong R&D capabilities, such as Sinopec and Changhong Hi Tech, have R&D and production capabilities. The import volume continues to expand. The supply of domestic SEBS products is generally tight. At present, the market of SEBS has presented a seller's market, while the industrialization of SEPS in China is still in the initial stage, and the future development prospects are very broad. The above characteristics of the industry determine that the thermoplastic elastomer market is currently in a monopolistic competition market pattern.

Overview of thermoplastic elastomer (TPE) industry development

The global TPE market size in 2021 will be 15.489 billion US dollars, which is expected to reach 22.182 billion US dollars by the end of 2028, with a compound annual growth rate of 4.91% from 2022 to 2028. The global TPE sales volume will be 5.55 million tons in 20201 and 8.5 million tons in 2028, with a compound annual growth rate of 6.26% from 2022 to 2028.

At the regional level, the Chinese market has changed rapidly in the past few years. In 2021, the market size will be US $4.99 billion, accounting for 32.22% of the world's total. It is estimated that the market will reach US $7.506 billion in 2028, and the global share will reach 33.84%.

Thermoplastic elastomer (TPE) is widely used in footwear, automotive industry, architecture, etc. In the TPE market, the automobile industry occupies an important share in application. It will reach 2428000 tons in 2021, and is expected to reach 3932000 tons in 2028, with a compound annual growth rate of 7.04% from 2022 to 2028.

The Asia Pacific region is the largest consumer, reaching 3.214 million tons in 2021, with a consumer market share of nearly 57.86%. Europe is the second largest consumer market after Asia Pacific, with a consumer market share of 19.96%.

In recent years, with the increasing demand of the thermoplastic elastomer market, more and more enterprises pour into the thermoplastic elastomer industry. Globally, the technology of foreign developed countries is relatively mature, and foreign multinational companies dominate the global high-end thermoplastic elastomer product market. Kraton Polymers, Sinopec, Li Changrong Chemical Industry, Dynamol and Celanese (ExxonMobil) are market leaders. Based on TPE revenue in 2021, the top five manufacturers account for 22.96% of the market share. In China, due to the late start, there is a gap between the key technologies of high-end thermoplastic elastomer products and those of foreign developed countries. However, with the increasing investment in research and development and the continuous breakthroughs in independent innovation technologies in China, there is also a certain development foundation in the field of thermoplastic elastomer, and there is a large market growth space. In addition, more and more enterprises join in the independent R&D and production of thermoplastic elastomer.