Acrylic Elastomers Market - Forecast(2023 - 2028)

Acrylic Elastomers Market Overview

Acrylic elastomers market size is forecast to reach US$1.3 billion by 2027, after growing at a CAGR of 8.4% during 2022-2027. This is due to their use in automotive applications on account of the rising need for high-performance and lightweight materials in vehicle production. Elastomers are elastic materials that recover to almost their original shape after the complete release of the applied force. Acrylic elastomers, also called alkyl acrylate copolymers, are synthetic rubbers with a glass transition temperature well below room temperature. The two main types of acrylic-based elastomers are polyacrylates (ACM) and ethylene acrylates (AEM). The latter is a terpolymer of acrylate, ethylene and some other monomers whereas ACM elastomers are composed mainly of acrylates such as ethyl acrylate and butyl acrylate. Acrylic elastomers have good resistance to mineral oils, transmission fluids, oxygen, ozone, ultraviolet radiation and can withstand higher temperatures. The rising popularity of electric vehicles and increasing usage of acrylic elastomers in turbocharged engines drive the acrylic elastomers market during the forecast period. 

COVID-19 Impact

Currently, due to the COVID-19 pandemic, the core industries such as the aerospace, and the construction industry are highly impacted. The aerospace industry was the first to feel the heat. With cases rising rapidly, it was of utmost importance to try and control the spread of the virus. So, stringent measures such as travel bans, border closures, and lockdowns were in place. Passenger traffic slumped due to global and regional air travel restrictions. Civil aviation came to a standstill in many countries as people were not allowed to travel in the initial stages of the pandemic. Certain countries like India until today do not have scheduled international flights. Airlines canceled orders for new aircraft, for instance, OEMs Airbus and Boeing reduced production forecasts up to 50%. Demand for spare parts also decreased since less maintenance is currently required with the majority of the flights still being grounded. This also led to layoffs as airlines are struggling to stay afloat. According to figures from the International Civil Aviation Organization (ICAO), the number of passengers flown in 2020 decreased by 2.699 billion compared to 2019, which is approximately about 60% less. This led to a loss of US$371 billion in airline revenue. Hence, the aerospace industry took the biggest hit. This has also, in turn, impacted the market for acrylic elastomers to an extent in 2020.

Report Coverage

The report: “Acrylic Elastomers Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Acrylic Elastomers Market.

By Type: Polyacrylates and Ethylene Acrylates.
By Molding Technology: Compression Molding, Injection Molding, Transfer Molding and Others.
By End-Use Industry: Automotive (Hoses, Gaskets, Seals, O-rings, Torsional Dampers and Others, Aerospace (O-Rings, Gaskets, Seals, Grommets and Others), Industrial (Machinery, Seals, Diaphragms, Seals and Others), Constructional (Anti-Vibration Mounts, Couplings and Others), Paints and Coatings (Water-Borne Coatings and Solvent-Borne Coatings), Adhesives and Sealants, Textile, Plastic, and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa).

Key Takeaways

• Asia-Pacific dominates the Acrylic Elastomers market, owing to the growing automotive industry in the region. According to Invest India, the automobile industry is expected to reach $300 billion by 2026.
• Acrylic elastomer is a general term for a type of synthetic rubber whose primary component is acrylic acid alkyl ester. So, they are also known as Alkyl acrylate copolymers.
• Acrylic elastomers are widely used in the automobile industry in various components such as seals, hoses, O rings, diaphragms, vibration mounts, etc.
• The major opportunity for this market is high research spending and the synthesis of products that are also cost-effective.

 Figure: Asia-Pacific Acrylic Elastomers Market Revenue, 2021-2027 (US$ Billion)

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Acrylic Elastomers Market Segment Analysis – By Type

Polyacrylates held the largest share of more than 60% in the Acrylic Elastomers market in 2021. Polyacrylates (ACM) are an important class of polymers that are soft, tough, and rubbery. Their glass transition temperature is well below room temperature. They are known for their high transparency, good impact toughness, and elasticity, and have fairly good heat resistance up to ca. 450 K under dry heat. They also have good weatherability and ozone resistance since they do not have double bonds in the backbone. Polyacrylic elastomers are widely used in the automotive industry when excellent resistance to transmission and hydraulic fluids and many other common automotive lubricants is required. ACM elastomers are primarily used where combined resistance to heat and oils is required. They are often a good alternative to more expensive heat-resistant elastomers such as fluorocarbon polymers silicones and fluoro silicones for elevated temperature applications. Based on all these merits, Polyacrylates are set to dominate the acrylic elastomers market.

Acrylic Elastomers Market Segment Analysis – By Molding Technology

The compression molding segment held the largest share in the Acrylic Elastomers market in 2021 and is expected to grow at a CAGR of 8.1% during the forecast period. Compression molding is the oldest and simplest way to make a rubber product and it is often the most economical method of manufacture. It finds application for prototypes and low and medium-volume production. Compression molding works by combining heat and pressure to mold rubber into a shape. The rubber is shaped using a heated mold tool and the clamping pressure of a press. Chemical changes to the rubber, known as the curing or vulcanization process, occur before cooling and the extraction of the final part. This process produces high-volume, dimensionally precise, high-strength, temperature-resistant parts with good surface quality. The advantages of using compression molding are short setup time, the least amount of waste, and tooling is simpler and more cost-effective than injection molding. Hence, compression molding is set to dominate the market during the forecast period.

Acrylic Elastomers Market Segment Analysis – By End-Use Industry

The automotive segment held the largest share in the Acrylic Elastomers market in 2021 and is growing at a CAGR of 9.3% during 2022-2027. This is because acrylic elastomers have good heat, oxygen, and ozone resistance. Typical applications of ACM elastomers include automotive transmission components like seals and hoses that have to be resistant to hot oil, fuel, and many other common automotive lubricants and hydraulic fluids. ACM elastomers have also found use in vibration damping due to their excellent resilience. Typical applications of AEM elastomers include automotive transmission/power steering seals and O-rings that have to be resistant to transmission fluids and many other common automotive lubricants and hydraulic fluids. Other applications include diaphragms, plumbing seals, boots, hoses, vibration mounts, pads, isolators, and custom molded rubber goods and parts. According to the Japan Automobile Dealers Association, domestic automobiles accounted for 89% of Japan’s total car sales in 2020. After the impact of COVID-19, the automobile industry is on the path to recovery. According to the data firm TrueCar, the price of the average vehicle sold in December 2020 rose 5.3%, or $1,950, compared to 2019. Hence, with the automotive industry on a recovery track, the market for acrylic elastomers is also expected to grow.

Acrylic Elastomers Market Segment Analysis – By Geography

The Asia-Pacific region held the largest share in the Acrylic Elastomers market in 2021 up to 41%, owing to the accelerating automotive and aerospace industries in the region. Acrylic elastomers are used in various automotive and aerospace applications such as O-rings, gaskets, seals, hoses and various other components. For India, the auto sector is highly crucial as it contributes 49% to the manufacturing Gross Domestic Product (GDP) and 7.5% to the overall GDP. As per the data of The Federation of Automobile Dealers Associations (FADA), vehicle registration in October 2020 stood at 14,13,549, which increased to 18,27,990 in November 2020. The Indian automotive sector is a US$118 billion industry according to Invest India. With the gradual increase in demand and the economy trying to pace its growth back, the automotive sector is expected to bounce back. According to statistics released by the Taiwan Insurance Institute, sales of new vehicles increased to 457,000 in 2020 from 439,000 in the previous year. Imported vehicles saw a rising share of Taiwan's auto market. China's vehicle sales rose for a ninth straight month on an annual basis in December as the country continued to lead a recovery in the global automobile industry from the COVID-19 pandemic. According to data from the China Association of Automobile Manufacturers (CAAM), vehicle sales rose 6.4% in December from a year earlier to reach 2.83 million vehicles. Hence, with the automotive industry in the APAC region back on track, the market for acrylic elastomers is set to grow in this region.

Acrylic Elastomers Market Drivers

Increasing Popularity of Electric Vehicles

The automotive sector is facing high demands for lighter parts and materials, better recyclability, and elimination of halogens, leading to growing calls for switching from vulcanized rubber to synthetic rubber. The Swiss company Huber + Suhner AG uses Vamac (DuPont Vamac ethylene acrylic elastomer) for the insulation of screened and unscreened battery cables used in electrical and hybrid vehicles, including the fully electric Tesla Roadster. Vamac was primarily specified for this application because of its excellent high temperature and fluids resistance in tough automotive operating environments from -40°C to +150°C, involving hot motor and gearbox oils, battery acid, saltwater and cleaning solvents, for its flexibility and abrasion resistance and for its excellent insulation performance in demanding hybrid or fully electric car application. Ethylene acrylic elastomers (AEM) are employed for a range of challenging automotive applications, especially in electric and hybrid vehicle components. They are used in powertrain components, air management systems, seals and gaskets, cable insulation and jacketing, and in high voltage connector seals, among others. According to data from the European Alternative Fuels Observatory, the number of new light EV registrations went up from 43,390 in 2019 to 48,153. According to the European Automobile Manufacturers Association, despite the COVID-19 pandemic, the European EV market became the global leader surpassing China, as nearly 1,365,000 plug-ins were sold in Europe. Hence, the growing popularity of electric vehicles also drives the acrylic elastomers market. 

Increasing Usage of Acrylic Elastomers in Turbocharged Engines

The new trend in the automotive industry is engine downsizing and turbocharging to reduce carbon dioxide emissions and fuel consumption. Acrylic elastomers provide better heat resistance and better oil resistance compared to nitrile rubber and epichlorohydrin rubber. Therefore, they are used in extreme heat environments such as vehicles equipped with turbo engines. An important area where AEM polymers are used is in turbocharger hoses and air ducts for passenger cars, in both diesel and gasoline engines. Turbocharged engines differ from standard engines as they make use of wasted exhaust gases to pull more air into the intake valve, thus producing power more economically. Over the span of the last few years, there has been considerable growth in the number of turbocharged engines for passenger cars, replacing larger and less economical units. A good example of this is Ford’s decision to replace its standard 1.6L petrol engine with a 1L turbocharged unit, which it calls EcoBoost. Thus, the increasing usage of turbocharged engines drives the demand for acrylic elastomers.

Acrylic Elastomers Market Challenges

Volatile Prices of Ethylene Acrylic Elastomer (AEM)

Despite decreased automotive production due to the pandemic, the demand for AEM was still considerable for other end-use industries. But global supply chain disruptions hit the acrylic elastomers market hard. Another factor that contributed to the prices was container shortages which led to steep increments in global freight rates. For instance, in India, the price of AEM was US$10,672 in June 2021 and US$10,708 in December 2020. The hurricane season in North America during the last quarter of 2020 caused power disruptions, which hindered the production efficiency of ethylene leading to a low production rate of AEM. However, this proved to be a deterrent to the acrylic elastomers market.

Acrylic Elastomers Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Acrylic Elastomers market. Acrylic Elastomers market top companies include: 

1. BASF SE
2. DuPont
3. The Dow Chemical Company
4. Zeon Corporation
5. NOK Corporation
6. Trelleborg AB
7. DER-GOM
8. Denka Company Limited
9. Chengdu Dowhon Industry Co. Ltd
10. Kuraray Co., Ltd.

Acquisitions/Technology Launches

In January 2020, Denka Company Limited announced that it has developed a new, special elastomer that is acrylic-based and achieves a high level of heat resistance at approximately 190 degrees Celcius. (what is 190 here) the special character did not get copied to RTTS

Relevant Reports

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Elastomers Market- Forecast (2021-2026)
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