Polyolefin Elastomer Market - Forecast(2023 - 2028)

Polyolefin Elastomer Market Overview

The Polyolefin Elastomer Market size is estimated to reach US$3.7 billion by 2027 with an estimated CAGR of 7.9% during the forecast period 2022-2027. Polyolefin Elastomer is a copolymer of ethylene and butane which has rich features such as low density, high impact toughness and flexibility. The copolymer consists of various types such as polyethylene, polypropylene and ethylene propylene diene monomer which have high applicability in automotive, building & construction and food & beverage sectors for automotive interiors & exteriors, adhesives and packaging purposes. Factors such as rapid growth in the building & construction sector, high consumption of food & beverages and an increase in the number of orthopedic surgeries are propelling the usage of polyolefin elastomer. These factors are driving the growth in the global polyolefin elastomer industry. However, the increase in crude oil prices is anticipated to pose a challenge to Polyolefin Elastomer Market growth, which negatively impacts the Polyolefin Elastomer Market size during the forecast period. The disruptions caused by COVID-19 in activities of major end-users of polyolefin elastomers such as automotive and building & construction resulted in a decrease in the market demand for the copolymer, thereby negatively impacting the Global Polyolefin Elastomer industry outlook.

Polyolefin Elastomer Market Report Coverage

The “Polyolefin Elastomer Market Report – Forecast (2022 – 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Polyolefin Elastomer Market.

• By Type – Polypropylene, Polyethylene, Ethylene Propylene Diene Monomer, Ethylene Propylene Monomer and Others.
• By Application – Hoses, Insulators, Engine Mounts, Bumpers, Wires & Cables, Extrusion Coatings, Packaging, Films, Adhesives, Footwear, Roofing, Vapor Retarders, Catheters, Syringes, Surgical Instruments and Others.
• By End-use Industry – Automotive (Passenger Vehicles, Light Commercial Vehicles and Heavy Commercial Vehicles), Building & Construction (Residential, Commercial, Industrial and Infrastructural), Food & Beverage (Dairy, Fruit Juices, Fruits & Vegetables and Others), Medical & Healthcare, Electrical & Electronics and Others.
• By Geography - North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and Rest of the World (the Middle East and Africa).

Key Takeaways

• Asia-Pacific dominates the Polyolefin Elastomer Market on account of the rapidly growing automotive and food & beverages sectors which is fueling the demand for Polyolefin Elastomer in the region.
• High-performance properties of Polyolefin Elastomer such as low-temperature ductility, toughness and superior elasticity are creating a drive in the demand and growth of Polyolefin Elastomer.
• Growing medical applications of Polyolefin Elastomer in syringes, catheters and surgical instruments have boosted its demand in the sector, thereby positively impacting the Global Polyolefin Elastomer industry outlook.
• Surging crude oil prices can hamper production adoption of Polyolefin Elastomer which could negatively impact the global Polyolefin Elastomer Market size during the forecast period.

Polyolefin Elastomer Market Segment Analysis – by Type

Polypropylene held the largest share in the Polyolefin Elastomer Market in 2021 and is forecasted to grow at an estimated CAGR of 7.8% during the forecast period 2022-2027. Polypropylene, unlike polyethylene and ethylene propylene diene monomer, is the most frequently used polyolefin elastomer which has high thermal stability and impacts resistance. Due to its high-performance nature, polypropylene has high applicability in the automotive sector in automotive interiors such as the bumper, whereas the mixture of polypropylene and cement improves the overall adhesion of cement. The rapid development witnessed by these major end-users of polyolefin elastomers has accelerated the demand and usage of polypropylene. These factors are, thereby, contributing to its segment growth in the Global Polyolefin Elastomer industry during the forecast period.

Polyolefin Elastomer Market Segment Analysis – by End-use Industry

The automotive sector held the largest share in the Polyolefin Elastomer Market in 2021 and is forecasted to grow at an estimated CAGR of 8.2% during the forecast period 2022-2027. Due to their flexibility, Polyolefin elastomers such as polypropylene and polyethylene are majorly used in automotive exteriors such as bumpers. On the other hand, ethylene propylene diene monomer is used in automotive seals and hoses due to its noise reduction and vibration-absorbent nature. Rapid urbanization, technology upgradation and growing investments are fueling automotive production. According to the International Organization of Motor Vehicle Manufacturers, in 2021, the global automotive production stood at 80.1 million units which showed an increase of 3%. Furthermore, according to the European Automobile Manufacturers Association, in 2021, South America’s automotive production increased by 15.6% in comparison to 2020. Such an increase in automotive production has boosted polyolefin elastomer demand for automotive interiors and exteriors applications. This is positively impacting the growth of the Polyolefin Elastomer Market.

Polyolefin Elastomer Market Segment Analysis – by Geography

Asia-Pacific held the largest share in the Polyolefin Elastomer Market up to 42.1%. The high applicability of polyolefin elastomer in the food & beverage sector for packaging and automotive sector for interiors & exteriors is significantly influencing its market demand in the region. Automotive and horticulture production has increased in major Asia-Pacific countries thanks to the growing government initiatives and investment inflow in these sectors. According to data from the Ministry of Agriculture, in 2020, India’s horticulture production consisting of fruits & vegetables increased by 4.4% in comparison to 2019. Furthermore, according to the International Organization of Motor Vehicle Manufacturers, in 2021, automotive production saw a 3% increase in China, a 14% increase in Australia and a 63% increase in Indonesia. With such an increase in production output in the automotive and food & beverage sectors, the demand for Polyolefin Elastomer is also anticipated to increase, resulting in positive market growth in the region during the forecast period.

Polyolefin Elastomer Market Drivers

Rapid Growth in Building & Construction Sector:

Polyolefin Elastomers such as polypropylene and polyethylene have high thermal stability and impact strength. These are the major reasons why they are used in the building & construction sector for countertop protection, roofing and vapor retarders. Growing demand for residential units and the development of architectural sites has resulted in rapid growth of the building & construction sector. According to Eurostat, in October 2021, building construction increased by 4.6% in major European Union countries like France, Spain, Hungary and Finland. Furthermore, according to the Australia Bureau of Statistics, in December 2021, the total number of dwellings approved in Australia rose to 8.2% in comparison to the previous month. With the rapid growth in the building & construction sector, the demand for polyolefin elastomers is also anticipated to increase. This would result in a positive growth of the Global Polyolefin Elastomer industry during the forecast period.

Increase in Number of Surgeries:

Due to its durable nature, Polyolefin Elastomer has high applicability in the medical & healthcare sector where it is used to make surgical instruments, syringes and catheters. The number of orthopedic and hip replacement surgeries has increased over the years because of the growing acute trauma cases. According to a report published by the America Academy of Orthopedic Surgeons, in 2021, the number of orthopedic surgeries increased by 18.3% in comparison to 2020. Furthermore, according to Organization for Economic Co-operation and Development, in 2019, the number of hip replacement surgeries in Germany stood at 244,590, showing a 3.2% increase. Such an increase in surgery number would accelerate surgical instrument demand, thereby propelling the usage of polyolefin elastomer in surgical instrument production. This factor would positively impact the growth of the Global Polyolefin Elastomer industry during the forecast period.

Polyolefin Elastomer Market Challenge

Increase in Crude Oil Price:

Polyolefin Elastomer is a copolymer of ethylene and butene which are produced during the refining process of crude oil. The increase in the price of crude oil due to the unstable economic environment is posing a challenge for the market growth of polyolefin elastomer at a global level. According to International Energy Agency, in January 2022, crude oil prices surged by US$15 per barrel breaching the US$90 per barrel threshold since 2014. Such an increase in the price of crude oil would affect the production volume of ethylene and butene, thereby contracting the polyolefin elastomer production output. This would further affect the growth of the global polyolefin elastomer industry and negatively impact the Polyolefin Elastomer Market size during the forecast period.

Polyolefin Elastomer Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies players adopt in the market. The top 10 companies in the Polyolefin Elastomer Market are:

1. Dow Inc.
2. The Compound Company
3. LG Chem
4. Mitsubishi Chemical Holding Corporation
5. Polmann India Ltd.
6. PolyOne Corporation
7. RTP Company
8. Entec
9. Saudi Basic Industries Corporation
10. SK Global Chemical Co. Ltd.

Recent Developments

• In May 2022, Dow Inc. announced the launch of its new high-performance Polyolefin Elastomer product EngageRen which is produced by using renewable energy and feedstock.
• In March 2022, The Compound Company, based in the Netherlands, acquired the product portfolio and customer base of Exxelor polymer resin from ESSO Deutschland, Exxon Mobil. This is a modified Polyolefin Elastomer-based resin used to enhance the performance of engineering thermoplastics and other polymers.
• In October 2019, Saudi Basic Industries Corporation launched a dedicated Polyolefin Elastomer foam which has a low density and high-performance properties and is suitable for casual as well as sports footwear.

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