High Temperature Elastomers Market - Forecast(2023 - 2028)

High Temperature Elastomers Market Overview

The High Temperature Elastomers Market size is estimated to reach US$14.6 billion by 2027, after growing at a CAGR of 5.2% during the forecast period 2022-2027. The high temperature elastomers (HTE) are elastomers that are made up of a long chain of atoms with superior elasticity and viscosity. Various types of high-temperature elastomers such as silicones, fluorocarbon, fluoro silicone, perfluorocarbon and others have major demand across major end-use industries such as automotive, aerospace, electronics and others. This is due to superior properties such as high heat withstands feature, infinite shelf life and impact resistance, thereby fueling the growth scope for the high-temperature elastomers industry. In addition, growing development and production in the transportation sector, including aerospace and automotive and others are driving the high-temperature elastomers industry. The covid-19 outbreak resulted in major disruption in the high-temperature elastomers market due to logistics restrictions, disturbance in automotive production, closure of building & construction sites and other lockdown restrictions. However, significant recovery in the major end-use sector is boosting the demand for high-temperature elastomers for a wide range of applicability and utilization. Thus, the high-temperature elastomers industry is anticipated to grow rapidly and contribute to the high-temperature elastomers market size during the forecast period.

High Temperature Elastomers Market Report Coverage

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

Key Takeaways

• The Asia-Pacific dominates the High-Temperature Elastomers Market, owing to growth factors such as the flourished base for the transportation sector, initiatives towards vehicle electrification and urbanization trends, thereby boosting growth in this region.
• The flourishing automotive sector across the world is propelling the demand for various applications such as seals & gaskets, cable insulation, seat covers and others due to excellent dielectric strength, durability and cost-efficiency, thereby influencing the growth in the High Temperature Elastomers Market size.
• The demand for silicones type is significantly growing for a wide range of utility and applicability in automotive, aerospace, electronics and others due to comparatively renowned heat withstanding features and superior dielectric properties.
• However, high production costs associated with High-Temperature Elastomers act as a challenging factor in the High Temperature Elastomers industry.

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

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High Temperature Elastomers Market Segment Analysis – By Type

The silicone segment held a significant High Temperature Elastomers Market share in 2021 and is expected to grow at a CAGR of 3.4% during the forecast period 2022-2027. The demand for silicone elastomer type is high compared to other types such as flurosilicone, perfluorocarbon, fluorocarbon and others due to superior features such as improved durability and cost-effectiveness. In addition, the superior dielectric properties make it an ideal option for electrical & electronics applicability. Moreover, the ability to withstand extreme stress and temperature boosts its applicability in the aerospace sector. Thus, owing to advantageous features and a wide range of applicability in major end-use industries, majorly transportation, the silicone type is projected to grow rapidly in the High Temperature Elastomers Market during the forecast period.

High Temperature Elastomers Market Segment Analysis – By End-use Industry

The Automotive segment held a significant High Temperature Elastomers Market share in 2021 and is forecasted to grow at a CAGR of 3.7% during the forecast period 2022-2027. The high temperature elastomers have significant applicability in the automotive sector for seals and gaskets, seat covers, engines and others due to their superior high temperature withstanding capability, durability and anti-corrosive features. The lucrative growth in the automotive sector is due to factors such as increasing development for public transportation, the manufacturing base for electric vehicles and rising income level. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), global automotive vehicle production saw an increase from 77,621,582 units in the year 2020 to 80,145,988 units in the year 2021. According to the Society of Indian Automobile Manufacturers (SIAM), the production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers and quadricycles increased from 22,655,69 units in 2020-21 to 22,933,230 units in 2021-22 in India. With the increase in automotive vehicle production and advancements, the applicability of cement, superplasticizers and others is rising, which, in turn, is anticipated to boost the growth prospects for the residential sector in the High Temperature Elastomers Market during the forecast period.

High Temperature Elastomers Market Segment Analysis – By Geography

The Asia-Pacific held the largest High Temperature Elastomers Market share in 2021 up to 42%. The robust demand and growth of high temperature elastomer in this region are influenced by the growing automotive industry, flourished manufacturing base and urbanization. The automotive sector in APAC is growing rapidly owing to growth factors such as demand for fuel-efficient vehicles, vehicle electrification and rising production trends. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), automotive vehicle production increased by 3% in China, 30% increase in India, 8% increase in Taiwan and 63% growth in Indonesia for the year 2021 compared to 2020. According to the India Brand Equity Foundation (IBEF), the automotive sector in India is projected to reach US$ 251.4 to 282.8 billion by 2026. According to the Federal Chamber of Automotive Industries, new vehicle registration in Australia marked an increase of 1.2% with 101,233 units in March 2022 compared to March 2021. With the increasing automotive vehicle production and consumption, the applicability of high temperature elastomers such as silicones, fluorocarbon, flurosilicone, perfluorocarbon and others for seals & gaskets, engines, seat covers and others is growing, which, in turn, is anticipated to boost the growth scope high temperature elastomers in Asia-Pacific region during the forecast period.

High Temperature Elastomers Market Drivers

Rapid Growth in the Electrical & Electronics Sector:

The High Temperature Elastomers have significant demand in electrical & electronics for a wide range of applicability in semiconductors, headlamps, LEDs and others due to superior dielectric strength features. The electronics sector is fast-paced owing to growth factors such as robust demand for consumer electronic devices, soaring production base and urbanization. For instance, according to OBERLO, the total revenue of consumer electronics in the US is expected to increase by 7.5% in 2023. According to India Brand Equity Foundation (IBEF), the consumer electronics and appliances sector in India accounted for US$9.84 billion in 2021 and is expected to reach US$21.19 billion by 2025. Furthermore, the domestic production of electronics in India increased from US$29 billion in the year 2014-15 to US$67 billion in 2020-21. With the increase in production and demand for electrical devices, the applicability of high temperature elastomers in LEDs, interior lighting devices, cable coatings and others is rising, thereby propelling the demand and driving the high temperature elastomers industry. 

Flourishing Growth of the Aerospace Industry:

The High Temperature Elastomers have growing applications in the aerospace industry for a wide range of applications including seals, tires, covering and others. The lucrative growth of the aerospace industry is influenced by growth factors such as rising air traffic, increasing production for aircraft and urbanization. For instance, according to Boeing, the airline sector is estimated to demand more than 44,000 new commercial airplanes, worth US$6.8 trillion by the year 2037-38. According to India Brand Equity Foundation (IBEF), the aerospace & defense sector in India is estimated to reach US$70 billion by the year 2030. According to the International Air Transport Association (IATA), the revenue for commercial airlines in North America is estimated to grow by 1.9% in 2022 over the previous years. With the increase in aircraft deliverables and production, the demand for high-temperature elastomers for applications in aircraft, air management systems, seals and others is rising, which, in turn, is boosting its demand and driving the high temperature elastomers industry.

High Temperature Elastomers Market Challenge

High Costs Associated with High Temperature Elastomers:

The High Temperature Elastomers such as silicones, flurosilicone and others are advanced materials that have costly production processes due to their superior heat resistance and durability under high heat temperatures. The installation of high capital-intensive units for manufacturing incurs high costs and expenses. Silicone elastomers are one such premium elastomer product, thereby posing a high price compared to ordinary materials. For instance, Wacker Chemie, a leading manufacturer of silicone products announced an increase in global prices of silicone between 10% and 20% in April 2021. Thus, owing to such price rise and high costs for manufacturing advanced high temperature elastomers, the high temperature elastomers industry is expected to face major growth restraints and challenges.

High Temperature Elastomers Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the High Temperature Elastomers Market. The 10 companies in the High Temperature Elastomers Market are:

1. DuPont
2. KCC Corporation
3. Evonik Industries
4. OQ Chemicals GmbH
5. Exxon Mobil Corporation
6. Covestro AG
7. Eagle Elastomer Inc,
8. Shin-Etsu Chemical Co. Ltd.
9. Wacker Chemie AG
10. China National BlueStar Co. Ltd.

Recent Developments

• In January 2021, Momemtive Performance Materials, Inc acquired the silicone business of the KCC Corporation, intending to strengthen its global reach and capabilities in advanced silicone.
• In February 2020, Elkem ASA acquired the shares in Polysil, a Chinese silicone elastomer and resin materials manufacturer. This acquisition intended to offer diverse applications in electronic, consumer goods and other sectors, thereby boosting the growth scope in the market.
• In October 2019, 3M Company added new fluoroelastomer capacity to fulfill the increasing global demand. The expansion included the addition of fluorocarbon elastomer polymerization capacity in Alabama.

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