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PEBA-Ester Market Overview
The PEBA-ester market size is forecasted to reach US$1,401.3 million by 2027 after growing at a CAGR of 4.2% during 2022-2027. Polyether block amide (PEBA) is thermoplastic elastomers and is a block copolymer, usually made up of materials such as rigid polyamide and flexible polyether. These elastomers are flexible, lightweight, and possess good chemical properties, making them suitable for a wide range of applications. PEBA esters are used extensively in the electrical and electronics industry where they are utilized in the manufacturing of products such as smartphones, flexible screens, wearable devices, cables, and several other electronic items. The electrical and electronic sector is expanding globally owing to the increasing demand for electronic products and this is expected to propel the market’s growth during the forecast period. For instance, as per the stats by Ericsson, smartphone subscriptions are on the rise, and the number is expected to touch US$7.7 billion in 2027. Furthermore, PEBA esters are used in large quantities in the automotive sector where they are utilized for the manufacturing of pressure hoses, inner tubes, outer covers, and several other vehicle components. The automotive industry is booming globally with increasing vehicle production and sales and this is expected to drive the market’s growth during the forecast period. For instance, as per the 2021 stats by the European Automobile Manufacturers Association, passenger car registrations in the European region grew 25.2% in the first half of 2021. The raw materials price fluctuation might hamper the market’s growth during the forecast period.
COVID-19 Impact
The PEBA-ester market was impacted due to the COVID-19 pandemic. The market came across several challenges such as disruption in the supply chain, raw material procurement, and idling of factories. Market players implemented several contingency plans to maintain a decent business operation amid the pandemic. Furthermore, the negative impact on the automotive sector further impacted the market’s growth. As per the data by the International Organization of Motor Vehicle Manufacturers, global vehicle production dropped 16% in 2020 due to the severity of the pandemic. The PEBA-ester market bounced back towards the end of 2020. Going forward, the market is projected to witness robust growth owing to the expansion of the electronic and automotive sectors.
Report Coverage
The report: “PEBA-Ester Market Report - Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the PEBA-Ester Industry.
Key Takeaways:
- Soft PEBA elastomer is leading the market. This type of PEBA-ester comes with good elasticity and excellent abrasion resistance, making it a suitable option in the market.
- The increasing demand for electronic products is projected to drive the market’s growth during the forecast period. According to the October 2020 stats by Consumer Technology Association, smartphone sales will rise in 2022 with 76% of all smartphones anticipated to have 5G capabilities in 2022.
- The Asia-Pacific region is expected to witness the highest demand for PEBA-esters owing to the expanding electronics market in the region. For instance, according to the July 2021 report by China.org.cn, South Korea’s exports of consumer electronics had a growth trajectory for 12 months in a row.
Figure: Asia Pacific PEBA-Ester Market Revenue, 2021-2027 (US$ Million)
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PEBA-Ester Market Segment Analysis - By Type
Soft PEBA elastomer dominated the PEBA-ester market in 2021 and is expected to grow at a CAGR of 4.6% during the forecast period. This type of ester comes with a low compression set, robust electrical properties, and high resistance to solvents, greases, and oils. Owing to such robust properties market players and research organizations are focused on the higher use of soft PEBA. For instance, as per the February 2019 journal by ResearchGate, a soft peba named Rnew was used to improve the impact property of Nylon 6 at a temperature below 0°C. Such high use of soft peba is expected to increase its demand in the market during the forecast period.
PEBA-Ester Market Segment Analysis - By End Use Industry
The electrical and electronic sector dominated the PEBA-ester market in 2021 and is projected to grow at a CAGR of 5.2% during the forecast period. The block copolymer is used massively in the manufacturing of several electronic products and components such as wires, smartphones, flexible screens, and wearable devices. PEBA ester is extremely lightweight, flexible, and provides excellent energy return, making them suitable for the manufacturing of numerous electronic products. The demand for electronic products is increasing globally due to rising consumer preference for premium and technologically advanced electronic products and this is expected to drive the market’s growth during the forecast period. For instance, according to the stats by India Brand Equity Foundation, shipment of 5G smartphones crossed 4 million units in 2020 due to higher consumer demand post-lockdown. Similarly, according to the August 2020 report by Fitbit, consumer demand for Fitbit devices was robust in the second quarter of 2020, with Fitbit trackers representing (56%) of the overall revenue. Such high demand for electronic items globally is anticipated to drive the market’s growth during the forecast period.
PEBA-Ester Market Segment Analysis - By Geography
The Asia-Pacific region held the largest market share in the PEBA-ester market in 2021, up to 32%. The high demand for PEBA-ester is attributed to the massive growth in the region’s electronic sector. The thermoplastic elastomer material is widely used in the manufacturing of numerous electronic products ranging from smartphones to wearables and cables. The electronic and electrical sector is exhibiting tremendous growth in the region and this is expected to catapult the demand for PEBA-ester. For instance, according to the stats by India Brand Equity Foundation, the appliance and consumer electronics market is anticipated to grow twice the current market size, reaching a market value of US$21.18 billion by 2025. Similarly, according to the March 2022 data by china.org.cn, shipments of wearable devices in China increased by 25.4% in 2021. Such massive growth in the region’s electronic sector is expected to augment the high use of PEBA-ester during the forecast period.
PEBA-Ester Market Drivers
The expanding automobile sector is driving the market growth
The automobile sector is one of the important markets for PEBA-ester. This block copolymer material is used in the production of a wide range of automotive components such as pressure hoses, inner tubes, and outer covers. The automotive sector is expanding robustly with increasing vehicle production and sales and this is expected to contribute to the market’s growth during the forecast period. For instance, as per the July 2021 data by the European Automobile Manufacturers Association, passenger car registrations surged in June 2021 with Germany witnessing the highest demand in the segment with a 24.5% rise. Similarly, as per the stats by India Brand Equity Foundation, passenger cars dominated the Indian automotive industry in 2020 with a market share of 12.9% of over 20.1 million vehicles. Such expansion in the automotive sector globally is expected to stimulate the high requirement of PEBA-easter which in turn will propel the market’s growth during the forecast period.
The increasing demand for electronic products is influencing the market growth
PEBA esters are used extensively in the electrical and electronic sector for the manufacturing of several electronic components and products. The thermoplastic elastomer is utilized in the production of smartphones, wearable devices, cables, flexible screens, and various other electronic products. The demand for electronic products is rising globally with the increasing production and consumption of electronic items and this is expected to influence the market’s growth during the forecast period. For instance, according to the January 2022 report by Samsung Electronics, the company’s revenue increased in the fourth quarter of 2021 due to the expanded sales of wearables. Similarly, according to October 2021 report by Apple, net sales in the wearables, home, and accessories segment stood at US$38,367 million in 2021 which was US$30,620 in 2020. Such massive demand for electronic products globally is expected to bolster the demand for PEBA esters, in turn influencing the market’s growth during the forecast period.
PEBA-Ester Market Challenges
The fluctuation in raw material price might hamper the market growth
PEBA esters are usually made of polyamide material which is petroleum-derived. The price of this raw material is fluctuating due to the fluctuation in the price of petroleum and this might hamper the growth of the PEBA ester market. According to the report by ourworldindata.org, the crude oil price in 2017 was recorded at US$ 54.19 per barrel which rose to US$ 64.21 per barrel in 2019. The oil price again lowered to US$ 41.84 per barrel in 2020. Such fluctuations in oil prices created volatility in the petroleum price, in turn fluctuating the price of the raw material. This fluctuation in the raw material price might hamper the growth of the PEBA ester market during the forecast period.
PEBA-Ester Market Industry Outlook
Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the PEBA-Ester Market. Global PEBA-Ester top 10 companies include:
- Arkema
- Evonik
- EMS-GRIVORY
- UBE
- BASF SE
- Zotefoams PLC
- Zeus Industrial Products Inc
- Teleflex Incorporated
- Univar Inc.
- AMCO Polymers, LLC
Recent Developments
- In January 2022, Arkema announced its plan to increase its production capacity of Pebax elastomers by 25% globally.
- In October 2021, EMS-GRIVORY announced its plan of investing in a new production facility and increasing production capacity for polyamide specialties.
- In October
2019, Evonik announced the launch of its new generation of PEBA under the brand name
VESTAMID e²X.
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