Auto sector to propel demand for thermoplastic elastomers in India

Government initiatives including ‘Make in India’ to encourage domestic engineering industries including electronics, construction material and automotive is projected to propel the demand for thermoplastic elastomers (TPE) in the country, according to a Grand View Research (GVR) report.
 
Asia Pacific thermoplastic elastomers market is estimated to reach over $ 7.82 billion in 2022 from $ 4.63 billion in 2014 owing to growing consumption from automotive part production. And India is expected to witness the highest growth of over 5.6 percent between 2015-2022, stated the report.
 
“India accounted for over 10 percent of the total market volume in 2014. With global automotive OEMs shifting their production bases to India due to favourable manufacturing conditions such as low capital investment, availability of skilled labour and cheap raw material availability, small scale TPE manufacturers benefited in terms of demand & supply,” said Grand View Research in a press release.
 
The market is anticipated to witness significant growth over the next seven years owing to increasing automotive production in countries such as China, India, Thailand and Indonesia. Government policies to investment liberalisation coupled with private players focusing on improving technologies are expected to fuel demand.
 
“Regulatory initiatives limiting carbon emission and increasing focus on enhancing fuel efficiency in vehicles are expected to have a positive impact on the growth of Asia Pacific thermoplastic elastomers market. Numerous automotive OEMs have been replacing metal and alloys with plastics from manufacturing of vehicle components to make vehicles light weight, thus propelling demand for TPE,” said the release.
 
Plastic innovation in the automotive industry is a major driving factor owing to growing consumer preference towards light weight vehicles and high performance. This, according to GVR report, has resulted in increasing TPE consumption and requirement for manufacturing innovative and fuel efficient vehicles. The product requires low fabrication costs, shorter processing time and design flexibility as compared to thermosets, thereby achieving widespread recognition. Rising consumption in consumer goods, electrical & electronics, construction and the automotive industry is expected to develop new opportunities for the market over the forecast period.
 
Styrenic block copolymers (SBC) dominated the market and accounted for 53.2 percent of overall volume in 2014. SBC is used in the production of advanced material, sealants, adhesives, and footwear applications. Growing construction expenses in India, Indonesia, Thailand and China is anticipated to drive growth over the next seven years.