MARKET OVERVIEW - EUROPE PERFORMANCE ELASTOMERS MARKET
The increasing demand in the automotive sector for a combination of high heat and chemical resistance, especially for under-the-bonnet (hood) hoses, and in particular for diesel-powered engines. Furthermore, the demand for elastomers in the construction sector is in the form of cross-linkable gels, which are used predominantly as seals in bathrooms, toilets, and kitchens. In Europe Electric, and electronic applications are also seeking higher-performance materials. The aerospace and rail transport industries have recognized the potential of advanced elastomers that can meet the demand that could not meet by traditional rubber elastomers. These are some factors that propel the market growth in the European region.
MARKET DRIVERS
The demand for performance elastomers is increasing, and that is attributed to the innovation and adoption of advanced elastomers. According to the report by F&S, the demand for elastomers is high among OEMs (original equipment manufacturers). Many OEMs are looking for substitutes to replace non-latex solutions due to escalating environmental concerns and biohazard and skin sensitization issues. Competition from other materials such as PVC and other advanced composites also led to the key move to substitute this material with elastomers. These are some of the after-mentioned factors that boost the market’s growth in the forecast period.
MARKET OPPORTUNITIES
More opportunities are coming in the form of autonomous vehicles and in the battery systems, of the next generation of electric vehicles. The technological advancement taken in the elastomers manufacturing process overcomes the issues such as heat resistance and maintained the low cost of the material. Along with this, the emerging use of elastomers in the cabling market is showing significant opportunities in the forecast period. The advancement in elastomers technology and research and development by operating players also provides a promising future in the forecast period.
MARKET RESTRAINTS
The major restraining factor that has been associated with the market is the cost of raw materials. The cost of raw materials that require in the manufacturing of advanced elastomers is haltering the market’s growth.
MARKET GROWTH CHALLENGES
The manufacturing process of advanced elastomers such as silicon elastomers require expensive components, that lead to the cost of the performance elastomers. The prices vary according to the use of compounding, filings, raw materials, and processing costs. The scarcity of raw materials also serves as a key challenge in the market.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the European Performance Elastomers market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. The increasing demand for various Performance Elastomers in various applications has led to the increasing demand for the market and is expected to witness growth at a CAGR at specific CAGR from 2021-2028.
PERFORMANCE ELASTOMERS MARKET SEGMENTAL OVERVIEW
The European Performance Elastomers market comprises different market segments like type, end-user industry and country.
PERFORMANCE ELASTOMERS MARKET BY TYPE
By type, performance elastomers include key segments of:
- Nitrile Based Elastomers
- Fluoroelastomers
- Silicone Rubber Elastomers
- Thermoplastic Based Elastomers
Based on the type, the silicone elastomers segment led the performance elastomers market in 2016 due to the large application use of silicone in many end-user industries. These silicone-based elastomers are projected to grow at the highest CAGR, during the forecast period because of the increasing demand for low heat resistance in the under-the-hood applications in the automotive industry as well as the emerging production of E-vehicle and silicone batteries, which are the main key driving factors in the growth of silicone-based elastomers. The demand for general-purpose silicone elastomers is high in all regions because of their superior performance and the high disposable income of consumers.
PERFORMANCE ELASTOMERS MARKET BY END-USER INDUSTRY
The performance elastomers market has major end users like
- Automotive & Transportation
- Building & Construction
- Industrial Machinery
- Electrical and Electronics
- Food and Beverages
- Consumer Goods
- Others
Based on the end-use industry, the automotive and transportation industries are projected to lead the performance elastomers market during the forecast period. Because of the production of automobiles and E-vehicles as well as the implementation of stringent environmental regulations regarding emission levels and sustainability by the government and major players, the designs of vehicles have changed over the past few decades. Manufacturers are looking to design vehicles to be compact, lightweight, and more efficient. These factors are driving the demand for performance elastomers in the automobile sector, which indeed drives the automotive and transportation sectors to grow at the highest CAGR in the forecast period.
PERFORMANCE ELASTOMERS MARKET BY COUNTRY
The Europe performance elastomer market is studied for the following countries.
- UK
- Germany
- Italy
- Spain
- France
- Rest of Europe
In Europe, Germany has accounted for a major market share in the forecast period. Germany is leading, which is attributed to the increasing automotive industry in the country. The country has been leading in automotive manufacturing and represents itself as an automotive hub for the Europe region. Besides, the disposable income, high living standards, and increasing construction sector in Germany also contributed to Germany’s growth over the forecast period.
COVID-19 IMPACT ANALYSIS ON THE EUROPE PERFORMANCE ELASTOMERS MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors in the global Performance Elastomers market subjected to COVID-19. In addition, a report details comprised of complete analysis of market expenditure, and economic and international policies on the supply and demand side and changes in the global Performance Elastomers. The report also studies the impact of pandemics on global economies, international trade, business investments, GDP, and marketing strategies of key players present in the market. The outbreak of COVID-19 has negatively impacted the performance elastomers market. In Europe, the shutdown of manufacturing plants further leading to the loss of revenue and sales in countries such as UK, Italy, France, and Germany had done due to an unprecedented rise in COVID 19 cases which led to. Many chemical companies have faced a downfall during the pandemic that has negatively impacted the demand for performance elastomers in the European region.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the Performance Elastomers market is majorly focused on expanding the growth of European Performance Elastomers with new product innovation, business expansion, and the increasing presence of manufacturers operating in Performance Elastomers has led to the growing demand for the Performance Elastomers market. Besides, the market offers a range of products in different applications to fulfill the requirements of consumers, which is further contributing to healthy growth in the market.
The key players studied in the market are
- 3M Company
- Arlanxeo
- The Dow Chemical Company
- Zeon Chemicals L.P
- Arkema Group
- Evonik Industries AG
- Momentive Performance Materials Inc
- Exxon Mobil
- Arkema, Inc
- Covestro AG
- Shin-Etsu Chemical Co., Ltd
- Wacker Chemie AG
- Tosoh Corporation
- Mitsui Chemical
- DuPont
- Solvay S.A
RECENT DEVELOPMENT:
May 2022: Wacker Chemie AG has announced the expansion of its production capacities. The company wants to expand the business of liquid silicone rubber (LSR) will be available in the second half of this year and will come into full effect in 2023. The company also aspires to expand its high consistency rubber (HCR). This expansion is taking place at several sites. The company will expand its production of HCR and LSR grades significantly in the next few years.
June 2019: The Wacker Chemie AG a leader in chemical materials, inaugurated a new production line for silicone elastomers at the Zhangjiagang site in China. This production plant possesses a capacity of several thousand metric tons. This transaction will help support WACKER’s future growth path in China and improve the availability of high-consistency silicone rubber (HCR) in the Europe region.
