The South Korea thermoplastic elastomer market is primarily driven by increasing demand from automotive industry. Thermoplastic elastomers are widely used in automotive dashboards, airbag inflation systems, engine compartment covers, bumpers, wiring harnesses and in other automotive components as they provide flexibility, durability, efficiency and resistance to extreme weather conditions. The growing automotive industry in South Korea due to increasing per capita income and rising vehicle ownership will fuel the demand for thermoplastic elastomers during the forecast period.
The Global South Korea Thermoplastic Elastomer Market Sizeis estimated to be valued at US$ 743 Mn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the South Korea thermoplastic elastomer market are BASF SE, Huntsman International LLC, DowDuPont Inc., Arkema Group, Asahi Kasei Corporation and Among Others. BASF SE is one of the leading players in the market and offers a wide range of thermoplastic polyurethane and thermoplastic copolyesters.
The increasing demand from automotive industry is a major factor driving the growth of the South Korea thermoplastic elastomer market. Thermoplastic elastomers find major application in automotive dashboards, bumpers, airbag inflation systems, engine compartment covers, wiring harnesses, and other components. According to Korea Automobile Manufacturers Association, automobile production in South Korea rose by 12% in 2021.
Technological advancements in the formulation of thermoplastic elastomers have enhanced their high performance properties. Continuous innovation in polymer chemistry has expanded thermoplastic elastomer product range along with improved physical properties like tensile strength, flex life, abrasion resistance etc. Development of bio-based thermoplastic elastomers is expected to further drive the market growth.
Market Trends
Growing penetration of electric vehicles: With rising environmental concerns, the South Korean government is pushing the adoption of electric vehicles. This has created demand for lightweight high-performance thermoplastic elastomers in electric vehicle components like battery packs and cooling sealing systems.
Increasing demand from medical industry: Thermoplastic elastomers are increasingly replacing conventional plastics and rubbers in medical devices and equipment due to advantages like flexibility, durability and chemical resistance. Growth in healthcare spending is driving the use of TPEs in devices, stoppers, tubing and catheters.
Market Opportunities
Rising Usage In Footwear Industry: South Korea footwear industry has been growing at a steady pace. Thermoplastic polyurethanes and thermoplastic polyolefins are extensively utilized in shoe soles, heels and cushioning layers owing to high abrasion resistance, flexibility and cost-effectiveness.
Growing Construction Industry: South Korea construction industry has grown significantly over the past few years. Thermoplastic vulcanizates are widely replacing PVC in sealing, piping, profiles and roofing membrane applications due to advantages like strong adhesion, flexibility in cold temperatures and durability.
Impact of COVID-19 on South Korea Thermoplastic Elastomer Market Growth
The COVID-19 pandemic has significantly impacted the growth of the South Korea thermoplastic elastomer market. Restrictions imposed during the lockdowns led to disrupted supply chains and halted production activities. This adversely affected the market growth in 2020. The demand from end use industries such as automotive, footwear, construction and consumer goods declined sharply due to reduced economic activities. However, the market is recuperating currently riding on vaccine rollout programs and relaxation in lockdown measures. The demand is steady from medical sectors for manufacturing medical devices, masks and other protective equipment.
Pre-COVID, the market was growing at a moderate pace supported by rising consumption in automotive, consumer goods and construction industries. The investments in technology advancements were expanding market opportunities. However, post-COVID, the industries are still recovering from losses incurred during lockdowns. The industry players are focusing on strengthening supply chains, cost optimization and exploring new growth avenues to accelerate market recovery. Investments in RD of lightweight, durable and recyclable thermoplastic elastomers are expected to drive future market growth. Collaborations with end use sectors will also aid market expansion. Supportive government policies can help accelerate recovery momentum and further cement South Korea's position as a high potential market.
Impact of COVID-19 on geographical regions in South Korea Thermoplastic Elastomer Market
In terms of value, the Seoul metropolitan region accounted for over 35% of the South Korea thermoplastic elastomer market in 2020 led by concentration of automotive, medical device and electronics manufacturing industries in the region. The COVID-19 pandemic severely impacted industries based in Seoul amid lockdowns and restrictions. However, it is expected to resume pre-COVID growth rate supported by infrastructure development projects and adoption of advanced materials.
Busan region emerged as the fastest growing region in the South Korea thermoplastic elastomer market pre-COVID due to expansions of petrochemical complexes and investments in RD centers. However, lockdowns disrupted industrial activities impacting regional market growth in 2020. It is anticipated to regain momentum faster than other regions riding on government incentives for industries, foreign investments and economic recovery programs post-pandemic.
Impact of COVID-19 on geographical regions in South Korea Thermoplastic Elastomer Market
In terms of value, the Seoul metropolitan region accounted for over 35% of the South Korea thermoplastic elastomer market in 2020 led by concentration of automotive, medical device and electronics manufacturing industries in the region. The COVID-19 pandemic severely impacted industries based in Seoul amid lockdowns and restrictions. However, it is expected to resume pre-COVID growth rate supported by infrastructure development projects and adoption of advanced materials.
The Busan region emerged as the fastest growing region in the South Korea thermoplastic elastomer market pre-COVID due to expansions of petrochemical complexes and investments in RD centers. However, lockdowns disrupted industrial activities impacting regional market growth in 2020. It is anticipated to regain momentum faster than other regions riding on government incentives for industries, foreign investments and economic recovery programs post-pandemic.
What Are The Key Data Covered In This South Korea Thermoplastic Elastomer Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the South Korea Thermoplastic Elastomer Market's growth between 2024 and 2031.
:- Accurate calculation of the size of the South Korea Thermoplastic Elastomer Market and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- South Korea Thermoplastic Elastomer Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of South Korea Thermoplastic Elastomer Market vendors
FAQ’S
Q.1 What are the main factors influencing the South Korea Thermoplastic Elastomer market?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top South Korea Thermoplastic Elastomer Market companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the South Korea Thermoplastic Elastomer market’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
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