Market Trends of Thermoplastic Vulcanizate (TPV) Industry
The Automotive Segment to Dominate the Market
- The launch of new and innovative automobiles has also opened up a wide range of new possibilities for the global automotive market. Thermoplastic materials have gained widespread appeal in the automotive industry owing to their lightness, versatility in design, and the cost advantages of their parts.
- Thermoplastic vulcanizate (TPV) is frequently employed in producing automotive components like weatherstripping, seals, and gaskets. Moreover, TPV also boasts strong chemical durability, superior heat tolerance, and outstanding dimensional consistency. These characteristics render it a flexible substance suitable for various uses in automobile components.
- A few advantages of thermoplastic vulcanizate (TPV) in the automotive market include:
- Performance: Excellent long-term performance, making it a great choice for meeting vehicle durability standards.
- Lightweight: This material is very light, allowing engineers to mold thinner profiles, effectively reducing weight even more.
- Design Flexibility.
- Recyclability: Resulting in reduced waste and cost-savings.
- According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), automotive production globally increased from 84.83 million units in 2022 to 93.54 million units in 2023, increasing by 17% annually.
- Furthermore, according to the European Automobile Manufacturers Association, in the first three quarters of 2023 (January 2023 to September 2023), the total production of cars in the region increased by almost 14% compared to the same period in 2022. This substantially boosted the growth of the global TPV market.
- Various automotive manufacturing companies such as Hyundai Motor Group, BMW Group, Toyota, Honda, Ford Motor Company, and General Motors have announced investments in electric vehicle manufacturing in North Carolina, Michigan, Ohio, Missouri, Kansas, and other states, which is likely to boost the automotive manufacturing, thereby increasing the demand for thermoplastic vulcanizate (TPV) for automotive parts.
- In July 2023, VinFast, a Vietnam EV manufacturer, announced the plan to construct an electric vehicle factory in North Carolina with an investment of USD 4 billion to expand in the US market. The factory aims to begin production in 2025.
- As of 2022, General Motors, an American multinational automotive manufacturing company, announced an investment worth more than USD 7 billion to produce electric vehicles in the United States.
- Hence, the automotive sector is projected to exhibit the highest demand for TPV during the forecast period, solidifying its dominance in the market.
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Asia-Pacific to Witness the Fastest Growth
- For many years, the demand for TPV has remained the highest in the Asia-Pacific due to heavy demand from the automotive, building and construction, consumer goods, and other industries of countries such as China, India, Japan, and South Korea.
- India and China are the world's most populous countries, making them significant markets for automotive, consumer goods, and building and construction. For instance, China is the world's largest automobile market in terms of production and sales. According to the China Association of Automobile Manufacturers (CAAM), vehicle production in China reached 30.16 million units in 2023, witnessing a growth of 11.6% compared to the previous year.
- Furthermore, according to the Society of Indian Automotive Manufacturing (SIAM) data, in the financial year 2023, India manufactured 4.58 million vehicles, marking a notable increase from the 3.65 million produced in 2022—a growth rate of about 25%.
- China is the global leader in building construction and is poised to drive nearly half of the world's new construction activities in the coming decade. Moreover, China is set to invest USD 1.43 trillion in 2025. The National Development and Reform Commission (NDRC) highlights the Shanghai Plan, earmarking a substantial USD 38.7 billion investment by 2025.
- Furthermore, the construction sector of Malaysia grew in 2023, with a total of 9144 projects successfully implemented until September 2023, according to Public Works Minister Datuk Seri Alexander Nanta Linggi. In addition, there has been an increase in the country's investments in various commercial construction projects. For instance, Google invested around USD 2 billion in developing the country’s first data center and a Google Cloud hub in May 2024. The new hubs will be developed at a business park in central Malaysia’s Selangor state to meet the growing demand for cloud services and artificial intelligence literacy programs for Malaysian students and educators.
- According to a representative from China's National Medical Products Administration (NMPA), the nation has emerged as one of the largest markets globally for medical devices. The medical device sector in China has seen swift growth, boasting an average annual growth rate of 10.54% over the last five years, according to NMPA.
- According to Invest India, the present value of the medical devices sector in India is projected to be around USD 11 billion. India stands out as the quickest-expanding market for medical devices among the developing nations. The export of medical devices has witnessed a CAGR of 9% to 11% over the past five years. It is anticipated that India's medical device exports will surpass USD 10 billion by the year 2025.
- Given the above-mentioned facts and factors, the demand for TPV is expected to increase at the fastest rate in the Asia-Pacific market during the forecast period.
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