Frost & Sullivan: Thermoplastic Elastomers (TPEs) Unlock New Growth Opportunities Through Sustainability and Innovation

Backward Integration, Innovation, and Sector-Specific Applications Drive Momentum

LONDON, May 28, 2025 /PRNewswire/ -- As industries worldwide intensify their focus on sustainable materials and circular economy strategies, thermoplastic elastomers (TPEs) are emerging as key enablers of innovation, recyclability, and resource efficiency.

The latest Frost Radar™ - an analytical tool developed by Frost & Sullivan to evaluate and benchmark companies based on their innovation and growth performance within specific industries - recognises leading players such as Dow, LyondellBasell, BASF, and Arkema for driving the transition by adopting backward integration into raw materials and expanding their TPE portfolios with monomaterial solutions that enhance recyclability.

Leading innovators and market drivers in the TPE segment further include Avient, Celanese, Covestro, Eastman, Envalior, Evonik, ExxonMobil Chemical, Huntsman, Kraton, Kuraray, LCY Chemical Corp., Lubrizol, and Mitsui Chemicals.

TPEs uniquely combine the elasticity of rubber with the recyclability of thermoplastics. This dual advantage supports growing regulatory and market demands for sustainable materials across diverse industries - from automotive and consumer goods to construction and healthcare.

The automotive industry continues to lead TPE adoption, utilising them in weather seals, HVAC ducts, and glass run channels due to their durability, UV resistance, and cost-effectiveness. With the shift toward electric vehicles (EVs), demand is increasing for high-performance wiring solutions. TPO-based vulcanisates are proving ideal for power cables and charging systems thanks to their superior thermal stability and electrical insulation.

TPEs are also addressing critical challenges in packaging, consumer goods, medical devices, and 3D printing. Materials such as PEBA and TPU offer the flexibility and strength needed for customised, complex geometries in additive manufacturing. In the construction sector, styrenic block copolymers (SBCs) are enabling longer-lasting, low-maintenance infrastructure amid rapid urbanization.

Dr. Brian Balmer, Growth Expert at Frost & Sullivan, notes: "The TPE market is evolving rapidly, driven by megatrends such as lightweighting, sustainability, and performance. Manufacturers are differentiating through innovations in expanded TPE foams, paint and surface protection films, and low-density grades for cable casings. Investment in compounding capacity, particularly in developing regions, is a key strategy for gaining market share."

Recyclable, recycled-content, and bio-based TPE grades are becoming essential criteria for product selection globally. Companies with integrated supply chains and established sustainability platforms are gaining a competitive edge, shaping the next chapter of growth in the TPE landscape.

"As industries push toward environmental accountability, TPEs offer unmatched versatility and sustainability potential," adds Dr. Balmer. "Those innovating in raw material integration, product design, and end-of-life solutions are defining the future of this dynamic market."

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Editor's Note

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Kristina Menzefricke
Marketing & Communications
Global Customer Experience, Frost & Sullivan
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