MARKET OVERVIEW - NORTH AMERICA PERFORMANCE ELASTOMERS MARKET
The North America has seen growth in the automotive and construction sector over the past few years. In North America, the residential construction sector is relatively low as compared to the Non-residential sector. 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. The demand is also high in the North American market, which is attributed to other end-user applications of elastomers in transportation, aerospace, and medical industries, fuelling the market growth over the forecast time.
MARKET DRIVERS
The construction industry is booming in North America and this industry is one of the large consumers of silicones, in one form roofing membranes, weather-stripping, waterproofing, carpeting, wall coverings, window & weather seals. Besides, this growth in the automotive industry is also attributed to the demand for performance elastomers in the North American market. The use of performance elastomers in the established medical sector in the form of anesthetic tubing, body contact electrodes, prosthetic or surgical implants, and even pressure-sensitive adhesives for transdermal drug delivery requires a high demand for elastomers.
MARKET OPPORTUNITIES
Performance elastomers provide numerous opportunities in leveraging markets like autonomous vehicles and in the battery systems of the next generation of electric vehicles. The process of developing low-cost high-performance elastomers with better heat resistance performance in the automotive sector is one of the key drivers that will produce significant opportunities over the forecast period. The new cabling markets are showing a promising future regarding the potential of high-performance elastomers used in water resistance technology. These are some aforementioned aspects that will provide the opportunity over 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 are required 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 requires 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 cost. Overcoming the high cost of the manufacturing process is represented as a major challenge in the Performance Elastomers market.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the North American Performance Elastomers market, including 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 North America Performance Elastomers market comprises different market segments like type, end-user industry and country.
PERFORMANCE ELASTOMERS MARKET 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 North American performance elastomer market is studied for the following countries.
- United States
- Mexico
- Canada
In North America, the United States holds the major market share. The United States is one of the most established economies in the world. The increasing growth in the automotive sector and the blooming construction sector are the main reasons behind the country’s growth. The growth in the construction industry is attributed to a strong economy and positive market fundamentals for commercial real estate along with development in the infrastructure sector. The growth is seen in the Non-commercial sector. Besides, this increasing population in the United States will also be attributed to boosting the demand for housing, which in turn will indeed the use of performance elastomers. Hence, these are some key points that will show the dominance of the United States over the coming forecast period.
COVID-19 IMPACT ANALYSIS ON THE NORTH AMERICA 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 gives a complete analysis of market expenditure, changes in the global Performance Elastomers, and economic and international policies on the supply and demand side. 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. The demand for the automotive and construction sectors has been stopped due to the traveling restrictions that have been imposed by the government parties, which in turn results in the declining demand for performance elastomers. However, on the other hand, the demand for elastomers increased in the medical sector during the lockdown due to the pandemic interference that surged in medical facilities.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the Performance Elastomers market is majorly focused on expanding the growth of North America 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
- 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: ExxonMobil has announced the planning to bring new production capacity for olefinic elastomers on stream as part of a $2-billion (€1.8-billion) expansion at its Baytown, Texas site. The plan is due to start in the middle of 2022. This project features a 400-kilotonnes-per-annum (ktpa) unit to manufacture Vistamaxx ethylene/propylene-based copolymers. This expansion also includes a 350ktpa plant to produce linear alpha olefins, for use in waxes and polyethylene packaging, among other applications.
June 2021: The U.S-based Celanese Corporation, a global chemical, and specialty materials company, has announced the signing of a definitive agreement to acquire the Santoprene™ TPV elastomers business of Exxon Mobil Corporation. Celanese will acquire the industry-renowned Santoprene™ brand as part of a comprehensive TPV product portfolio. With this transaction, the company will expand its portfolio of engineered solutions for its customers.
