Elastomers Industry Demand Outlook Report, 2027 – Automotive and Transportation Industry Use More Than 40% Of All Elastomers | Grand View Research, Inc.
Procurement Outlook
Elastomer, any rubbery material composed of long chainlike molecules, or polymers, that are capable of recovering their original shape after being stretched. Elastomers can be categorized into two major types; Thermoset elastomers and Thermoplastic elastomers.
- Thermoset elastomers: Thermoset elastomers are vulcanized (cured) to produce a degree of crosslinking between the polymer chains. The cross-linking is irreversible, unlike with thermoplastic elastomers which will soften and flow above a given temperature. Some examples of these elastomers are bromobutyl, chlorinated polyethylene, chlorobutyl, fluorocarbon, hydrogenated nitrile, isoprene, styrene butadiene, tetrafluoroethylene propylene, etc.
- Thermoplastic elastomers: Thermoplastic elastomers have many of the physical properties of vulcanized rubbers but can be processed like thermoplastics. They are used in applications as diverse as adhesives, footwear, medical devices, automobile parts, and asphalt modification. Some examples of these elastomers are thermoplastic urethane elastomers, polyester amide elastomers, copolyether ester elastomers, styrenic block copolymers, etc.
Elastomers are gaining high demand in automotive, pharmaceuticals, electrical & electronics, building & construction, and other developing sectors. Elastomers in vehicle manufacturing industries act as a replacement for PVC and other materials to increase fuel efficiency and performance.
Demand Outlook
The global elastomers market was valued at USD88 billion in 2020 and it is expected to grow at a CAGR of 5% from 2021 to 2027 due to rising demand in the automotive industry for high-performance and lightweight materials in vehicle production. More than 40% of all elastomers are used in the automotive and transportation industry. APAC is the leading market with ~50% market share. Countries like China and India are considered automotive manufacturing hubs. Hence, the demands of elastomers from these countries are the major driving factor behind the growth of the global elastomers industry.
Grab your copy, or request for a free sample of the “Elastomers Industry Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.
Cost Drivers
The process of elastomers manufacturing holds the key in determining the cost driver of the same. Though the fixed cost of machinery and equipment are the most important aspects of the elastomers manufacturing cost structure, the molding process including injection moulding and transfer moulding accounted for more than one-third of the overall cost of operations. Moreover, post moulding operation costs like trimming costs, post-curing costs, product testing costs, and etching costs hold major cost shares in elastomers manufacturing operation.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
Browse through Grand View Research’s collection of procurement intelligence studies:
- Supply Chain Insurance Market Procurement Intelligence – With increasing complexities in developing an efficient supply chain for better outsourcing activities the likelihood of getting disruption in the supply chain has also increased. These disruptions can cause by various reasons outside the control of the organization such as, natural disasters, accidents, labor crisis, political instability, financial disruption, disruption to transportation infrastructure, etc. Hence, an organization needs to have supply chain insurance in place for any supply chain disruption. The two coverages that will cover supply-chain issues are contingent business interruption (CBI) insurance and broad, specialized supply-chain insurance. These insurance policies will reimburse both potential lost profits as well as costs caused by disruptions to the insured’s supply chain, even if the insured itself has not suffered any damage.
- Synthetic Fibers Market Procurement Intelligence – The raw material cost is the major cost driver of disposable gloves production. Major raw materials include nitrile, latex, vinyl, etc. The cost of raw materials accounted for more than 45% of the overall disposable gloves production cost. Other key cost components include machinery, labor, storage, and distribution cost. These cost components accounted for more than 35% of the overall cost of production. Many suppliers are outsourcing the production to South East Asian Countries due to the availability of raw materials and low labor cost.
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