June 16, 2024
South Korea Thermoplastic Elastomer Market

South Korea Thermoplastic Elastomer Market is Booming Driven by Rising Demand from Automotive Industry

The South Korea thermoplastic elastomer market offers a wide range of products including Styrenic Block Copolymers (SBC), Thermoplastic Polyolefins (TPO), Thermoplastic Polyurethanes (TPU), and Others. Thermoplastic elastomers provide benefits such as flexibility, durability, UV stability, low-temperature resistance and recyclability. They find extensive applications in footwear, cables, construction, automotive and medical industries in South Korea.

The Global South Korea Thermoplastic Elastomer Market Size is 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. Thermoplastic elastomers are predominantly used in automotive applications such as exterior parts like bumpers, dashboards, interior parts like door panels and handles due to their flexibility, durability and recyclability. The growing demand from the automotive industry coupled with increasing vehicle production in South Korea is expected to propel the market growth. Additionally, expansion of key players in South Korea throughacquisition is further expected to boost the market growth over the forecast period.

The automotive industry in South Korea accounts for a major share of thermoplastic elastomer consumption in the country. According to Korea Automobile Manufacturers Association, domestic automobile production in South Korea reached 3.13 million units in 2019, growing at a CAGR of 3.5% during 2015-2019. This growing automotive production is expected to drive the demand for thermoplastic elastomers in South Korea. Furthermore, expanding automotive components industry in the country will fuel the market growth during the forecast period.

Key players like BASF SE, Arkema SA and others are expanding their production capacities in South Korea through greenfield projects and acquisition which will help them tap the growing demand. For instance, in 2018, BASF acquired polyamide business of Solvay in South Korea to strengthen its position. This expansion of key players will further augment the South Korea thermoplastic elastomer market.

Market Key Trends

Growth of Electric Vehicles (EV) is one of the key trends being witnessed in the South Korean automotive industry. EV sales in South Korea increased from 5,000 units in 2017 to 66,000 units in 2021 growing at a tremendous pace. This is mainly attributed to supportive government policies and initiatives for EV adoption in the country. The use of thermoplastic elastomers is higher in EVs as compared to conventional vehicles due to their specific engineering requirements. Thus, rising EV demand and sales will drive the consumption of thermoplastic elastomers over the forecast period.

Porter’s Analysis

Threat Of New Entrants: Thermoplastic elastomers industry in South Korea have moderate barriers to entry due to high capital investment required and technological expertise.
Bargaining Power Of Buyers: Buyers have moderate bargaining power due to availability of substitutes and fragmented demand from various end-use industries.
Bargaining Power Of Suppliers: A few consolidated players control the supply of raw materials providing them with higher bargaining power over buyers.
Threat Of New Substitutes: Threat from new substitutes is low as thermoplastic elastomers have superior properties compared to traditional substitutes.
Competitive rivalry: Intense competition exists among the key players to gain higher market share through product innovation and expansion of production facilities.

Geographical Concentration

Around 40% of the South Korea thermoplastic elastomer market value is concentrated in Seoul metropolitan area due to presence of major end-use industries like automotive, construction and medical. The region witnesses robust demand from automotive OEMs and tire manufacturers located in Gyeonggi and Incheon regions surrounding Seoul.

Fastest Growing Region

Gyeongsangbuk-do region is projected to be the fastest growing region for South Korea thermoplastic elastomer market driven by expanding polymer and petrochemical industries in Ulsan and Pohang. Establishment of production facilities by key players to cater growing demand from construction and industrial sectors will further support the market growth in the region during the forecast period.

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?

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it