South Korea Thermoplastic Elastomer Market Is Driven By Increasing Demand From Automotive Industry

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The South Korea thermoplastic elastomer market comprises elastomers that have both thermoplastic and elastomeric properties. Thermoplastic elastomers find extensive applications in automotive, medical, consumer goods, industrial goods, wire and cables, and construction products due to their superior flexibility, durability and recyclability. In the automotive industry, they are used in bumpers, seals, hoses, cable sheaths, and radiator grills owing to their excellent resistance to oil, solvents, and heat.

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 are BASF SE, Huntsman International LLC, DowDuPont Inc., Arkema Group, Asahi Kasei Corporation and Among Others. These players are focusing on new product launches and expansion strategies to gain a competitive advantage in the market. For instance, in 2021, Asahi Kasei expanded its TPE production capacity in South Korea to meet the growing demand ...
... from automotive and medical industries.

The demand for thermoplastic elastomers is increasing in the automotive industry due to their superior properties such as flexibility, durability and resistance to heat, oil and solvents. They are replacing conventional rubbers and plastics in automotive components such as seals, hoses, cables, dashboards etc. The growing automotive production in South Korea is driving the demand for thermoplastic elastomers.

South Korean thermoplastic elastomer companies are expanding their global footprint by setting up manufacturing plants in Europe and North America. For example, DowDuPont opened a new TPE production site in Germany in 2020 to cater to the European automotive component manufacturers. This global expansion aims to cater to the growing international demand.

Market Drivers

Increasing vehicle production is one of the key drivers of South Korea thermoplastic elastomer market. South Korea is one of the largest automotive manufacturing hubs in Asia due to presence of leading OEMs like Hyundai and Kia. The country exported around 3.9 million vehicles in 2020. With rising vehicle exports, the demand for automotive components incorporating thermoplastic elastomers is also increasing. This is expected to propel the growth of South Korea thermoplastic elastomer market over the forecast period.

Current Geopolitical Situation and its Impact on South Korea Thermoplastic Elastomer Market Growth

The geopolitical scenario has significantly impacted the growth dynamics of the South Korea thermoplastic elastomer market in recent years. Escalating military tensions between South Korea and North Korea have put economic activities in the region at risk. Frequent missile tests by North Korea and threats of nuclear attacks have disrupted supply chains and manufacturing operations in South Korea on several occasions. This has negatively influenced the demand for thermoplastic elastomers from key end-use industries like automotive, consumer goods, medical devices etc. in the country.

Furthermore, trade wars between the US and China have made important raw materials and intermediates more expensive for South Korea thermoplastic elastomer producers. To mitigate risks arising from geopolitical uncertainties, companies will need to focus on diversifying their supplier networks, localizing production of critical components and building multiple manufacturing/assembly facilities across different regions. Stockpiling of key feedstocks can help ensure business continuity during times of global supply disruptions. Companies may also explore strategic partnerships in geopolitically stable markets to expand their international footprint.

Geographical Regions with High Market Concentration

The South Korean thermoplastic elastomer market is highly concentrated in the Seoul Capital Region which includes the capital city of Seoul along with the surrounding Gyeonggi Province. This region accounts for over 50% of the country's thermoplastic elastomer demand led by a massive automotive manufacturing base and a strong concentration of consumer goods and medical device OEMs. Other key regional markets include Busan, Ulsan, Daegu and Daejeon, which are important industrial hubs for automotive, shipbuilding and heavy machinery sectors. Local manufacturers have set up production facilities across these regions to ensure just-in-time deliveries for their customers.

Fastest Growing Regional Market

The Southeastern region of South Korea centered around the cities of Busan and Ulsan is expected to witness the highest growth in the thermoplastic elastomer market over the forecast period. This is primarily due to ongoing investments towards expanding the manufacturing capacities of automakers like Hyundai Motors and industrial conglomerates like Hyosung. The region is strengthening its position as a major export hub for Korean automobiles and shipbuilding equipment. Growing industrial activities will drive new construction projects and infrastructure development works, propelling the demand for thermoplastic elastomers from various construction applications.

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's growth between 2024 and 2031.

:- Accurate calculation of the size of the South Korea Thermoplastic Elastomer 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 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 vendors

FAQ’s

Q.1 What are the main factors influencing the South Korea Thermoplastic Elastomer?

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 companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the South Korea Thermoplastic Elastomer’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?

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