South Korea Thermoplastic Elastomer Market to witness 5.5% growth owing to rising demand from automotive industry
Thermoplastic elastomers or TPEs are synthetic polymers which possess both the properties of elasticity similar to rubber and the processability of rigid plastic. Some key advantages of thermoplastic elastomers include lightweight, recyclability, durability, flexibility and resistance to oils and chemicals. They find wide applications in automotive, footwear, wire and cables, consumer goods and medical industries due to these properties. In South Korea, the automotive industry has been growing rapidly which has increased the demand for lightweight and durable materials like TPEs in vehicles. The South Korea Thermoplastic Elastomer Market is estimated to be valued at USD 510.6 Mn in 2024 and is expected to reach USD 749.2 Mn by 2031, growing at a CAGR of 5.5% from 2024 to 2031.Key players operating in the South Korea thermoplastic elastomer market are LG Chem, Kumho Petrochemical, Asahi Kasei Corporation and SABIC. LG Chem is one of the leading producers of thermoplastic elastomers in South Korea with a wide product portfolio. The demand for thermoplastic elastomers is growing rapidly from the automotive industry in South Korea Thermoplastic Elastomer Market. Over 60% of TPEs produced in the country are utilized in manufacturing various automobile components owing to properties like vibration damping, toughness and impact resistance.Technological advancements are helping thermoplastic elastomer producers develop new grades with improved characteristics. Innovation in polymerization techniques has enabled manufacturers to customize TPEs as per end-use specifications.Market Trends1) Growing demand for bio-based thermoplastic elastomers: With rising environmental concerns, manufacturers are focusing on developing bio-polymer versions using plant-based resources like vegetable oils and cassava starch. This is expected to drive the green thermoplastic elastomer market.2) Development of TPEs with self-healing properties: Researchers are working on imparting self-healing abilities to thermoplastic elastomers so that cracks and cuts can autonomously repair. This would increase product lifespan.Market Opportunities 1) Scope in specialty medical applications: Properties of select thermoplastic elastomers make them suitable for usage in implants, prosthetics, wound care and surgical devices. This presents opportunities for producers.2) Growth of electric vehicles: With focus shifting to eco-friendly mobility, demand for TPE components in EV batteries, cables and seals is projected to surge in the coming years in South Korea.Impact of COVID-19 on South Korea Thermoplastic Elastomer Market Growth The Covid-19 pandemic has disrupted South Korea's thermoplastic elastomer market growth trajectory over the past two years. During the initial lockdown phase in early 2020, demand from key end-use industries such as automotive, medical devices and consumer goods plummeted as production came to a standstill. Supply chain disruptions led to raw material shortages, adding to production woes for thermoplastic elastomer producers. As the pandemic spread globally, exports also witnessed a steep decline. However, from mid-2020, the market showed signs of recovery as lockdown restrictions eased and industries resumed operations gradually with safety protocols. Demand picked up from the medical devices sector for protective equipment manufacturing. Nevertheless, suppressed demand from the struggling automotive industry continued to hamper the market recovery in 2020. Going forward, thermoplastic elastomer manufacturers will need to focus on developing applications for new markets like 3D printing to offset automotive sector weakness. Strategic partnerships and capacity expansion into developing nations will help stabilize supplies.Geographical Concentration of South Korea Thermoplastic Elastomer Market In terms of value, the South Korean thermoplastic elastomer market is highly concentrated in and around Seoul, the capital city. A strong manufacturing hub with a high concentration of automotive OEMs and auto component manufacturers, Seoul accounts for over 40% of the country's total thermoplastic elastomer consumption. Major industrial zones in Incheon and Gyeonggi province surrounding Seoul are also significant markets. Thermoplastic elastomer producers have their largest production facilities based here in order to cater to nearby automotive giants like Hyundai and Kia Motors. Other major urban centers like Busan, Daegu and Daejeon contribute to around 30% of national demand.Fastest Growing Region in South Korea Thermoplastic Elastomer MarketThe South Jeolla province region has emerged as the fastest growing market for thermoplastic elastomers over the past five years. Led by the coastal city of Mokpo, this historically agricultural region is witnessing a boom in manufacturing industries like shipbuilding, machinery and chemical production. Local thermoplastic elastomer producers are catering to this rising demand by expanding production capacities. Automotive component manufacturers are also setting up new units to leverage lower capital costs. With ongoing government incentives for industry development, South Jeolla province is expected to become a prominent thermoplastic elastomer consumer over the coming years, growing at over 8% annually.
