The global bio-based elastomers market is anticipated to hold a market value of USD 513 Million in 2023 and USD 1,901.8 Million by 2033. The projected growth rate is nearly 14% during the forecast period from 2023 to 2033.
The growing demand for utilizing bio-based materials to reduce the carbon footprint is driving conventional elastomer manufacturers to develop partial blends or fully bio-based elastomers. Thermoset and thermoplastic crude oil-based elastomers largely depend on petrochemicals.
| Report Attributes | Details |
|---|---|
| Estimated Market Value in 2023 | USD 513 Million |
| Estimated Market Value in 2033 | USD 1,901.8 Million |
| Projected CAGR from 2023 to 2033 | 14% |
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The global bio-based elastomers market garnered USD 507.6 Million in 2022, expanding at a historical CAGR of 10%. Over the short term, increasing demand for Bio-based elastomers from the heating, ventilation, and air conditioning (HVAC) industry is expected to drive the market's growth.
Furthermore, in the years to come, shifting focus toward the development of bio-based products and increasing application in the fabrication of medical instruments are likely to act as opportunities. During the forecast period, the industry is also anticipated to be driven by rising expenditures on Research and Development and product development by the manufacturers. The estimation reveals that the industry is projected to secure a market value of USD 1,901.8 Million by 2033.
Growing Technology Collaboration to Aid Market Growth
The volatility in crude oil prices due to geopolitical factors has significantly contributed to developments being carried out in the market. For instance, Green Dot Plastics, based in Kansas, USA has been involved in the development of Terratek Flex GDH-B1, a starch-based bio-based elastomer formulated with 35% of bio-based content since 2011.
Although the development of bio-based elastomers presents lucrative growth opportunities, their high prices portray a significant challenge to their market growth, which can be anticipated to reduce during the upcoming years.
Technology collaboration is being observed among elastomer raw material manufacturers to develop bio-based alternatives. Such instances create a sufficient supply of bio-based raw materials, enabling adequate production of bio-based elastomers.
For instance, in May 2021, USA-based Lummus Technology entered into a cooperation agreement with Synthos to commercialize the bio-butadiene technology of Synthos for the development of bio-based butadiene, thus creating an adequate monomer supply for bio-based elastomer production.
Presence of Key in the Region to Increase Consumer Demand
North America is expected to witness a growing demand for bio-based elastomers due to the presence of a significant number of bio-based elastomer manufacturers in the region. Similarly, the growing demand for electric vehicles in North America due to supportive government policies is expected to increase the demand for electric vehicle charging cables in the region, which can positively influence the consumption of bio-based elastomers in cable jackets.
The USA in North America is expected to witness significant growth in the demand for bio-based elastomers. This is due to the fact the country hosts a number of conventional elastomer manufacturers such as Avient Corporation, Huntsman International LLC, The Lubrizol Corporation, Trinseo, and Dow that are now engaged in the development of bio-based elastomers.
For instance, Dow manufactures bio-based polyolefin elastomers under the brand name AFFINITY RE. In addition, the National Biotechnology and Biomanufacturing Initiative launched by the USA Government in September 2022 to embrace bio-manufacturing to produce bio-based fuels, bio-based plastics, bio-based medicines, and other bio-based materials is expected to further contribute to the high growth of bio-based elastomers in the USA
Increasing Investments in Product Penetration to Boost Regional Market
Europe accounted for the largest revenue share of more than 40.0% in 2022. Bio-Based Industries Joint Undertaking (BBI JU) was launched in 2014 between the Bio-based Industries Consortium and European Union to accelerate the consumption of bio-based content in various end-use industries.
In addition, the European Chemicals Agency (ECHA) submitted a proposal to ban rubber granules produced from end-of-life vehicle tires, which has driven tire manufacturers in Europe to consider bio-based raw materials for tire production, thus presenting a positive growth opportunity for bio-based elastomers.
In line with the current developments aimed at increasing the bio-based material content in the products, France-based tire manufacturer Michelin unveiled a plan in June 2018 to ensure 80% sustainable materials consumption in its tires by 2048.
Growing adoption in automotive applications as an alternative to conventional crude oil-based elastomers to boost the growth
The bio-based thermoplastic elastomers accounted for the largest revenue share of more than 75.0% in 2022. This is attributed to the growing adoption in automotive applications as an alternative to conventional crude oil-based elastomers with the equivalent shore hardness from 55 shore A to 80 shore A.
Some of the bio-based thermoplastic elastomers developed in the market include bio-based thermoplastic polyolefin elastomers, bio-based thermoplastic polyurethane elastomers, bio-based thermoplastic styrene block copolymer elastomers, and bio-based thermoplastic polyamide elastomers.
Bio-based thermoset elastomers include bio-based ethylene propylene diene monomers and bio-based silicone elastomers. ARLANXEO has been producing Keltan Eco EPDM commercially since 2013. The company sources bio ethylene from Braskem. The bio-based EPDM offers similar oxidative and thermal resistance properties as that of conventional EPDM, which can help it project a feasible alternative to replace conventional EPDM in the coming years.
The eco-grade silicone elastomers manufactured by Wacker Chemie under the ELASTOSIL brand offer exceptional tear resistance and are used for producing binders for the textile, paper, and consumer goods industries.
Automotive emerged as the leading application segment and is projected to dominate the market
Automotive emerged as the leading application segment and accounted for more than 35.0% share in terms of revenue in 2022. Decreasing the vehicle weight to improve fuel consumption and reducing CO2 emission are significant objectives for the automotive industry.
Thermoplastic elastomers are useful in automotive interior applications such as inlay mats, fascia, cup holder liners, and exterior windshield wipers. Materials used in automotive interiors need to meet requirements for Vehicle Interior Air Quality (VIAQ) and legislation regarding odor, fogging, and VOC. The bio-based elastomers contain a significant amount of bio-based content and exhibit a low amount of VOC, which is positively driving its consumption in the automotive industry.
Footwear emerged as the next leading application segment in 2022. The production of footwear has significant negative environmental impacts on the environment due to the use of leather, polyurethane, polyvinyl chloride, and rubber, which end up in landfills. Recently, various large sports goods brands have announced the introduction of fully biodegradable high-performance athletic footwear, which can positively influence the demand for bio-based elastomers.
For instance, Nike used 50% Pebax Renew, a castor-based thermoplastic elastomer, manufactured by Arkema that contains about 97% renewable-based components along with 50% bio-based thermoplastic polyurethanes (TPU) in its GS football boot.
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Some of the key startups in the market are-
The players in the market are focusing to increase their global influence and adopt strategies such as; acquisition, collaboration, and partnerships. Some of the recent key developments among key players are:
| Report Attributes | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data | 2018 to 2022 |
| Key Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East & Africa |
| Key Countries Covered |
USA, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, Indonesia, Malaysia, Singapore, Thailand, China, Japan, South Korea, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Segments Covered | Product, Application, Region |
| Key Companies Profiled | Dow; FKuR; BASF SE; ARLANXEO; Trinseo; Eni S.p.A; Asahi Kasei Corporation; DSM; Mitsubishi Chemical Europe GmbH; Arkema; The Goodyear Tire & Rubber Company; The Lubrizol Corporation; KURARAY CO. LTD.; Wacker Chemie AG; Hunstsman International LLC; Covestro AG; HEXPOL TPE; Avient Corporation |
| Pricing | Available upon Request |
North America will account for a major share of global Bio-based Elastomers demand.
From 2023 to 2033, the market is projected to expand at a 14% value CAGR, as per FMI.
By 2033, Bio-based Elastomers market demand is expected to reach USD 1901.8 Million.
By 2023, demand for Bio-based Elastomers is forecast to be valued at USD 513 Million.
As of 2022, the market for Bio-based Elastomers was valued at USD 507.6 Million.
| Market Size (2024E) | USD 7874.8 million |
|---|---|
| Market Value (2034F) | USD 15760.5 million |
| Value-based CAGR (2024 to 2034) | 7.2% |
| Expected Market Value in 2023 | USD 1.6 billion |
|---|---|
| Projected Market Value in 2033 | USD 2.5 billion |
| CAGR (2023 to 2033) | 4.6% |
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