India Thermoplastic Elastomer Market Outlook to 2028

India Thermoplastic Elastomer Market Overview

• The India Thermoplastic Elastomer (TPE) market is valued at USD 1.8 billion, based on a five-year historical analysis. The market growth is primarily driven by the increasing demand from industries such as automotive, medical, and consumer goods. With rising industrialization and the growing trend toward lightweight materials in automotive and industrial applications, TPEs are becoming an attractive alternative to traditional materials like rubber and PVC due to their recyclability and flexibility in processing.
• The major cities contributing to the dominance in the India Thermoplastic Elastomer market are Mumbai, Pune, Chennai, and Bangalore, which are home to the number of automotive manufacturers and industrial players. Additionally, Western India, particularly Gujarat, plays a crucial role due to its proximity to chemical manufacturing hubs and polymer raw material production, further driving the demand for TPEs in various sectors.
• Indias stringent environmental regulations have accelerated the adoption of sustainable materials like TPEs across industries. The Ministry of Environment, Forest, and Climate Change mandates that manufacturing processes comply with sustainability standards outlined in the 2022 Environmental Protection Act. TPEs, being recyclable and less harmful than traditional rubber, are increasingly favoured in sectors like automotive and consumer goods. In 2023, around 20% of automotive components manufactured in India used TPEs to meet environmental compliance standards, up from 15% in 2021.

India Thermoplastic Elastomer Market Segmentation

• By Type: India Thermoplastic Elastomer market is segmented by product type into Styrenic Block Copolymers (SBCs), Thermoplastic Polyurethanes (TPU), Thermoplastic Vulcanizates (TPV), Thermoplastic Polyolefins (TPO), and Copolyester Elastomers (COPE). Among these, Styrenic Block Copolymers (SBCs) dominate the market due to their versatility and extensive use in packaging, consumer goods, and medical applications. SBCs are particularly favoured for their ability to blend with other materials and deliver superior properties like elasticity and transparency, which make them ideal for a range of industries including automotive and packaging.

• By Application: India Thermoplastic Elastomer market is also segmented by application into Automotive, Consumer Goods, Medical, Industrial, and Footwear. The Automotive segment holds the largest market share as of 2023. This dominance is driven by the industry's focus on lightweight materials to enhance fuel efficiency and reduce emissions. TPEs provide a balance between rubber-like elasticity and the recyclability of thermoplastics, making them the preferred material in automotive components like sealing systems, bumpers, and interior elements.

India Thermoplastic Elastomer Market Competitive Landscape

The India Thermoplastic Elastomer market is highly competitive, dominated by a mix of domestic and international players. Key companies like Reliance Industries, BASF SE, and Kraton Corporation hold influence due to their extensive production capabilities, innovative product portfolios, and established supply chains. The competition is intensified by the rising demand for sustainable and bio-based elastomers, which has led major players to invest heavily in research and development (R&D).

India Thermoplastic Elastomer Market Analysis

India Thermoplastic Elastomer Market Growth Drivers

• Increasing Demand from Automotive Sector: The automotive sector in India is experiencing robust growth, with vehicle production reaching over 5.5 million units in 2023, according to the Ministry of Heavy Industries. Thermoplastic Elastomers (TPEs) are increasingly being adopted in the production of auto components such as seals, gaskets, and interior parts due to their flexibility, durability, and recyclability. The government's push towards reducing emissions and adopting electric vehicles (EVs) has further accelerated TPE demand. As of 2023, TPEs constitute 12% of the material used in lightweight auto components, helping to reduce vehicle weight and enhance fuel efficiency.
• Growing Footwear Industry: India's footwear industry, valued at $10 billion in 2023, continues to expand, driven by rising disposable income and increasing urbanization. TPEs are widely used in the production of soles and uppers, offering advantages such as lightweight properties, flexibility, and recyclability over traditional materials like rubber. In 2023, around 25% of all footwear components in the country utilized TPEs, particularly in sports and casual footwear, according to the Department for Promotion of Industry and Internal Trade (DPIIT). With the rising demand for comfortable and durable footwear, TPE adoption is expected to remain high.
• Environmental Benefits Over Traditional Elastomers: Thermoplastic elastomers provide notable environmental benefits over conventional materials like natural rubber and PVC. They are fully recyclable, making them a key material in sustainable manufacturing processes. In 2022, the Indian government launched various sustainability initiatives, such as the Plastic Waste Management Rules, which encourage the use of eco-friendly materials like TPEs in consumer products. According to the Ministry of Environment, Forest, and Climate Change, TPE consumption in environmentally friendly products increased by 8% in 2023, contributing to reduced landfill waste and lower carbon footprints in sectors such as automotive and consumer goods.

India Thermoplastic Elastomer Market Challenges

• Price Volatility of Raw Materials: The price of raw materials used in TPE production, such as crude oil-derived polymers, has been highly volatile in recent years. As of 2024, crude oil prices fluctuated between $80 to $100 per barrel, leading to cost variations in TPE production. This volatility presents a challenge for manufacturers in maintaining consistent pricing for end products, particularly in price-sensitive markets such as automotive and consumer goods. The Indian government, through its energy policy initiatives, aims to stabilize energy markets, but the raw material cost fluctuations remain a persistent issue.
• Lack of Standardized Regulations: Indias thermoplastic elastomer market faces a regulatory gap due to the lack of standardized guidelines governing material usage and quality control. In 2023, the Bureau of Indian Standards (BIS) reported a lack of uniform standards for the production and application of TPEs, which complicates product certification and market entry. This regulatory inconsistency impacts both manufacturers and consumers, leading to challenges in ensuring product quality and compliance across industries such as automotive and medical applications.

India Thermoplastic Elastomer Market Future Outlook

Over the next five years, the India Thermoplastic Elastomer market is expected to grow, driven by the increasing demand for lightweight materials in the automotive sector, rapid industrialization, and the shift towards eco-friendly materials. The automotive industry's adoption of electric vehicles (EVs), which require lightweight and durable materials like TPEs, will further contribute to market expansion. In addition, advancements in bio-based TPEs are expected to open new opportunities, especially in medical applications and consumer goods where sustainability is a key purchasing driver.

India Thermoplastic Elastomer Market Opportunities

• Growth in Electric Vehicles: India's electric vehicle (EV) market is rapidly expanding, with over 2.3 million EVs on the road by 2023, according to the Ministry of Heavy Industries. TPEs are increasingly being utilized in battery components and charging infrastructure due to their thermal resistance and flexibility. The Indian government's push for EV adoption through its Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) initiative has further accelerated demand for TPEs. With the number of EVs set to grow exponentially, TPEs will play a vital role in ensuring the safety and efficiency of EV components.
• Increasing Adoption in Medical Applications: The Indian medical devices market was valued at $11 billion in 2023, with TPEs increasingly being adopted in applications such as medical tubing, syringes, and catheters due to their biocompatibility and sterilizability. The Ministry of Health and Family Welfare has highlighted the growing demand for advanced medical materials as healthcare infrastructure improves. In 2023, TPEs were used in 18% of all medical devices produced in India, up from 12% in 2020, driven by the need for safer, non-latex alternatives in medical applications.