The South America thermoplastic vulcanizate market was valued at US$ 48.84 million in 2019 and is projected to reach US$ 73.67 million by 2027; it is expected to grow at a CAGR of 5.4% during the forecast period.
Thermoplastic vulcanizate (TPV) is a mixture of rubber particles distributed in a thermoplastic matrix. Therefore, TPV has mixed properties, including the characteristics of the vulcanized rubber elastomer as well as the handling properties of the thermoplastic material. Typical TPV contains approximately two-thirds of ethylene propylene diene monomer and one-third of impact polypropylene. This mixture of raw materials can also differ, such as polypropylene with natural rubber, polypropylene and ethylene-octene copolymers, and others. These materials have a wide range of hardness, excellent flex fatigue, high impact resistance, and superior resistance to acids, bases, and aqueous media. Due to its manufacturing versatility and ease of processing, TPV is used in applications requiring durability and lightweight characteristics, such as in vehicles, construction, and others. The increasing demand for lightweight and high-performance materials in the automotive industry is expected to fuel demand for thermoplastic vulcanizations (TPVs) during the forecast period.
Based on end-use industry, the thermoplastic vulcanizate market is segmented into automotive, building & construction, consumer goods, healthcare, and others. In 2019, the automotive segment dominated the South America thermoplastic vulcanizate market.
Geographically, the South America thermoplastic vulcanizate market is segmented into the Brazil, Argentina, and Rest of South America. The rising population the demand for electrical and electronics has increased which in turn has incremented the demand for thermoplastic vulcanizate market in the country. Thermoplastic vulcanizate has proved its potential in various mechanical rubber goods applications such as plugs, connectors, and housings. It is also employed in industrial tubing, wire and cable insulation, and agricultural sprays. The wide scale application base of thermoplastic vulcanizate and its acceptance by the manufacturers drives the market growth in Brazil. Increasing demand for medical grade thermoplastic vulcanizate for medical device components due to its superior sealing performance along with well-organized healthcare industry will drive the growh of the thermoplastic vulcanizate (TPV) market in Brazil.
Mitsui Chemicals, Inc.; Celanese Corporation; Kumho Polychem; Trinseo; ExxonMobil; and Alphagary are among the major players present in the South America thermoplastic vulcanizate market.
Impact of COVID-19 Pandemic on Thermoplastic Vulcanizate Market
Brazil has the highest number of COVID-19 cases, followed by Argentina, Peru, Chile, and Ecuador, among others. The government of South America has taken an array of actions to protect their citizens and contain COVID-19’s spread. It is anticipated that South America will face lower export revenues, both from the drop in commodity prices and reduction in export volumes, especially to China, South America, and the US, which are the important trade partners. Containment measures in several countries of South America will reduce economic activity in the manufacturing and service sectors for at least the next quarter, with a rebound once the epidemic is contained.
Overall size of the South America thermoplastic vulcanizate market has been derived in accordance to primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who take part in such a process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the thermoplastic vulcanizate market.