Automotive Elastomers Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Passenger Cars, Commercial Vehicles), By Type (Thermoset, Thermoplastic), By Application Type (Tire, Interior, Exterior, Under the Hood) By Region, Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 38.96 Billion
CAGR (2026-2031)	5.84%
Fastest Growing Segment	Thermoplastic
Largest Market	Asia Pacific
Market Size (2031)	USD 54.77 Billion

Market Overview

The Global Automotive Elastomers Market will grow from USD 38.96 Billion in 2025 to USD 54.77 Billion by 2031 at a 5.84% CAGR. Automotive elastomers are high-performance synthetic and natural rubber materials used to manufacture critical vehicle components like tires, seals, and hoses, providing necessary flexibility and durability. The market is primarily driven by the continuous expansion of global vehicle production and the rising demand for lightweight materials that improve fuel efficiency without compromising safety. According to the International Organisation of Motor Vehicle Manufacturers, in 2024, the global automotive industry produced approximately 92.5 million motor vehicles. This substantial manufacturing volume underscores the immense and steady demand for elastomeric parts required for both passenger and commercial transport sectors.

However, the market faces a significant challenge arising from the volatility of raw material prices. The dependence on petrochemical feedstocks for synthetic rubber and agricultural yields for natural rubber exposes manufacturers to unpredictable cost fluctuations that can severely impact procurement strategies. This financial instability complicates long-term planning and squeezes profit margins, effectively creating a barrier that could impede broader market expansion and limit investment in material development.

Key Market Drivers

The rapid expansion of electric vehicle (EV) production is serving as a primary catalyst for the evolution of the global automotive elastomers market. Unlike internal combustion engine vehicles, EVs require specialized elastomeric components that provide superior thermal management, electrical insulation, and flame retardancy to ensure the safety and efficiency of battery packs. Manufacturers are increasingly transitioning to advanced materials like silicone and ethylene-propylene-diene monomer (EPDM) rubber to manufacture high-voltage cable insulation and cooling system seals. This structural shift in the automotive landscape is highlighted by the surge in adoption; according to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global electric car sales reached nearly 14 million in 2023. This trajectory indicates a sustained demand for high-performance elastomers tailored to the unique operational needs of electrified platforms.

Simultaneously, the implementation of stringent global emission standards is compelling the industry to utilize lightweight and fuel-efficient materials. Automakers are aggressively replacing metal components with elastomeric alternatives to reduce overall vehicle weight, while also focusing on low-rolling-resistance tires to meet strict fuel economy targets. This regulatory pressure drives the development of high-performance synthetic rubbers capable of maintaining durability under reduced energy expenditure. The scale of the market responding to these demands is immense; according to the China Association of Automobile Manufacturers, January 2024, in the 'The auto industry's economic operation in 2023' report, vehicle production in China reached a record high of 30.16 million units. Furthermore, the persistent need for efficiency-optimized components supports massive aftermarket volumes; according to the U.S. Tire Manufacturers Association, August 2024, in the 'Six-Month Tire Industry Forecast', total U.S. tire shipments are projected to reach 337.4 million units in 2024.

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Key Market Challenges

The volatility of raw material prices presents a substantial barrier to the growth of the Global Automotive Elastomers Market. Manufacturers in this sector rely heavily on petrochemical feedstocks for synthetic rubber and agricultural outputs for natural rubber, making the supply chain highly sensitive to external economic shifts and environmental conditions. When input costs fluctuate unpredictably, it becomes difficult for companies to maintain stable pricing structures or accurately forecast procurement expenses. This financial uncertainty forces manufacturers to operate with caution, often delaying capital commitments toward facility expansion or the development of new material formulations.

Consequently, this instability squeezes profit margins and restricts the ability of suppliers to absorb market shocks without passing costs to automotive original equipment manufacturers. According to the Association of Natural Rubber Producing Countries, in 2024, global natural rubber consumption reached 15.8 million tons while production lagged at approximately 14.5 million tons. This supply deficit illustrates the resource constraints that exacerbate price instability within the sector. Such imbalances limit the capacity of elastomer producers to scale operations effectively and meet the consistent volume requirements necessary for broader market progression.

Key Market Trends

The rising adoption of bio-based and renewable elastomer materials is fundamentally reshaping the supply chain as manufacturers seek to decouple from petrochemical volatility and achieve circular economy targets. Unlike the efficiency-driven lightweighting strategies, this trend focuses on the origin of raw materials, driving the integration of sustainable inputs such as dandelion-derived rubber, rice husk silica, and recycled polymers into tire and sealing formulations. This shift is not merely experimental but is being operationalized at scale to meet stringent environmental goals and consumer expectations for green mobility. The scale of this transition is evident in the production metrics of leading suppliers; according to Continental AG, June 2025, in the 'More Sustainable Tires' press release, the share of renewable and recycled materials in the company's tire production averaged 26% in 2024.

Simultaneously, the market is witnessing an accelerated substitution of traditional thermoset rubber with Thermoplastic Elastomers (TPEs), driven by the need for superior processing efficiency and recyclability. While thermosets require time-consuming vulcanization, TPEs allow for rapid injection molding and overmolding, which significantly reduces manufacturing cycle times and energy consumption. Furthermore, unlike their thermoset counterparts, TPE scraps can be remelted and reused, offering a critical advantage in reducing industrial waste and aligning with component end-of-life directives. The commercial significance of this material class is substantial; according to Celanese Corporation, February 2025, in the 'Full Year 2024 and Fourth Quarter Earnings' report, the Engineered Materials segment, which includes the company’s automotive elastomer portfolio, generated net sales of $5.6 billion in 2024.

Segmental Insights

The Thermoplastic segment is currently positioned as the fastest-growing category within the global automotive elastomers market due to increasing demands for vehicle weight reduction and improved fuel efficiency. Manufacturers are rapidly adopting thermoplastic elastomers as a sustainable alternative to traditional thermosets because they offer lower density and enhanced recyclability, aligning with stringent emission standards enforced by organizations like the United States Environmental Protection Agency. Furthermore, the ability of these materials to undergo high-volume processing allows for cost-effective manufacturing of complex automotive components, thereby accelerating their integration into modern vehicle designs.

Regional Insights

Asia Pacific commands the leading position in the Global Automotive Elastomers Market, primarily due to its status as the world’s largest automotive manufacturing hub. The region benefits from substantial vehicle production volumes in key economies such as China, India, and Japan, driven by rising consumer demand and established industrial infrastructure. Furthermore, stringent government regulations regarding carbon emissions compel manufacturers to utilize lightweight elastomeric materials to enhance fuel efficiency. The region’s aggressive transition toward electric mobility also accelerates the requirement for specialized elastomers in battery insulation and sealing, firmly consolidating Asia Pacific’s dominance in the sector.

Recent Developments

• In August 2024, Kumho Petrochemical announced plans to expand its production capacity of high-performance synthetic rubbers to meet surging demand from the electric vehicle sector. The company revealed it was increasing its output of solution styrene-butadiene rubber, a critical material for manufacturing high-grip, durable tires required by heavier electric vehicles. This expansion was part of a broader strategy to strengthen the company's competitiveness in eco-friendly automotive materials, which also included ramping up production of ethylene propylene diene monomer rubber used in weather strips and other automotive components.
• In May 2024, Dow announced a strategic collaboration with Changchun FAWSN Automotive Technology Research and Development Co., Ltd. to develop applications for polyolefin elastomer-based artificial leather. Unveiled at Chinaplas, this partnership aimed to address the automotive industry's need for lightweight and circular interior materials. The companies focused on commercializing a polyolefin elastomer solution that offers a 25% to 40% weight reduction compared to traditional PVC leather, providing benefits such as ultra-soft tactility, improved color stability, and the elimination of hazardous materials in vehicle cabin interiors.
• In March 2024, Arlanxeo unveiled a portfolio of sustainable synthetic rubber solutions at the India Rubber Expo, targeting the region's expanding automotive and mobility sectors. The company highlighted its Keltan Eco series, which includes ISCC PLUS certified bio-circular grades and bio-based variants extracted from sugar cane, suitable for eco-friendly auto parts like seals and hoses. Additionally, the manufacturer showcased its solution styrene-butadiene rubber and neodymium butadiene rubber lineups designed to enhance the fuel efficiency and durability of green tires, supporting the industry's shift towards sustainable urbanization and electric mobility.
• In February 2024, Kraiburg TPE launched a new series of thermoplastic elastomers for the automotive market containing at least 73% recycled content. The company designed these compounds to meet the growing demand for sustainable materials in vehicle interiors, offering a carbon footprint reduction of 25% compared to virgin alternatives. The new grades, which replaced the company’s previous interior post-industrial recycled ranges, were developed to fulfill technical requirements for applications such as inlays, floor mats, and cowl gaskets while complying with strict odor and emission standards required by original equipment manufacturers.

Key Market Players

• The Dow Chemical Company
• LANXESS AG
• DuPont de Nemours, Inc.
• ExxonMobil Corporation
• BASF SE
• Saudi Basic Industries Corporation
• Huntsman International LLC
• Continental AG
• INEOS AG
• Solvay SA

By Vehicle Type	By Type	By Application Type	By Region
Passenger Cars Commercial Vehicles	Thermoset Thermoplastic	Tire Interior Exterior Under the Hood	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Elastomers Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Elastomers Market, By Vehicle Type:

• Passenger Cars
• Commercial Vehicles

• Automotive Elastomers Market, By Type:

• Thermoset
• Thermoplastic

• Automotive Elastomers Market, By Application Type:

• Tire
• Interior
• Exterior
• Under the Hood

• Automotive Elastomers Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE