The global thermoplastic polyolefin market was valued at US$2.4 bln in 2016 and is expected to reach US$3.7 bln in 2022, growing at a CAGR of 7.1% between 2016 and 2022, as per Zion Market Research. Thermoplastic polyolefin is a light weight material which is a major product in thermoplastic elastomers family. It has lowest specific gravities compared to all other thermoplastic elastomers. TPO is extensively used in automobile and construction industry. In the automotive industry, it is used in interior and exterior components. In the construction industry, TPO is widely used in the production of roofing membrane systems and door panels. It is also used in various end-users like industrial, medical, footwear and rubber goods. Also, the weight reducing property of TPO enhances the vehicle performance in terms of speed, fuel efficiency, and handling.
Advancement in the TPO industry is a major growth factor for global thermoplastic polyolefin market. However, rapid growth in the automotive industry along with a rise in building and construction activities is driving the demand for TPO in the last few years. The TPO market is likely to grow at a healthy growth rate in coming five to six years owing to the growing sales of tires and other rubber products from automotive industry. However, technological challenges can hamper the TPO market. Fluctuating prices of raw materials can slow down the market of TPO near the future. Emerging applications of TPO is expected to serve as an opportunity for global thermoplastic polyolefin market.
The global market for TPO is segmented on the basis of end – user application and region. According to the application, it is divided into automotive, building & construction, home appliances, medical, industrial, footwear, and others. Automotive is the largest end-use industry for TPOs and growth of the automotive industry is proportional to the global TPO market’s growth. The growth of automotive industry mainly in the emerging economies is likely to drive the future demand for TPOs.
North America led the market in terms of volume. The market size of TPO in North America in the year 2016 was USD billion and is expected to observe a significant growth over 2017-2022 owing to rapidly growing automotive, construction, packaging and medical industries in the region. U.S is likely to contribute considerably towards the regional growth over the forecast period. Europe thermoplastic polyolefins (TPO) market is predicted to record a CAGR of 4.9% over 2017 to 2022 due to its growing applications in packaging and healthcare industries. UK, France, Germany, and Italy are likely to be key revenue pockets of the region. Central & South America TPO market is expected to witness highest gains of 6.9% over the forecast period. Asia Pacific is estimated to be the largest market for TPO in coming period. Rise in application scope in automotive and construction sectors of the emerging markets in Asia Pacific region, especially China and India is likely to be a growth factor for TPO. China is the largest automobile manufacturing country in the world. Moreover, markets in India and Brazil are considered to highly profitable for automobile manufacturing both in terms of production and consumption. The growing automobile market in these countries is expected to boost the market for TPOs over the coming period. Asia Pacific market is anticipated to exceed 1.2 billion by 2022. Increasing expenditure in primarily in Japan, China and India are likely to fuel the products demand over coming period. The market for TPO is emerging in Latin America and is expected to hold a strong CAGR due to growing construction industry. South America (CSA) is the fastest regional segment holding above 6.8% CAGR. The region is observing massive product application in packaging and medical packaging. Middle East & Africa are expected to experience a substantial growth in TPO market in coming years owing to a rapid increase in urbanization leading to rising in the construction industry.
Key industry players include Sumitomo Chemical Company, Arkema S.A., LyondellBasell Industries, ExxonMobil Corporation, Dow Chemical Company, S&E Specialty polymers, DuPont, INEOS Chemicals Company, Saudi Aramco Company, A. Schulman, Mitsui & Company Limited, SABIC Chemical manufacturing company, Noble polymers, and Polisystem UK Limited.