Thermoplastic polyolefins market to witness enhanced demand from automotive

Thermoplastic polyolefins market to witness enhance demand from automotive industry, will reach US$3.5 bln by 2020, as per Grand View Research. Thermoplastic polyolefins (TPOs) are plastics made by blending polypropylene with elastic ethylene copolymers and adding other fillers and additives. The automotives industry is the largest consumer of TPOs. Any volatility in demand for automotives has a direct impact on the thermoplastic polyolefins market. The worldwide recession of 2008-2009 had caused a market slowdown. The automotives industry’s turnaround in the recent past has reignited the demand for TPOs. Grand View Research, Inc. estimates the market to reach around US$3.5 bln by 2020. Market volumes would grow from 860 kilo tons in 2013 to 1, 335 kilo tons in 2020. Escalating consumption of automobiles in BRICS nations will drive the thermoplastic polyolefins market. Another favorable factor is concerns regarding environmental effects of polyvinyl chloride (PVC) that is used in automobile and construction industries. As a result, TPOs are fast replacing PVC in the aforementioned industries. However, the market is estimated to be adversely affected by volatile prices of raw materials and high capacity-to-demand ratios. The thermoplastic polyolefins market may be segmented on the basis of applications and regions. Application segments are automotives and others. ‘Others’ includes construction, medical, and packaging. Automotives account for maximum share in the global revenues & volumes. In 2013, they had 76% share in the total volumes. These volumes can grow at a CAGR of 6.5% during 2014 to 2020 (forecast period). TPOs are also used in films & sheets, tapes, and fibers. Regional segments of the thermoplastic polyolefins market comprise North America, Asia Pacific, Europe, and Rest of the World (RoW). North America and Asia Pacific generated most of the TPO demand in 2013. North America accounted for 38% of the overall volumes that year. Asia Pacific followed the former and had 36% share. The fastest growth (CAGR of 7.1% during the forecast period) would occur in Asia Pacific. On the other hand, Europe will grow slower (CAGR of 6% in the same period). This would happen due to its saturation. China and India are the prominent drivers of Asia Pacific. China is the worldwide leader of automobile manufacturing. India too, is an important nation, in regards to vehicular consumption and manufacturing. Brazil is an emerging automotives industry. Eminent players in the global thermoplastic polyolefins market consist of Dow Chemical Company, Arkema SA, ExxonMobil Corporation, and Chemtura Corporation.