Thermoplastic Polyolefin Market to reach worth of US.3 Bn by 2024 End

Posted by pranav suryawanshi on August 16th, 2019

The global thermoplastic polyolefin (TPO) market features a moderately consolidated landscape, as the leading seven manufacturers accounted for over 60% in the global market in 2015, finds Transparency Market Research (TMR). The leading three companies—Mitsui Chemicals, Inc., Exxon Mobil Corporation, and LyondellBasell Industries N.V.—enjoy a better hold over the competitive dynamics that the rest top players. Mergers and acquisitions and capacity expansions are few of the prime strategic moves engaged by them to maintain their sway in the global market. Some of the other prominent players operating in the market are Chevron Phillips Chemical Company, Mitsubishi Chemical Holding Corporation, and INEOS Group Limited. Emerging regions such as in Asia Pacific are proving to be lucrative for these players.

TMR observes that the competitive intensity in the global market throughout the assessment period is likely to remain high. This is attributed to several key players holding competitive market shares, which helps preserving the status quo in the competitive landscape.

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The global TPO market stood at US.3 billion in 2015 and is projected to reach a valuation of US.3 billion by the end of 2024. The market will garner a CAGR of 7.3% during the forecast period of 2016–2024.

The various end users of TPO are building and construction, automotive, home appliances, medical, footwear, rubber goods, and industrial. Of all the segments, the automotive led the pack and it accounted for a major share in 2015. This is attributed to the widespread usage of TPO materials in making light-weight and durable automotive components. The segment is projected to garner a CAGR of 7.6%, vis-a-vis revenue, during the period 2016–2024.

On the regional front, North America held the sway by accounting for the leading share in 2015. However, in the coming years, Asia Pacific is anticipated to rise to the forefront. The growth in this regional market will be driven by the vast strides being made by the automotive industry in the region.

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Extensive uptake of TPO in making Interior and Exterior Automotive Parts accentuates Growth

The growth of the global thermoplastic polyolefin market is primarily driven by the rising demand for the elastomer in making a variety of interior and exterior automotive parts. The higher attractiveness of these polypropylene-based materials than others is on the account of several compelling characteristics they exhibit, notably a combination of remarkable ductility, marked impact resistance, and better dimensional stability. The rising demand for TPO in the building and construction industry in various countries is also accentuating the market growth.

The giant leaps that the automotive production has taken in recent years, especially in developing regions such as Asia Pacific, is imparting a robust momentum to the growth of the thermoplastic polyolefin market. The demand for TPO is catalyzed by the substantial focus of vehicle manufacturers in adopting light-weight automotive materials. This helps them meet various regional environmental regulations and also offers users compelling proposition to adopt fuel-efficient vehicles.

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Fluctuation in Raw Material Prices key Hindrance   

The rising application of TPO in home appliances and roofing materials is also propelling the growth of the market. TPO elastomers have emerged as a potentially cost-effective choice for these applications.  

However, the market is also facing few setbacks, most notably arising out if the fluctuating cost of raw materials used for TPO production. For instance, the unstable price of polypropylene, a key raw material, has hindered the growth of the market. The trend is prominent in Europe where the process are driven by the fluctuating cost of feedstock. Nevertheless, the bold strides that automotive industry is experiencing and efforts to modify the properties of TPO to meet demanding applications are crucial trends that will catalyze the growth of the global market over the assessment period.