Global Thermoplastic Polyolefin (TPO) Market - 2022-2029

Market Overview

The Thermoplastic Polyolefin (TPO) Market reached US$ XX million in 2021 and is expected to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of 6.10% during the forecast period (2022-2029).

Thermoplastic polyolefin or TPO, is a substance that was initially created for pond liners and has been widely used for roofing since 1989. It is a single-ply membrane that can be mechanically or adhesively fastened to a roof. TPO is made of a polymerized mixture of polypropylene and ethylene-propylene rubber. TPO is a low-cost and effective option for flat and low-slope roofs and is particularly well suited to hot, sunny climates. TPO compounds are polypropylene (PP) resin blends with uncrosslinked EPDM rubber and polyethylene and have high impact resistance, low density and good chemical resistance. The respective products are used in applications that require greater toughness and durability than traditional PP copolymers, such as automotive bumpers and dashboards. The properties are limited to the upper end of the hardness scale, typically greater than 80 Shore A and have limited elastomeric properties. TPOs are simple to process using injection molding, extrusion or blow molding.

Market Dynamics

The market will be driven by the increasing applications of TPOs to replace other polymers. However, the volatile raw material prices could be a major market restraint.

Increasing applications of TPOs as a replacement for other polymers

Regulations in the food, packaging, medical, automotive and other end-use industries have increased the use of TPOs, displacing natural rubber, synthetic rubber, PVC and silicone. These regulations aim to reduce pollution by minimizing hazardous waste, reducing energy consumption and increasing the safety and recyclability of materials. This situation has prompted researchers to consider expanding product versatility and cutting costs. TPOs are displacing TPVs in the automotive sector and their use is anticipated to grow. During the forecast period, TPOs are anticipated to take the place of PVC and TPU films in automotive applications. In typical usage scenarios, the recovery capabilities of TPU and PEBA are comparable. Additionally, as environmental concerns grow, the demand for TPOs is rising due to their eco-friendliness and the ease with which their products decompose without leaving any harmful residue.

Because of the rising demand for lightweight, high-performing and recyclable materials for exterior and interior auto part applications, the automotive industry is the largest end-use market for TPO. TPO can provide superior weather resistance, scratch and mar resistance, low-temperature impact and color matching for car bodies. Bumpers, filler panels, wipers, body seals, automotive gaskets, door & window handles and vibration damping pads are a few examples of exterior body parts used. TPO is also utilized in the automotive industry for applications inside the engine. The International Organization of Motor Vehicle Manufacturers estimates that 77 million cars will be produced globally in 2020.

Consequently, the global increase in automotive production will contribute to the growth of the TPO market. As a result of the rising demand for TPO in vehicles, the metal and alloy parts in vehicles are swapped out for polymer and thermoplastic elastomers. Using TPO, the weight of conventional automotive parts can be decreased by 20% to 25%. The average amount of TPO used in light commercial vehicles in U.S. is more than 36 pounds, according to the American Chemistry Council (ACC) and because of its distinctive qualities and strength, usage is anticipated to rise.

The volatile prices of the raw materials

The availability and raw material prices are critical factors for producers in deciding the pricing structure of their product lines. Many TPOs' prices are steadily going up. Price increases are primarily a result of rising labor and energy costs and the fluctuating price of crude oil and its derivatives. TPO costs also go up because they can't be combined with fillers to produce products that use a lot of material but are inexpensive. Carbon black and other inexpensive fillers cannot be loaded into TPO. Compared to the equipment needed to process thermoset rubber, the processing of thermoplastic olefin is more expensive and requires a significant initial capital investment. Plastic resins, industrial inorganic chemicals, synthetic rubbers, inorganic chemicals and refined petroleum products are the raw materials used by thermoplastic polyolefin (TPO). The majority of the respective raw materials are petroleum-based variants that are susceptible to commodity price fluctuations.

Many TPOs' prices are steadily going up. Price increases are primarily a result of rising labor and energy costs and the fluctuating price of crude oil and its derivatives. TPO costs also go up because they can't be combined with fillers to produce products that use a lot of material but are inexpensive. Carbon black and other inexpensive fillers cannot be loaded into TPO. Compared to the equipment needed to process thermoset rubber, the processing of thermoplastic olefin is more expensive and requires a significant initial capital investment. The expansion of the market as a whole is also being constrained by rising price competition among different types of TPOs.

COVID-19 Impact Analysis

The industrial-scale synthesis of thermoplastic polyolefin (TPO) requires large machinery, large-scale industrial reagents and skilled laborers because the production of thermoplastic polyolefin (TPO) has been disrupted. Social distance requirements and industry lockdowns significantly hindered production during the pandemic. The COVID-19 pandemic's global lockdown made it difficult to obtain the raw materials needed to produce thermoplastic polyolefin (TPO) and finished goods. The thermoplastic polyolefin (TPO) market's demand-supply dynamics suffered as a result.

The industrial-scale synthesis of thermoplastic polyolefin (TPO) requires large machinery, large-scale industrial reagents and skilled laborers due to the disruption in the production of the thermoplastic polyolefin (TPO). Social distance requirements and industry lockdowns significantly hampered production during the pandemic. Additionally, the thermoplastic polyolefin (TPO) manufacturing process and the distribution of finished goods were hampered by the global lockdown brought on by the COVID-19 pandemic. The market for thermoplastic polyolefin (TPO) suffered a significant impact on demand-supply dynamics.

Segment Analysis

The global thermoplastic polyolefin (TPO) market is classified based on type, application and region.

Growing demand for lightweight, durable automotive parts

The output volume for the automotive industry increased between 2015 and 2019 at a CAGR of 0.5 percent, reaching 146.4 million units in 2019. The output volume for the automotive industry increased at a 0.5% CAGR between 2015 and 2019, reaching 146.4 million units in 2019. Volkswagen and Toyota are two of the world's most prosperous automakers regarding vehicle sales and revenue. The market for TPOs in the automotive industry is anticipated to expand due to rising vehicle demand, fiercer competition among manufacturers to produce lightweight and durable auto parts, supportive government regulations, the development of the nation's transportation system and the economy's rapid expansion.

Geographical Analysis

Growing population and urbanization in Asia-Pacific and associated growth in the construction industry

TPO roofing systems provide critical reflectivity, energy efficiency and strong UV radiation resistance. As a result, using TPO in roofing systems reduces the heat gains of the building. As it finds applications in commercial and residential roofing, output growth tends to contribute to thermoplastic polyolefin industry demand. Further, the properties such as weathering resistance and cold temperature flexibility boost the demand for TPO in the construction sector.

Since Asia-Pacific is extremely populous and a hub for construction activities, the region is the dominant segment in the global thermoplastic polyolefin market, boosted by its use in residential and non-residential construction projects.

Competitive Landscape

In terms of global and local producer numbers and strengths, the global thermoplastic polyolefin (TPO) market is immensely competitive due to the presence of major players such as Dow, Mitsui Chemical, Inc, Exxon Mobil Corporation, SABIC, Sumitomo Chemical Co., Ltd, LyondellBasell Industries N.V., Ineos Group Ltd, Borealis AG, Formosa Plastic Corporation and The Mitsubishi Chemical Holding Group. The market is fragmented and pivotal market stakeholders use market tactics such as mergers, acquisitions, product launches, contributions and collaborations to gain a competitive advantage and recognition in their respective markets.

Dow Chemical Company

Overview: Dow Chemical Company is a multinational corporation that manufactures plastics, chemicals and hydrocarbons. The company's product portfolio is divided into 22 categories: automotive and transportation, beauty and personal care, building, construction and infrastructure, chemical manufacturing and industrial, consumer goods and appliances and other industries. In April 2019, DowDuPont completed the separation of its materials science business and Dow Inc., becoming the direct parent company of TDCC and subsidiaries. Dow Chemical operates 106 manufacturing facilities in 31 countries across America, Asia Pacific, Europe, the Middle East and Africa.

Product Portfolio:

• ENGAGE TR POE: Dow's ENGAGETM TR Polyolefin Elastomer (POE) is a low-sloped thermoplastic polyolefin (TPO) roofing membrane-specific ethylene-based solution. ENGAGETM TR POE provides superior flexibility, weatherability, toughness and weldability to roofing membrane systems, allowing for easier installation, longer lifetimes and improved reliability. ENGAGETM TR POE brings low-sloped roofing membranes all over the world.

Key Development:

• Dow Chemical Company introduced INFINAIR in January 2021, a new sustainably developed polyolefin elastomer (POE)-based loop technology solution specifically designed for 3D Loop markets. INFINAIR is suitable for many applications, including residential mattresses, baby pillows, pet beds, medical mattresses and outdoor furniture.

The INFINAIR solution is created by melting thermoplastic elastomer filaments and cooling them in water to form thousands of bonded loops. The product is specifically designed for 3D Loop fiber extrusion, with an optimized crystallinity to maximize fiber hardness and bonding strength, providing better support, airflow and comfort than traditional foam materials.

Why Purchase the Report?

• To visualize the global thermoplastic polyolefin (TPO) market segmentation based on type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global thermoplastic polyolefin (TPO) market by analyzing trends and co-development.
• Excel data sheet with numerous data points of thermoplastic polyolefin (TPO) market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The global thermoplastic polyolefin (TPO) market report would provide approximately 53 tables, 48 figures and almost 143 pages.

Application Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies