Market Overview
Thermoplastic Polyolefin (TPO) Market is expected grow at a CAGR of 6.10% during the forecast period (2024-2031).
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 Summary
| Metrics | Details |
| Market CAGR | 6.10% |
| Segments Covered | By Type, By Application, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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As per DataM Intelligence, Thermoplastic Polyolefin (TPO) Market study analysis offers an in-depth outlook on the market containing quantitative and qualitative data. It gives a perspective and forecast of the global market based on market segmentation. It also provides global Thermoplastic Polyolefin (TPO) Market size, and growth, along with the latest trends, opportunities, and forecast till 2029 for the global market with esteem to significant countries such as the United States, Canada, Brazil, Germany, Italy, Spain, United Kingdom, Russia, European countries, United Arab Emirates, Saudi Arabia, South Africa, Japan, China, India, South Korea, Australia, and rest of the countries over the globe.
The North American region is expected to hold the largest share of the global market over the forecast period. Thermoplastic Polyolefin (TPO) Market in the United States and Canada produces the utmost share. Whereas the European Thermoplastic Polyolefin (TPO) Market is projected to continue its presence globally from 2023 to 2030.
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 the 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
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.
Market Segmentation 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.
Market Geographical Share
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.
Companies and 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 its 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, weather ability, 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.
