Report Summary:
The thermoplastic polyolefin (TPO) market size is anticipated to reach USD 5 billion by 2028, at a CAGR of 5.3% between 2021 and 2028, the compounded TPO held the greatest market share (41%). In terms of volume, building & construction is anticipated to be the second-largest end-use industry for TPOs throughout the projection period. TPOs are utilised for exterior body components such bumpers, rocker panels, body seals, auto gaskets, doors, and windows. TPO can now be used in automotive sector underhood applications thanks to recent advances.
In 2020, the TPOs market in APAC held the greatest market share. The expanding construction and automotive sectors are likely to increase demand for TPO. In 2020, Japan will be the market leader for TPOs in APAC, followed by China and South Korea. The market is anticipated to grow rapidly over the course of the forecast period. In terms of volume, North America held the second-largest proportion of the global TPOs market in 2020. The expanding car industry is to blame for the rising demand. The market for TPOs in the area is anticipated to expand significantly as more cars are sold. In addition, the market is anticipated to improve with the rise of the construction sector. In 2020, the US held the highest market share in North America, followed by Canada.
The effect of COVID-19 on the global market for thermoplastic polyolefins (TPO)
The COVID-19 pandemic had an impact on the TPO market by disrupting the supply chain, halting manufacturing, decreasing demand, and decreasing per-capita spending globally. However, the demand for TPO is anticipated to rise dramatically in the upcoming years due to the recovery from the economic slump and COVID-19 pandemic, as well as the growing global use of Electric Vehicles (EVs). The market is projected to rise as a result of the rising demand from the APAC automotive industry, the environmental friendliness of TPO, and the development in the TPO processing sector. The volatility of raw material prices and the technological challenges in creating low-cost TPO products are the main restraints on the growth of the TPO market.
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Raw material price fluctuation is a constraint.
Many TPOs’ prices are steadily going up. Price increases are mostly a result of rising labour and energy costs as well as the fluctuating price of crude oil and its derivatives. TPO costs go up as well since they can’t be used with fillers to produce goods that utilise a lot of material but are inexpensive to build. Carbon black and other inexpensive fillers cannot be placed into TPO. Compared to the equipment needed to produce thermoset rubber, the processing of thermoplastic olefin is more expensive and requires a significant initial capital expenditure. The expansion of the market as a whole is also being constrained by rising price competition among different types of TPOs.
These price increases primarily affect a number of polymers and petrochemicals used in the manufacture of TPO compounds, requiring TPO makers to continually raise their pricing. TPO compounders, who are subject to regional pricing rivalry, now have to shoulder additional financial obligations. Leading manufacturers have made efforts to address this issue by inventing alternatives that use less petrochemicals and discovering technologies that can generate materials at reduced costs.
Challenges: Growing tendency of recycling plastic
Some of the materials that are mass produced the most frequently in the world include plastics. Plastics, however, are not biodegradable and have a negative impact on the environment. The development of the plastics sector is impacted by this. The market for TPOs is being constrained by the recent trend of recycling plastic products, which also limits the expansion of plastics. Recycling existing plastic reduces the need to manufacture new plastic.
The practise of gathering waste or scrap plastic and processing it again to create valuable items is known as plastic recycling. Although TPO recycling is uncommon, some of their raw ingredients, including polypropylene, are recycled and used to make other products. The need for post-consumer recycled polypropylene is being driven by companies like Unilever and Procter & Gamble for packaging applications. Additionally, a lot of businesses are embracing this trend in an effort to improve their brand image by pledging to produce no trash and to safeguard the environment. All of these elements have an impact on the market for polypropylene, which in turn has an effect on the market for TPOs.
Important Market Players
Between 2018 and 2020, these businesses used a variety of organic and inorganic growth tactics to increase their market positions. These top companies used a variety of growth tactics, including as new product development, merger & acquisition, and expansion, to increase their geographical presence and product offerings to fulfil the rising demand for thermoplastic polyolefin (TPO) in emerging nations.
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By Region
- North America
- The U.S.
- Canada
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Southeast Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- Rest of Middle East & Africa
