Reactor Thermoplastic Polyolefin Elastomer (TPO) Market

Reactor Thermoplastic Polyolefin Elastomer (TPO) Market By Resin (Flexible, Rigid), By Application (Automotive, Flexible Profiles, Packaging, Medical) & By Region - Global Market Insights 2022 to 2032

Analysis of Reactor Thermoplastic Polyolefin Elastomer (TPO) market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Buoyant Demand for RTPO across Automotive Industry Supplements Market’s Growth

The global RTPO market is anticipated to value at US$ 673.3 million in 2022 and further expand at a CAGR of 4.5% to reach US$ 1,043.8 million by the end of 2032.

Sales of RTPO accounted for nearly 13.4% of the global thermoplastic polyolefin (TPO) market at the end of 2021. The adoption across booming automotive sector fuels the demand for the market.

Report Attributes


Reactor Thermoplastic Polyolefin Elastomer Market Size (2021A)

US$ 646.5 Million

Thermoplastic Polyolefin (TPO) Industry

US$ 5.1 Billion

Estimated Market Value (2022E)

US$ 673.3 Million

Forecasted Market Value (2032F)

US$ 1,043.8 Million

Global Market Growth Rate (2022-2032)

4.5% CAGR

North America Market Share (2022)


Europe Market Share (2022)


China Market Share (2022)


Market Share of Top 3 Countries


Key Companies Profiled

  • Borealis
  • BP
  • Formosa Plastics
  • Hanwha, Hyosung
  • Japan Polypropylene
  • Lotte Chemicals
  • Lyondellbasell
  • MOL Slovnaft
  • North Huajin Chemical Industries Co., Ltd.
  • Prime Polymer
  • Sumitomo Chemical
  • SunAllomer
  • Trinseo

Don't Need a Global Report?

save 40%! on Country & Region specific reports

RTPO Sales Pattern Analysis over the period 2017-2032

In the design of cars, the utilization of lightweight materials has remained a prominent factor listed by automakers as being at the top of their priority lists.

This is primarily due to the constant inflation in fuel prices and dynamic emission standards among a bundle of other factors varying from region to region.

With the advent of lightweight components, manufacturers have started utilizing products such as carbon fiber and other fiber-reinforced materials, which come with a higher production cost.

This has led to a demand for lightweight materials which are inexpensive and easily replaceable and have a comparatively long life. This has paved the way for the utilization of plastic materials with enhanced performance, such as RTPO, TPO, compounded TPO, and TPV, among others.

Among all the performance plastics used in automotive applications, RTPO has gained traction over the past two decades with manufacturers such as Borealis, LyondellBasell, SABIC, LOTTE Chemicals, and Mitsubishi Chemicals constantly investing in R&D to develop cost-effective RTPO.

Moreover, RTPO has undergone major changes such as varied ethylene composition to maintain the thickness of RTPO for its diversified utilization in the automotive sector. All in all, the demand for lightweight automotive bodies has strengthened the demand for RTPO.  

  • Approaches to Maintain Short-Term Growth: Surging demand across the automotive sector to supplement the market’s growth over the period.
  • Factors Determining Medium-Term Growth: Shifts to electric vehicles or unmanned vehicle trials are anticipated to fuel the market’s demand.
  • Opportunities for Long-Term (2028-2032): Ongoing R&D and favorable investment across end-use verticals to bolster the market’s growth over the projected period.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 4.5% CAGR between 2022 and 2032.

Global rtpo market forecast by Fact.MR

Market share analysis of reactor thermoplastic polyolefin elastomer based on resin type and region is provided in a nutshell in the above image. Under the resin type segment, the rigid type sub-segment dominates with a 79.3% market share in 2022.

“Stringent Vehicle Emission Standards to Positively Affect the Trade Scenario of RTPO”

Vehicle emission standards being set across the world place pressure on automakers to reduce the weight of the automobile and enhance the fuel efficiency of the engine. This not only enhances the demand for cost-effective, lightweight materials but also balances the inflated automotive costs for consumers.

  • For instance, on August 10, 2021, NHTSA proposed new CAFÉ standards which would enhance the stringency rate to 8% from the previously set 1.5%.
  • This proposal also complies with Joe Biden's directive to review the 2020-adopted CAFE standards. Accordingly, the current CAFE standards for passenger cars, which are 38.4 miles per gallon, could increase to 57.6 miles per gallon by 2035.
  • For light trucks, CAFE standards will rise to 40.4 miles per gallon by 2035. The US is a prominent automaker that places immense pressure on the automakers to invest technologically in the utilization of lightweight materials such as plastics such as TPO, RTPO, and compounded TPO, among others.

Not only the US, but China, India, the EU, and other nations have also set stringent vehicle emission standards without complying with which automakers cannot land their cars in the market. Therefore, automakers are joining hands with performance polymer and resin manufacturers to stay in line with the emission standards.

“Circular Economy to Slash the Overall Cost of Products”

To utilize the benefits of a circular economy, manufacturers of RTPO should have a plant retrofitted to the existing plant which operates and produces RTPO of similar grade and quality.

Moreover, manufacturers should invest in the procurement of used and disposed thermoplastic elastomers and should skim through all the received polymers and separate them into different grades and process them separately.

Therefore, initial separation, clarification, treatment, and separate or combined processing of the plastic in the retrofitted/new plant are the essential steps of a circular economy of RTPO & TPO.

Setting up a recycling plant is as complex as setting up a new production unit of RTPO. Despite the high initial costs of a recycling plant, long-term costs of operation, coupled with capacity utilization and plant depreciation, play a prominent role in assessing the comparative margins and costs generated.

Over the past decade, prominent manufacturers have benefitted from the utilization of a circular economy for products with simple compositions, such as polyethylene, polypropylene, PEEK and others, and have been successful in reducing the costs of production and have also ensured higher margins over the same period.

Utilizing the same assessment for complex materials such as RTPO would lead us to marginally lower costs of production of RTPO but with a slight compromise in product quality.

These slightly inferior grades of RTPO produced in a circular economy could be applied to interior and a few exterior applications in automobiles.

“High Barriers of Entry to Close the Doors on Potential New Entrants in the Market”

Startup costs: Start-up costs are pretty high for a business with no prior knowledge of the propylene and polypropylene businesses. Potential entrants under this category have more to lose than to earn in the market if they manage to enter into the business of RTPO owing to the lower cash flow available to integrate backward.

Moreover, a lack of economies of scale, in the beginning, will push them towards the cliffs of losses and debts. For a manufacturer of propylene, forward integration is feasible but investment in intellectual property such as gaining licenses from prominent patent holders such as Mitsubishi, Borealis, and LyondellBasell is essential.

Intellectual Property: Prominent manufacturers in the market such as LyondellBasell and Borealis have invested in the business of RTPO for decades to strengthen their technological hold on the product. For a new entrant to gain a comparable technological grip, it should have a higher cash flow or should procure production licenses from key manufacturers with terms and conditions.

Strategic barriers: Production in the US and China should meet regional laws, coupled with millions of dollars of expenditure on documentation and compliance laws. Apart from that, prominent manufacturers have already created strong collaborations with tier-1 and tier-2 automakers to supply RTPO.

“Lower Throughput on PP Train to Enhance the Cost of RTPO Production”

In terms of capital, prominent variables capturing the chunk of the cost are propylene, hydrogen, butylene, and catalysts. Catalysts utilized in the production process include the Ziegler Natta catalyst, which is expensive and needs a replacement for every couple of tons of RTPO produced.

Apart from the catalyst cost, the lower throughput of propylene through the reactor trains will enhance the cost of production of RTPO.

Manufacturers such as Borealis, LyondellBasell, SABIC, and Mitsubishi have invested in creating an in-house technology that will lower the costs incurred through minimal throughput of PP and has achieved negligible results to increase the yield of RTPO.

The purge of unreacted and spent propylene through the reactor enhances the overall costs of production of RTPO. This is the major drawback that producers of RTPO have faced over the past two decades.

Country-wise Insights

Will the Growing Medical Device Industry in Germany Supplement Market’s Growth?

The German market has dedicated facilities and growth opportunities for medical equipment, which requires RTPO as base material.

  • For instance, according to the data from the International Trade Administration, one of the world's most lucrative markets for medical devices is Germany, which generates about USD 35.8 million annually, or 25.6% of the total European market.

RTPO is widely used in the manufacturing of medical equipment and thus, the market has high growth opportunities across Germany.

How China is Projecting High Revenue Growth Opportunities?

The proliferating Chinese vehicle sales will enable the RTPO manufacturers to gain high-profit margins.

  • For instance, as per the data from the China Association of Automobile Manufacturers (CAAM), China's automobile sales increased by 29.7% year over year in July to 2.42 million units.
  • Production of automobiles increased 31.5% year over year to 2.46 million units during the time frame. According to data, sales of passenger vehicles increased 40% year over year in July to 2.17 million units.

RTPO is used to reduce the weight of the vehicle body and also strengthen the structure. It is also used for both internal and external accessories manufacturing in automobiles. Thus, increasing sales of automobiles supplement the market's growth over the assessment period.

More Insights, Lesser Cost (-50% off)

Insights on import/export production,
pricing analysis, and more – Only @ Fact.MR

Category-wise Insights

Which Resin Type is estimated to dominate the Market in 2032?

Rigid resin has high demand in the RTPO market, the growth is attributed to its remarkable properties and strength. The rigid resin is reinforced with glass to offer very high stiffness. Its strength and durability also make it ideal for automotive, medical, and other equipment.

Why RTPO has a Prominent Application in Medical?

Over the past half-decade, investments in the medical sector grew by more than ~10% CAGR on the back of the rising need for essential equipment across the regions. TPO, PP, PEEK, and other plastics are prominently used in manufacturing various medical equipment ranging from injectable to implants.

Investments in the reduction of glass and more emphasis on the utilization of plastic to reduce the wastage of syringes provide an impetus to the demand for plastics in the medical sector. This is set to cascade the effect to the RTPO market.

Competitive Analysis of Manufacturers and their Key strategies

Major market players are SABIC, Borealis, BP, Formosa Plastics, Hanwha, Hyosung, Japan, Polypropylene, Lotte Chemicals, Lyondellbasell, and MOL Slovnaft, among others.

Market players have balanced use of both organic and inorganic methods which involve regional expansion, joint ventures, and partnerships to expand their global footprint and upgrade their customer portfolio. The launch of innovative and advanced solutions to meet the demands and specific needs of the automotive sector opens new doors for revenue generation.

Fact.MR has provided detailed information about the price points of key manufacturers of reactor thermoplastic polyolefin elastomer positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Reactor Thermoplastic Polyolefin Elastomer Industry Research

  • By Resin:

    • Flexible
    • Rigid  
  • By Application:

    • Automotive
      • Interior
        • Side Covers
        • Pillars
        • Dashboard, Door Panel, and Armrest
        • Floor Mat
        • Others
      • Exterior
        • Side Rails
        • Side Cladding
        • Bumpers
        • Others
    • Flexible Profiles
      • Hoses & pipes
      • Roofing Membranes
      • Geomembranes
      • Foam Sheet
      • Residential Flooring
    • Packaging
      • Rigid
      • Flexible
    • Medical
      • Film
      • Tube
      • Injected Parts
      • Others  
  • By Region:

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • MEA

- FAQs -

The global RTPO market is anticipated to be valued at US$ 1,043.8 million in 2032.

Market’s historical performance for the period of 2017-2021, sales of reactor thermoplastic polyolefin elastomer increased at 1.5% CAGR.

The value of the RTPO market in 2021 was US$ 646.5 million and is estimated to grow at a CAGR of 4.5% during the assessment year 2022-2032.

North America tops the global RTPO market accounting for 32.5% market share.

Growing demand across the automotive vertical is the major driving factor for the market.

Reactor Thermoplastic Polyolefin Elastomer (TPO) Market

Schedule a Call

We value your privacy

We use cookies to enhance your browsing experience, serve personalized ads or content, and analyze our traffic.

By clicking "Accept All", you consent to our use of cookies. Privacy Policy