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Thermoplastic Polyolefin Elastomers (TPO) Market

Thermoplastic Polyolefin Elastomers (TPO) Market

Proliferating Demand from Construction & Medical Industry to Stimulate the Demand for Thermoplastic Polyolefin Elastomers (TPO) during 2021-2031

Thermoplastic Polyolefin Elastomers (TPO) Market
FACT6952MR

Market Snapshot

Latest study by Fact.MR on the thermoplastic polyolefin elastomers (TPO) market reveals that consumption over the past half-decade increased by 4% CAGR to 1,890 KT in 2020. TPO consumption is anticipated to surpass 2,890 KT by the end of 2031 at 4.7% CAGR. Key factor behind market growth is divestment opportunity opted for by key stakeholders in the TPO business.

Thermoplastic polyolefin elastomers, before directly reaching the market in various product forms, such as automotive parts and medical equipment, bypass through compounders and reach downstream product manufacturers. TPOs undergo a complex value and supply chain, which has been explained in detail in the recent report published by Fact.MR.

Key Points Covered in Thermoplastic Polyolefin Elastomers Industry Survey:

  • Market Estimates and Forecasts (2016-2031)
  • Production Capacity Analysis of Prominent Manufacturers
  • Reactor Thermoplastic Polyolefin Elastomer Pricing Analysis
  • Product Pricing Optimization Strategy
  • Rate of Utilization of TPO Elastomers in Roofing
  • Rate of Utilization of TPO Elastomers in Packaging
  • Sales of TPO Resins
  • Demand for TPO in Automotive Sector
  • Demand for Polyethylene (PE) based Thermoplastic Polyolefin Elastomers
  • Demand for Polypropylene (PP) based Thermoplastic Polyolefin Elastomers
  • Key Drivers and Restraints Shaping Market Growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Market Share Analysis
  • COVID-19 Impact on Reactor Thermoplastic Polyolefin Elastomer Sales and How to Navigate
  • Recommendation on Key Winning Strategies

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Historical (2016 to 2020) Vs Future (2021 to 2031) Consumption Analysis of Thermoplastic Polyolefin Elastomers

As per Fact.MR, a market research and competitive intelligence provider, consumption of TPOs over the past half-decade has observed huge twists and turns on the back of gradual market diversification. Demand for TPO elastomers mounted to 1,890 KT in 2020, and is anticipated to reach 2,890 KT by 2031.

In 2020, demand declined by near 4% points due to the force majeure of prominent TPO businesses coupled with stringent lockdowns implemented across regions that slashed product orders from compounders. This not only affected demand for TPOs but also shrunk the margins of stakeholders. Unplanned quarterly demand declination skyrocketed the costs associated with inventory and de-scaling of plants.

On the other side of the coin, medical & healthcare end-use of thermoplastic polyolefin elastomers, such as syringe tips, peristaltic tubes, and medical device components, gained robust market growth over the period of Q3 2020 to Q1 2021. This supported market growth over the same period.

Over the forecast period, the market is set to recover over three assessed stages:

Short-run: Demand for thermoplastic polyolefin elastomers is anticipated to regain its normal growth rate by Q4 of 2021.

Medium-run: Over this term, TPO manufacturers would increase their investments in providing exclusive grades for medical and building & construction applications.

Long-run: Market risk factors are anticipated to grow by twofold over this period on the back of rising number of substitutes for automotive and building & construction applications. Use of thermoplastic polyolefin elastomers in building & construction is anticipated to hold exclusivity by the end of this period.

What are the Key Barriers Faced by Thermoplastic Polyolefin Elastomer Suppliers?

Thermoplastic polyolefin elastomers are simple polymer compounds that were initially launched in the market by keeping the automotive industry in focus. Elastomers, fillers, and other compounds are blended together and followed by particular compounds of TPOs that are produced for different applications.

Complex value and supply chain of TPOs before they reach the final consumer increases overall price of the product and lowers the trust index of end users.

Apart from the complex supply and value chain, presence of a number of substitutes such as compounded TPOs, POEs, and thermoplastic vulcanizates (TPVs) among other potential materials, which have the same properties could be utilized by automakers and building & construction end users at a comparatively lower price point at compounder and end-user nodes of the supply chain.

Therefore, the presence of multiple risk factors in the TPO elastomers market will act as hurdles for strong market growth over the coming years.

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What are the Key Factors Driving the TPO Market?

Thermoplastic polyolefin elastomers are the most preferred material by automakers for a range of interior and exterior applications. Apart from preference, strong integration of TPOs and positive network externalities by automakers across the globe have driven demand.

In 2020, the medical sector acted as wedge to the TPO market and assisted it out of steep decline amidst COVID-19. Syringe tips and peristatic tubes have gained enough thrust in the market on the back of strong demand for healthcare equipment across the globe. This has been a driving factor for the TPO market since Q2 2020.

Thermoplastic polyolefin elastomers market regional analysis by Fact.MR

Country-wise Analysis

Why Does Economies of Agglomeration Prevail in United States TPO Market?

Over the past half-decade, the United States market burgeoned at 6% CAGR and reached a mark of 550 KT in terms of consumption. Consumption of TPOs is anticipated to increase at a CAGR of 6.2% over the forecast period on the back of strong growth in investments from medical and automotive industries.

Prominent TPO manufacturers positioned in the United States are LyondellBasell, Formosa Plastics, Borealis, Dow, and ExxonMobil, to name a few, who have strong sales with automakers and medical goods manufacturers across the country. Moreover, ease of reach to manufacturers reduces overall truckload costs and enhances overall margins of TPO resin manufacturers in the country.

Manufacturers, over the past decade, have reaped the benefits from optimum cost factors and ease of access, and market reach has strengthened the economies of agglomeration in the country.

How Will Electric Vehicles Sales Growth Bolster Demand for TPOs in China?

Currently, China holds the flag of the global electric vehicles market dominance. Key factor driving the country is policies adopted by China of incentivizing and subsidizing the purchase of electric vehicles in the country.

Increase in production of electric vehicles cascades the effect to the adoption of lightweight materials in the market, such as TPOs, POEs, and TPVs, among others.

In 2020, demand for TPO elastomers in China reached a mark of 160 KT, and is anticipated to surge to 270 KT by 2031.

How Has TPO Demand been Shaping across Established & Evolving Markets?

South Korea: South Korea has lower cost of producing downstream petrochemicals despite negligible crude oil production in the country. This is prominently on the back of constant debottlenecking and localization of TPO consumption.

Strong demand conditions domestically will assist market growth by 5% CAGR over the forecast period. Key manufacturers of TPO elastomers in South Korea supporting the local automotive and packaging industry are Lotte Chemical, Hanwha, and others.

Japan: Japan is hub for renowned automakers such as Isuzu, Subaru, Mitsubishi, Toyota, Kawasaki, Suzuki, etc. These companies are key consumers of TPOs produced by Japan Polypropylene, Mitsubishi Chemicals, Prime Polymers, and Sumitomo Chemicals. This favours economies of agglomeration or proximity in the country to a large extent.

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Category-wise Analysis

Why are Hard Components Currently Dominating Sales of TPO Polymers?

TPOs are predominantly used to manufacture hard components in automotive, kitchen, and medical applications. Consumption needs of TPOs and patterns leave a trail of strong consumption of hard components of TPOs across industries.

According to Fact.MR, in 2020, 1,185 KT of TPOs was consumed by compounders to produce hard components. Demand for hard TPO components is anticipated to rise at 4.6% CAGR over the period of 2021-2031. 

Thermoplastic polyolefin elastomers market end use 2021-2031 by Fact.MR

Why is the Automotive Industry the Flagbearer of the TPO Market?

Automotive is considered to be the backbone of TPO market growth over the past half-decade, and is anticipated to remain a workhorse over the forecast period as well.

Despite market diversification, rate of consumption of TPOs in the automotive industry stood at 79% of overall TPO consumption in 2020, which is equivalent to 1,444 KT in the same year.

Competitive landscape

Top players in the thermoplastic polyolefin elastomers market are Borealis, Formosa Plastics, Japan Polypropylene, Lyondellbasell, and Sumitomo Chemicals. These manufacturers reap the benefits of economies of scale and generate competitively higher margins over the amount of product sold.

  • In 2019, Borealis invested in a polypropylene (PP) compounding plant, which will enhance its supply capabilities of RTPOs and TPOs. This new plant is strategically located in the U.S. and shall serve tier-1 automakers in Southeast United States.
  • Over the past half-decade, ExxonMobil is on a spree of expanding its thermoplastic elastomer production facilities in the United States. This is on the back of rising demand for plastic automotive parts in the U.S.

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TPO Market Report Scope

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

Value in US$ Mn, Volume in Tons

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East Africa

Key Countries Covered

  • U.S.
  • Canada
  • Mexico
  • Brazil
  • Mexico
  • Argentina
  • Germany
  • Italy
  • France
  • U.K
  • Nordic
  • Spain
  • Japan
  • China
  • India
  • Malaysia
  • Thailand
  • Australia
  • GCC Countries
  • South Africa
  • Turkey

Key Market Segments Covered

  • By Product Type
  • By Processing Method
  • By Application
  • By End Use
  • By Region

Key Companies Profiled

  • HEXPOL AB
  • RTP Company
  • Mitsubishi Chemicals
  • LyondellBasell
  • Celanese
  • Elastron TPE
  • Dow
  • Aurora Plastics LLC
  • ExxonMobil
  • Solvay S.A.

Pricing

Available upon Request

Thermoplastic Polyolefin Elastomers Market: Key Segments

  • Product Type

    • Blended
    • Dynamically Cross-linked
    • Polymerized
  • Processing Method

    • Injection Molding
    • Extrusion Molding
    • Blow Molding
  • Application

    • Soft Components
    • Hard Components
  • End-use

    • Automotive
      • Exterior
        • Weather Seals
        • Mudguards
        • Air Intake Hose
        • Glass Run Channel
        • Others
      • Interior
        • Dashboard Skin
        • Airbag Cover
        • Seat Backboard
        • Armrest covers
        • Assist Grips
        • Others
    • Building Materials
      • Exterior
      • Interior
    • Consumer Goods
      • Sporting Goods
      • Kitchen appliances
      • Others
    • Electricals & Electronics
      • Wire & Cable insulation
      • Plugs
      • Bushings
      • Connectors
      • Others
    • Medical & Healthcare
      • Syringe Tips
      • Peristaltic Tubes
      • Medical Device Components
    • Others

Thermoplastic Polyolefin Elastomers (TPO) Market- Scope of Report

A recent study by Fact.MR on the thermoplastic polyolefin elastomers (TPO) market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with the development of thermoplastic polyolefin elastomers.

The study also provides the dynamics that are responsible for influencing the future status of the market over the forecast period. A detailed assessment of value chain analysis, business execution, cost structure analysis, and supply chain analysis across regional markets has been covered in the report.

A list of prominent companies manufacturing thermoplastic polyolefin elastomers, along with their product portfolios, key strategies, and SWOT analysis, enhances the reliability of this comprehensive research study.

Report Summary

The study offers comprehensive analysis on diverse features, including speculative and current production capacity, capacity utilization rates, captive consumption rates, grade-wise pricing, revenue growth and list of consumers with consumption quantity, trade analysis, product enhancements, and revenue generation from thermoplastic polyolefin elastomers across the globe.

A comprehensive estimate on the market has been provided through an optimistic scenario as well as a conservative scenario, taking into account revenue from TPO during the forecast period.

Analysis on Market Size Evaluation

The market has been analyzed for each market segment in terms of volume (Tons), and value (US$ Mn).

Market estimates at global and regional levels for TPO are available in terms of “US$ Mn”. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a company can look to achieve, along with identifying potential resources, considering the revenue perspective in the global thermoplastic polyolefin elastomers market.

Inspected Assessment on Regional Segments

Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include market forces analysis, which is expected to have a momentous influence on the growth of the thermoplastic polyolefin elastomers market during the forecast period.

Country-specific valuation on revenue for thermoplastic polyolefin elastomers has been offered for each regional market, along with market scope estimates and forecasts, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value for key countries has also been included in the report.

In-depth Analysis on Competition

The report sheds light on leading providers of TPO, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in thermoplastic polyolefin elastomers has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.

Company profiles have been included in the report, which include essentials such as product portfolios and key strategies, along with all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the thermoplastic polyolefin elastomers market.

- FAQs -

In 2020, thermoplastic polyolefin elastomer consumption was 1,890 KT.

Sales of thermoplastic polyolefin elastomers are projected to increase at a CAGR of 4.7% during 2021 – 2031.

Sales of thermoplastic polyolefin elastomers increased at a CAGR of over 4% during 2016 – 2020.

Dynamic emission standards across regions will act as a prominent driver for rise in consumption for TPOs.

Economies of agglomeration and production expansion by prominent stakeholders of TPOs is the talk of the town

Tier-1 manufacturers of TPOs account for around 40% share in the market.

Top 5 countries driving demand for thermoplastic polyolefin elastomers are the U.S., China, Germany, Japan, and France.

North America accounted for more than 38% of global reactor thermoplastic polyolefin elastomer demand in 2020.

Europe’s consumption of thermoplastic polyolefin elastomers is projected to increase at 2.9% CAGR during 2021 – 2031.

The Mexico and Brazil thermoplastic polyolefin elastomer business will rise at 3.2% and 3.7% CAGRs, respectively, with both countries cumulatively accounting for 72% share in the Latin America Market

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Is the market research conducted by Fact.MR?

Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

What research methodology is followed by Fact.MR?

Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.

What are the sources of secondary research?

Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

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Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

Is a sample of this report available for evaluation?

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