Thermoplastic Polyolefin (TPO) Elastomers Market

Thermoplastic Polyolefin (TPO) Elastomers Market Outlook 2023 to 2033

The global thermoplastic polyolefin (TPO) elastomers market is valued at US$ 1.73 billion in 2023 and is forecasted to reach US$ 2.85 billion by 2033-end. Worldwide sales of thermoplastic polyolefin elastomers are estimated to rise at a CAGR of 5.1% from 2023 to 2033.

• Increasing automotive production across the world is set to open up lucrative prospects for TPO elastomer companies.
• The use of thermoplastic polyolefin elastomers in the automotive industry is predicted to increase the fastest at a CAGR of 5.6% over the forecast period.

A kind of synthetic rubber called thermoplastic polyolefin elastomer is created from polyolefins. It is the perfect material for automotive applications since it outperforms natural rubber in terms of mechanical qualities and thermal stability. In addition, it may be found in packaging, medical equipment, and building materials.

Rise in the demand for thermoplastic polyolefin elastomers in the automotive and transportation sectors is responsible for market expansion. In the automotive and transportation industries, thermoplastic polyolefin elastomers are widely utilized to create a variety of parts, including seals, gaskets, hoses, belts, and tubes.

Numerous medical applications, including introducers, dilators, film, molded components, and packaging, make use of polyolefin compounds. Its capacity to provide chemical resistance, superior biocompatibility, and lubricity while providing adequate tensile and impact qualities might be linked to the requirement.

The thermoplastic polyolefin elastomers market is expected to increase as a result of the rapid expansion of the healthcare sector and technological advancements in medical items. Thermoplastic polyolefin elastomers are utilized in several pharmaceutical packaging options, including closure and container systems.

It is anticipated that the growing use of TPO elastomers in construction applications will spur market expansion during the forecast period. They may be stretched two or three times their original size due to their elastomeric qualities, which also make them flexible and soft. In consumer products, thermoplastic polyolefin elastomers are most widely utilized as a tiny, transparent, flexible material in headphones. They can also be used to create sealing rings and bottle cap liners.

Thermoplastic polyolefin elastomers are employed in the electronics sector because of their outstanding electrical insulating qualities. They are used in several processes, including cable coatings, gaskets, and seals. The need for TPO elastomers is anticipated to increase along with the development of electronic gadgets.

Report Attributes	Details
Market Size in 2023	US$ 1.73 Billion
Projected Market Value (2033)	US$ 2.85 Billion
Global Market Growth Rate (2023 to 2033)	5.1% CAGR
Market Share of Hard Components (2023)	69%
United Kingdom Market Size (2033)	US$ 139.7 Million
Market Share of Automotive Industry (2023)	77%
Japan Market Growth Rate (2033)	3.8% CAGR
The United States Market Size (2033)	US$ 915 Million
South Korea Market Growth Rate (2023 to 2033)	3% CAGR
Key Companies Profiled	HEXPOL AB RTP Company Mitsubishi Chemical Corporation Celanese Elastron TPE Borealis Solvay S.A. Lyondell Basell Dow Aurora Plastics LLC ExxonMobil

Which are the Key Dynamics Boosting the Consumption of Thermoplastic Polyolefin Elastomers?

“Increasing Need for Surgical Instruments across the World”

Increasing demand for medical devices is driving market expansion. The need for thermoplastic polyolefin elastomers in the medical sector is anticipated to increase because of their numerous qualities, which include ease of blending with other polymers, great impact resistance, high sterilization, resistance to harsh chemicals, and ease of blending with other polymers.

Thermoplastic polyolefin elastomers are very gentle on the skin, making them ideal for use in patients. These materials are also used to package medications since they lighten the shipping load and protect the inside contents from contamination.

Thermoplastic polyolefin elastomers, which are used to create surgical tools, syringes, and catheters, have significant applications in the medical and healthcare industries due to their durability. The rise in acute trauma cases over time has led to an increase in orthopedic and hip replacement surgery.

• The Organization for Economic Cooperation and Development reports that in 2019, there were around 244,590 hip replacement surgeries performed in Germany. The need for surgical instruments would increase as a result of this rise in operations, which would encourage the use of thermoplastic polyolefin elastomers in the manufacture of surgical instruments.

“Growing Preference for Wearable and Compact Electronics”

One of the most alluring new technologies is wearable electronics, which offers opportunities for better lives, more productivity, and connectivity. These technologies are in many ways an extension of the human body, enhancing user capabilities and enabling people to interact and communicate with others and their environment.

The creation of unique wearable and compact electronics in recent years has also contributed to market expansion. Electronic manufacturers have realized the benefits of incorporating lightweight, environmentally friendly materials, such as TPO elastomers, with wearable technology to give a non-sticky, soft-touch experience of cutting-edge materials in high-end consumer goods.

What is Restraining Global Demand for Thermoplastic Polyolefin Elastomers?

“Presence of Substitutes Hampering Market Expansion”

Thermoplastic polyolefin elastomers are simple polymer compounds that were initially launched on the market while keeping the automotive industry in focus. Elastomers, fillers, and other compounds are blended and followed by particular compounds of TPO elastomers that are produced for different applications. The complex value and supply chain of TPO elastomers, before they reach the final consumer, increases the overall price of the product and lowers the trust index of end users.

The presence of several 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 and construction end users at a comparatively lower price point at the 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.

What is Helping New Entrants Gain a Decent Market Share?

“Introduction of High-performance Thermoplastic Polyolefin Elastomers”

New companies are focusing on introducing high-performance thermoplastic polyolefin elastomers. Emerging market players are concentrating on using advanced technology to increase their market share. These firms are emphasizing various business tactics to strengthen their position and provide a wide range of products.

• Using smart polymers, a start-up based in the United Kingdom, Cambridge Smart Plastics combines the advantages of thermoplastics with thermosets. The company's smart polymers, including its X-Series compound, are processable thermosets with better strength and form memory that can bind quickly with simple heat welding. The liquid crystal elastomer in its Mesodamp polymer, which also greatly lowers vibrations and impact forces, is another feature. The firm also upcycles unsorted plastic trash into premium solid plastic materials for use in the packaging, medical, aerospace, and automotive sectors.

Country-wise Insights

Why is the United States an Opportunistic Market for Suppliers of TPO Elastomers?

“Increasing Investments in Medical Sector”

• Consumption of thermoplastic polyolefin elastomers in the United States is anticipated to increase at a CAGR of 4.8% over the forecast period.

Increasing investments in the medical industry are driving market growth. Prominent TPO elastomer 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 device manufacturers across the country. Moreover, ease of reach for manufacturers reduces overall truckload costs and enhances the overall margins of TPO elastomer producers in the country.

What is the Market Outlook for TPO Elastomers in the United Kingdom?

“Rapid Expansion of Sports Footwear Industry”

• The United Kingdom market is valued at US$ 93.6 million in 2023.

The growth of the sports footwear industry is driving market growth in the United Kingdom. Strict regulations governing automotive fuel efficiency will increase market demand in the country. Furthermore, the existence of several vehicle assembly factories is boosting market value in the country.

Why is Demand for Thermoplastic Polyolefin Elastomers Increasing in South Korea?

“Technological Advancements in Healthcare Industry”

• At present, the market in South Korea is valued at US$ 67.6 million and is expected to reach US$ 91.2 million by 2033.

South Korea has a 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 thermoplastic elastomer consumption. Key manufacturers of TPO elastomers in South Korea supporting the local automotive and packaging industry. Technological advancements in the healthcare industry are supporting market expansion.

How is Japan Contributing to Revenue Generation in Asia Pacific?

“Increase in Residential and Non-Residential Construction Projects”

• The market in Japan is forecasted to reach US$ 173.9 million by 2033.

Japan is a hub for renowned automakers such as Isuzu, Subaru, Mitsubishi, Toyota, Kawasaki, Suzuki, etc. These companies are key consumers of TPO elastomers. This is expected to boost market value over the coming years. A rise in the fabrication of auto parts, the growth in automobile sales, and an increase in residential and non-residential construction projects are driving market growth.

Category-wise Insights

Which Application is Leading the Sales of Thermoplastic Polyolefin Elastomers?

“TPO Elastomers Widely Used to Manufacture Hard Components in Several Applications”

By application, the market is segmented into soft components and hard components.

Consumption of hard components is anticipated to rise at a CAGR of 5.3% over the projection period.

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

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

“Strict Restrictions Regulating Carbon Emissions Boost Consumption of TPO Elastomers in Automotive Industry”

Based on end use, the market is segmented into automotive, building materials, consumer goods, electrical & electronics, medical & healthcare, and others.

• The automotive industry holds 77% share of the global 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.

The thermoplastic polyolefin elastomers market growth is driven by increased passenger vehicle penetration and growing lightweight & high-performance vehicle acceptance. The demand for thermoplastic polyolefin from the automotive industry has risen as a result of the rise in the adoption of electric and hybrid cars and the introduction of strict restrictions regulating carbon emissions.

The development of technologically innovative and reasonably priced electric cars by market participants is driving market growth. Government initiatives to encourage the use of electric and hybrid vehicles are anticipated to present growth potential during the projection period.

Competitive Landscape

Top TPO elastomer providers are making investments in R&D and technological advancements to provide a variety of solutions while following safety regulations. They are focusing on quality control, product standards, supply chain management, and developing new items. Major industry companies may increase their market presence and meet rising customer needs through partnerships and collaborations.

For instance :

• In 2019, Borealis invested in a polypropylene (PP) compounding plant, which will enhance its supply capabilities of TPOs. This new plant is strategically located in the United States and will serve tier-1 automakers in the Southeast United States.
• In 2020, a novel polyolefin elastomer-based solution for liquid containers with enhanced leak resistance was introduced by SABIC. The company's product portfolio has become stronger since the product introduction.
• Mitsubishi Chemicals created ZELAS, a high-performance thermoplastic with a high rubber percentage that is based on olefins. The product is used in the construction, medical, and automotive industries for both exterior and interior elements.
• 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 United States.

Key Segments of Thermoplastic Polyolefin Elastomers Industry Research

• By Product Type :

  • Blended
  • Dynamically Cross-linked
  • Polymerized

• By Processing Method :

  • Injection Molding
  • Extrusion Molding
  • Blow Molding

• By Application :

  • Soft Components
  • Hard Components

• By End Use :

  • Automotive
  • Exterior
    • Weather Seals
    • Mudguards
    • Air Intake Hoses
    • Glass Run Channels
    • Others
  • Interior
    • Dashboard Skin
    • Airbag Covers
    • Seat Backboards
    • 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

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa