The global market for thermoplastic polyolefins (TPO) is expected to reach US $3.43 billion ($3.71 billion) by 2020, according to a study.
According to the study by Grand View Research, increasing application scope in automotive and construction sectors of the emerging markets in Asia, especially China and India is expected to be a key growth factor for TPO. High capacity to demand ratio and raw material price fluctuations are expected to be key challenges for market participants.
The automotive industry is the largest TPO consumer, accounting for over 75% of total market in 2013. With further research conducted to explore its utility as feedstock and substitution, TPO market volume is expected to grow at a CAGR of 6.4% from 2014 to 2020. Robust growth is also expected for emerging applications such as packaging, construction and healthcare.
The study also found that automotive was the most dominant application for TPO as the segment accounted for 75.48% of total market volume in 2013 and is estimated to grow at a CAGR of 6.6% till 2020.
Other applications including packaging, construction and other niche segments accounted for a consolidated 24.52% of the market volume for the same year.
North America and Asia Pacific have been leading in the volume consumption of TPO with shares of 37% and 35% respectively and their CAGR from 2014-2020 being 6.2% and 7% respectively.