The global market for thermoplastic polyolefins could reach $3.43 billion by 2020, according to a research firm.
San Francisco-based Grand View Research Inc. said growth in the automotive and construction sectors in emerging markets in Asia, particularly China and India, is expected to fuel the TPO surge.
Raw material pricing as well as high capacity to demand ratio will be among the challenges for the market, according to Grand View, a market research and consulting company that provides customized reports and consulting services.
The automotive sector accounted for 75 percent of the total TPO market in 2013. As its use as a feedstock and substitution is explored, TPO will show a compound annual growth rate of 6.4 percent from 2014 to 2020, the report said. TPO use is expected to grow in such applications as packaging, construction and health care.
North America, at 37 percent, and Asia-Pacific, at 35 percent, account for the majority of TPO consumption.
The report, “Thermoplastic Polyolefins (TPO) Market Analysis and Segment Forecasts To 2020,” is on sale now from Grand View Research.