Thermoplastic Polyolefin Elastomers (TPOs)

Olefinic thermoplastic elastomers, as defined in this report, include thermoplastic polyolefins (TPOs), thermoplastic vulcanizates (TPVs) and reactor-made thermoplastic polyolefins (r-TPOs).

Olefinic thermoplastic elastomers are two-component systems consisting of an elastomer (such as EPDM) finely dispersed in a thermoplastic polyolefin (such as polypropylene). The thermoplastic polyolefin is usually the major component and is usually the continuous phase. Such compositions can often be considered either TPOs or impact polypropylenes and the boundary between them is not universally agreed upon. There are differences of opinion as to what is or is not an olefinic thermoplastic elastomer. In this report, olefinic thermoplastic elastomers are defined as compounds of more than 20% elastomer content in polypropylene.

The following pie chart shows world consumption of olefinic thermoplastic elastomers:

There is continuing interest in olefinic thermoplastic elastomers because of their ease of processing, greater design freedom, light weight and ability to be recycled. Advances will be driven by continued product innovation and differentiation on the part of TPO/TPV manufacturers, which will allow these materials to displace traditional elastomers and thermoplastics in a variety of applications. Positive growth will be noticed in an improved economic outlook in developed regions such as North America and Europe, while gains in emerging markets will benefit from further adoption of TPOs/TPVs over other materials.

Demand for olefinic thermoplastic elastomers is closely tied to the automotive industry as a whole. In 2013, world consumption of olefinic thermoplastic elastomers was broken down as follows: 66% for the automotive parts/components industry, 23% for industrial/construction uses, 7% for consumer products and 4% for electrical uses. An average annual global growth rate of 4–5% is forecast for 2013–2018. Growth in China will increase at an average annual rate of about 8%, while growth in Japan will show very little increase.