Polyurethane Market

Polyurethane Market Size (2023-2028):

The Global Polyurethane Market was worth US$ 43.21 billion in 2022 and is anticipated to reach a valuation of US$ 32.01 billion by 2028 and is predicted to register a CAGR of 7.12% during 2023-2028.

Market Overview:

Polyurethanes are formed by reacting polyols with polymeric diisocyanate or isocyanate in the presence of suitable catalysts and additives. A variety of products are made from a wide range of polyols to meet the needs of specific applications. Polyurethane products are used in a wide range of consumer goods used in daily life. The use of PU in the polyurethane industry Footwear in recent years has made it a worthy replacement for materials like polyvinyl chloride (PVC) and ethylene vinyl acetate (EVA) due to the ease of processing and design.

Market Trends:

Increasing demand for lightweight and durable products in the automotive, construction, and electronics industries is estimated to drive overall market growth in the foreseen period. The growth of end-use industries in developing countries, coupled with the versatility and unique physical properties of the product, is believed to drive overall industrial growth. Also, the increasing use of innovative production technologies for polyurethane (PU) with advanced characteristics is believed to have a positive impact on the overall growth of the market. The construction sector accounted for 28.5% of total market revenue in 2021 and is estimated to grow steadily in the next period. The sector has emerged as a dominant application segment due to rapid industrialization in developing countries and its excellent insulation properties. The furniture and interiors sector accounted for around 21.0% of the total market in terms of turnover and volume and is expected to grow steadily over the forecast period. The increasing use in bedding, upholstery, seats, and interior products, the high demand from the automotive sector, and its advanced properties of flexibility and durability are some of the factors behind the growth of the segment.

Market Drivers:

Polyurethane products have a wide range of applications in various consumer goods used in daily life, but the highest scope of application is seen in the refrigeration industry. Another factor that encourages market growth is the increasing adoption of advanced technologies for the production of polyurethane that have excellent properties and multiple applications. Furthermore, the versatility of polyurethane along with its impressive physical properties also reinforces its demand in various end-user industries.

Market Restraints:

Tight environmental policies due to the release of toxic gases during fossil fuel combustion and fluctuating raw material costs are factors that are expected to hamper the polyurethane market during the forecast period. The growing environmental concerns coupled with the credible threat of epoxy acid coatings as alternatives are presented as the main constraints in the global polyurethane market.

Market Opportunities:

The rising employment of biological materials is creating the latest opportunities and will augment the consumption of polyurethane made from renewable raw materials. A change in the trend towards the substitution of conventional heavy materials such as metals by high-performance light plastics is driving the use of polyurethane in the automotive industry. However, pricing and other strategic market initiatives depend on the major industrial players. The growing preference for bio-based materials in various industries is sure to create lucrative opportunities for major polyurethane manufacturers in the years to come. This is reinforced by the growing number of government initiatives aimed at reducing environmental problems in countries.

Market Challenges:

Unstable crude oil prices are expected to pose a major challenge to players as polyurethane’s prices are dependent on its raw materials.  

POLYURETHANE MARKET REPORT COVERAGE:

Market Segmentation:

Polyurethane Market - By Raw Material:

• MDI
• TDI
• Polyols

Polyurethane Market - By Product:

• Coatings

• Adhesives &Sealants

• Flexible & Rigid Foams

• Elastomers

Flexible foam leads the way, providing tough stability to structures under construction as well as electronic devices. However, rigid foam represents a significant 31% share of the global market, as analyzed in 2021.

Polyurethane Market - By End User:

• Building &Construction

• Automotive & Transportation

• Bedding & Furniture

Bedding and furniture is the largest end-user market for polyurethane. Polyurethane, in the form of flexible foam, is one of the most widely used materials in home furnishings, such as furniture, bedding, and rugs. High-quality car interiors made of polyurethane foam allow low heat transfer and guarantee weight reduction, making it a suitable alternative to metal components in vehicles.

Market Regional Analysis:

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

The polyurethane market in the APAC region is supposed to grow at the highest CAGR during the forecast period. APAC is the fastest-growing market for polyurethane. Due to increasing demand on the domestic front, rising income levels, and cheaper raw materials, Asia-Pacific has become the main consumer and producer of polyurethane. South America, particularly Brazil and Argentina, has also become a key market for polyurethane. Their proximity to the United States should allow them to become key targets for production facilities. Globally, Asia-Pacific has emerged as the top regional polyurethane market, accounting for 48.07% of total market volume in 2021. The region is anticipated to post a revenue-based CAGR of 8.4% over the projection period. The reason for the general growth of the PU market is the development of the automotive industry and the increase in the consumption of polymers.

In addition, key players are moving their production base to emerging countries such as China and India. India has seen rapid growth in recent years thanks to the implementation of financial reforms and initiatives such as "Make in India", which are expected to stimulate domestic manufacturing in the region. Europe is the second regional market due to the growing demand for PU products from various industries such as automotive, furniture, packaging, and construction. It is estimated that the initiative of the US government to improve the energy efficiency of low-income homes using thermal insulation through federal funds will stimulate the North American market. The sector is also expected to see significant growth opportunities in the emerging markets of Central and South America, where demand for sports footwear has increased due to an increasing number of sports activities, such as the Rio Olympics in Brazil (2016) and Central America and Caribbean Games 2018. The Middle East and Africa market is determined to grow at a lucrative pace over the forecast period.

Impact of COVID-19 on the Polyurethane Market:

Various key end-use industries in the PU market, such as furniture, construction, electronics, automotive, etc. have been deeply affected by the Coronavirus outbreak. The pandemic and the shutdown that followed reduced the workforce in manufacturing units, leading to a reduction in polyurethane production. The new COVID-19 has also challenged companies in the market in the form of lost revenue, debt, weaker supply chains, etc. The uncontrollable rise of SARS-CoV-2 around the world has forced major manufacturers to follow strict safety standards and maintain effective communication, with employee health becoming the primary focus. Sellers are also being forced to adopt competitive tactics to maintain their market positions, as they face the hurdles thrown by the Coronavirus pandemic.

Polyurethane Market Key Players:

The major players covered in the polyurethane market report are

1. Covestro AG
2. The DOW Chemical Company
3. BASF SE
4. LANXESS
5. Wanhua Chemical Group Co. Ltd
6. Huntsman Corporation
7. Mitsui Chemicals
8. CangzhouDahua Group Co. Ltd.
9. Chematur Engineering AB
10. Coim Group
11. FXI
12. Northern Plastics Ltd.
13. Polycoat Products
14. Polyurethane Specialties
15. Recticel
16. Seksui Chemical Co. Ltd.
17. Shanghai Donga Polyurethane Co. Ltd.
18. Tosoh Corporation
19. Trelleborg AB