Polyurethane Market Analysis

Global Polyurethane Market Overview

Polyurethane Market is projected to be worth USD 101.29 billion by 2030, registering a CAGR of 5.11% during the forecast period (2021 - 2030), The market was valued at USD 68.76 billion in 2021., in view of the expanding application scope in a number of end-use industries such as construction, household furniture, refrigerators, packaging plastics, shoes, to name a few.

Pearl Polyurethane Systems, a Dubai-based company specializing in polyurethane (PU) insulation and other PU-based applications, announced its most recent growth milestone. It will be opening the new Distribution Hub in Maharashtra, India. The company hopes that this location will help it serve all customers in the Indian sub-continent. Moreover, Pearl’s newest local facility is another step toward internationalizing its manufacturing to be closer to customers since the industry is a people-based business.

DAP introduced wall and cavity foam with a wide spray applicator, which is a 1-component broadcast spray foam. Wall and Cavity Foam uses the technology of polyurethane sealant as a single canister to spray solution with a 2-component spray foam versatility.

Competitive Landscape

Extensive R&D Activities to be the Key Focus Area for Top Vendors

The polyurethane market is rife with a number of global firms that indulge in intense competition. Many of these companies are focused on carrying out extensive research and development activities to introduce new polyurethane products that have several applications. Leading companies also adopt a number of organic as well as inorganic growth tactics, such as mergers & acquisitions, innovative product launches and expansions to enhance their share in the global industry.

BASF is a well-known name in the global polyurethane market, with expertise in aromatic isocyanates and polyols that are used by producers of formulated polyurethane products. The key applications of these products are adhesives, coatings, elastomers, sealants as well as engineered wood products, flexible polyurethane foam, polyurethane foam insulation and rigid polyisocyanurate boards. The company boasts of an extensive range of products, impressive technical capacity, and high focus on technology, reliability and safety.

Some of the prominent market leaders in the polyurethane market covered include:

• Covestro AG


• BASF SE


• Huntsman International LLC


• Dow Inc.


• Mitsui & Co. Plastics Ltd


• Tosoh Corporation


• RTP Company


• Mitsubishi Chemical Corporation


• Eastman Chemical Company


• DIC Corporation


• The Lubrizol Corporation


• Woodbridge


• Recticel NV/SA


• RAMPF Holding GmbH & Co. KG

Market Dynamics

Drivers

Polyurethane’s Escalating Use in Refrigeration Applications to Foster Growth

Polyurethane products have extensive application range in various consumer goods that are used in day-to-day life, but the highest application scope is noted in the refrigeration industry. PU is increasingly being used in medical devices, coatings, footwear, sealants, elastomers and adhesives used on floors as well as automotive interiors.

Another factor that encourages market growth is the surging adoption of advanced technologies for production of polyurethane that have excellent properties and multiple applications. Introduction of PU-acrylate oligomers and TPU cured by radiation to produce semi-interpenetrating polymer networks (IPN) is one such example. Moreover, polyurethane’s versatility as well as impressive physical properties also bolster its demand across a number of end-user industries.

Opportunities

Surging Demand for Low VOC, Bio-Based Materials to Present Opportunities

Mounting preference for bio-based materials across various industries is bound to create lucrative opportunities for major PU manufacturers in the coming years. This is further encouraged by the growing number of government initiatives to lower environmental issues across countries.

Restraints

Acid-Epoxy Coatings to Emerge as a Significant Threat

Mounting environmental concerns along with the credible threat from acid-epoxy coatings as alternatives are touted to be primary restraints in the global market.

Challenges

Instability in Crude Oil Prices to be a Huge Challenge

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

Cumulative Growth Analysis

Market Size to Blossom at a Robust Rate

Polyurethane market analysis by suggests that the expansion rate between 2016 and 2022 can be 6.51%, in view of the soaring demand for durable and lightweight products in construction, electronics and automotive industries.

Segment Overview

Flexible Foam to Secure the Leading Position

The major types of polyurethane are flexible foam, elastomers, rigid foam, adhesives & sealants, coatings and more. Flexible foam happens to be in the lead, as it offers robust stability to structures in construction as well as electronic appliances. Rigid foam however, accounts for a considerable share of 31% in the global market, as analyzed in 2015.

Construction to Emerge as a Prominent End-User Industry

All the key end user industries listed in the polyurethane market report are furniture, construction, electronics appliances, automotive, packaging, footwear and others. Construction industry has emerged as the top end-user in the polyurethane market. Substantial government funding in infrastructure development has pushed the growth of the construction industry across various emerging countries, which bolstered polyurethane consumption rate. Increasing consumer spending on furniture and interiors also elevate the consumption rate of the product.

Regional Analysis

The APAC Market Secures the Leading Position

The APAC market is touted to secure the top spot, and is set to touch USD 28,111.2 Million by 2022. The polyurethane market size is bolstered by the escalating product demand in the automotive industry and the continuous surge in polymer consumption. Various global firms are shifting their manufacturing base to the fast-developing countries in the region, such as India and China. The Indian market is progressing at a striking rate, given the emergence of supportive financial reforms as well as initiatives such as ‘Make in India’ that foster domestic manufacturing. MRFR’s polyurethane market analysis reveals that China procured the highest share of 54.00% in 2014 in the APAC market and was valued at USD 9,710.6 Million. The Chinese market is projected to advance at the fastest pace of 6.94% over the evaluation period. That same year, Japan took the second lead in the regional market and touched USD 4,495.7 Million, while MRFR projects it to achieve a decent growth rate of 6.69% during the given period.

Europe Polyurethane Market to Exhibit Striking Growth

Various EU schemes offer financial incentives to end-users that adopt eco-friendly products, which are touted to be a strong reason for the amplified demand for polyurethanes in Europe. Increased preference for polyurethane in the furniture industry along with the emerging trend of bio-polyurethanes can foster the European market’s growth potential in the ensuing years.

North America to be a Significant Contender

In North America, the US polyurethane market has emerged as one of the best performers, given the government’s rising focus on energy efficiency and households increasingly adopting thermal insulation backed by federal funding. The emerging application scope of polyurethane in industries like textiles, food, apparel, personal protective equipment and medical in North America also pushes the polyurethane market growth.

Recent Developments

• October 2021- Huntsman Corp., a specialty chemicals and materials manufacturer, is set to launch the latest joint venture, Huntsman Polyurethanes Automotive Co. Ltd., with KPX Chemical, a Korean polyols supplier, for the development of new innovative polyurethane systems solutions to be used in Korea’s auto industry. This month, the joint venture will begin to manufacture its products at KPX’s Ulsan, Korea manufacturing site. The American firm’s Polyurethanes division and CEO of Huntsman Asia-Pacific, Tony Hankins, said that Korea has always been one of Huntsman’s key markets in the Asia-Pacific region, driving sustained business development in the automotive industry is the company’s primary goal.


• September 2021- Sanyo Chemical Industries Ltd. and BASF have announced signing a Memorandum of Understanding for tactical collaboration of PUDs development. Both the market bodies focus on jointly developing and producing innovative products with robust sustainability contributions. Recently, technologies and products had global market access through the two companies’ global production footprint. Sylvain Huguenard, VP, Resins & Additives, Asia-Pacific, BASF, said that the PUD market demand is growing exponentially, and producers are looking for enhanced product performance. The manufacturers are also looking for sustainable solutions to fulfill local regulations or to meet their corporate responsibility goals. The partnership will permit both the market bodies to reduce the time-to-market of their latest technologies and boost conversion to water-based systems.


• July 2020 – BASF and Yutong Bus Co. Ltd., a world-renowned bus manufacturer have together developed an innovative polyurethane-based seating for the latter’s new-energy advanced buses. The BASF’s Elastoflex PU-based seating offers advanced flame-retardant benefits and adheres to the European directive pertaining to flame resistance.


• November 2020 – Trelleborg has launched an anti-microbial AMV Shield system for polyurethane materials. This AMV Shield system instills anti-bacterial, anti-viral, anti-mold and anti-fungal properties to polyurethane materials that can last for over 25 years.


• Sika has acquired Swiss polyurethane foams systems manufacturer, Polypag. The move is aimed to increase Sika's expertise in polyurethane foam while expanding its product portfolio and production capacity.


• Polyglass' POLYPUF foam Systems have received regulatory approval for their systems and use of the same as a solution in commercial roofing in high-velocity hurricane zones.


• 2024: Huntsman launched new polyurethane products with improved durability and application versatility.


• 2023: Covestro introduced advanced polyurethane solutions with enhanced performance and sustainability.

Report Overview

Scope of the Report

The polyurethane market report covers segments like product, end-user and regions. The MRFR report also focuses on the polyurethane market by revenue and the latest trends in terms of every submarket, highlighting the primary drivers, barriers, opportunities and challenges that can affect the market dynamics during the review period.

Segmentation Table

By Product

• Rigid Foam


• Flexible Foam


• Coatings


• Adhesives & Sealants


• Elastomers

By End-User

• Construction


• Furniture


• Automotive


• Electronics appliances


• Footwear


• Packaging