The Global Polyurethane Market is expected to record a positive CAGR of ~5% during the forecast period 2022-2028, and reach a revenue of US$ 100 Bn by 2028. Polyurethane demand is anticipated to increase throughout the forecast period due to rising building insulation demand brought on by environmental concerns. The chemistry of polyurethane enables for the creation of products in odd shapes without sacrificing quality, and it also improves industrial and consumer goods by incorporating comfort and convenience values.
The construction, electronics, and automotive industries are seeing an increase in customer demand for sturdy, lightweight products. PU Raw Materials for insulation are also contributing to this growth. The demand for polyurethane is expected to rise throughout the projection period as building insulation demand rises as a result of environmental concerns. Apart from meeting sustainability needs in the building construction market, Polyurethane materials are employed in a wide range of consumer items as well.
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- Due to the material’s availability in a variety of forms, including rigid, flexible, coatings, adhesives, sealants, and elastomers, polyurethane sells through a network of well-established end markets. Another factor contributing to the possibility of continued market expansion is the consumer market’s interest in sustainability.
- Environmental awareness has accelerated manufacturers’ move to raw materials and production techniques that are viewed as eco-friendlier and more sustainable than alternatives, which is influencing consumers’ changing purchasing habits.
- The main user of polyurethane foam is the building and construction sector. Industry numbers made available by Oxford Economics suggest that global construction production would increase by 42% or US$4.5 trillion between 2020 and 2030 to reach US$15.2 trillion from US$10.7 trillion in 2020 (in 2017 prices and exchange rates). For the interim period, it is anticipated that worldwide construction output will increase by US$2.6 trillion in the five years starting in 2020, reaching US$13.3 trillion by 2025.
- Polyurethane is in demand from a variety of end-users including material suppliers, converters, and OEMs. However, the market is frequently constrained by problems such as shortage of raw materials, and high operational expenses.
- The global construction sector is positioned to be a catalyst for COVID recovery and economic growth. The pace attained by the sector during the post-covid recovery phase helped boost the market of PU products. Many significant suppliers, along with emerging companies and startups, started delivering bio-based/recycled alternatives for Polyurethane feedstock.
Key Trends by Market Segment
By Product: Rigid Foam segment holds the largest share of the Global Polyurethane Market in 2021 due to its durability, energy savings, moisture management, and insulating characteristics.
- Polyether or polyester polyols can be used to create flexible polyurethane foam slab stock. They have porous constructions, smaller bulk densities, and larger sag factors. Major application areas of flexible polyurethane foams are mattresses, acoustic dampers, and seat cushions.
- Foams made of rigid polyurethane are dense and contain a lot of closed cells. Closed-cell foams make it difficult for air to escape from the foam. As a result, the foam has better water resistance, lower thermal conductivity, and stronger load-bearing capacity. Rigid polyurethane foams are thus suited as building and insulation materials. Along with lamination and spraying, rigid polyurethane foams can also be produced using slab stock and molding methods.
- About 30% of the North American polyurethane market is made up of Flexible Polyurethane Foam.
- According to the U.S. Department of Energy 2021, heating and cooling occupied the majority of a typical U.S. Home’s Energy use, around 56% of total energy consumption, building contractors use rigid polyurethane and polyisocyanurate foam to maintain a consistent temperature and reduce noise levels in residential and commercial structures. These foams are good insulation materials that can be used for air barrier sealants, insulated windows, doors, and roof and wall insulation.
- Demand for polyurethane products is increasing as building and construction activity increases globally in various regions.
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By Raw Material: The polyol segment is likely to hold the highest market share during the forecast period in Global Polyurethane Market.
- When the required polyurethane is going to be used to create flexible foams or thermoset elastomers, various polyether polyols, such as polyethylene glycol, polypropylene glycol, and polytetramethylene glycol, are generally used.
- The major product that TDI produces is flexible polyurethane foam, which is utilized in a variety of common items like furniture, bedding, carpet underlay, and packaging. Some paints, sealants, adhesives, and elastomers are also made using TDI. TDI aids in the production of lighter car seats and headliners, reducing weight and increasing fuel efficiency.
- MDI is generally utilized to create hard polyurethane foams for a variety of applications, including refrigerator and housing insulation. MDI insulation helps reduce energy consumption and heating and cooling expenses. MDI is also used to make car parts including dashboards, steering wheels, and bumpers.
- Many household goods are made with TDI and MDI. They are combined to create different varieties of polyurethane. These polyurethanes are used to produce a variety of goods, such as carpet padding, waterproof sealants, and foam for furniture cushions.
By End Users: The Building and Construction segment holds the largest market share in the Global Polyurethane Market in 2021 as high-performance items that operate well, are robust but lightweight, durable, and versatile are made with polyurethanes.
Polyurethane is commonly used in building and construction Raw Materials due to its great strength-to-weight ratio, insulating characteristics, durability, and adaptability.
- The global construction industry generated US$10.7 trillion in output in 2020, and Oxford Economics projects that it will increase by 42%, or by US$4.5 trillion, between 2020 and 2030 to reach US$15.2 trillion by 2030.
- There are several Raw Materials for PU materials in the automobile sector. It can be utilized in car bodywork, bumpers, doors, windows, and ceiling parts in addition to its typical use as foam to make car seats more pleasant. Reduced weight, improved fuel efficiency, strong insulation with optimum sound absorption, excellent passenger comfort, and high corrosion resistance features of Polyurethane – all contribute to higher automotive mileage.
By Geography: The Asia Pacific accounts for the largest share among all Regions within the total Global Polyurethane market in 2021.
- China is investing trillions of USD in infrastructure, a stimulus that may help the second-largest economy in the world far beyond the doom of Covid lockdowns and volatile real estate markets in 2022.
- The government of Beijing, China will release 6.8 trillion yuan (about US$1 trillion) for construction projects in 2022, which is expected to stimulate the growth of the polyurethane industry shortly.
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Competitive Landscape
- The Polyurethane market is highly competitive with ~250 players which include globally diversified players, regional players as well as a large number of country-niche players. Most of the country-niche players are providers of foam-based products and suppliers of raw materials.
- Large global players control about 40% of the market, while regional players hold the second largest share. Some of the major players in the market include BASF, The Dow Chemical Company, Convestro AG, Yantai Wanhua Polyurethanes Co. Ltd., Huntsman, Mitsui Chemicals and SKC Polyurethanes, Inoac Corporation, Rogers Corporation, Tosoh Corporation, Saint- Goblin SA and among others.
- The leading global specialist companies such as Foamcraft Inc and Laxness are highly focused on providing a significant number of polyurethane products that can be used across multiple industries, including furniture, building and constriction, and many more.
Recent Developments Related to Major Players
- In January 2020, BASF announced a single-digit million euro investment in the capacity expansion of water-based polyurethane dispersions at its Castellbisbal location in Spain. BASF has also been investing in the development of the polyurethane dispersion business in Europe. BASF’s production capacity will rise by 30% as a result of the expansion.
- To fulfil the growing demand for Polyurethane Dispersions (PUDs) and elastomers, materials firm Covestro started construction on two new factories in Shanghai in July 2022. These new facilities will be situated within the Covestro Integrated Site Shanghai and represent a combined investment of mid-double-digit million euros. The largest Covestro production location now has a larger footprint, thanks to new plants.
- In July 20, 2022, Huntsman Corporation stated that a new methylene diphenyl diisocyanate (MDI) splitter at its Geismar plant in Louisiana has started operating in a commercial capacity. Huntsman can now generate more high-value, distinctive grades from the crude MDI produced at the facility thanks to the USD$180 million splitter, enabling expansion in important client applications
- Huntsman’s footwear specialists assisted KEEN, Inc. (KEEN) in February 2022 in creating a revolutionary production innovation: a line of sneakers with plant-based soles. The Field to Foot (F2F) sneakers was designed by KEEN’s Advanced Concepts Team using a specifically developed bio-based polyurethane system from Huntsman that contained agricultural processing by-products. The polyurethane system has a reduced carbon footprint than petroleum-based alternatives that are commercially available and are now the standard in the production of footwear since it has bio content ranging from 35% to 51%.
Conclusion
The Global Polyurethane Market is forecasted to continue at a steady growth rate that it has been witnessing since 2017, primarily driven by the unique physical characteristics of polyurethane, including versatility, strength-to-weight ratio, insulating capabilities, durability, and adaptability. Though the market is highly competitive with over 500 participants, few global players control the dominant share and regional players also hold a significant share.
Note: This is an upcoming/planned report, so the figures quoted here for market size estimate, forecast, growth, segment share and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients and report delivered within maximum 2 working weeks.
Market Taxonomy
Ken Research has recently published report a titled Global Polyurethane Market Size, Segments, Outlook, and Revenue Forecast 2022-2028 is segmented by Product, Raw Material, and End User Industries. In addition, the report also covers market size and forecasts for the four region’s Polyurethane Markets. The revenue used to size and forecast the market for each segment is USD billion.
Scope of the Report
The Polyurethane Market is segmented by Product, Raw Material, and End User Industries. In addition, the report also covers market size and forecasts for the four region’s Polyurethane Markets. The revenue used to size and forecast the market for each segment is USD billion.
By Product
- Rigid Foam
- Flexible Foam
- Molded Foam
- Elastomers
- Adhesives & Sealants
- Coatings
- Others
By Raw Material
- Polyol
- Methylene Diphenyl Diisocyanate (MDI)
- Toluene Diisocyanate (TDI)
- Others
By End User
- Furniture & Interiors
- Mattresses/ Bedding
- Building and Construction
- Electronics and Appliances
- Automotive
- Footwear
- Packaging
- Others
By Geography
- North America (USA, Canada, Mexico)
- Europe (Germany, UK, France, Spain, Italy, Rest of Europe)
- Asia Pacific (China, Japan, South Korea, India, Indonesia, Australia, Rest of Asia Pacific)
- LAMEA (Latin America, Middle East, Africa)
