Polyurethane Market Overview and Growth by 2028

[Research Report] The Polyurethane market was valued at US$ 54,917.09 million in 2021 and is projected to reach US$ 1,02,916.80 million by 2028; it is expected to grow at a CAGR of 9.4% from 2020 to 2028.

MARKET ANALYSIS

Polyurethane is a material synthesized by copolymerizing an isocyanate and a polyhydric alcohol. Polyurethane composites and blends have wider applications in electronics and optoelectronics. The uses of polyurethane are broad ranged, including sensors, electrolytes, actuators, EMI shielding for supercapacitors and batteries, electrostatic dissipation, also shape memory applications. The potential market for printed electronics is huge. PU and its composites-based adhesives have discovered applications in flexible and printed electronics. Polyurethane potting compounds are particularly formulated by developers to meet a diverse range of physical, thermal as well as electrical properties. They can protect electronics by providing excellent insulating and adhesive properties, exceptional flexible foam, water, and temperature resistance.

GROWTH DRIVERS AND CHALLENGES

The rising government support for infrastructure development and growing use of polyurethane as insulation material across the globe has aided the market growth of industrial polyurethane products. Governments of various countries across the world are focusing on the nation's infrastructure development. Infrastructure advancement comprises projects related to roads, ports, railways, and airports; projects in agriculture and renewable energy; and industrial and social infrastructure. According to TATA Capital, Budget 2020 also presented a thrust to infrastructure development to encourage spending in roads, railways, airports, highways, and ports infrastructure projects. Allocating more than US$ 1.25 trillion for infra projects, the Indian Government identified over 6,500 projects under the National Infrastructure Pipeline (NIP) to build a $5 trillion economy by 2025. Such activities are supporting the construction sector, mainly in developing countries, and would create ample opportunities for the polyurethane market in coming years. Volatility of prices of raw material used in polyurethane manufacturing pose a challenge to the polyurethane market.  Manufacturers make polyurethane foam mainly by reacting polyols and diisocyanates, and both these products are derived from crude oil. Hence, the volatility of crude oil prices eventually affects polyurethane production cost. International crude oil prices witnessed uncertainty in 2020, and it is continuing in 2021 also. Both crude oil demand and prices fell sharply in the starting months of the year 2020 due to lockdowns and travel restrictions in various countries across the world. Oil prices also crashed to such an extent that the price for WTI crude and the benchmark for US crude oil had turned negative in April 2020.

Polyurethane Market: Strategic Insights

REPORT SEGMENTATION AND SCOPE

The "Global Polyurethane Market Analysis to 2030" is a specialized and in-depth study with a major focus on the global market trends and growth opportunities. The report aims to provide an overview of the global market with detailed market segmentation by raw material, product, application, and geography. The global polyurethane market has been witnessing high growth over the recent past and is expected to continue this trend during the forecast period. The report provides key statistics on the consumption of polyurethane worldwide along with their demand in major regions and countries. In addition, the report provides the qualitative assessment of various factors affecting the polyurethane market performance in major regions and countries. The report also includes a comprehensive analysis of the leading players in the polyurethane market and their key strategic developments. Several analyses on the market dynamics are also included to help identify the key driving factors, market trends, and lucrative opportunities that would, in turn, aid in identifying the major revenue pockets.

Further, ecosystem analysis and Porter’s five forces analysis provide a 360-degree view of the global polyurethane market, which helps understand the entire supply chain and various factors affecting the market growth.

SEGMENTAL ANALYSIS

The global polyurethane market is segmented on the basis of raw material, product and application. Based on raw material, the polyurethane market is segmented as, polyol, MDI, TDI, and others. On the basis of product, the market is classified as, rigid foam, flexible foam, coatings, adhesives, sealants & binders, elastomers, and others. The polyurethane market is categorized on the basis of application into furniture and interiors, construction, electronics & appliances, automotive, footwear, packaging, and others. Based on raw material, polyols accounted for significant share. Polyols are organic compounds with multiple hydroxyl groups. They are amongst key raw materials used in the production of polyurethanes. Methylene diphenyl diisocyanate (MDI) is an aromatic compound used in the production of polyurethane. It is reacted with polyols to form polyurethane. Toluene diisocyanate (TDI) is a chemical compound which is transparent pale yellow or colourless liquid. It is used to make flexible polyurethane foams that are largely utilized in applications such as beds and furniture, carpet underlay, and packaging materials. Raw materials used for the production of polyurethanes other than polyols and diisocynates are stabilizers and additives. Based on product, the flexible foam accounted for highest market share. Flexible polyurethane foam is characterized by a cellular structure that allows for some degree of compression also resilience which provides a cushioning effect. Due to this property, it is a favored material in furniture, athletic equipment, packaging, footwear, bedding, automotive seating, and carpet cushion. It further plays a valuable role in soundproofing as well as filtration. Rigid polyurethane foam is known as one of the most efficient, high performance insulation materials; also, it enables very effective energy savings along with the minimal occupation of space.

REGIONAL ANALYSIS

The report provides a detailed overview of the global polyurethane market with respect to five major regions, namely; North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America. Asia Pacific accounted for a significant share of the market and valued at more than US$ 9,500 million in 2022. Emerging countries of Asia Pacific are further witnessing an upsurge in urbanization and industrialization, which offers ample opportunities for the key market players in the polyurethane market. Countries like Australia, Japan, India, China, South Korea, Singapore, Taiwan, and Indonesia have large manufacturing industries in a diverse sector, which chemical, textile, automotive, electronics, and other industries. The manufacturing sector in these countries has experienced a huge shift over the years. North America valued at more US$ 3,500 million in 2022. The polyurethane market in this region is growing owing to its increasing demand from the furniture and interiors, construction, electronics and appliances, automotive, footwear, packaging, and other industries located in North America.

INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES

The report provides a detailed overview of the global polyurethane market with respect to five major regions, namely; North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America.

In 2021, Covestro successfully completed acquisition of Resins & Functional Materials business from DSM.

In 2020, Huntsman Corporation announced that it has branded its world leading spray polyurethane foam (SPF) Business as Huntsman Building Solutions (HBS). HBS is a global platform within Huntsman's Polyurethanes division.

Polyurethane Market Players Density: Understanding Its Impact on Business Dynamics

The Polyurethane Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

IMPACT OF COVID/IMPACT OF GEOPOLITICAL SCENARIO/IMPACT OF RECESSION

The report provides a detailed overview of the global polyurethane market with respect to five major regions, namely; North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America. Industries such as construction, automotive, electronics, and furniture have been the major consumers of polyurethane. In 2020, these industries had to slow down their operations due to disruptions in the value chain caused by the shutdown of national and international boundaries. Moreover, lockdowns imposed by different countries hampered the ability of industries to maintain inventory levels in the same year. The shortage of manpower resulted in the deceleration of polyurethane production and distribution operations. Additionally, government restrictions and other COVID-19 precautions reduced the production capacities of stakeholders in the polyurethane ecosystem. In 2021, the global marketplace began recovering from the losses incurred in 2020 as governments of different countries announced relaxations in social restrictions. Moreover, the previously postponed construction projects are anticipated to resume, which would further provide an opportunity for the polyurethane market players to regain normalcy. Expansion in production capacities in the chemicals & materials industry in different regions of the world resulted in a rise in demand for polyurethane in 2021.

COMPETITIVE LANDSCAPE AND KEY COMPANIES

Some of the key players and top polyurethane manufacturers, operating in the polyurethane market include, Covestro AG, FXI, Huntsman Corporation, Lubrizol Corporation, Mitsui Chemicals Inc, BASF SE, The Dow Chemical Company, DIC Corporation, Recticel NV, and Tosoh Corporation, among others.