Polyurethane Market

Polyurethane Market Outlook (2022-2032)

Global Polyurethane Market is likely to grow rapidly because of the various benefits of polyurethane, coupled with the rising application of polyurethane in different industries, with North America and Europe leading the way with around 60% of the market share.

Worldwide polyurethane consumption is valued at US$ 83.1 billion in 2022, and the market is forecast to reach US$ 162.3 billion by 2032, expanding at a high CAGR of 7% from 2022 to 2032.

Report Attributes	Details
Polyurethane Market Size (2021A)	US$ 79.2 Billion
Estimated Market Value (2022E)	US$ 83.1 Billion
Forecasted Market Value (2032F)	US$ 162.3 Billion
Global Market Growth Rate (2022-2032)	7% CAGR
North America Market Share (2021)	~33%
North America Growth Rate (2022-2032)	~7.4% CAGR
United States Growth Rate (2022-2032)	~7.4% CAGR
Market Share of Top 5 Companies	~38%
Key Companies Profiled	Covestro AG The Dow Chemical Company Huntsman Corporation Yantai Wanhua Polyurethanes Co. Ltd. Foamcraft Inc. Lanxess Eurofoam Group Tosoh Corporation Future Foam, Inc. Armacell Saint Gobain S.A

 

Polyurethane Consumption Analysis (2017-2021) Vs. Market Growth Forecasts (2022-2032)

Polyurethanes are widely used polymers that are formed by reacting polyols with diisocyanates in the presence of chemicals such as catalysts and additives. They are used to manufacture a variety of products in almost all industries, such as electronics, automotive, footwear, construction, packaging, etc., to be molded into unusual shapes and enhance consumer and industrial products.

Polyurethane is being used as rigid foam for walls and roof insulation, flexible foam in furniture, and as adhesives, coatings, and sealants for automotive interiors. All these factors are likely to provide a gain of 121 BPS to the polyurethane market during the forecast years of 2022-2032.

Principal applications of polyurethane are in elastomers, foams, and coatings offering excellent abrasion resistance. Rigid polyurethane foams are being widely used as insulation materials because of the combination of cost-effectiveness and low heat transfer properties. Good low-temperature capability, wide molecular structural variability, low cost, and high abrasion resistance are all supporting market growth.

However, poor weather ability, lesser thermal capability, being flammable, etc., are likely to hamper polyurethane demand growth over the coming years.

• Short-run (2022 Q2 to 2025): Enhanced application of PU in different end-use industries and rising demand from carpet, bedding, and cushion companies are likely to fuel demand.
• Medium-run (2025-2028): Demand is poised to grow in East Asia and South Asia & Oceania due to the rising building and construction industry.
• Long-run (2028-2032): The presence of substitutes in the market is likely to lead to moderate market growth.

Fact.MR projects the global market for polyurethane to witness a 7% CAGR between 2022 and 2032, after having expanded at a CAGR of 5% between 2017 and 2021.

This image provides a market share analysis of product type, application, and region. Under product type, rigid foam dominated the market with a 30.9% share in 2021.

How is Polyurethane Market Growth Being Driven?

“Rising Polyurethane Demand from Building & Construction Industry”

Polyurethane is widely used in the building and construction industry for commercial, industrial, and residential applications because of its insulation properties, versatility, durability, strength-to-weight ratio, etc. Polyurethane is used to make high-performance products that not only perform well but are durable and versatile at the same time.

The construction and building industry is the largest consumer of polyurethane foam due to benefits such as energy efficiency, thermal/mechanical performance, and environment-friendly nature. It also improves the strength of the building. Sharp growth recorded in the building and construction sector in the Asia Pacific region is likely to support the high demand growth of polyurethane over the forecast period.

“Various Advantages Offered by Polyurethane to Spur Market Demand”

Polyurethane is versatile as the mechanical properties of polyurethane offer limitless benefits and advantages. For instance, it helps in filling the gap between plastic and rubber, is harder and able to endure more loads than rubber, and is more flexible than plastic.

Polyurethane also provides for abrasion resistance, is chosen for applications against severe wear regardless of low temperature, and carries the super ability to resist abrasion along with oil and chemical resistance.

These advantages are likely to spur polyurethane demand by ~12% during the forecast years of 2022-2032.

What Can Hamper Sales Growth of Polyurethane Suppliers?

“Presence of Substitutes to Hamper Progress of Polyurethane Manufacturers”

Polyurethane is used in several end-use industries for different applications. However, the presence of substitutes for polyurethane is likely to hamper market growth to some extent over the coming years.

For instance, there is a rising trend of using linseed oil instead of toxic products to treat wood in the furniture industry. In marine applications as well, there is rising usage of polysiloxane coatings based on isocyanates instead of polyurethane coatings, because of their weathering properties and suitable durability, making them a strong substitute for polyurethane coatings.

As such, these issues are likely to confine market growth by 0.5X during the forecast years of 2022-2032.

Region-wise Insights

Why is North America the Largest Market for Polyurethane?

The North America polyurethane market accounts for the largest market share of 33% and is projected to rise at 7.4% CAGR during the forecast years.

The market is likely to grow due to the enhanced use of polyurethane in automotive and construction applications, along with rising applications in the manufacturing of machinery and furniture.

How is the Asia Pacific Polyurethane Market Progressing?

The Asia Pacific polyurethane market holds 28.1% of the global market share. The East Asia and South Asia & Oceania polyurethane markets are expected to progress rapidly at 7.1% and 7.4% CAGRs, respectively, during the forecast years.

Market growth in the region is attributed to rising construction activities and rapid urbanization in emerging economies such as India and China. Rise in infrastructural expenditure coupled with significant growth in infrastructure in the transportation sectors is fueling market growth.

Along with this, the rising electronics industry and growing appliances market are further pushing polyurethane market growth in the Asia Pacific region.

Category-wise Insights

Why are Polyurethane Manufacturers Seeing High Demand for Rigid Foam?

The polyurethane market, under product type, is segmented into rigid foam, flexible foam, coating, elastomers, adhesives & sealants, and other product types. Amongst them, rigid foam dominates the market with 30.9% of the overall market share and is slated to register 8.3% CAGR over the forecast years.

High demand for rigid foam is attributed to its use in various electronics and home appliances such as air conditioners and refrigerators for thermal insulation. Rising electronics and appliance production will support rigid foam demand growth over the coming years.

The next leading segments are flexible foam and coatings, which hold 20.8% and 17.3% market share, respectively, and are poised to expand at 7.8% and 6% CAGRs during the assessment years of 2022-2032.

Will Application of Polyurethane Continue to Be Dominated by the Construction Sector?

Under the application segment, the polyurethane market is segmented into construction, furniture and interiors, automotive, electronics and appliances, packaging, footwear, and other applications.

Amongst them, the construction sector drives most polyurethane consumption with 27.1% of the overall market share and is projected to surge at 8.2% CAGR over the assessment years.

Demand growth of polyurethane in the construction industry is attributed to its enhanced application due to beneficial properties such as flame retardancy, heat protection, insulation, etc. It is used as adhesives and sealants for the insulation of electronic items and walls.

The next leading segments under application are furniture & interiors and automotive, which hold 21.5% and 15.6% market share, respectively, and are projected to rise at 7.3% and 6.7% CAGRs during the forecast years.

Competitive Landscape

The global polyurethane market has the presence of numerous local and international manufacturers, due to which, the market has become highly competitive and fragmented. Key polyurethane manufacturers are resorting to geographical expansion, investments, capacity expansion, mergers, etc. in the market or independently to maintain an edge over others.

Key players in the market are focusing on launching new products to differentiate themselves from other competitors and widen their consumer base, thereby leading to polyurethane industry growth.

For instance:

1. Coverstro, in 2021, planned to augment production capacity by establishing new thermoplastic polyurethane plants at its Shanghai site, which is expected to be completed by 2023.
2. Huntsman Corporation, in 2022, opened a new plant in Taiwan with downstream polyurethane capabilities and a polyol plant.

Fact.MR has provided detailed information about the price points of key manufacturers in the polyurethane market positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Polyurethane Industry Survey by Category

• By Product Type :

  • Rigid Foam
  • Flexible Foam
  • Coating
  • Elastomers
  • Adhesives and Sealants
  • Other Product Types

• By Application :

  • Construction
  • Furniture & Interior
  • Automotive
  • Electronics and Appliances
  • Packaging
  • Footwear
  • Other Applications

• By Region :

  • North America 
  • Latin America 
  • Europe
  • East Asia 
  • South Asia & Oceania 
  • MEA