Polyurethane Market Analysis Report By Product (Rigid Foam, Flexible Foam, Coatings), By Application (Furniture & Interiors, Construction, Automotive), And Segment Forecasts, 2019 - 2025

Industry Insights

The global polyurethane market size was estimated at USD 65.5 billion in 2018, exhibiting a CAGR of 7.0% over the forecast period. Increasing demand for lightweight and durable products in the automotive, construction and electronics industries is estimated to boost the overall market growth in the upcoming period.

Growing end-use industries in developing nations and the product’s versatility and unique physical properties are estimated to fuel overall industrial growth. Moreover, the rising use of innovative production technologies for polyurethane (PU) with advanced characteristics is estimated to have a positive impact on overall market growth. For instance, the development of TPU and PU-acrylate oligomers that are blended and cured by radiation to achieve semi-interpenetrating polymer networks (IPN).

However, strict environmental policies owing to the release of toxic gases on the burning of fossil fuels and fluctuating raw material costs are factors estimated to hamper the market over the forecast period. The basic raw materials required for manufacturing polyurethane include MDI, TDI, and other polyester polyols. Furthermore, the U.S. adopted key reforms in the form of the Toxic Substances Control Act (TSCA) to encourage environmental conservation by using eco-friendly ways of product manufacturing.

Rising use of bio-based materials is creating new opportunities and will boost consumption of PU manufactured from renewable raw materials. A shift in a trend toward replacement of conventional heavy materials like metals with light-weight and high-performance plastics is boosting the use of polyurethane in the automotive industry. However, pricing and other strategic initiatives of the market depend on top industrial players.

Product Insights

The polyurethane (PU) market is segmented based on product into rigid foam, flexible foam, coatings, adhesives and sealants, and elastomers. The flexible foam segment dominated the market in 2018 owing to rising use as a cushioning material for furniture, bedding and mattresses, seating, and other soft products in several end-use industries.

Factors like environmental stability, energy conservation, versatility, and unique physical properties helped the flexible foam segment dominate in the Asia Pacific; the segment accounted for over 20.0% of the region’s revenue in 2018. China witnessed rapid growth owing to the high demand for PU insulation in an application and is estimated to exhibit a revenue-based CAGR of 8.5% over the forecast period.

The reason behind the growth of the rigid foam segment is extraordinary properties like strong mechanical strength, sound insulation, and good thermal resistance that make them appropriate for extreme weather conditions and harsh environments. China, India, and Indonesia accounted for a significant share in this segment owing to an expanding construction and furniture sector.

The elastomers segment is estimated to grow at the fastest pace over the forecast period, accounting for 20.3% of the total volume by 2025. The polyurethane coatings segment is also likely to exhibit steady growth owing to the introduction of waterborne technologies.

Application Insights

The overall polyurethane market is categorized by application into furniture and interiors, construction, electronics and appliances, automotive, footwear, and packaging. Other applications include food and beverage processing, textiles and apparel, and medical and pharmaceutical. The construction sector accounted for 28.5% of the total market revenue in 2018 and is estimated to grow at a healthy pace in the upcoming period. The sector emerged as a dominant application segment owing 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 revenue as well as volume and is estimated to grow at a healthy pace over the projected period. Rising use in bedding, upholstery, seating and interior products, high demand from the automobile sector, and its advanced flexibility and durability properties are some of the factors driving the segment growth.

The automotive sector is estimated to expand at a revenue-based CAGR of 6.7% over the forecast period. PU products are increasingly used in the automotive industry owing to high mechanical strength and their durability and lightweight properties to reduce vehicle weight and enhance fuel efficiency.

The other segment is estimated to generate high product demand over the forecast period owing to rising use in several end-use industries like food, textiles, medical, apparel, and personal protective equipment. The segment accounted for a 13.7% revenue share in 2018 and is estimated to exhibit a substantial CAGR over the projected period.

Regional Insights

Globally, Asia Pacific emerged as the leading regional market and accounted for 48.07% of total market volume in 2018. The region is estimated to register a revenue-based CAGR of 8.4% over the forecast period. The reason behind overall PU market growth is developing the automotive industry and increasing polymer consumption. Moreover, key players are shifting production base to emerging countries like China and India.

India has witnessed accelerated growth in recent years owing to the implementation of financial reforms and initiatives like ‘Make in India’, which are expected to encourage domestic manufacturing in the region.

Europe is the second-largest regional market owing to the rising demand for PU products from several industries like automotive, furniture, packaging, and construction. The U.S. government initiative to advance the energy efficiency of low-income households using thermal insulation through federal funding is estimated to boost the North American market.

The industry is also anticipated to witness significant growth opportunities in emerging markets of Central and South America, where demand for athletic footwear has risen owing to a rising number of sports activities, such as the Rio Olympics in Brazil (2016) and the Central American & Caribbean Games in 2018. The Middle East and Africa market are estimated to grow at a lucrative pace over the forecast period.

Polyurethane Market Share Insights

Prominent players include The Dow Chemical Company; BASF SE; Covestro; Huntsman Corp.; Eastman Chemical Co.; Mitsui Chemicals, Inc.; Mitsubishi Chemical Corp.; Nippon PU Industry Corp. Ltd.; Recticel S.A.; Woodbridge Foam Corp.; DIC Corp; RTP Company; Lubrizol Corp.; and Rampf Holding GmbH & Co. KG. These manufacturers are actively engaged in product research and development, technological advances, and strategic collaborations to improve their hold in the global market.

Major feedstock suppliers include The Dow Chemical Company, BASF, Mitsui Chemicals, and Covestro. These companies have integrated their operations forward to produce PU themselves to decrease manufacturing costs and achieve economies of scale while enhancing their existing logistics and supply chain.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global polyurethane market based on product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Rigid Foam

  • Flexible Foam

  • Coatings

  • Adhesives & Sealants

  • Elastomers

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Furniture

  • Construction

  • Electronics & Appliances

  • Automotive

  • Footwear

  • Packaging

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Russia

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia