Polyurethane Market Size, Share & Trends Analysis Report By Product (Flexible Foam, Rigid Foam), By End Use (Construction, Electronics & Appliances), By Region (APAC, North America), And Segment Forecasts, 2021 - 2028

Report Overview

The global polyurethane market size was valued at USD 70.67 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 3.8% from 2021 to 2028. Increasing demand for building insulation in light of sustainability concerns is expected to escalate the product demand over the forecast period. Sustainability in building developments is a vast field and encompasses several steps that must be implemented in the primary construction stages since their potential environmental impact is quite significant. Green buildings are thus increasingly entering the construction market due to increasing investments in smart energy-efficient commercial and residential buildings. These buildings not only offer profitable opportunities but are also acceptable by environmental and federal regulations, providing a meaningful response to growing consumer expectations for sustainability.

Increased effectiveness in building materials has ultimately generated higher demand for efficient insulating materials to regulate Heating, Ventilation, And Air Conditioning (HVAC) and counteract the amount of energy lost due to inefficient insulation. Polyurethane (PU) foams are subsequently being utilized as extremely efficient insulation materials, leading to greater energy saving.

The rising product demand from the automotive, construction and packaging sectors in the U.S. is expected to drive the market over the forecast period. The construction sector in the U.S. is expanding a;t a significant rate owing to positive market fundamentals for commercial real estate along with rising state and federal funding for institutional buildings and public works. Moreover, the ongoing construction projects, such as the construction of the South San Francisco Civic Center campus, LaGuardia Airport Construction Project, O’Hare Airport Construction Project, and Second Avenue Subway Construction Project, are expected to fuel the product demand in construction applications in the coming years.

Furthermore, the USD 2 trillion investment was announced by the U.S. government in March 2020 for the development of hospital buildings, roads, and other infrastructure, which is expected to further foster market growth in the country. However, growing environmental concern is anticipated to hamper the PU demand over the forecast period. Developed countries such as the U.S., Canada, the U.K., and Germany have reduced carbon emissions over the past few years owing to stringent government regulations for environmental concerns.

The raw materials associated with PU production, such as TDI & MDI, are themselves deemed hazardous to the environment due to the industrial release of TDI that pollutes the air. Environment Canada and Health Canada have assessed TDI levels and concluded that their concentration is hazardous to human health. To ensure sound environmental management of TDI releases, Environment Canada has published a Pollution Prevention (P2) Planning Notice. Furthermore, landfills in Europe, especially waste tires and PU products, have been banned to exploit the vast potential of PU as a source of energy similar to coal, while also preventing environmental pollution.

Product Insights

The rigid foam product segment led the market and accounted for more than 31.0% share of the global revenue in 2020. Rigid PU foams are high-performance closed-cell plastics utilized in end-use industries, such as transportation, packaging, and industrial insulations & appliances, owing to their structural stability, which assists manufacturers to design thermally insulating products.

Rigid foams possess sound insulation properties, higher mechanical strength, and thermal resistance making them highly suitable for extreme weather conditions and harsh environments. Asia Pacific market for rigid PU foams is dominated by China, India, and Indonesia on account of the rapid industrialization in these countries. Expansion of the construction and furniture sectors, along with the presence of major automotive OEMs, is a key driver that propels the demand for rigid foam in APAC.

The government support to weatherize low-income households and meet transitioning standards for green buildings is anticipated to further drive the rigid PU foam demand in insulation applications. The furniture and construction industries in Europe have witnessed significant growth owing to the stringent regulatory framework to reduce Greenhouse Gas (GHG) emission levels. This factor has resulted in increased investments in rigid PU foam by regional automotive manufacturers.

Application Insights

The construction application segment led the global market in 2020 and accounted for a revenue share of more than 26%. The demand for PU in construction applications is expected to witness significant growth over the forecast period owing to various beneficial characteristics of PU foams, including excellent thermal insulation, lightness, chemical inertness, and bacterial & pest resistance. Growing urbanization and industrialization, especially in emerging economies, such as China and India, coupled with rising infrastructure development activities in the Middle East are expected to fuel the growth of the global construction industry, which, in turn, will boost the product demand.

In addition, increasing infrastructure spending and a rising number of government initiatives, such as smart cities, FDI in the construction development sector, and others, are propelling the growth of the construction industry. Moreover, the growing popularity of green buildings across the globe is anticipated to drive the construction sector, augmenting the adoption of PU. However, the Covid-19 outbreak across the globe has adversely affected the market growth in the construction sector. Stoppage or slowdown of construction projects, restriction on movements, production halts, and labor shortages have led to a decline in the growth of the construction industry, which, in turn, is anticipated to hamper the product demand over the forecast period.

Regional Insights

Asia Pacific was the dominant regional market in 2020 and accounted for over 44% share of the global revenue. The market is driven by the growth of the major end-use industries, such as automotive, electronics & appliances, packaging, furniture & interior, and construction. The regional market is characterized by the easy availability of land and low-cost skilled labor. A shift in the production landscape toward emerging economies, particularly China and India, is expected to positively influence market growth over the forecast period. The region is home to several rapidly expanding industries as well that offer lucrative growth opportunities to PU manufacturers.

Flexible foam is used for cushioning in a variety of consumer and commercial products such as furniture, bedding, carpet cushion, fibers, and textiles. Foams and other PU products are expected to gain significance in the region on account of rising consumer awareness regarding the sustainability of lightweight and low-cost polyurethane. Moreover, increasing construction spending owing to the growing need for sustainable infrastructure coupled with increasing demand for furniture and sleeping products is expected to drive product demand.

Key Companies & Market Share Insights

The global market is fragmented with the presence of various global and regional players. Regional players have robust distribution networks and are very proactive in making changes to the product as per the regional and country-level changes in regulations.

Players compete on the basis of raw materials used in the manufacturing of PU, such as polyol, methylene diphenyl diisocyanate, and toluene diisocyanate. Established players are investing in research & development activities to formulate new products to have a competitive edge over others. In January 2020, RAMPF Holding GmbH & Co. KG showcased an electronic casing made of PU resin, which helps in cooling electronic devices. This product innovation enabled the company to expand its product portfolio in the electrical & electronic industry. Some prominent players in the global polyurethane market include:

• Dow Inc.

• BASF SE

• Covestro AG

• Huntsman International LLC

• Eastman Chemical Company

• Mitsui & Co. Plastics Ltd

• Mitsubishi Chemical Corporation

• Recticel NV/SA

• Woodbridge

• DIC Corporation

• RTP Company

• The Lubrizol Corporation

• RAMPF Holding GmbH & Co. KG

• Tosoh Corporation

Polyurethane Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global polyurethane market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)

  • Rigid Foam

  • Flexible Foam

  • Coatings

  • Adhesives & Sealants

  • Elastomers

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)

  • Furniture & Interiors

  • Construction

  • Electronics & Appliances

  • Automotive

  • Footwear

  • Packaging

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Russia

    • Spain

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia