Polyurethane Market Size, Share & Trends Analysis Report By Product (Rigid Foam, Flexible Foam), By End-use (Electronics & Appliances, Packaging), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global polyurethane market size was valued at USD 75.19 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 4.4% from 2023 to 2030. Increasing demand for building insulation in light of sustainability concerns is expected to escalate the demand for polyurethane during 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 building development is rapidly entering the construction market due to increasing investments in smart & energy-efficient commercial and residential buildings. These buildings not only offer profitable opportunities but also meet the requirements set 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 foams are subsequently being utilized as extremely efficient insulation materials, leading to greater energy saving.

The rising demand for products 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 at 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 demand for polyurethane in construction End-uses in the coming years.

Furthermore, the USD 2 trillion investment announced by the U.S. government in March 2020 as a response to coronavirus for the development of infrastructure including hospital buildings, roads, and other infrastructure is expected to foster the market growth in the near future.

However, growing environmental concern is anticipated to hamper the market growth 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 polyurethane 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 for 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 segment led the market and accounted for more than a 30.0% share of the global revenue in 2022. Rigid polyurethane foams are high-performance closed-cell plastics utilized in end-use industries, such as transportation, packaging, and industrial insulations and 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.

The Asia pacific (APAC) market for rigid PU foams is dominated by China, India, and Indonesia on account of the surge in industrialization. The expansion of the construction and furniture sectors and the presence of major automotive OEMs are key factors that drive the rigid foam industry in APAC. The growing government support to fortify low-income households to tackle harsh weather conditions and meet transitioning standards for green buildings is anticipated to further drive the rigid PU foam demand in insulation End-uses.

The furniture and construction industries in Europe have witnessed significant growth owing to a 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. Growing residential construction and infrastructure activities are also fueling the rigid polyurethane foam demand in Mexico.

End-use Insights

The construction end-use segment led the market and accounted for more than 25.0% share of the global revenue in 2022. The demand for polyurethane in construction end-use End-use is expected to witness significant growth over the forecast period owing to various beneficial characteristics of polyurethane foam including excellent thermal insulation, lightness, chemical inertness, and bacterial and pest resistance.

Growing urbanization and industrialization, especially in emerging economies, such as China and India, and the rising infrastructure development activities in the Middle East are expected to fuel the growth of the construction industry, in turn, creating demand for polyurethane foam and insulation.

In addition, increasing infrastructure spending and the rising number of government initiatives, such as smart cities and subsequent FDI in the construction and development sector are propelling the growth of the construction industry. Moreover, the increasing popularity of green buildings across the globe is anticipated to drive the construction industry, which, in turn, is further anticipated to fuel the demand for polyurethane.

However, the COVID-19 outbreak across the globe had severely impacted the market growth in the construction sector. Stoppage or slowdown of construction projects, restriction on movements, production halts, and labor shortages to contain the COVID-19 outbreak led to a decline in the growth of the construction industry, which, in turn, is anticipated to remain an obstacle to growth over the forecast period.

Regional Insights

The Asia Pacific dominated the market and accounted for over 45.10% share of the global revenue in 2022. The market is driven by the growth of the major end-use industries such as automotive, electronics and appliances, packaging, furniture and interior, and construction. The Asia Pacific region is characterized by a large amount of skilled labor and low costs, along with the easy availability of land.

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, such as construction, automotive, and electronics that offer lucrative growth opportunities to polyurethane 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 the 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 the 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 key players and various medium and small regional and country-level players operating in different parts of the world. Manufacturers of polyurethane comprise both large-size and medium-size players operating on the global and regional levels, respectively. 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.

The majority of players operating in the market compete based on raw materials, such as polyol, methylene diphenyl diisocyanate, and toluene diisocyanate, used in the manufacturing of polyurethane. Established players such as RAMPF Holding GmbH & Co. KG are investing in research & development activities to formulate new products to have a competitive edge over the other players.

For instance, in August 2021, Bostik announced the launch of its new polyurethane sealants line for the sealing and bonding construction markets. This product innovation enables the company to expand its product portfolio in the construction sector, especially in emerging countries. 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

• Recitel NV/SA

• Woodbridge

• DIC Corporation

• RTP Company

• The Lubrizol Corporation

• RAMPF Holding GmbH & Co. KG

• Tosoh Corporation

Recent Developments

• In June 2023, Recital NV/SA launched the latest range of polyurethane insulation boards comprising 25% bio-circular raw materials for the purpose of reducing carbon dioxide emissions by 43%.

• In June 2023, DIC Corporation has introduced the HYDRAN GP series of waterborne polyurethane resins that are environment friendly, and provides an alternative to solvent-based polyurethane resins.

• In May 2023, Covestro AG inaugurated the latest production line, and launched Desmopan^® UP thermoplastics polyurethane (TPU) series for providing paint protection film in the wind and automotive industry.

• In December 2022, Dow Inc. launched V PLUS Perform^TM, an evolution for its existing V PLUS Perform^TM polyurethane technology. This has been designed to meet the needs for sustainable insulation, and energy-efficient in buildings.

• In November 2022, the Lubrizol Corporation declared the launch of ESTANE 3D thermoplastic polyurethane (TPU) M88A for being utilized in HP’s Jet Fusion 5200 series

• In February 2022, BASF SE collaborated with NEVEON to develop on the recycling of mattresses by focusing on the use of flexible polyurethane foam. The purpose is to establish a closed product loop for mattresses through the recycling of wet chemicals.

• In October 2021, Huntsman International LLC launched the latest range of low emission polyurethane systems, especially for automotive interiors. The product line include RUBIFLEX® LE, and ACOUSTIFLEX® LE which are polyurethane-based foam systems.

• In July 2021, RAMPH Eco Solutions reached a mutual agreement with Repsol for making further enhancement in the recycling of polyurethane. The purpose is to produce different qualities and sources of post-consumer polyurethane waste that will contribute for boosting foam recycling.

Polyurethane Market Report Scope

Global Polyurethane Market Report Segmentation

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 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global polyurethane market report based on product, end-use, and region:

• Product Outlook (Volume, Kiloton; Revenue, USD Million, 2018 - 2030)

  • Rigid Foam

  • Flexible Foam

  • Coatings

  • Adhesives & Sealants

  • Elastomers

  • Others

• End-Use Outlook (Volume, Kiloton; Revenue, USD Million, 2018 - 2030)

  • Furniture & Interior

  • Construction

  • Electronics & Appliances

  • Automotive

  • Footwear

  • Packaging

  • Others

• Regional Outlook (Volume, Kiloton; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Spain

    • Russia

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia