Polyurethane Market Size, Share & Industry Analysis, By Product Type (Rigid Foam, Flexible Foam, Molded Foam, Elastomers, Adhesives & Sealants, Coatings, and Others), By Application (Furniture, Construction, Electronics, Automotive, Packaging, Footwear, and Others), and Regional Forecast, 2024-2032

The global polyurethane market size was valued at USD 87.10 billion in 2023 and is projected to grow from USD 91.49 billion in 2024 to USD 135.08 billion by 2032, exhibiting a CAGR of 4.4% during the forecast period. Asia Pacific dominated the polyurethane market with a market share of 45.89% in 2023. Moreover, the polyurethane market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 26.07 billion by 2032, driven by rising demand for smart polyurethane foam from the automotive industry.

Polyurethane (PU or PUR) is a polymer with links of polyols and isocyanate sequenced in an alternate method. It is formed by the reaction between polyols and isocyanate. It has two types: thermosetting polymer and thermoplastic polymer. It is widely used in manufacturing gaskets, elastomers, high-performance adhesives, surface coating, and synthetic fibers. In addition, the increasing use of innovative production technologies with advanced features is anticipated to impact the market positively. For example, the development of TPU and PU acrylate oligomers blended and radiation-cured to achieve semi-interpenetrating polymer networks (IPN).

Disruption in manufacturing activities caused hindrances in the production of raw materials for polymers across the globe due to the COVID-19 pandemic. This impacted the end-user industries and other parallel activities. Several isocyanate and polyol orders were cancelled and postponed, resulting in production outages. The low demand from the end-use industries due to COVID-19 had a negative impact on the market growth during the period. Moreover, in June 2022, the prices plunged to new lows due to a slow recovery and uncertainty. The reduced consumption took a huge toll on the business scenario.

Polyurethane Market Trends

Rising Adoption of Higher Quality PU Coating and Adhesives in the Construction Industry

PU adhesives are durable, flexible, and have better bonding and impact resistance. This product type is typically used in vehicle interiors to bond windshields, seal fuel tanks, and residential buildings & construction applications. High demand for adhesives from construction projects is expected to be one of the leading market trends.

PU coatings protect the substrate from abrasion, corrosion, and weathering. These coatings adhere to a great extent to the base material. Increasing demand for PU coatings from the automotive, construction, and furniture industries will propel the polyurethane market growth.

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Polyurethane Market Growth Factors

Increasing Demand for Foams from the Furniture Industry to Fuel Market Growth

The product is majorly used as a foam in the furniture industry for bedding and cushioning applications. Its durability, flexible nature, and ability to provide comfort make it an ideal material for the furniture industry. Furniture demand is increasing rapidly around the globe due to the rising population and the changing lifestyle of people. This is anticipated to drive market growth globally.

The construction industry is experiencing a high demand for the housing sector worldwide. It is further surging the demand for furniture. The growing demand for chairs and sofas from the commercial sector is expected to support the demand for furniture in the construction industry. These factors will act as drivers for the market growth.

Rising Demand for Smart PU Foam from the Automotive Industry to Drive the Market

Polyurethane is the key raw material for the manufacturing of smart PU foam by using hydrothermal reduction and adsorption processes. Smart PU has gradually gained traction owing to its enhanced structural, chemical, and mechanical properties. The product offers better sound insulation and heat insulation for automobile components owing to the presence of materials such as carbon compounds in its formulation. These compounds help to achieve uniform particle structure and orientation and improve the viscosity and resistivity of the product. Such chemical properties of smart PU foams make them an appropriate material for automotive components such as wheels, seats, gear knobs, door trims, and others. Thus, the enhanced properties offered by the product are expected to drive the market.

RESTRAINING FACTORS

Strong Presence of Substitutes May Confine Market Growth

Polyurethane is a versatile material used in various end-use industries and applications. However, many substitutes available in the market would outplay the product in certain applications. For instance, linseed oil treats wood in the furniture industry instead of toxic products. Polysiloxane coatings are used instead of PUR coatings (based on isocyanates) in marine applications. Also, polysiloxane coatings' suitable durability and weathering properties for marine applications make them a healthy substitute for PUR coatings. This would confine the market growth.

Polyurethane Market Segmentation Analysis

By Product Type Analysis

Flexible Foam Segment to Account for Largest Share Backed by Usage in Furniture & Bedding

Based on product type, the market is segmented into rigid foam, flexible foam, molded foam, coatings, elastomers, adhesives & sealants, and others.

Amongst these, the flexible foam segment held the largest market share, in 2023 owing to its increasing use in bedding and furniture applications. The growing use of flexible foam in specialty packaging for transporting goods and sealing is surging the demand for PU.

Rigid polyurethane foams are generally used for thermal insulation in various electronics and home appliances, such as refrigerators and air-conditioners. Hence, this segment is expected to grow with the rising electronics and appliance production.

Molded foam can be hammered or pressed into different shapes per the end user’s requirements. This type of foam is used in various industries such as agriculture, military, and automotive. It is also used for medical purposes, such as short-term implants and injection-molded devices. The above factors are expected to raise the demand for molded foam.

PU elastomer has characteristics similar to that of rubber. The properties offered by these elastomers include high elasticity, abrasion resistance, tear resistance, and chemical resistance. These properties make it suitable for footwear, construction application, wheels & tires, and machinery. The demand for elastomers from the automotive, construction, and footwear industries will be responsible for the segment's growth during the forecast period.

By Application Analysis

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Furniture Segment to Exhibit a Significant CAGR Owing to Demand for Cushioning Effect

Based on application, the market is classified into construction, electronics, automotive, packaging, footwear, furniture, and others.

Amongst these, the furniture segment is expected to register the fastest growth rate during 2024-2032. In furniture applications, the PU foam is utilized for cushioning effect that offers durability and support. The product has showcased higher demand from the construction industry owing to the insulation effect, flame retardancy, and heat protection properties offered by it. The product is used as an adhesive & sealant for insulating walls and electronic items. In addition, it is used in the automotive industry to improvise the impact resistance in automobiles. Hence, the increased demand in building construction and automobile production will surge the market's growth.

The increase in packaging and footwear applications is linked with increased foam adoption in adhesive tapes and the sole of the footwear. They provide pressure and shock resistance to footwear and offer comfortable use of footwear. In addition to this, they are used as adhesive tapes and films in the packaging segment. Moreover, the product is used in other applications, including sports goods, textiles, and medical.

REGIONAL INSIGHTS

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The Asia Pacific market stood at USD 39.97 billion in 2023. Asia Pacific is expected to hold a major portion of the global polyurethane market share in terms of revenue and volume and is projected to exhibit significant growth. The increasing demand for applications in the furniture and construction industries will contribute to the market growth in this region. China accounted for the largest share within the region in 2023 and is expected to remain the largest in the market throughout the forecast period due to the expanding construction industry.

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North America is expected to showcase considerable growth in the market. The leading country in the region, the U.S., uses this material in automotive and construction applications, which will aid the market growth.

On the other hand, Europe will exhibit substantial growth owing to increasing polyurethane production for machinery and furniture application. These will further help in surging the value of this market in the region.

In South America and the Middle East & Africa, the increased demand from the construction industry is one of the major factors influencing the market size. Saudi Arabia and Brazil were the major contributors to this growth. The adoption of numerous applications consisting of furniture manufacturing and insulation of walls are the factors responsible for the market growth in these regions. At the same time, countries of the rest of Middle East & Africa will grow at a significant CAGR during the forecast period.

List of Key Companies in Polyurethane Market

Key Players to Strengthen their Positions by Offering Novel Solutions

The major producers of PUR are present in Asia Pacific, resulting in a fragmented market. Some of the key market players include BASF, Covestro AG, Yantai Wanhua Polyurethanes Co., Ltd., Huntsman, and Mitsui Chemicals & SKC Polyurethanes Inc. BASF is one of the leading providers of chemicals, material, and industrial solutions. The company also offers expertise in several industries such as furniture, construction, electronics, automotive & transportation, packaging, footwear, paints & coatings, and homecare & nutrition.

Covestro AG is among the leading suppliers of premium polymers. The company has a major presence in Europe. It used the partnership strategy with organizations and joined campaigns such as ‘Alliance to End Plastic Waste’ and ‘Circular Plastics Alliance’ to promote plastic recycling in Europe and increase awareness among people. Similarly, the other key players in this market have developed a strong regional presence, distribution channels, and product offerings.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)


• The Dow Chemical Company (U.S.)


• Covestro AG (Germany)


• Yantai Wanhua Polyurethanes Co., Ltd. (China)


• Huntsman (U.S.)


• Foamcraft, Inc. (U.S.)


• Mitsui Chemicals & SKC Polyurethanes Inc. (South Korea)


• Lanxess (Germany)


• Eurofoam Group (Austria)


• Inoac Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS:

• September 2023- Huntsman developed the first liquid thermoplastic polyurethane (LTPU) for the footwear industry. The product enables the high-speed manufacturing of athleisure and sports footwear compared to thermoplastic polyurethane. The purpose of the product development is to maximize the revenue from the plastic segment.


• February 2023- Huntsman announced the launch of a new polyurethane coating product in the European Coatings Show (ECS). The launch aims to establish a key presence in the polyurethane business segment.


• October 2022- BASF SE launched a new polyurethane product. The company announced the launch of the RODIM film made from PU to protect the paint of a car. The film is invisible and is expected to provide multifaceted, long-lasting protection for automotive coating.


• September 2021- Mitsui Chemicals and SKC Polyurethanes Inc. announced to dissolve polyurethane raw material business joint venture agreement between them. After this, both the companies can use their own strategic policies to grow their business.  


• June 2021 – BASF and Shanghai Harvest Insulation Engineering Co., Ltd prepared a Joint Development Agreement (JDA) to innovate prefabricated cryogenic pipes with the use of Elastopor Cryo, a polyurethane rigid foam system of BASF. In this agreement, BASF will develop and test, and Harvest will design and produce the prefabricated pipes.


• September 2020 –WEG developed polyurethane W-THANE APA 501 anti-viral coatings for medical applications. This product was strategically launched amid the COVID-19 outbreak to improve the hygiene & safety of industries that WEG serves. These coatings were launched in diversified colors and claimed to inactivate 99.9% of coronavirus within minutes of contact.

REPORT COVERAGE

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The report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and applications. Also, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation