Polyurethane Additives Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Polyurethane Additives Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The polyurethane additives market is projected to register a CAGR of over 6% during the forecast period (2022-2027).

The COVID-19 pandemic negatively affected various end-user industries due to the temporary shutdown of manufacturing facilities and industrial activities. In 2021 the market fully recovered and registered steady growth.

• Over the short term, the rising demand for polyurethane in the construction industry will likely propel additives’ consumption. One of the largest applications is the use of rigid PU foam as wall and roof insulation, insulated panels, and gap fillers for the space around doors and windows. Some rigid PU foams can be applied to seal gaps and cover irregular shapes. Such foams include spray, pour-in-place, and one-component foams, thereby augmenting the market's growth.
• On the flip side, stringent government regulations and the negative impact of the COVID-19 pandemic are likely to hinder the market’s growth.
• The increasing demand for more innovative and cost-effective additives is projected to act as an opportunity for the market in the future.
• The Asia-Pacific region is expected to account for the largest share and register the highest growth rate over the forecast period.

• The automotive industry provides one of the best examples of the diverse applications of PU materials. Nearly every type of PU product is used in the automotive end-user industry.
• Flexible PU foams are used in seating, headrests, armrests, HVAC, and other interior systems for automotive, like in airliners, trains, and buses. PU coatings provide a vehicle’s exterior with high gloss, durability, scratch resistance, and corrosion resistance. PU coatings are also used for glazing windshields and windows, increasing strength and providing fog resistance.
• PU elastomers protect against tire punctures and are used in other molded components, such as shock absorbers. Thermoplastic PU materials are used to manufacture many automotive parts, including exterior body parts, trunk liners, anti-lock brake systems, timing belts, and fuel lines. The unique properties of PU elastomers contribute to their exclusive usage in gaskets, O-rings, and other seals.
• Seating is the largest application of PU in the automotive industry. Many automotive seating manufacturers demand products made with bio-based polyols. However, the market penetration of "green" PU is still in emergence in most global PU markets.
• Globally, more than 90% of automobiles are produced with bonded windshields and rear windows using one-component PU sealants. The automotive industry is the largest end-user industry for reaction injection molding (RIM) PU parts. RIM is used to maximize the shock absorption of vehicle fenders, bumpers, and spoilers, without adding weight or bulk.
• According to the OICA data, global automotive production increased by around 3% and reached 80 million in 2021. ​Car sales increased by more than 2.4 million in 2021 compared to the previous year.
• However, with growing concerns about environmental pollution from petrol- and diesel-based vehicles, the production of electric vehicles is expected to pick up over the next five years. This is likely to drive the demand in the market studied over the forecast period.
• According to IEA, in 2030, global electric vehicle sales are expected to reach 125 million as per the New Policies Scenario (excluding two/three-wheelers). In the EV30@30 Scenario, in 2030, around 70% of the vehicle sales in China are expected to be EVs. Also, half of the vehicles sold in Europe are EVs, along with 37% in Japan, 30% in Canada and United States, and 29% in India.
• All the aforementioned factors are expected to drive the market during the forecast period.

• In Asia-Pacific, China is the largest economy in terms of GDP. The country witnessed about 8.1% growth in its GDP in 2021, even after the trade disturbance caused due to its trade war with United States.
• China is one of the largest countries in the world, where the construction sector dominates almost all other sectors in growth. In 2021, the revenue of construction enterprises in China was CNY 8,013.8 billion, up by 2.1% over the previous year. The profits made by construction enterprises qualified for general contracts and specialized contracts reached CNY 855.4 billion, up by 1.3% from a year earlier, of which the profits made by state-holding enterprises were CNY 362.0 billion, up by 8.0%.
• The rapid growth of the furniture manufacturing industry in the country is majorly fueled by the increasing domestic demand, coupled with significant demand from the foreign market.
• China accounted for almost 40% of the global furniture production. The production was further increased rapidly due to the increase in domestic demand and exports to European countries.
• According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), China is the largest producer of automobiles in the world. The country's automotive production has steadily increased over the past three years. The country produced 26 million vehicles in 2021, witnessing an increase of 3% over the previous year.
• However, the popularity of electric vehicles in the country is expected to propel the demand for PU additives in the coming years. The Chinese government plans to have a minimum of 5,000 fuel cell electric vehicles by 2025 and 1 million by 2030. The government promoting the use of electric, hybrid, and fuel cell electric vehicles is expected to drive the market studied during the forecast period.
• Such factors are expected to increase the demand for polyurethane additives in the country.

The polyurethane additives market is partially fragmented. In terms of market share, few major players currently dominate the market. Key players in the polyurethane additives market include Evonik Industries AG, Air Products Inc., Covestro AG, Huntsman International LLC, and BASF SE.

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