Polyurethane Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Polyurethane Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The polyurethane market was valued at over USD 70.5 billion in 2021. The market is projected to register a CAGR of over 5.5% during the forecast period (2022-2027).

The market was negatively impacted by COVID-19 in 2020. However, it recovered significantly in 2021, owing to rising consumption from various end-use applications, including furnishing and interiors and automotive.

Key Highlights

• Over the short term, the major factor driving the market is expected to be the rising demand from the bedding, carpet, and cushioning industries.
• The growing environmental concerns are expected to hinder the growth of the market.
• The increasing demand for bio-based polyurethane is likely to act as an opportunity in the future.
• The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Key Market TrendsIncreasing Demand from the Building and Construction Industry

• The largest application of polyurethane is in the building and construction industry., owing to its excellent strength-to-weight ratio, insulation properties, durability, and versatility.
• Polyurethanes are used to make high-performance products that are strong but lightweight, perform well, and are durable and versatile.
• The building and construction industry is the largest consumer of rigid and spray polyurethane foam. There are many benefits of using rigid polyurethane foam insulation, including its energy efficiency, high performance, versatility, thermal/mechanical performance, and environment-friendly nature.
• According to figures published by the US Census Bureau and the US Department of Housing and Urban Development, the number of privately-owned residential units permitted by building permits was at a seasonally adjusted annual rate of 1,873,000 in December 2021. Each year, a total of 1,128,000 single-family permits were issued. Unit authorizations in structures with five or more units were 675,000 per year.
• Spray foam is used in the building and construction industry to improve a building’s strength.
• Several major commercial construction operations in the Middle East are being driven by various government projects, such as Saudi Arabia Vision 2030 and Abu Dhabi Economic Vision 2030. Qiddiya, Sharaan resort at Al-Ula, Al Widyan, King Fahad Medical City Expansion, and King Abdullah Bin Abdulaziz Medical Complexes are examples of Saudi Arabian construction projects that have a favorable impact on market growth.
• From the above-mentioned factors, the demand for polyurethane from the building and construction industry is expected to grow over the forecast period.

Asia-Pacific Expected to Dominate the Market

• The Asia-Pacific region dominates the global polyurethane market share. With growing construction activities and rapid urbanization in countries such as China and India, the usage of polyurethane is increasing in the region.
• China is in the midst of a construction mega-boom. According to the National Bureau of Statistics of China, the construction works output value in the country increased from CNY 23.27 trillion in 2020 to CNY 25.92 trillion in 2021. Furthermore, China is expected to spend nearly USD 13 trillion on buildings by 2030.
• According to the International Organization of Motor Vehicle Manufacturers (OICA), China is the largest producer of automobiles. The country’s automotive sector has been preparing for large-scale product evolution, with the country focusing on manufacturing products to ensure fuel economy while minimizing emissions owing to the growing environmental concerns.
• According to figures released by the China Passenger Car Association (CPCA), in China, around 3.3 million New Energy Vehicles (NEVs), i.e., battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs), were expected to be sold in 2021. In December 2021, 505,000 NEVs were sold. Of these, 423,000 were BEVs, and 82,000 were PHEVs.
• The Indian furniture market is robust. According to InvestIndia (a national investment promotion and facilitation agency), India’s total rental furniture and appliances market reached INR 33,500 crore in FY 2021. The market is expected to garner USD 61.09 billion by the end of 2023.
• According to Japan Electronics and Information Technology Industries Association (JEITA), the domestic production of the Japanese electronics industry witnessed a year-on-year growth rate of 10.8% in 2021 and reached JPY 10,954.34 billion. This enhanced the demand for polyurethane from various electronics segments. Moreover, in the first four months of 2022, the production of the Japanese electronics industry accounted for JPY 3,656.44 billion, registering a growth rate of around 0.2% compared to the same period in 2021.
• Due to all such factors, the market for polyurethane in the Asia-Pacific region is expected to witness steady growth during the forecast period.

Competitive Landscape

The polyurethane market is consolidated in nature, with intense competition among the top players. Some of the major players (in no particular order) include BASF SE, Wanhua, Huntsman International LLC, Dow, and Covestro AG.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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