Global Polyurethanes Market 2022-2028

Global Polyurethanes Market 2022-2028

Global polyurethane market is anticipated to grow at a significant CAGR of 6.9% during the forecast period. Polyurethane's chemical composition allows for molded shapes and added comfort and convenience to industrial and consumer products. A wide range of polyurethane applications is driving the polyurethane market. Mechanical properties such as durability, strength, and lightweight make polyurethane a very important material in day-to-day life. Changing lifestyle and material preferences is a major driver in the furniture and bedding segment of polyurethanes. For instance, in 2019, According to American Chemistry Council, $89.3 Billion in total output was generated by polyurethanes in the US and according to CPI (Center for the polyurethanes industry) Flexible polyurethane foam accounts for about 30 percent of the entire North American polyurethane market, and is used largely for bedding, furniture and in the automotive industry.

Impact of COVID-19 Pandemic on Global Polyurethane Market

COVID-19 impacted negatively the polyurethanes market as the lockdown stopped many operations, there is a certain pause to manufacturing activities, causing interference in the production of raw materials across the globe due to the COVID- 19 pandemic. Thus, it is impacting the market. However, many polyurethane producers in the cooling and refrigeration sector are re-directing part of their work to the creation of storage systems, such as special coolers, where COVID-19 vaccines can be stored. These refrigerators use resistant polyurethane foam which insulates to protect against warming and ensure vaccine doses stand up to the rigors of long-distance journeys to reach patients across continents and countries. As the production of vaccines constantly increases and distribution become systematic, the polyurethane industry is ramping up to meet the demand, and manufacturers of these specialized coolers also have begun to refine their designs to be even more durable, lightweight, and energy-efficient.

Segmental Outlook

The global polyurethanes market is segmented based on the raw material, polyurethanes type, application, and end-user. Based on the raw material, the market is segmented into toluene diisocyanate, methylene diphenyl diisocyanate, and polyols. Based on the application, the market is sub-segmented into flexible foam, rigid foam, snuff coatings, sealants, adhesives, elastomer, and others. Based on the End-User, the market is segmented into automobiles, construction materials, footwear, furniture and bedding, electronics, and others. Based on the application, flexible foam is holding the major share in the application segment of the polyurethane market. Polyurethane plastics are available in different forms with different uses for countless applications. It has its maximum usage of Flexible Foam material with 34% of the market share is widely used in mattresses, cushions, car seats, and others.

The construction and material segment is expected to hold a prominent market share in the global polyurethanes market, owing to the growing number of energy-efficient building rules. It is becoming more important to provide a building solution that can provide long-term stability as well as energy savings. Stiff foam has many unique insulating properties that make it suitable for both residential and commercial usage. The rigid and spray polyurethane foam sector plays a major role in the building and construction industry. It has unique insulating properties that make it suitable for both new construction and renovation of existing structures. Thus, the rising application of polyurethanes in the building and construction industry For instance, in September 2019, Huntsman Corp. opened a new polyurethanes system facility in Dubai. The purpose of building the facility is to boost Huntsman's downstream capabilities in the Middle East and North Africa by increasing its capacity to create polyurethane systems and polyester polyols for customers.

Regional Outlooks

The global polyurethane market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East &Africa, and Latin America).

The Asia-Pacific region is likely to hold a prominent share in the market during the forecast period, owing to the rising production of automobiles and increasing government emphasis on construction growth in the region’s major economies. With growing construction activities and rapid urbanization in countries such as China and India, the usage of polyurethane is increasing in the region. According to the International Trade Association, Under China’s 14th Five-Year Plan, the Ministry of Housing and Urban-Rural Development (MOHURD) issued a notice for the Implementation of Urban Renewal Actions in 2020. While China’s urbanization rate reached 60.6% in 2019, this urban renewal policy aims to develop greener and more efficient cities as the government seeks to improve the quality of China’s urban living conditions.

Market Players Outlook

The major companies serving the global polyurethanes market include BASF SE, Baxenden Chemicals, Bayer A.G., Dow Chemical, DSM N.V., Du Pont, Evonik Industries, Huntsman Corp., INOV polyurethane group, Mitsui Group, and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in January 2020, BASF announced a single-digit million-euro investment in the potential expansion of water-based polyurethane dispersions at its Castellbisbal site in Spain. The development will allow BASF to increase its production capacity by 30%.