The polyurethane market is forecasted to grow at a high rate owing to the accelerating demand from applications such as building & construction, automotive, and appliances & white goods. The Global Polyurethane Market was valued at US$ 53.94 Bn in 2020 is Expected to Reach US$ 77.60 Bn by 2027, with a Growing CAGR of 5.3% During the Forecast Period (2020-2027).
Polyurethanes describe a class of materials valued by consumers for their durability and high performance. In the year 2019, polyurethane experienced a high demand compared to 2017 which was primarily driven by the expansion of various application segments. The lightweight vehicles remained an important market for polyurethane but the demand was considerably low in 2019-2020 compared to 2017-2018 due to the negative impact of COVID-19 on the global economy. The polyurethane industry is anticipated to witness significant growth during the forecast period owing to the rising investments in research and development coupled with the increasing demand for green alternatives.
The building and construction from developed as well as developing economies provide enormous opportunities for the polyurethane industry leaders. The increasing demand for energy-efficient infrastructure, supported by government efforts and initiatives is proliferating the demand for the polyurethane market. Investments in the residential construction sector in the U.S. are very high to provide affordable infrastructure to their people. For instance, in October 2020, Governor Cuomo announced the completion of 332 affordable housing apartments for families and adults with disabilities. Projects like these are supporting the polyurethane market demand across North America. In addition to this, the large number of buildings across the Asia Pacific region are poorly insulated especially in developing markets of South East Asia representing a high potential for thermal insulation in the region. The upcoming Hangzhou Asian Games and Beijing Winter Olympics in 2022 are further anticipated to boost the demand for rigid foam polyurethane for construction and infrastructure.
In terms of geography, North America is witnessing a high growth rate in the polyurethane industry primarily driven by the U.S. In the U.S., the polyurethane industry operates in nearly 1,000 locations which directly generates US$ 38.8 Bn output and numerous job opportunities across the polyurethane ecosystem in the country. In North America, the building & construction sector accounted for approximately 39.5% of the polyurethane consumption in 2020, followed by furniture & bedding, appliances & white goods, among others. In building & construction polyurethane is most commonly used for insulation, protective coatings adhesives. Additionally, the manufacturing of transportation equipment is another key application of polyurethane in North America, with automobiles providing a diverse application of the material. In lightweight vehicles around 18.5% of the total plastic and composites are made of polyurethane and are further anticipated to increase their share during the forecast period. High demand for automobiles in North America is anticipated to proliferate the polyurethane market growth.