Polyurethane Market is Growing CAGR of 5.3% During the Forecast Period (2020-2027)

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.

Key Findings:

  • Based on the product type, rigid foam polyurethane accounted for a market share of 33.5% in the global polyurethane market
  • Based on the application, the building & construction application segment is growing at the fastest rate, whereas the bedding & furniture segment accounted for the largest market share in 2020
  • Based on regions, the Asia Pacific region accounted for a market share of 42.3%% in the base year 2020 in the polyurethane market analysis

Recent News:

  • In August 2021, Lanxess expanded its Trixene Aqua BI product range of water-based blocked isocyanate dispersions.  The product line now includes new grades specially designed to expand the application areas to meet the rising consumer demands. The new products included are Trixene Aqua BI 120, Trixene Aqua BI 522, and Trixene Aqua BI 202. These new products have applications in textile processing, coatings, and automotive among various other applications.
  • In June 2020, Dow planned to install a recycling production facility at an industrial scale at Orrion Chemicals Orgaform in Semoy, France. The RENUVA™ Mattress Recycling Program is formed to use the discarded mattress foam and turn it back to the raw material called polyol using a chemical reaction. The raw material formed can be further utilized as flexible or rigid foam polyurethane products for applications in the manufacturing of new mattresses or building insulation boards.

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