Report Summary

The global polyurethane (PU) market size is estimated to increase at a CAGR of 6.1% from 2018 to 2026. The market is projected to experience considerable growth, primarily owing to the growing demand from healthcare, construction, and automotive industry, among others for a variety of applications. Furthermore, the growing awareness about conservation of natural resources is acting in favor of the market.

An accelerating growth in the demand for refrigeration of packed food items, and medicines, among other consumable products is directly propelling demand for bio-based polyurethane. In addition, bio-based urethane foam offers better insulation in comparison with polystyrene. They exhibit properties such as moisture resistance, and high durability. All the factors together are positively impacting the demand for polyurethane. The increasing shift in the utilization of bio-based urethane to petroleum-based polyurethane is expected to alter the market dynamics. This shift is largely due to the fluctuating crude oil prices and increasing awareness about the environmental pollution created by use of fossil fuels. Moreover, an increasing trend of replacing the usage of polyols and diisocyanates with vegetable oils is observed in the industry.

Segment Analysis

On the basis of product type, the polyurethane (PU) market can be segregated into six types namely, rigid PU foam, flexible PU foam, PU coatings, PU adhesives &sealants, PU elastomers, and others. Among these, rigid PU foam dominated the market primarily due to their properties including the structural stability that facilitates the manufacturing of thermal insulation products. However, PU elastomers segment is anticipated to emerge as one of the fastest growing segment from 2018 to 2026. This is primarily due to the advantages such as shock resistance, high flexibility, along with high performance offered by PU elastomers.

The polyurethane (PU) market product finds application in a wide range of industries such as automotive, construction, appliances, electronics, furnishing, footwear, and packaging, among others. Constructionsegment dominated the market and was valued at USD xx million. This can be primarily attributed to the rapid industrialization and urbanization, especially in the Asia Pacific region. Nations including India, China, and Thailand, among other countries are increasingly demanding the market product to cater the growing demand for better quality and durable flooring, roofing, and insulation applications.

Regional Analysis

Asia Pacific region dominated the polyurethane (PU) market and was valued at USD xx million in 2016. The region is anticipated to experience significant growth over the forecast period, owing to the heavy investments made by the governments of emerging nations to strengthen their base of skilled workforce. The recent government initiatives taken by Indian, Thailand, and Chinese government to promote the manufacturing sector are acting in favor of the market. For instance, in 2015, the Government of India (GOI) introduced ‘Make in India’ project. Similar steps were taken by Thailand government, by the announcement of favorable buyers incentive.

The industry is characterized by the presence of a large number of global, regional, and local players. However, the market is majorly dominated by the presence of few established market players operating worldwide. They are observed competing on the differentiated product lines. Furthermore, they face stiff competition in terms of quality, pricing, and technology. The presence of numerous vendors results in lowering down of cost price and sales volumes. Such scenario usually creates a negative impact on the financial health of a company. Moreover, the market products are subject to several state, local and federal laws and regulations, duties, and trade agreements.

Competitive Landscape

Some of the key players operating in polyurethane (PU) market include Covestro, BASF SE, Mitsui Chemicals Inc., Eastman Chemical Corporation, INEOS, Mitsubishi Chemical Corporation, DIC Corp & RTP Company Huntsman Corporation, LyondellBasell, The Dow Chemical Co., Nippon Polyurethane Industry Corp Ltd., Woodbridge Foam Corp., Lubrizol Corporation, The Rampf Holding GmbH & Co. KG. These players are observed proactively engaging in activities aimed at the development of new products and advanced technology.