Global Statistics Representing Polyurethane Market Scenario

Polyurethane is obtained by the reaction between polyl and di-isocyanate. It is widely used in the manufacturing of polyurethanes and other products. Polyurethane offers a myriad of benefits such as high abrasion resistance, easy ambient curing, high molecular structural variability, low cost, and other benefits, making it one of the preferred plastics. 

Evolution of Polyurethane

Polyurethane was first developed in the early 19^th century and commercially used in coatings, adhesives, and millable elastomers. It was extensively used as a replacement for rubber during World War II.  In the mid-1950s, these polymers found applications in footwear, furniture, and construction, among others. The polyurethane market is in its maturity phase, and rapid development has led to the product’s infiltration in everyday use. Today, manufactures are actively working to develop environment-friendly polyurethane products, further boosting the market growth.

Advent of Eco-Friendly Polyurethane Products

Polyurethane is one of the most popularly used polymers in the automobile, construction, and electronic industries. However, decomposition of the polyurethane-based end products poses a huge challenge as they don’t easily breakdown. For instance, furniture using polyurethane as cushioning may take up to 1,000 years to decompose. Additionally, the fluctuating price of raw materials due to the U.S.–China trade war, volatility in crude oil prices, and strict environmental regulations are restricting the market growth. In line with this, the manufacturers are channelizing efforts to manufacture environment-friendly products, further driving the market growth. 

Polyurethane Market: Segmentation

Rising Need for Soundproof Indoors Drives the Rigid Foam Segment

Rigid foam offers a wide range of properties such as low density, high thermal insulation, and high mechanical properties, among others. It is used in thermal insulation as a load-bearing structure material. It is extensively used in the commercial and residential sectors for its energy efficiency and high comfort. As per the U.S Department of Energy, heating and cooling in the U.S household account for more than 56% of the total energy used. Customers are inclining towards soundproof indoors to reduce the effect of noise pollution, which drives the demand for rigid foams as they provide effective insulation and are used in roofs, walls, windows, and doors.

Regional Overview

Automobile Sector: Backbone of the European Region 

Automobile sector is the backbone of Europe’s industrial sector and contributes a large share in the region's GDP. As per the data provided by the European Commission, the automobile sector employs around 13. 9 million people and contributes about 7% to the GDP. As per the Statista, the automobile industry in Germany generated over USD 400 billion in 2018.

Polyurethane plays a key role in the automobile sector and is used in manufacturing car seats, interiors, doors, spoilers, and windows. They are also used in shock absorbers to withstand mechanical and dynamic loads. Polyurethane is used for manufacturing lightweight components to increase mileage by improving fuel economy and provide insulation, sound absorption, and comfort. 

Figure: Passenger Car Production in Europe, 2019

Government Initiatives to Drive Asia-Pacific’s Polyurethane Market

Asia-Pacific is the largest region in terms of geography and population. In the region, China leads the manufacturing and construction sector, followed by India. Favorable government policies and investment climate drive the growth of the construction sector.

As per the data provided by Invest in India, by 2025, the construction output in India is estimated to grow at an average of 7.1% every year, and the construction sector is projected to rank third globally. Additionally, the government of India is actively working to accelerate the wheel of the construction sector. Recently, the government launched Pradhan Mantri Awas Yojana that aims to build housing for all in urban areas by 2022.

Polyurethane is used to provide flexible foam cushioning in sofas and carpets. It is used in roofs to reflect sun rays, maintain ambient indoor temperatures, and reduce the need for air conditioning.

China continues to be a global leader in the automobile sector. As per CEIC Data, Chinese motor vehicle sales recorded a total sale of 309,942 units in February 2020, compared to 1,927,201 units in January 2020. Thus, growth of the construction and automobile sectors will drive the market growth during the forecast period. However, trade war between the U.S and China is causing friction in the growth of these sectors. 

The recent coronavirus outbreak has caused widespread disruptions in the supply chain, affecting almost every industry, and continues to crush the global economy and industry players. As per the Dow Jones Industrial Average, about 30 large companies on stock exchange have lost almost 30% of their value since February 2020. All these factors are likely to hamper the growth of the polyurethane market in the coming future.

Key Players

• Mitsubishi Chemical Corp.
• DIC Corp
• Nippon PU Industry Corp. Ltd
• The Dow Chemical Company
• BASF SE
• Covestro
• Huntsman Corp.
• Eastman Chemical Co.
• Mitsui Chemicals, Inc.
• Recticel S.A.
• Woodbridge Foam Corp.
• RTP Company
• Lubrizol Corp.
• Rampf Holding GmbH & Co. KG

Polyurethane Market Segmentation

By Raw material

• Diisocyanate
  • MDI
  • TDI
• Polyol
  • Polyether
  • Polyester
• Additives & other material

By Product

• Flexible foam
• Rigid foam
• Coating, adhesive, & sealant
• Elastomer

By End-user

• Construction
• Household products
• Transportation equipment
• Electronics

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• Germany 
• France
• Italy
• The U.K.
• The Rest of Europe

Asia-Pacific

• China 
• India
• Japan
• South Korea
• Australia
• The Rest of APAC

Central and South America & the Caribbean 

• Brazil
• Argentina
• Colombia
• The Rest of Central and South America & the Caribbean 

The Middle East and Africa

• Saudi Arabia
• The UAE
• Qatar
• Oman
• Turkey
• Nigeria
• South Africa
• The Rest of Middle East and Africa