Thermoplastic Polyurethane (TPU) Market

Market Overview

The global thermoplastic polyurethane (TPU) market size was valued at USD 2,523.20 million in 2021. It is projected to reach USD 4,717.42 million by 2030, growing at a CAGR of 7.20% during the forecast period (2022-2030).

Thermoplastic polyurethanes (TPU) are a type of thermoplastic elastomer. Long-chain linear polymers enable the solidification of objects made from molten polyurethane. TPU is increasingly used in medical applications due to its superior performance, chemical and lubricant resistance, improved mechanical capabilities, and increased durability. TPU has improved biocompatibility, hydrolytic stability, biostability, abrasion resistance, elasticity, high rigidity and strength, chemical resistance, and excellent mechanical properties. It is used in urological applications, cardiac assist devices, orthopedic implants, pacemaker leads, neurostimulation devices, orthodontics (developing non-metallic next-generation oral appliances, such as Invisalign), and neurostimulation devices.

Market Dynamics

Global Thermoplastic Polyurethane (TPU) Market Drivers

Growing Number of Applications in the Medical Sector

To overcome a severe health infrastructure shortage in the nation's fight against the COVID-19 pandemic, particularly in rural areas and smaller cities, India initiated the "Extension of Hospitals" plan in numerous regions in June 2021. Modulus Housing, a business established at the Indian Institute of Technology, Madras, developed the medical hospitals (IIT-M). As a result, an additional facility with 100 beds may be built in just three weeks. In addition, many nations aim to establish their local manufacturing businesses for crucial manufacturing activities in response to the COVID-19 pandemic to reduce their dependency on imports. This, in turn, fuels the medical sector's demand for thermoplastic polyurethane.

The demand for thermoplastic polyurethane in the medical industry is also anticipated to be impacted by the global aging demographic, increased healthcare spending from the respective governments in major countries, advancements in medical technologies and devices, and growing populations (specifically the population over 65 years old). The applications above are also commonly employed in mining, oil and gas, and chemical industries. Additionally, some sectors are experiencing. The market is expanding favorably, increasing the demand for thermoplastic polyurethane.

Global Thermoplastic Polyurethane (TPU) Market Restraint

Declining Automotive Production

According to OICA, passenger automobile registrations in the European Union decreased by 21% in the region, from 17.9 million units in 2019 to just 14.16 million units in 2020. Due to COVID-related restrictions in many states, vehicle sales in India will likely be under pressure in the foreseeable future. Recovery is anticipated for the second quarter of the fiscal year 2021. The passenger vehicle market had a 17.8% decline, from 2.96 million units in 2019 to 2.43 million units in 2020, according to OICA. The market for thermoplastic polyurethane is anticipated to be impacted, at least temporarily, by the industry's slowing manufacturing of automobiles and the COVID-19 pandemic.

Global Thermoplastic Polyurethane (TPU) Market Opportunities

Recyclable and Eco-Friendly

TPUs are easily recyclable and biodegradable. The demand for recycled TPU is rising due to rising environmental concerns and a shift in emphasis toward creating environmentally friendly and sustainable products. Utilizing recycled TPU helps save energy use and cut down on carbon emissions. The demand for recycled TPUs is also driven by governments worldwide enacting strict regulations governing the use of biodegradable materials. As demand for environmentally friendly products rises quickly, numerous businesses are also introducing new environmentally friendly and recyclable items made of TPU. The demand for thermoplastic polyurethane is therefore anticipated to increase throughout the forecast period in line with rising consumer awareness of environmentally friendly and recyclable products.

Growing Use in Industrial Sectors

Thermoplastic polyurethane (TPU) has a wide range of hardness and high elasticity in addition to high durability, a good compression set, and resistance to impact, abrasion, rips, weather, and hydrocarbons. TPU is frequently utilized in industrial applications as a result of these qualities. TPU is utilized in castors, rollers, packing, seals, connectors, conveyer belts, keyboard sheets, gaskets, seals, films, and containers because it increases flow characteristics, offers strong hydrolysis resistance of industrial high-pressure hydraulic seals, and is flexible across a wide temperature range.

Regional Analysis

The global thermoplastic polyurethane (TPU) market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant shareholder in the global thermoplastic polyurethane (TPU) market and is anticipated to expand at a CAGR of 8.10% over the projection period. Regarding GDP, China has the largest economy in the Asia-Pacific region. Due to the trade spat with the United States, the country's growth in 2019 was 5.8% lower than in prior years. A significant end consumer of TPU is the footwear industry, and China has the largest footwear market in the entire globe. More than 13.5 billion pairs of shoes were produced in the nation's footwear industry in 2019. Competitors from Southeast Asia, particularly Vietnam, are eating away at the country's market share. However, the nation is anticipated to overtake all other footwear producers as the largest.

Europe is anticipated to grow at a CAGR of 6.10%, generating USD 828.43 million during the forecast period. The economy of Germany is the largest one in Europe and the fourth largest one in the entire world. The growth rate of the German economy in 2019 was approximately 0.6%, the slowest growth rate seen in the previous six years. The country's economy has been constrained by a number of outside factors, including trade disputes that have reduced exports, tariff battles that the US government has provoked, and the COVID-19 epidemic. Germany dominates the automotive market in Europe and is responsible for one-third of the continent's total automobile production. These categories include engine producers, equipment manufacturers, material and component suppliers, and whole system integrators.

The United States of America has the biggest and most powerful economy in the entire world. However, in recent times there has been a slowing in the country's economic growth, with the GDP growth rate lowering from 3% in 2018 to 2.2% in 2019 (compared to previous years). In addition, the country's gross domestic product (GDP) experienced a decrease of 4.8% in the first quarter and 31.4% in the second quarter of 2020, which is more evidence of the terrible impact of the COVID-19 pandemic. The nation's gross domestic product (GDP) experienced an annual growth rate of -3.5% in 2020. As a result, the severe outbreak of COVID-19 in the country has led to a slowdown in the economy's growth, which may be attributed to a decrease in consumer spending and the closure of businesses.

According to the figures provided by the International Monetary Fund, the annual rate increase in the nation's GDP was 1.8% in 2018 and is expected to be 1.4% in 2019. The Brazilian economy endured a slump but is now recovering thanks to the administration's policies and the continued political atmosphere. In addition, there was no additional expansion of the economy seen in the year 2020 due to the deteriorating economic growth brought on by the influence of the COVID-19 pandemic. Inconsistencies in the domestic policy framework, reduced prices for commodities, low levels of foreign demand, and a value decline in the peso have all contributed to a sluggish pace of economic activity in Argentina over the past few years.

Segmental Analysis

The global thermoplastic polyurethane (TPU) market is segmented by application and end-user industry.

Based on application, the global thermoplastic polyurethane (TPU) market is bifurcated into extruded products, adhesives, and others.

The extruded product segment is the highest contributor to the market and is expected to grow at a CAGR of 7.20% during the forecast period. Thermoplastic polyurethane is advantageous for numerous industrial applications due to its characteristics, such as oil and grease resistance, abrasion resistance, and excellent mechanical capabilities. TPU is very elastic and melt-processable like other thermoplastic elastomers and may be colored easily and translucent. As a result, it is frequently applied to extruded product applications. Additionally, the extrusion method can combine TPU with various materials to improve its qualities, such as enhanced strength, fuel and oil resistance, and abrasion resistance.

Due to its high foam-ability and rebound resilience, thermoplastic polyurethane is an excellent material for injection molding applications. When processing TPU in injection molding, it is essential to pay attention to the machine's speed and temperature flow. The production of vehicle parts uses thermoplastic polyurethane injection molding a lot. TPU injection molding is widely used for various products, including ball and socket joints, dust covers, and tire chains. The sharp decline in the global automotive industry has significantly restrained this market segment. TPU injection-molded components are also used to create industrial components like castors, rollers, packings, seals, and connections. Additionally, they are utilized in women's shoe heels and watch straps.

Based on the end-user industry, the global thermoplastic polyurethane (TPU) market is bifurcated into construction, automotive, footwear, medical, heavy engineering, and others.

The heavy engineering segment owns the highest market share and is expected to grow at a CAGR of 9.6% during the forecast period. As a result of the ongoing consolidation in the global maritime industry, several shipyards have been shut down. Due to this pattern, there is less demand for TPU and less need for the hoses used in shipyards. TPU demand has increased due to expansion in the industrial sector, particularly in the chemical and other heavy engineering sectors. However, the global need for new industrial machinery has decreased due to the COVID-19 epidemic. The pandemic is currently a significant barrier to the expansion of this market. During the projection period, the variables mentioned above are projected to impact the demand for TPU in the heavy engineering sector.

TPU is mainly utilized as an insulator in the building sector. Due to its strong air leakage management qualities, it has unique technology for high-performance building envelopes, and it even gives foundations, walls, and roofs more structural strength. Some characteristics include low thermal conductivity, low density, exceptional dimensional stability, high strength-to-weight ratio, low moisture permeability, and low water absorption. TPU-based hoses are used for dewatering purposes on construction sites as well. In addition, the country's 14th five-year plan projects that the urbanization rate will increase from 60% to 75% over that time, which might lead to the migration of an additional 220 million people into urban regions, particularly in five super-city clusters.

Recent Developments

• August 2022- Archroma, an SK Capital Partners portfolio company, received an official announcement from Huntsman Corporation that it purchased the business's Textile Effects segment. The transaction's estimated USD 718 million total enterprise value includes the assumption of USD 125 million in net unfunded pension liabilities as of December 31, 2021. Huntsman will contribute up to USD 80 million in preferred equity toward the acquisition, which SK Capital Partners will work to syndicate before the deal closes.
• September 2021- KPX Chemical, the most critical polyols producer for polyurethanes in Korea, joined forces with Huntsman Corporation to form a joint venture that would later be known as KPX HUNTSMAN POLYURETHANES AUTOMOTIVE CO. LTD (KHPUA). The Korean automakers will benefit from the revolutionary polyurethane system solutions developed and provided by the joint venture.