Global Polyurethane Market Size, Growth & Share Forecast-2031

Polyols and di-isocyanate react to produce polyurethane. It is widely used in the production of polyurethanes and other goods. One of the most popular plastics, polyurethane has a number of advantages over other materials, including high abrasion resistance, simple ambient curing, high molecular structural variability, and low cost. One of the most widely used polymers in the construction, automotive, and electronics sectors is polyurethane. The polyurethane-based end products, however, are extremely difficult to decompose because they are difficult to break down. For instance, the decomposition of furniture with polyurethane padding could take up to a thousand years. The U.S.-China trade war, the volatility of crude oil prices, and strict environmental regulations are also limiting market expansion. In keeping with this, the producers are concentrating their efforts on creating environmentally friendly products, which is further fueling the market's expansion.

Market Dynamics

The Growing Furniture Industry Worldwide Drives the Market

Polyurethane is primarily used as a foam for cushioning and bedding applications in the furniture industry. Because of its adaptability, toughness, and capacity for comfort, the furniture industry can use it. Modern homes and workplaces would be much less comfortable without polyurethanes. Flexible polyurethane foams have good support, are strong, and maintain their shape over time despite being soft. They are a great and secure filling material for mattresses and seat cushions because they can be manufactured to the manufacturer's specified density. When creating new products, their adaptability enables designers to unleash all of their imagination. Polyurethane foams support the body by conforming to its contours. Memory foam, a common polyurethane material, molds to the shape of the body to encourage restful sleep. It is frequently used in hospitals to help patients who are confined to beds for extended periods of time avoid developing pressure sores. The demand for furniture is rising due to changing lifestyles and an expanding population on a global scale. As a result, it is anticipated that the global market will expand.

Rising Demand for Insulation and Energy Efficiency gives an Opportunity for Exponential Growth

Rigid polyurethane foam, which is also used in trucks and shipping equipment, has a remarkable ability to keep heat out and cool air, which adds to its eco-efficiency. Polyurethane foam insulation is found in both residential and commercial appliances, as well as other components of the cold chain. A modern appliance with polyurethane insulation has a 20:1 energy-saving factor, according to analysis. The potential for energy savings grows with the use of polyurethanes, which is advantageous for the environment. An industry study found that more than 40% of the energy used to heat and cool interior spaces in homes and buildings, including those with walk-in freezers, comes from fossil fuels. These buildings use polyurethane insulation to improve energy efficiency and subsequently lower carbon dioxide emissions associated with energy use. Automakers significantly reduce carbon dioxide emissions by using polyurethane foams to create lighter, more fuel-efficient vehicles.

Regional Analysis

Asia Pacific region is the highest contributor to the market and is anticipated to grow at a CAGR of xx% during the forecast period. China is the leader in the region's manufacturing and construction industries, followed by India. The expansion of the construction industry is fueled by a favorable political environment and business climate. According to information provided by Invest in India, by 2025, India's construction output is predicted to increase by an average of 7.1% annually, placing the country third globally. The Indian government is also actively trying to speed up the development of the construction industry. The government recently introduced the Pradhan Mantri Awas Yojana, which aims to construct housing for everyone in urban areas by 2022. For the flexible foam cushioning in sofas and carpets, polyurethane is used. The purpose of using it on roofs is to reflect sunlight, maintain indoor temperatures, and lessen the need for air conditioning. China is still the world's leader in the automobile industry. In February 2020, Chinese motor vehicle sales totaled 309,942 units, down from 1,927,201 units in January 2020, according to CEIC Data. As a result, market growth during the forecast period will be driven by the expansion of the construction and automotive sectors.

During the forecast period, the polyurethane market is anticipated to expand rapidly in Europe. The automobile industry is the backbone of European industry and accounts for a sizable portion of the GDP of the continent. According to information provided by the European Commission, the automobile industry employs about 13.9 million people and generates about 7% of the nation's gross domestic product. In the automotive industry, polyurethane is crucial because it is used to make car seats, interiors, doors, spoilers, and windows. They help shock absorbers withstand mechanical and dynamic loads when used in shock absorbers. In addition to providing insulation, sound absorption, and comfort, polyurethane is used to manufacture lightweight components that increase mileage by improving fuel economy. 160 factories in Europe produce flexible polyurethane slabstock foam, which is produced at a rate of 1.5 million tonnes annually. A car uses between 22 and 24 kg of polyurethanes, the majority of which is the foam that is molded into the seats. Each car uses about 2.5 kg of slabstock foam, the majority of which is used as foam sheets for headliners. In 2021, 9.9 million passenger vehicles were produced, according to the European Automobile Manufacturers Association (ACEA). CSIL places the annual production of mattresses in Europe at roughly 50 million units. Between 2 and 30 kg of polyurethane foam can be found in nearly 90% of those mattresses. The majority of mattresses produced in Europe are innerspring models, followed by 40% foam and 7% latex. The proportion of mattresses with polyurethane cores slowly rises each year.

As a result of the rising building construction and remodeling activities in the region, North America is predicted to experience significant growth in the polyurethane market during the forecast period. To prevent air leakage and preserve building insulation, the material is used for the construction of roofs, attics, walls, and basements. Over the past two decades, the building insulation market has grown as more people are becoming aware of the energy-saving benefits of insulating buildings, especially in regions with colder climates.

During the forecast period, the global polyurethane market is anticipated to grow moderately in the LAMEA region. The Middle Eastern countries' booming construction industries will boost the use of polyurethane in the area. The region's market will expand due to the South American countries' expanding automotive industries and economic development.

Key Highlights

• The global polyurethane market was valued at USD 75.80 billion in 2022. It is projected to reach USD 108.82 billion by 2031, growing at a CAGR of 4.1% during the forecast period (2023-2031).
  
• Based on the product, the global polyurethane market is bifurcated into flexible foam, rigid foam, coating, and elastomer. The rigid foam segment is the highest contributor to the market and is anticipated to grow at a CAGR of xx% during the forecast period.
• Based on the end-user, the global polyurethane market is bifurcated into construction, household products, transportation equipment, and electronics. The construction segment is the highest contributor to the market and is anticipated to grow at a CAGR of xx% during the forecast period.
• Asia Pacific region is the highest contributor to the market and is anticipated to grow at a CAGR of xx% during the forecast period.