POLYOLS AND POLYURETHANE MARKET ANALYSIS

Polyurethanes are polymers and are widely used across various applications. Polyols are one of the key ingredients used in the production of polyurethanes. Polyurethanes are available in different types such as rigid forms, elastomers, flexible foams, and solid compositions. These are used across various end-user applications such as furniture, automobiles, boats, adhesives, and water vessels.

Statistics:

The global polyols and polyurethane market is accounted for US$ 24,986.9 Mn in terms of value and by the end of 2019 and is expected to grow at a CAGR of 7.3% during the forecast period.

Drivers:

Strong growth in the furniture and interiors industry is primarily fueling the market growth of the polyols and polyurethane. The furniture industry is the largest consumer of the polyurethane foam and flexible foam is commonly used polyurethane foam that is used as a cushioning material in the upholstered furniture since these materials offer comfort, durability, and comfort. Polyurethane is used to produce cushions, seating, office furniture, pillows, and mattress.

Robust growth for the product from the electronics and appliances industry is propelling the market growth. The electronics industry is the third-largest end-user market for polyurethane and is accounted for around 12% of the total volume consumption of the product. Nonfoam polyurethane is widely used in the sealing, encapsulation, and insulation applications. Plugs, casings, cables, tubes, and cable sheathing are some of the electronic products where polyurethanes are widely used.

Figure 1. Global Polyols and Polyurethane Market, Revenue Share (%), By Region, 2019

Asia Pacific region dominated the global polyols and polyurethane market in 2019, accounting for 39.5% share in terms of value, followed by Europe and North America, respectively.

Market Restraints

Factor such as the economic downturn is affecting the sale of the product. This is expected to act as a challenge for the market growth of the polyols and polyurethane.

Strict rules and regulations associated with the production of the polyurethane are expected to inhibit the market growth. This is due to adverse effects associated with the product on the environment as they exhibit various threats to both aquatic as well as terrestrial species.

Market Opportunities

Increasing development of the bio-based polyurethane is expected to bring new market opportunities over the forecast period. The growing need for environmental sustainability coupled with the growing research and development in the field of polyurethane for developing bio-based polyurethane foam is expected to foster the market growth of the polyols and polyurethane. Thus, the rising demand for bio-based polyurethane is expected to foster market growth.

The growing need for energy conservation is projected to provide potential growth opportunities over the forecast period. Polyurethane foam is widely used in refrigerators and commercial cold storage for saving energy. They help in saving energy by playing key role as an effective insulators. Hence they are beneficial in saving the energy efficiency of buildings and appliances by reducing the need for heating and cooling which helps in lower carbon emission. 

Figure 2. Global Polyols and Polyurethane Market – Opportunity Analysis

Global polyols and polyurethane market was valued at US$ 24,986.9 Mn market in 2019 and is forecast to reach a value of US$ 44,068.1 Mn by 2027 at a CAGR of 7.3% between 2020 and 2027

Market Trends/Key Takeaways

The growing popularity of the polyurethane coatings as they offer UV protection to a wide range of structures is augmenting the market growth of polyols and polyurethane. For instance, in May 2020, Tnemec Company Inc. launched three low VOC polyurethane coatings: Series 1094, Series 1095, and Series 1096 Endura-Shield. These innovative new products, like other Endura-Shield coatings before them, provide UV protection to a wide variety of structures across multiple environments and climates.

Strategic acquisition and merger by the key manufacturer for expanding market presence is one of the growing trends in the market. For instance, in December 2019, Huntsman Corporation announced that it has acquired Icynene-Lapolla, a North American manufacturer and distributor of spray polyurethane foam (SPF) insulation systems for residential and commercial applications, from an affiliate of FFL Partners, LLC.

Figure 3. Global Polyols and Polyurethane Market, Revenue Share (%), By Type, in 2019

The polyether polyols segment dominated the global polyols and polyurethane market in 2019, accounting for 73.5% share in terms of value, followed by polyester polyols segment.

Global Polyols and polyurethane Market - Impact of Coronavirus (Covid-19) Pandemic

The novel Coronavirus (COVID-19) has impacted almost all the industries globally including industrial automation and construction industry that is the major end-user of the polyols and polyurethane market. Thereby, also impacting the growth of the market till the year 2021.

Value Chain Analysis

Competitive Section:

Company Names 

1. BASF SE
2. Bayer MaterialScience AG
3. Chemtura Corporation
4. COIM
5. Dow Chemical Company
6. E.I. du Pont de Nemours & Company (DuPont)
7. Hebei Cangzhou Dahua Group Corporation Ltd.
8. Huntsman Corporation
9. Kumho Mitsui Chemicals Incorporation
10. Mitsui Chemicals Inc.

Few Recent Developments

In January 2018, Dow DuPont Materials Science and Dow Corning Polyurethane Additives (PUA are combined into the Dow Polyurethanes portfolio under the Vorasurf polyurethane additives brand name to serve bedding, spray foam, and footwear market.