POLYURETHANE PREPOLYMER MARKET ANALYSIS

The global polyurethane prepolymer market was valued at US$ 491.5 Mn in 2022 and is expected to register a CAGR of 6.40%, in terms of revenue over the forecast period (2023-2030), to reach US$ 807.3 Mn by 2030. Polyurethane prepolymer-based adhesives & binders offer high hardness, high tensile strength, and excellent adhesive strength and hence can be utilized in moisture-curing systems. Polyurethane prepolymer adhesives find applications in various construction & infrastructural activities such as roadway construction. Prepolymers find applications in various polyurethane (PU)-based end-uses like automotive industries. Increasing demand for PU prepolymers is due to the beneficial properties they offer to the final product. These prepolymers possess unique properties such as a rubber-like elasticity along with metal-like toughness. They also offer durability, biocompatibility, and biodegradability, which make them suitable materials for various PU-based applications including industrial coatings, adhesives & elastomers, and also for biomedical applications.

Global Polyurethane Prepolymer Market - Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic has had a significant impact on the global polyurethane prepolymer market. The market has experienced fluctuations in demand, production, and supply chain disruptions due to the pandemic. For instance, the pandemic has caused disruptions in the global supply chain, resulting in a shortage of raw materials and a delay in the delivery of finished good. This has affected the production of polyurethane prepolymer and led to a shortage in the market. Moreover, decrease in demand due to the economic slowdown caused by the pandemic, for instance, the demand for polyurethane prepolymer has decreased significantly. Industries such as automotive, construction, and furniture, which are major consumers of polyurethane polymer, have seen a decline in demand, leading to a decrease in production and sales.

Global Polyurethane Prepolymer Market - Drivers

• Growing Demand from the Construction Industry

Polyurethane prepolymers are widely used in the construction industry due to their excellent priorities such as adhesion, durability, insulation, water resistance, and others. The growth of the construction industry, especially in developing economies, is driving the demand for polyurethane polymers. For instance, in India, the government has launched several infrastructure development projects such as Smart Cities Mission, Housing for all, and others, which are expected to increase the demand for polyurethane polymers. This factor may rise the growth of the global polyurethane polymers market.

Figure 1. Global Polyurethane Prepolymer Market Share (%), By Segment Type

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• Increasing Demand from the Automotive Industry

The automotive industry is a major consumer of polyurethane prepolymers, as they are used in manufacturing various automotive parts such as seats, dashboards, steering wheels, and others. The growing demand for fuel-efficient and lightweight vehicles is driving the use of polyurethane prepolymers in the automotive industry. For instance, Ford Motor Company has designed and developed polyurethane-based foam for its 2021 F-150 pickup truck, which is expected to reduce the overall weight of the vehicle. This facor may propel the groeth of the global polyurethane prepolymer market. Ford Motor Co (Ford) is an automotive company, which designs, manufactures, markets and services a full line of cars, trucks, sport utility vehicles and electrified vehicles. The company provides vehicle-related financing and leasing services. Ford markets its products under Ford and Lincoln brand names.

Global Polyurethane Prepolymer Market - Restraints

Volatility in Raw Material Prices

The price of raw materials used in the production of polyurethane prepolymers, such as polyols and diisocyanates, can be volatile, which can affect the profitability of manufacturers. For instance, fluctuations in crude oil prices can impact the price of diisocyanates, which can in turn affect the cost of polyurethane prepolymers. This factor may hinder the growth of the global polyurethane prepolymers market.

Among application, adhesives & binders held the largest revenue share of 61.30% in the global polyurethane prepolymer market in 2022. The polyurethane prepolymer is used in various applications such as coatings, sealants, elastomers, and adhesives & binders. The adhesives & binders segment is expected to experience significant growth in the near future, which will drive the growth of the global polyurethane prepolymer market. Polyurethane adhesives and binders are used in a wide range of applications, including carpet backing, composite wood binders, plywood patching compounds, and foundry core binders

Global Polyurethane Prepolymer Market - Regional Insights

Asia Pacific accounted for the largest revenue share of 51.30% in the global polyurethane prepolymer market in 2022 and is projected to continue its dominance during 2023-2030. Furthermore, Asia Pacific region is expected to record the fastest growth in the global polyurethane prepolymer market during the forecast period. The growing polyurethane industry in countries such as China and India is expected to boost the growth of the polyurethane prepolymer market in the region. For instance, according to ‘Indian Polyurethane Association’, polyurethane production in India increased from 441 KT in 2014 to 564 KT in 2016, whereas in China it increased from 6020 KT in 2014 to 6879 KT in 2016.

Europe is another major market with a revenue share of 22.50%, in 2022 in the global polyurethane prepolymers market. With significant demand for industries such as construction, automotive, and packaging. This region has a mature market, with a high level of technological advancements and stringent regulations.

North America market for global polyurethane prepolymers is growing, driven by the demand from many industries. This region has a well-established market for polyurethane products and a high level of technological advancements.

Figure 2. Global Polyurethane Prepolymer Market Share (%), By Region

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Global Polyurethane Prepolymer Market - Recent Developments

• BASF launched its new polyurethane prepolymer called Lupranol Easy 2560 in 2020. T5his product is designed to help manufacturers achieve lower emissions, reduced energy consumption, and increased productivity. 1865 marks the beginning of BASF's success story in Ludwigshafen on the Rhine. From here, it ships its products to nearly everywhere in the world. With six Verbund sites and 352 additional production sites worldwide, BASF is the world's leading chemical company today. BASF from 1865 until today.
• In 2020, Covestro launched its new Desmodur eco N 7300 polyurethane prepolymer. This product is made from 70% biomass and is designed to provide a more sustainable option for polyurethane manufacturing. Covestro produces precursors for polyurethane foams and high-performance plastic polycarbonate as well as precursors for coatings, adhesives, sealants, and specialty products, including films. The company works continuously to further advance products, technologies, and application solutions.
• In 2020 Huntsman Corporation launched its new polyurethane prepolymer called IROGRAN A 85 P 5017. This product is designed for the production of high-performance thermoplastic polyurethane that offers excellent abrasion resistance, elasticity, and durability. Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2021 revenues of approximately $8.5 billion.
• In 2019 Wanhua Chemical Group launched its new polyurethane prepolymer called PAPI 27. This product is designed production of flexible polyurethane foams used in the automotive and furniture industries. Wanhua Chemical Group Co. Ltd. engages in the production, sale, research and development of chemical products like isocyanate, polyol and polyurethane. The company business segment includes Polyurethane, Petro-Chemicals, Performance Solutions and Special Chemicals. 

Global Polyurethane Prepolymer Market - Key Players

Major players operating in the global polyurethane prepolymer market are Covestro AG, DowDupont Inc., Huntsman Corporation, LANXESS AG, Isothane Ltd., Mitsui Chemicals Inc., Tosoh Corporation, and SAPICI S.p.A.

*Definition: Polyurethane prepolymer products are used as precursor materials for a variety of applications including molding compounds, sealants and adhesives, coatings, and other specialty products.