The Polyurethanes Market is growing at a significant rate as the
government of various countries are embracing new initiatives for the development of lightweight and durable production demands. As the population and per
capita income is increasing the demand for automotive is also projected to rise.
Moreover, in the upcoming years, an increase in production of automotive in the
emerging economies such as Japan, China, and Malaysia, is expected to boost the
polyurethanes industry growth. Furthermore, the increasing R&D activities
in the polyurethanes market are further estimated to drive the growth of the polyurethane
industry in the forecast period. Polyurethanes Market size is forecast to reach US$90.6 Billion by 2026, after growing at a CAGR of 5.9% during 2021-2026
The production and demand in top
countries for polyurethane is expected to boom over the next five years. In
terms of revenue coating adhesives and sealants (CAS) accounted with the share
of 24% in polyurethanes market in 2020. Polyurethane coating, polyurethane
adhesives, and polyurethane sealants are increasingly being used in several end
use industries. Polyurethane coatings are particularly recommended for
application to surfaces subject to high levels of wear-and-tear, where excellent
chemical/physical resistance is required. Furthermore, polyurethane adhesives
and sealants are among the most widely used technology for both new and
renovation construction projects. Increasing demand for coating adhesives and
sealants owing to its excellent versatile property is anticipated to drive the
growth of the market.
The automotive gasoline/diesel
passenger car production is increasing year over year. According to 2019
statistics by Organisation Internationale des Constructeurs d'Automobiles (OICA),
China was the major producer of automotive passenger cars with 34% of the share
followed by U.S, Japan, Germany, India, and others with 4%, 12%, 7%, 6%, and 37%
respectively. The primary motive of the use of polyurethanes for the automotive
industry is to ensure comfort and safety. The consumption of polyurethane
elastomers can be majorly seen in exterior parts, specifically in high-performance jounce bumpers, and auxiliary springs or NVH (noise, vibration and
harshness) elements. In recent
years, polyurethanes are getting consumed in combination with aluminum material
to manufacture vehicle frames, it helps to reduce the weight of vehicles as well
as to increase fuel economy, it also maximizes corrosion resistivity and sound
absorption. Thus, it is
anticipated that the rising production of automotive will boost the market
growth for polyurethanesduring the
forecast period.
Asia-Pacific region dominated the
polyurethanes market in terms of revenue with a share of 43% in 2020 and is
projected to dominate the market during the forecast period (2021-2026).In developing countries such as South
Korea and Malaysia, the growing automotive production has raised the demand for
polyurethanes at a fast pace. Polyurethane technologies contribute to
improve chassis technology and driving comfort. Therefore, driving comfort is
considerably enhanced without any decline in dynamic driving properties or
safety with help of these elastomers. According to Organisation
Internationale des Constructeurs d'Automobiles (OICA)2021 Production
Statistics, the production of passenger cars increased by 11.1% and 33.6% in
2021/2020 in South Korea and Malaysia respectively. Also, the production of
light commercial vehicles in APAC region increased by 30.9% 2021/2020.With the rising production of automotive
in the Asia pacific region the market for polyurethane is also estimated to
rise.
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Polyurethanes Market Growth Driver
- Digital developments in the PU Industry
Digitization opens up many new
business opportunities in the chemical and plastics industries. Manufacturer’s
wants to take advantage of these opportunities and initiated a comprehensive
strategic program last year to anchor digital technologies and processes in
research & development, production, logistics and at all points of contact
with customers. Companies have been using digital technologies for years.
Modern control rooms are steering its own production via a digital process
control system with the aid of algorithms. Tool designs with filling
simulations are common practice for customers in the automotive industry. In
future, the entire value chain will be digitized in order to simulate all
process steps – from the formulation and mixing of the PU systems to their
processing and handling of the component with the aid of robots. This will
significantly shorten development times and the implementation of integrated
production processes. Using digital calculation methods, companies are also
operating a “virtual chemical reactor”. The companies have developed software
that precisely calculates the changes in temperature and molecular composition,
i.e., the progress of the chemical reaction. Not only important primary
products such as urethanes and ureas are considered, but also secondary
reactions, the influence of catalysts or back reactions and the development of
molecular networks. The Polyurethanes segment is currently offering its
partners a digital service platform with a forecasting tool that determines the
best PU formulations and processing conditions online for a specific production
environment.
- R&D Investment:
Currently, various end-users, such as the automotive industry, are
likely to expand their demand for bio-based polyurethane throughout the
forecast period. As a result, market providers are investing heavily in R&D
to produce bio-based polyurethane. The majority of R&D money is being put
into enhancing the efficiency of bio-based polyurethanes.
The Major Players in this Market Include
Technology launches, acquisitions,
and R&D activities are key strategies adopted by players in the
polyurethanes market. Major players in the polyurethanes market are BASF SE,
Chemtura Corporation (Lanxess AG.), Tosoh Corporation, KURARAY CO., LTD.,
WANHUA CHEMICAL GROUP CO., LTD., Era Polymers Pty Ltd, Lubrizol, The Dow
Chemical Company, COVESTRO AG, and Huntsman Corporation among others. In January 2020, BASF SE at
its Castellbisbal location in Spain announced a single-digit million-euro
investment in expanding capacity for water-based polyurethane dispersions. BASF
will be able to boost its manufacturing capacity by 30% as a result of the
development.
The ongoing COVID-19 pandemic has impacted many end user industries globally. As a result of the pandemic situation, several firms across regions had to shut down their production facilities and services as countries adopted partial or absolute lockdown policies to deal with the pandemic. Furthermore, companies throughout the world also halted or postponed large M&A ventures in the year 2020.In addition, the COVID-19 pandemic also affected crude oil prices, well-drilling and production activities, and the oil and gas supply chain. The decline in production activities further negatively affected the prices for polyurethanes in the short to medium term.
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