APAC Polyurethanes Market - Forecast(2024 - 2030)

APAC Polyurethanes Market Overview

The APAC polyurethanes market size is projected to reach US$40.2 billion by 2027, after growing at a CAGR of around 4.1% from 2022 to 2027. Polyurethane is a polymer that is formed as a result of the reaction between polyols and diisocyanate. The polyurethanes offer superior features such as durability, temperature stability, tear resistance, and electrical insulating properties thereby flourishing applications as rigid or flexible foams, elastomers, binders, and other packaging use. The demand for polyurethane in building and construction activities is high due to major applications in residential, commercial, and others, thereby offering a major drive in the APAC polyurethanes market. Furthermore, with the increasing emphasis on energy-efficient polymer sources, rising automotive production, and high demand from major end-use industries in APAC, the APAC polyurethanes industry is anticipated to grow during the forecast period. The covid-19 outbreak led to a slowdown in the APAC polyurethane market due to a halt in manufacturing, declining demand, logistics restrictions, and other restrictions in major industries such as construction, automotive, and others. However, with fast recovery and development in construction projects, the APAC polyurethane industry is growing rapidly.

Report Coverage

The reports “APAC Polyurethanes Market Report– Forecast (2022-2027)” by IndustryARC covers an in-depth analysis of the following segments of the APAC polyurethanes industry. 

By Finish: Matte Satin, Semi-Gloss, and High Gloss.
By Application: Foam (Rigid and Flexible), Adhesives & Sealants, Surface Coatings, Elastomers, Synthetic Fiber, Cushioning, and Others.
By End-Use Industry: Building & Construction (Commercial, Residential, Industrial, and Infrastructure), Electronics (Consumer Electronics, Electronics Wearable, and Others), Automotive (Passenger Vehicle, Light Commercial Vehicles, and Heavy Commercial Vehicles), Furniture, Packaging, and Others.
By Country: China, Japan, India, South Korea, Australia, and New Zeeland, Indonesia, Taiwan, Malaysia, and Rest of APAC.

Key Takeaways

• The APAC polyurethanes market size will increase owing to its flourishing end-use industries and high demand for bio-polyurethanes products during the forecast period. 
• China is the fastest-growing country in the APAC polyurethanes industry owing to the flourishing industrial base, developing green building projects, growing automotive production, and other manufacturing advancements.
• The high demand for flexible foams in the APAC polyurethanes market is due to its rising application and demand for construction, furniture, bedding, cushioning, and others.

Figure: APAC Polyurethanes Market Revenue, 2021-2027 (US$ Billion)

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APAC Polyurethanes Market Segment Analysis – By Application  

The foam segment held the largest share in the APAC polyurethanes market in 2021 and is forecasted to grow at a CAGR of around 3.8% during the forecast period 2022-2027. Polyurethane comprises of rigid and flexible foam for applications across major end-use industries, majorly in the buildings & construction sector for insulation. This is due to excellent features such as flexibility, durability, and versatility. The flourishing construction and building activities are boosting the demand for polyurethane foams. According to the India Brand Equity Foundation (IBEF), the Government of India invested US$ 1.4 trillion in infrastructure during the year 2019-2023. Furthermore, as per the World Bank, the value added by the construction sector in Australia accounted for 25.5% of the GDP in the year 2020. The growing building and housing development projects are propelling the demand for foams, thereby boosting the growth of polyurethanes in the APAC polyurethanes market during the forecast period.

APAC Polyurethanes Market Segment Analysis – By End-Use Industry

The building and construction segment held the largest APAC polyurethanes market share in 2021 and is during the forecast period 2022-2027. Polyurethanes have major demand in the construction sector for commercial, residential, infrastructural, and industrial forecasted to grow at a CAGR of 4.8% applications owing to their excellent features such as versatility, durability, insulation, and strength. The flourishing construction activities and green building projects are boosting the demand for the polyurethane industry. For instance, the Union Minister of Road Transport Highways announced the launch of a road construction project worth US$ 3.4 billion in Gujarat. Furthermore, the Department for Promotion of Industry and Internal Trade (DPIIT), the FDI in construction development stood at US$26.17 billion from April 2000-December 2021 in India. According to the International Trade Administration, the cumulative private construction order in South Korea accounted for US$120.3 billion in 2020, an increase of 20.4% compared to 2019. Thus, with major development and advancement in the building projects, the application of polyurethanes for elastomers, and flexible and rigid foams will increase, thereby the construction sector is anticipated to grow during the forecast period. 

APAC Polyurethanes Market Segment Analysis – By Country

China held the largest share in the APAC polyurethanes market in 2021 and is forecasted to grow at a CAGR of around 5.3% during the forecast period 2022-2027. The robust growth of polyurethanes in China is influenced by the established base for polyurethanes across major end-use industries. Polyurethanes have major applications in automotive for vehicle interiors, exterior panels, engine cabins, and others. According to the International Organization of Motor Vehicle Manufacturers (OICA), automotive production showed an increase of 3% in 2021, compared to 2020. Furthermore, the significant growth in infrastructure development, green buildings project, and other construction advancements in China is propelling the growth of the APAC polyurethanes market. According to the International Trade Administration, the construction sector in China is forecasted to grow at an annual average of 8.6% between 2022 and 2030. Thus, with a flourishing base for major industries such as automotive, construction, and others, along with the high demand for polyurethane, China is anticipated to grow rapidly in the APAC polyurethane industry during the forecast period.

APAC Polyurethanes Market Drivers

Rising Application in the Electronics Industry

The rise in demand for polyurethanes for major applications in the electronic sector is offering a major drive in the APAC polyurethanes industry owing to its flourishing application in printed circuit boards, electrical components, and other electronic devices. This is due to its superior features such as electrical insulation, heat protection, and durability. The demand for polyurethane is increasing due to growing production for consumer electronics and wearable devices in the electronics sector across the APAC region. For instance, as per the National Investment Promotion & Facilitation Agency, the Indian electronic device sector is anticipated to reach US$200 billion by 2025-26. According to the Japan Electronics and Information Technology Industries Association (JEITA), the consumer electronic equipment production in Japan for December 2021 was US$ 271.10 million compared to US$209.61 million in June 2020. The robust growth in the electronics industry is propelling the demand for polyurethanes in the electronics sector owing to applications in circuits and sensors, and others. Thus, increasing demand for polyurethanes in the electronics sector is driving the APAC polyurethane industry and offering major growth opportunities.

Rising Demand from Construction Sector

The APAC polyurethanes have flourishing applications in the building and construction sector such as in heating, ventilation, cooling, and air conditioning (HVAC) systems, construction materials, and others owing to excellent features such as durability, heat resistance, strength, and versatility. Furthermore, the demand for polyurethane in construction is increasing due to the growing emphasis on green building projects and infrastructural development. According to the World Bank data, the growth of the construction sector in the South Asia region is 6.6% in 2022. The flourishing of building and construction activities across the globe is thereby propelling the demand for polyurethanes due to their wide range of applications in construction and infrastructure projects. Thus, the APAC polyurethanes market is driving and experiencing major growth opportunities.

APAC Polyurethanes Market Challenges

Environmental Threats of Raw Materials

Raw materials of polyurethanes such as isocyanates, MDI, and TDI cause hazards in the environment and other health risks. The health risks such as asthma and respiratory complications create a major impact on the application and growth of polyurethanes. Furthermore, Environment Canada and Health Canada addressed the levels of TDI and concluded the concentration that is hazardous for human health to control the contamination. Thus, owing to major environmental hazards and health risks associated with the raw materials used in the production of polyurethane products, the demand, and application of polyurethanes faces slowdown, thereby leading to major challenge and growth restrain in the APAC polyurethanes market. 

APAC Polyurethanes Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the APAC polyurethanes market. The APAC polyurethanes top 10 companies are:

1. Mitsui Chemicals, Inc.
2. BASF SE
3. Huntsman Corporation
4. DIC Corporation
5. The Dow Chemical Company
6. Recticel NV
7. Saint-Gobain Group
8. Wanhua
9. Covestro AG
10. Kuraray Co. Limited

Recent Developments

• In December 2021, Covestro planned to increase the production capacity of polyurethanes by establishing new plants in the Shanghai site, thereby boosting the company's portfolio and growth opportunities in the APAC polyurethanes market.
• In October 2020, Huntsman opened the polyols and downstream polyurethanes plant in Taiwan to provide differentiated solutions to customers and effectively supply spray polyurethane foams (SPF) in the market.
• In January 2020, the BASF invested to expand the polyurethane dispersion business and production by 30% to meet the rising polyurethane demand in the market.

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