Polyurethane Market Size, Trends and Growth Analysis by 2027

The polyurethane market was valued at approximately US$ 54,917.09 million in 2021 and is projected to reach around US$ 102,916.80 million by 2028, reflecting a compound annual growth rate (CAGR) of 9.4% from 2020 to 2028.

Polyurethane (PU) is a thermosetting polymer made up of organic units linked by carbamate connections, which means it does not melt when heated. This material is lightweight, corrosion-resistant, elastic, and possesses significant strength. PU often serves as a substitute for traditional materials such as paper, glass, and metals. Its high mechanical strength allows it to provide insulation and replace metals in automotive components. The anticipated growth of the polyurethane market during the forecast period is driven by an increasing demand for lightweight and durable materials across various sectors, including automotive, packaging, furniture, footwear, and other end-user industries. Additionally, the rising need for high-performance interior components further fuels the growth of the polyurethane market. However, fluctuations in raw material prices and economic challenges in developing nations can negatively impact product sales, hindering market expansion. Conversely, the growing adoption of bio-based polyurethane presents significant growth opportunities for key players in the polyurethane sector during the forecast period.

The polyurethane market is categorized by application into several segments: furniture and interiors, construction, electronics and appliances, automotive, footwear, packaging, and others. The furniture and interiors segment held the largest market share in 2020. Flexible polyurethane foam is widely used in home furnishings, including furniture, bedding, and carpet underlay. As a cushioning material for upholstered furniture, flexible PU foam enhances durability, comfort, and support. Polyurethane is also effective in creating carved, embossed, and profiled surfaces, providing better results than traditional methods. It can conceal superficial scratches, particularly on previously finished wood, and its thin film offers moderate abrasion protection. Polyurethane for furniture and interiors is available in various finishes, including gloss and satin, as well as in oil-based and water-based formulations. High-build or oil-based polyurethane is particularly suitable for tabletops and surfaces prone to wear, delivering maximum durability with just two coats.

Geographically, the global polyurethane market is divided into regions: North America, Europe, Asia Pacific, South America, and the Middle East & Africa. The Asia Pacific region holds the largest share of the global polyurethane market, followed by North America and Europe. Within Asia Pacific, China leads the market, with India and Japan also contributing significantly. The growth of the polyurethane market in this region is primarily driven by the expansion of the construction, automotive, and packaging industries. The chemicals and manufacturing sectors are among the fastest-growing industries, presenting strong market potential for international companies. Increased investment in research and development to explore new applications for polymer materials, along with the development of eco-friendly thermoplastic polymers, is further propelling market growth.

The COVID-19 pandemic has significantly impacted the plastic polymer industry, adversely affecting the growth of the polyurethane market. The outbreak has disrupted operational efficiency and value chains due to the sudden closure of national and international borders, leading to revenue losses and damage. This disruption has negatively affected the supply of raw materials, which in turn impacts the growth of the polyurethane market. However, as economies begin to recover and resume operations, the demand for polyurethane is expected to rise globally. The packaging industry is a rapidly growing contributor to this demand, particularly as consumers increasingly order products online. Additionally, previously postponed construction projects are anticipated to resume, providing further opportunities for polyurethane market players to regain stability. With many individuals confined to their homes during the pandemic, there is an expected increase in home improvement and redesign projects. The furniture and interior segment is likely to see significant growth, as polyurethane is extensively used in the production of various furniture and interior design products. Corporate sectors have also resumed operations, implementing safety measures such as minimizing direct contact with visitors, enhancing hygiene practices, conducting thorough sanitations, and reducing personnel contact during shift changes.

Key players in the global polyurethane market include Covestro AG, The Dow Chemical Company, BASF SE, Mitsui Chemicals, Inc., and Huntsman Corporation.

The overall size of the polyurethane market has been determined through both primary and secondary research methods. The research process began with extensive secondary research using both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, multiple primary interviews were conducted with industry participants and commentators to validate the data and gain further analytical insights. Participants in this process included industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the global polyurethane market.