Polyurethane Elastomers Market - By Material Type , Thermoset , By Processing Method , By Application , By End-Use Industry , By Geography - Global Opportunity Analysis & Industry Forecast, 2024 - 2030

Polyurethane Elastomers Market Overview

The Polyurethane Elastomers Market Size is forecast to reach $ 12324.5 Million by 2030, at a CAGR of 4.50% during forecast period 2024-2030. Polyurethane Elastomers can be blended into various materials which include polymethyl methacrylate, polypropylene, polystyrene, vinyl ester, polyamide and other materials. It is used in a wide range of industries such as automotive, aerospace, construction, footwear and other industries. In 2020, the COVID-19 lockdown had significantly reduced production activities as a result of the country-wise shutdown of manufacturing sites, shortage of labor and the decline of the supply and demand chain all across the world, thus, affecting the polyurethane elastomers industry. However, a steady recovery in automobile production has been witnessed across the world since 2021. Polyurethane elastomers are primarily used in the automotive industry for the production of tires and body panels of an automobile. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), the total global automobile production reached 80.2 billion units in 2021, an increase of 3% as compared to 77.7 billion units in 2020. An increase in automotive production along with the surging demand from the construction industry is expected to drive the growth of the polyurethane elastomers market size in the upcoming years. On the other hand, fluctuating prices of raw materials may confine the growth of the market.

Polyurethane Elastomers Market Report Coverage

The “Polyurethane Elastomers Market Report – Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Polyurethane Elastomers Market.

Key Takeaways

• The injection molding segment held a significant share in The Polyurethane Elastomers Market in 2021. Its wide range of characteristics and higher efficiency made it stand out in comparison to other types of processing methods in the market.
• Footwear industry held the largest share in the Polyurethane Elastomers Market in 2021, owing to the increasing demand for polyurethane elastomers for the production of footwear, owing to its properties such as durability, flexibility and lightness.
• Asia-Pacific dominated the Polyurethane Elastomers Market in 2021, owing to the increasing demand for polyurethane elastomers from the footwear industry in the region.
• A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Polyurethane Elastomers Market Report

Figure: Asia-Pacific Polyurethane Elastomers Market Revenue, 2021-2027 (US$ Billion)

Polyurethane Elastomers Market Segment Analysis – by Processing Method

Injection molding held a significant Polyurethane Elastomers Market share in 2021, owing to its increasing demand due to the benefits it offers over other types of processing methods. For instance, the injection molding method aids in faster production along with higher efficiency as compared to other types of processing methods, owing to which it is commonly used in the production of polyurethane elastomers utilized in multiple industries. Moreover, polyurethane elastomers obtained through injection molding offers enhanced strength and higher flexibility in comparison to extrusion and other types of processing method. Furthermore, the injection molding method is more cost-effective in comparison to other methods and has low labor cost, high-output production and low scrap rate. Hence, all of these benefits are driving its demand over other types of processing methods, which in turn, is expected to boost the market growth during the forecast period.

Polyurethane Elastomers Market Segment Analysis – by End-Use Industry

The footwear industry held the largest Polyurethane Elastomers Market share of over 25% in 2021, owing to its increasing demand from the footwear sectors across the world. For instance, according to the World Footwear Yearbook 2021, North America and South America accounted for 1.5% and 4.6% of the total footwear production across the globe in 2021. Likewise, Europe accounted for 3.3% while Africa accounted for 3.1% of the global total footwear production in 2021. Furthermore, the total consumption of footwear in 2020 in the U.S reached 1,830 million pairs, followed by Brazil with 691 million pairs and Germany with 372 million pairs, indicating an increasing demand for footwear across the world.

In this way, such surging footwear production in multiple regions across the world is expected to increase the demand for polyurethane elastomers blended into various materials such as polypropylene, polystyrene and polyamide for the production of such footwear, owing to its durability, flexibility, comfortability and lightness. This is expected to expand the polyurethane elastomers market size during the forecast period.

Polyurethane Elastomers Market Segment Analysis – by Geography

The Asia Pacific held a dominant Polyurethane Elastomers Market share of around 30% in the year 2021. The consumption of polyurethane elastomers is particularly high in this region due to its increasing demand from the footwear sector. For instance, according to the World Footwear Yearbook 2021, Asia-Pacific held the largest share in footwear production in 2021, accounting for 87.6% of the global total. The total consumption of footwear in 2020 in China reached 3,942 million pairs, followed by India with 2,006 million pairs, Indonesia with 821 million pairs and Japan with 584 million pairs, representing an increasing demand for footwear in the region. Furthermore, Pakistan and Bangladesh accounted for 2.5% and 1.9% of the total global footwear consumption in 2020.

Polyurethane elastomers are primarily used in the footwear industry for the production of soles, slippers and insoles, owing to their range of characteristics such as high, flexibility, durability, comfort and lightness. Thus, the surging growth of the footwear sector in the region is expected to increase the demand for polyurethane elastomers, which in turn, is expected to accelerate the market growth during the forecast period. 

Polyurethane Elastomers Market Drivers

An increase in automobile production

Polyurethane elastomers are primarily used in the automotive industry for the production of tires and body panels of an automobile. Its properties such as high tensile strength, along with excellent resistance to tear, wear and abrasion makes them ideal for use in such automotive applications. According to a recent study published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached up to 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe and 5180 units in other regions worldwide. Likewise, in August 2021, Ford commenced the development of its automobile plant in Germany. The new facility will be responsible for the assembly of a new electric vehicle and aims at increasing electric vehicle production in the country. Hence, an increase in production from the automotive industry is expected to increase the demand for polyurethane elastomers, owing to their above-mentioned properties. This is expected to accelerate the growth of the market in the upcoming years.

Surging demand from the construction industry

Polyurethane elastomers are commonly used in the construction industry, particularly for filling gaps within a structure. Polyurethane elastomers are mostly enfolded with adhesives & sealants materials and used in the building structure for several applications such as roofing membrane, waterproofing, carpeting, window & weather seals, wall coverings and other similar applications. For instance, according to Volvo CE, the construction sector saw an increase in construction activities across multiple regions since the fourth quarter of 2020. South America saw an increase of 12%, Asia by 39%, Europe by 20% and China by 28% in 2020. Furthermore, YIT Corporation commenced the construction of numerous residential apartment building projects in Finland, the CEE countries and Russia in December 2021, with total investments of around EUR 200 million (US$236.5 million). The projects are scheduled to be completed by the end of 2023. Hence, an increase in global construction activities is expected to increase the demand for polyurethane elastomers for use in roofing membranes, waterproofing, carpeting, window & weather seals, wall coverings and other similar applications of residential or commercial buildings. This is anticipated to drive the growth of the market in the upcoming years

Polyurethane Elastomers Market Challenges

Fluctuating prices of raw materials may confine the growth of the market

Some of the raw materials for polyurethane elastomers are obtained from crude oil. In 2020, the international benchmark for petroleum prices across the world also known as Brent crude prices decreased to US$9.12 per barrel, which was the lowest record since December 10, 1998. Likewise, in April 2020, India’s Crude Oil Basket (COB) reached US$19.90 per barrel, which was the lowest record since February 2002. During the first 11 months of the year 2020-21, the average annual price of India’s COB was around US$42.72 per barrel, which decreased by 30% more than the average COB price in 2019-20. Furthermore, as per revised estimates for 2020-21, the COB has increased by around 35% from its initial budget estimate. In this way, the uncertainty regarding the price of crude oil also increases the price of raw materials required for the production of polyurethane elastomers. Hence, such instability and fluctuating prices of raw materials may confine the growth of the polyurethane elastomers industry during the forecast period.

Polyurethane Elastomers Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Polyurethane Elastomers market. The top companies in Polyurethane Elastomers Market are:

1. Tosoh Corporation
2. Dow
3. BASF SE
4. Covestro AG
5. Huntsman International LLC
6. LANXESS
7. The Lubrizol Corporation
8. Mitsubishi Chemicals
9. Chemtura Corporation
10. Trelleborg

Recent Developments

• In January 2021, Lanxess launched its new energy-efficient polyurethane elastomers. The new product generates less heat and consumes less energy upon usage. It is ideal for use in applications such as machinery, testing equipment, molds, along with other goods associated with finished rubber products.
• In November 2019, Mitsubishi Chemical Corporation acquired the thermoplastic polyurethane elastomer business of AdvanSource Biomaterials Corporation, a U.S-based company. The main motive of this acquisition was to expand and strengthen the company’s presence in the North American region.
• In June 2019, Huntsman launched its new range of elastomers composed of polyurethane materials. It offers high performance and is specifically designed for use in the production of castors, wheels and other industrial parts that need to perform in extreme working conditions.

Key Market Players:

The Top 5 companies in the Polyurethane Elastomers Market are:

1. Tosoh Asia Pte. Ltd.
2. Dow
3. BASF SE
4. Covestro AG
5. Huntsman

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