Thermoplastic Polyurethanes Market - Forecast(2024 - 2030)

Thermoplastic Polyurethanes Market Overview

The Thermoplastic Polyurethanes Market size is estimated to reach US$4.2 billion by 2027 after growing at a CAGR of around 7.5% from 2022 to 2027. TPU is a special type of material that bridges the gap between rubber and plastic. A polyaddition reaction produces a translucent, melt-processable, and extremely elastic thermoplastic elastomer. It is used in a variety of applications, including custom moulded components, footwear, adhesives, hose, tubes, film, sheets, and wire and cable jacketing. There are three main chemical classes of TPU: polyester, polyether and a smaller class known as polycaprolactone. TPU is a type of polyurethane plastic having a number of properties, including flexibility, transparency, and resistance to oil, grease, and abrasion. They are thermoplastic elastomers that are made up of linear segmented block copolymers with hard and soft segments.

Thermoplastic Polyurethanes Covid-19 impact

The Covid-19 outbreak created a major impact on the Thermoplastic Polyurethanes Market. Thermoplastic polyurethanes have growing applications in the automotive, construction, footwear, and other end-use industries. The construction industry was majorly affected by production halts, slowdowns, and trade restrictions during the pandemic. The construction industries saw a decline owing to workforce shortages, disrupted raw material supply, and other lockdown restrictions. Furthermore, many construction companies were going through a financial recession, so companies were laying off a lot of their workers. According to Office for National Statistics, in 2020, new construction work in Great Britain including private housing and private commercial building decreased by 11.9% due to COVID. The decline in the construction sector led to a fall in the application of various TPU products. Thus, the TPU industry faced a slowdown and restricted growth during the pandemic.

Report Coverage

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

Key Takeaways

•The production technology of TPU film and its composite products has seen significant growth with the advancement of science and technology, generating ideal conditions for the adoption of TPU film and its composite products.

•The primary factors driving the growth of the thermoplastic polyurethane market are increased uses in the medical industry and the fact that it is environmentally benign and recyclable.

•With a surge in footwear and apparel production and technological advancements making TPU a more flexible and preferable material for the footwear and apparel sector, the demand for TPU films is expected to grow considerably during the forecast period.

Figure: Asia- Pacific Thermoplastic Polyurethanes Market Revenue, 2021-2027 (US$ Billion)

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Thermoplastic Polyurethanes Market Segment Analysis – By Raw Material 

By raw materials, the diisocyanate segment accounted for the largest share of the Thermoplastic Polyurethanes Market, with a share of over 46%. Diisocyanates include highly durable compact materials like thermoplastic polyurethane (TPU) and elastomers. TPUs made from aliphatic diisocyanates offer superior UV resistance, whereas aromatic diisocyanate-based TPUs are stiffer, resulting in better thermal and mechanical qualities. According to International Energy Agency (IEA) United States EV sales also surged in 2021, more than doubling to surpass half a million. Thus, with the major application of Diisocyanates in the raw material, the Thermoplastic Polyurethanes industry will grow rapidly during the forecast period.

Thermoplastic Polyurethanes Market Segment Analysis – By End-Use Industry 

By end-use industry, the automotive segment accounted for the largest share of Thermoplastic Polyurethanes and is expected to grow with a CAGR of around 6.9% during the forecast period. Thermoplastics are widely employed in automobiles and transportation. Automotive airbags, under-the-hood applications, automotive electrical and electronics, and other engineering plastics applications include the following. The expansion of the thermoplastics market is mostly due to the rising demand for lightweight materials in the automotive industry in order to improve efficiency and design flexibility. Automotive applications for TPUs are growing, especially in luxury-class models. They are used to make rocker panels, cladding, bodyside trim, and ditch covers. TPUs tend to have low, controllable shrinkage rates. According to the International Organization of Motor Vehicle Manufacturers (OICA), automobile output increased by 10% in the first nine months of 2021, to 57.26 million vehicles, up from 52.15 million units in the same period last year. Thus, the growth in the automotive industry is boosting the growth of the global thermoplastic polyurethane market. 

Thermoplastic Polyurethanes Market Segment Analysis – By Geography

By Geography, Asia-Pacific is the fastest-growing region in the Thermoplastic Polyurethanes Market and is expected to grow with a CAGR of around 9.2% during the forecast period. TPU is produced and consumed in large quantities in China. This was fuelled by previous events, which saw many Western corporations expanding their operations in China, and to a lesser extent, other Asian countries, due to reduced manufacturing and labour costs. The Chinese footwear industry is the world's largest, with a strong domestic sales network and exports to major markets. Because leather footwear accounts for the majority of the footwear sector in China, TPU adhesive demand is expected to be the highest in comparison to other regions of the world. According to the United States international trade commission, China is the largest supplier of footwear to the United States. China accounted for $8.7 billion (42.3 percent) of total U.S. footwear imports in 2020. The demand for TPU films is predicted to rise significantly during the forecast years, owing to an increase in footwear and clothing manufacturing and technical improvements that make TPU a more flexible and suitable material for the footwear and apparel sector.

Thermoplastic Polyurethanes Market Drivers

High Demand in Footwear

TPUs is extensively used in footwear. Upper yarns, midsoles/foam & cushioning, outsoles, eyelets, heel cups, logos, shanks & toe caps are all made of TPU. The footwear market is being driven by rising expectations for comfort, performance, and durability. The demand for leather is increasing at a healthy rate owing to population growth and the continued expansion of many economies. The typical leather industry consumes a lot of resources and pollutes the environment. The public focus on environmental issues has posed substantial challenges to the leather industry. TPU material combines the benefits of various polymers and rubbers, making it popular in footwear and clothing. According to a report published by Invest India on the 'Non-Leather Footwear Industry in India’, India is the world's second-largest consumer and producer of footwear and is expected to grow eightfold by 2030. From $10.6 billion in 2019, India's footwear market is expected to grow $15.5 billion by 2022. Thus, significant growth in the footwear industry is fuelling the growth of the Thermoplastic Polyurethanes Market.

Development of Bio-based Polymers to Promote Growth

The expanding development of bio-based polymers will drive the use of thermoplastic polyurethane, boosting the TPU market growth. Chlorinated plastic can seep dangerous chemicals into the earth, contaminating groundwater and other water sources nearby. This could have major health repercussions for both humans and animals. In addition, numerous countries have enacted legislation requiring the use of ecologically friendly polymers. In addition to being biodegradable, TPU provides abrasion resistance, grease resistance, and great mechanical properties. Bio-based TPU is created partly from renewable natural resources (corn, wheat, potato, and so on). TPU is a flexible elastomer with outstanding qualities that provide high performance as well as processing flexibility.

Thermoplastic Polyurethanes Market Challenges

High price of Thermoplastic Polyurethanes material

Thermoplastic polyurethane is significantly more expensive than traditional materials. The high cost of TPU may limit its applicability, especially in less demanding applications. The thermoplastic polyurethane sector defies considerable limits due to its high level of customisation. End users should be able to serve a wide range of businesses, including development, purchasing, and recreation, as well as electrical and hardware, clinical and hygiene, and other modern and designing applications. Furthermore, materials are critical in meeting the significant plan requirements of component producers, as well as providing processability and artistic freedom. 

Thermoplastic Polyurethanes Industry Outlook

The Global Thermoplastic Polyurethanes the top 10 companies include:

1. Lubrizol Corporation 
2. Covestro AG
3. BASF SE
4. Huntsman Corporation 
5. Wanhua Industrial Group
6. COIM Group 
7. American Polyfilm Inc 
8. Kuraray Co., Ltd
9. Polyone Corporation 
10. Miracll Chemicals

Recent Developments 

• In December 2021, BASF introduces Elastollan’s high-performance and sustainable drop-in solution for premium synthetic leather applications. Synthetic leather can also be made with Elastollan TPU without the use of solvents, fulfilling strict VOC regulations. Elastollan TPU is also environmentally friendly because it can be recycled mechanically and chemically.
• In October 2021, Covestro expands its portfolio of circular TPU products. Covestro is forging on with the expansion of its alternative resource-based product line. As a result, starting in early 2022, the company's product line in Europe will be expanded to include mass-balanced Thermoplastic Polyurethanes, with a later date in Asia.
• In May 2019, BASF intended to increase TPU and engineering plastics production capacity at the Verbund site in Zhanjiang, China, by 2022. With this increase in production capacity, the total capacity of these products in APAC will be 290,000 MTPA. This expansion will enable the company to meet the immediate needs of APAC customers.

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