Polyether Polyols Market

Growing demand from the construction industry is driving the market growth

Polyether polyols are used to create polyurethane foam, mostly used in construction. The ability to effectively control temperature is a feature of polyurethane. As a result, it is utilized to insulate walls, doors, panels, and roofs. The need for polyurethane is rising in cold nations (such as Russia, Canada, the United States, Kazakhstan, and Sweden, among others) and hot nations like Mali, the United Arab Emirates, and other African nations. People use a lot of energy to keep the temperature of their homes balanced. According to the US Department of Energy, homes and businesses utilize about 40% of all energy.

Rigid polyurethane is now used in construction and architecture, which is good for the environment because it minimizes energy use and carbon emissions. Additionally, there is an increase in construction worldwide. For instance, construction initiatives like Dream City, Housing for All by 2022, and 100 Smart Cities, among others, affect polyether polyol demand in India. The Chinese government also invested millions of dollars in various building initiatives there. All of these factors contribute to the rising demand for polyurethane foams from the construction sectors, which supports the expansion of the polyether polyols market CAGR during the forecast period.

The production of polyurethane involves the usage of polyols. The primary end-use market for polyurethane foam is the automotive sector. Vehicle seat cushions are made of pliable polyurethane foam. These foams can be found in a range of firmnesses and forms to suit the requirements of the seats. The output of light commercial vehicles increased by 10.2% in the APAC area in 2018, according to OICA. China is the largest automobile market in the world, and the Chinese government anticipates that 35 million cars will be produced there by 2025, according to the International Trade Administration (ITA).

This will help the polyether polyols business even more. Hence, the increased demand for polyether polyols from the automobile industry is driven by the demand for polyurethane foams. Thus, driving the polyether polyols market revenue.

Ashland, in October 2023, launched the first portfolio of Easy-Wet substrate wetting agents that are considered new-generation silicone-free high-performance oligomeric alkyl polyether polyols for premium industrial coatings. The Easy-Wet portfolio is a more sustainable technology that provides an excellent balance of wetting and low foaming, which results in defect-free coating films. Super Wetting Agent Technology is one of seven platforms recently introduced by Ashland to provide differentiated and sustainable products that serve multiple markets.

Different types of super wetting agents manufactured by the company demonstrate high-value performance in different areas of application, such as wood, metal, automotive, general industrial finishes, printing inks, and plastic coatings.

The Global Polyether Polyols Market Industry experiences a notable surge in demand driven by the automotive sector. As manufacturers increasingly adopt lightweight materials to enhance fuel efficiency and reduce emissions, polyether polyols are utilized in the production of flexible and rigid polyurethane foams. This trend is expected to contribute to the market's growth, with projections indicating a market value of 21.5 USD Billion in 2024. The automotive industry's shift towards sustainable practices further amplifies the demand for polyether polyols, suggesting a robust growth trajectory in the coming years.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific polyether polyols market will dominate this market due to increased consumer spending and rising income levels; the region's construction, automotive, and electronic & electrical industries are all expanding. In the construction and automotive industries, polyols are commonly utilized to make building panels, windows, furniture, carpets, car seat foam and doors.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  POLYETHER POLYOLS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe polyether polyols market accounts for the second-largest market share because there is a growing need for lightweight and energy-efficient automobiles in the automotive sector. Additionally, the market expansion in this area is accelerated by an increase in polyurethane foam production capacity to suit the rising demand in the furniture sector. Further, the German polyether polyols market held the largest market share, and the UK polyether polyols market was the fastest growing market in the European region

North America Polyether polyols Market is expected to grow at the fastest CAGR from 2023 to 2032 because more end-user sectors, including the construction industry, are using polyether polyols. The presence of nations like Canada and the US also fuels the market expansion in this region. Moreover, US polyether polyols market held the largest market share, and the Canada polyether polyols market was the fastest growing market in the region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the polyether polyols market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, polyether polyols industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the polyether polyols industry to benefit clients and increase the market sector. In recent years, the polyether polyols industry has offered some of the most significant advantages to market. Major players in the polyether polyols market attempting to increase market demand by investing in research and development operations include Krishna Antioxidants Pvt. Ltd. (India), Arkema (France), AGC Chemicals Americas (US), Shell Chemicals (The Netherlands), Expanded Polymer Systems Pvt.

Ltd. (India), Repsol (Spain), Cargill, Incorporated (US), Huntsman Corporation (US), DowDuPont (US), Covestro AG (Germany), Solvay (Belgium), and BASF SE (Germany).

Previously known as Royal Dutch Shell Plc, Shell Plc is a fully integrated oil & gas business. The corporation searches for and produces oil and gas from traditional fields and sources such as tight rock, shale, and coal formations. Around the world, it runs petrochemical and refining plants. In addition to lubricants, bitumen, and liquefied petroleum gas, Shell also sells petrochemical products such as raw materials for plastics, paints, and detergents. The business is a significant biofuel generator in Brazil.

A corporation that manufactures chemicals is called Solvay SA. Specialty polymers, necessary chemicals, and chemical materials are among the products that it produces and distributes. Customers from the aerospace and automotive, natural resources and environment, electrical and electronics, agrochemical, culinary, consumer products, building & construction, healthcare, industrial applications, and other industries are served by it. The company employs specialized chemicals created from environmentally safe resources to improve product quality and performance.

LANXESS unveiled a range of MDI polyether prepolymers containing renewable raw materials last month. These are marketed under the brand name Adiprene Green and can be used instead of traditional fossil-based polyether prepolymers, enabling processors to produce components with concomitantly lower CO2 footprints. Photo: LANXESS AG.LANXESS is a specialty chemicals company that has launched a new range of MDI polyether prepolymer products made from renewable/bio-based feedstocks. These products are known as Adiprene Green, replacing existing fossil-based polyethers to make very tough PU (Polyurethane) elastomers.