Polyurethane Foam Market

Increased consumption of polyurethane foam is driving the market growth

The market CAGR for polyurethane foam is driven by increased consumption of polyurethane foam in the automotive sector. Polyurethane foam has huge demand in the automobile industry. Car bodies, interiors, and seats are just a few applications requiring PU foam. The product improves corrosion, insulation, and noise absorption by reducing overall weight and providing energy efficiency. This product has high levels of recycling and cleans the burning process for pollution filtration, decreasing waste production and improving sustainability. However, several federal entities and governments are concerned about the unfavorable health impacts due to PU manufacturing.

The market has expanded due to the increasing need for electric and passenger cars and the desire to enhance the efficiency of vehicles. Polyurethane foam significantly contributes to market demand because of the constantly changing way of life. Additionally, the polyurethane foam sector has consistently searched for environmentally friendly business practices to lessen its effect on the surroundings concerning fossil fuels and plastics. Soy-based polyols have substantial advantages over traditional polyols primarily used in PU foam manufacturing, as soy-based polyols are more sustainable and affordable.

In light of ongoing efforts to develop a tin-free catalyst that is more ecologically friendly, it is hoped that this research will offer fresh ideas for handling various crosslinked plastics with different chemical compositions. The COVID-19 pandemic disrupted the polyurethane foam industry worldwide. Key end-user industries, such as Construction and the automotive sector, that create demand for PU foam were completely shut down during the lockdown, significantly reducing demand for the material. Additionally, restrictions on both import and export could have improved the raw materials supply. Several countries delayed procuring polyurethane foam at the peak of COVID-19, which caused significant market losses. Post-pandemic, after all, operations started, especially for automobiles and Construction, with increased demand for PU foam. For instance, the International Organization of Motor Vehicle Manufacturers has reported that revenues generated from passenger vehicles worldwide are anticipated to reach USD 711 billion in 2020. Therefore, it is anticipated that the worldwide demand for polyurethane foam will continue to be driven by its use in the automobile industry. Thus, driving the Polyurethane Foam market revenue.

The Global Polyurethane Foam Market Industry experiences a notable surge in demand driven by the construction sector. Polyurethane foam is increasingly utilized for insulation and soundproofing in residential and commercial buildings. As energy efficiency becomes a priority, builders are opting for polyurethane foam due to its superior thermal insulation properties. This trend is expected to contribute significantly to the market's growth, with projections indicating a market value of 47.1 USD Billion in 2024. The construction industry's expansion, particularly in emerging economies, further fuels this demand, suggesting a robust future for polyurethane foam applications.

By Region, the research provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific region dominates this market, owing to growth and development in the electronic and transportation sectors in this Region. In addition, this Region has a growing number of vehicles and electronic gadgets sales. Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  Polyurethane Foam Market Share by Region 2022 (%)

North American Polyurethane Foam market accounts for the second-largest market share due to the increased standard of living and high disposable income upsurge the polyurethane foams. The Europe Polyurethane Foam Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to spreading awareness of the environment and rising per capita disposable income.

Further, the German Polyurethane Foam market and the UK Polyurethane Foam market was the fastest-growing market in the European Region.  Moreover, China’s Polyurethane Foam market dominated the market share, and the Indian Polyurethane Foam market is expected to grow at a fast CAGR in the Asia-Pacific region. For instance, The European Commission reports that in 2021, the annual average construction output climbed by 4.8% in the EU and 5.2% within the eurozone compared to 2020. Additionally, compared to the prior month, the UK's monthly construction output climbed by 2% in December 2021.

Therefore, as building and construction activity expands, so will the need for polyurethane foam.

Leading market players are investing heavily in research and development to produce new products and services to capture untapped markets, which will also help the Polyurethane Foam market grow. Market participants are also undertaking strategic approaches in an organic or inorganic way to strengthen their footprint, with important market developments including product launches, partnerships, mergers and acquisitions, Capex, and strategic alliances with other organizations. The Polyurethane Foam industry must offer affordable and environment-friendly solutions to expand and survive in a partially fragmented market.

Manufacturing locally to minimize operational expenses and follow strict governmental regulations is one of the key business strategies used by organizations in the Polyurethane Foam industry to benefit consumers and cater to untapped markets. The Polyurethane Foam industry has offered significant advantages to the environment and technology. Major players in the Polyurethane Foam market, including LANXESS (Germany), NITTO DENKO Corporation (Japan), SEKISUI CHEMICAL CO.LTD. (Japan, Wanhua Chemical Group Co.Ltd, Covestro AG (Germany), Tosoh Corporation (Japan), BASF SE (Germany), Recticel (Belgium), DowDuPont Inc. (US), Huntsman International LLC (US), and Trelleborg AG (Sweden), are attempting to increase market demand by investing in research and development and reduce the raw material cost to produce cost-effective solutions. BASF SE headquarters is in Ludwigshafen am Rhein, Germany, and it was established on April 6, 1865, as a chemical products provider. It functions through the following divisions: Chemicals, Materials, Agricultural Solutions, Commercial Solutions, Surfaces Technologies, Nutritional and Treatment, and Others. The Chemicals section provides petrochemicals and intermediates.

Specialty inorganic goods for the plastics and plastics processing sectors are part of the Materials category. Using BASF's Elastopor Cryo polyurethane rigid foam system, Harvest Insulation Engineering Co. Ltd. and BASF integrated into a Joint Development Agreement (JDA) to manufacture prefabricated cryogenic pipes in June 2021. Covestro is one of the top producers of premium polymers. They have developed materials and applications that are used in almost routine life. The constant improvement of facilities, processes, and products is driven by technology and sustainability. Convestro AG and Recticel NV/SA began working together to create mattresses from old mattresses in January 2020.

This partnership aims to develop a sustainable economy in the polyurethane foam industry, which is anticipated to assist both businesses in using fewer raw materials to make polyurethane foams.