Polyurethane Foam Market: Supply of Bio-Based Polyurethane Foam in North America, Europe, and Asia Pacific to Drive Market Growth

Polyurethane Foam Market was valued at USD 43.5 Billion in 2021, and it is expected to reach USD 78.16 Billion by 2029, exhibiting a CAGR of 7.6 % during the forecast period (2022-2029)

Polyurethane foam is a single component that cures with moisture in the air, expands while curing, and is semi-rigid in aerosol form for installation, grouting, and insulation. Flexible polyurethane foams are primarily utilised for door and window assembly, infilling applications, sound and heat insulation, weatherproof barriers, and fire insulation. The construction sector has also been transformed by PU spray foam technology, which has replaced traditional building materials with sustainable and easy-to-apply foam sprays. These items provide more insulation than typical construction materials, resulting in lower energy expenses. Furthermore, breakthrough manufacturing procedures have resulted in the development of PU with improved properties for a variety of industrial applications. One such invention is the creation of semi-interpenetrating polymer networks by combining PUacrylate oligomers with thermoplastic polyurethane (TPU) and preserving them with radiation (IPN). These PUs have the potential to be employed as very durable coatings for aeroplanes, aerospace shuttles, and marine vehicles. These factors are estimated to increase the demand for polyurethane foam and further drive the growth of Polyurethane Foam Market during the forecast period.



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Prevalence of Bio-based Polyurethane over Petrochemicals to Creative Lucrative Opportunities in Polyurethane Foam Market

Concerns over hazardous petrochemical hazards, as well as dwindling crude oil sources, have fueled the development of bio-based polymers such as bio-based polyurethane. Most countries' regulations banning the use of petroleum-based plastics in specific applications, such as medical devices, are likely to stimulate the manufacturing of bio-based polyurethane during the forecast period. North America, Europe, and Asia Pacific account for the majority of global bioplastic material production. The increased use of environmentally friendly polymers in a variety of industries such as automotive, building and construction, packaging, consumer goods, and medical is expected to drive global demand for bio-based polyurethane, further driving the growth of Polyurethane Foam Market.

Concerns over the usage of petroleum-based plastics have increased the global need for alternatives to traditional plastics. Manufacturers in the market are moving their attention toward bioplastics development as the pace of innovation and new product development accelerates. Bio-based polyurethane is gaining popularity in a variety of industries, including electrical and electronics, medical devices, construction, automotive, and consumer products. Its regulated biotic and abiotic breakdown qualities, as well as shape memory behaviour, have made it appropriate for usage as a plastic product in bio-medical applications.
Polyurethane Foam Market Dynamics
High Demand for Building Insulation in Light of Sustainability Concerns to Drive Polyurethane Foam Market

The global energy crisis has hastened the development of green buildings and other sustainable construction projects. Sustainability in building development is a broad topic that includes various procedures that must be taken during the major construction stages due to their considerable environmental effect. As a result of increased expenditures in smart energy-efficient business and residential structures, green buildings are progressively entering the construction market. These buildings not only provide financial prospects, but they are also compliant with environmental and federal requirements, giving a real answer to rising consumer sustainability demands. Increased building material effectiveness has resulted in a greater requirement for efficient insulating materials to control heating, ventilation, and air conditioning (HVAC) and offset the amount of energy lost owing to ineffective insulation.

As a result, PU foams are being used as exceptionally efficient insulation materials, resulting in significant energy savings. Polyurethane adhesives used in home frame with mechanical fasteners can give good resilience during extreme weather occurrences. NCFI Polyurethane manufacturers have demonstrated that their closed-cell spray polyurethane foam (ccSPF) is used as an insulator and exterior material by community developers, builders, and homeowners to increase the ability of homes to withstand the effects of high winds, storm surge, and flooding, which can contribute to Polyurethane Foam Market growth during the forecast period.



Increasing Demand for Lightweight and High-Performance Composites from Automotive Industry to Drive Polyurethane Foam Market

The use of thermoplastic polyurethane (TPU) in automotive components has significantly reduced the total weight of cars. The reduction of overall vehicle weight in order to reduce fuel consumption and carbon emissions has played an important role in boosting the demand for plastics in the automotive sector. As an alternative to metals, PU is frequently utilised in automobile applications such as seats, instrument panels, external panels, engine encapsulation, and cables and wires. The development of the automobile sector as a result of rising income levels and increased industrialization is also expected to benefit the global Polyurethane Foam Market. The lowered weight also contributes to lower carbon emissions and improved vehicle handling and acceleration.

Plastics are increasingly being used in automobile components such as instrument panels, exterior panels, automotive interiors, and engine cabins to improve fuel efficiency. Plastics, as an alternative to metal components, can help to reduce total vehicle weight while maintaining target fuel economy. This tendency, along with rising automobile production, is likely to fuel demand for polyurethanes in applications such as outer body panels, engine encapsulation, and interior panels.



Raw Material Price Volatility to Limit the Polyurethane Foam Industry Growth

Polyurethane is made from raw ingredients such as methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI), and polyester and polyether polyols. Because of their cheap pricing compared to other isocyanates such as bi-tolylene diisocyanate and 1,5 naphthalene diisocyanate, MDI and TDI are the most extensively utilised isocyanates. Global petrochemical prices have been influenced by dwindling crude oil supplies and civil upheaval in the Middle East. The sharp rise and decrease in prices has created a supply-demand imbalance in the market, making their demand erratic. Because MDI and TDI are petrochemical derivatives and raw ingredients for polyurethane, their costs have been heavily impacted by petrochemical pricing. As a result, these factors are expected to boost the polyurethane foam market growth through the forecast period.

The escalating crisis in Eastern Europe is having its mark on crude oil and derivatives prices. The sanctions placed on Russia by the United States and key European nations in response to the Ukraine invasion have resulted in a constriction of the global crude oil supply and a rise in crude oil barrel prices. According to World Economic Forum news from March 2022, while the Organization for Economic Cooperation and Development (OECD) countries are releasing 60 million barrels of oil from their reserves to relieve price pressure, such actions are expected to have a limited and short-term impact on crude oil prices due to the risk of replenishment, which can exacerbate the price rise situation.

Growing Environmental Concerns May Hamper the Growth of the Polyurethane Foam Market

Toxic gas emissions from the combustion of fossil fuels are likely to be substantial constraints for petrochemical manufacturers during the forecast period. Petrochemical goods manufactured from crude oil emit harmful gases into the environment, raising the concentration of greenhouse gases (GHG) in the atmosphere and increasing the carbon footprint. Developed countries such as the United States, Canada, the United Kingdom, and Germany have cut carbon emissions in recent years as a result of strong government environmental legislation. The raw ingredients used in the manufacture of PU, such as TDI and MDI, are considered toxic to the environment owing to the industrial emission of TDI, which pollutes the air.

TDI levels have been examined by Environment Canada and Health Canada, and their concentration is dangerous to human health. Environment Canada has issued a Pollution Prevention (P2) Planning Notice to ensure proper environmental management of TDI leaks. Other authorities and regulatory bodies in the United States and Europe have also issued several regulations and directives. Furthermore, landfills in Europe, particularly of waste tyres and PU products, have been prohibited in order to capitalise on PU's immense potential as a source of energy comparable to coal while also reducing environmental degradation.
Polyurethane Foam Market Segment Analysis
Polyurethane Foam Industry Based on Foam Type, Rigid segment dominated the polyurethane foam market in 2021. Rigid PU foams are high-performance closed-cell polymers that are used in end-use sectors such as transportation, packaging, and industrial insulations and appliances because of their structural stability, which allows producers to build thermally insulating goods. Rigid foams provide superior sound insulation, mechanical strength, and heat resistance, making them ideal for extreme weather and tough situations.

Because of the boom in industrialisation, China, India, and Indonesia dominate the Asia Pacific (APAC) market for stiff PU foams. The growth of the construction and furniture industries, as well as the presence of major automobile OEMs, is a significant factor propelling the rigid foam market in APAC. Government assistance to weatherize low-income houses and satisfy transitional criteria for green buildings is expected to push rigid PU foam demand in insulation applications even further.

Polyurethane Foam Market Based on End-Use Industry, Construction application segment dominated the global polyurethane foam indusrty and accounted for 26.84% of the total Polyurethane Foam Market share in terms of revenue in 2021. The demand for polyurethane in building applications is expected to increase significantly during the forecast period because to the benefits of polyurethane foam, which include good thermal insulation, lightweight, chemical inertness, and bacterial and insect resistance. Growing urbanisation and industrialization, particularly in emerging economies such as China and India, as well as rising infrastructure development activities in the Middle East, are expected to fuel the growth of the construction industry, resulting in increased demand for polyurethane foam and insulation.

Furthermore, increased infrastructure investment and an increasing number of government 

Programs, such as smart cities, FDI in the construction development sector, and others, are moving the construction industry forward. Furthermore, the rising popularity of green buildings throughout the world is expected to promote the growth of the construction sector, which in turn is expected to boost demand for polyurethane and drive the growth of the Polyurethane Foam Market.


Polyurethane Foam Market Regional Insights
In 2021, Asia Pacific emerged as the largest regional Polyurethane Foam Market, accounting for 44.83% of total value. From 2022 through 2029, the region is expected to grow at a 4.5% annual pace. The growth of the automotive sector, together with rising PU use in construction and packaging, is expected to be a significant driving factor for Polyurethane Foam industry growth in this area. Another important factor contributing to development is the recovery of the automobile sector in growing economies such as the United States and Germany. Because of the high need for lightweight materials, polyurethane use in the automobile sector is increasing. North America and Europe are expected to grow at a moderate pace of 3.4% and 3.0%, respectively.

Over the forecast period, Asia Pacific Polyurethane Foam Market is expected to be one of the fastest-growing markets, owing to strong demand from major sectors such as automotive, electronics & appliances, packaging, and construction in rising nations like as China and India. The Asia Pacific area is distinguished by a vast supply of trained labour at a low cost, as well as easy access to land. Over the forecast period, a shift in the manufacturing environment toward developing economies, notably China and India, is likely to favourably affect Polyurethane Foam Market growth. Construction, automotive, electronics, and other rapidly increasing industries in the region provide significant development potential for PU makers.

Flexible foam is used to cushion a wide range of consumer and commercial items, including furniture, mattresses, carpet cushions, fibres, and fabrics. Because of increased consumer knowledge about the sustainability of lightweight and low-cost PU, foams and other PU goods are projected to acquire prominence in the region. Furthermore, rising construction investment due to increased need for sustainable infrastructure, together with rising demand for furniture and sleeping items, is expected to stimulate product demand.

North America accounts for a sizable portion of the global polyurethane foam market and is expected to develop at a rapid pace over the forecast period. The growth of main end-use sectors like as construction and automotive, as well as PU's adaptability as a product in new applications and uses due to its high sustainability and lightweight features, are expected to fuel market growth throughout the forecast period. With the increasing acceptance of TPU in key end-use sectors like as footwear, industrial machinery, automotive, electronics, and medical, this trend is expected to continue.

Because of the increasing demand for non-residential construction projects such as hospitals, commercial buildings, and colleges, the construction sector in North America is likely to develop significantly during the forecast period. Furthermore, government initiatives boosting the housing sector's recovery are likely to have a favorable influence on future building patterns. Reconstruction efforts in the United States, together with infrastructure development in Canada and Mexico as a result of rising industrialization, are likely to generate enormous polyurethane foam market potential in North America during the forecast period.
Polyurethane Foam Market Scope: Inquire before buying



Polyurethane Foam Market


Base Year
2021
Forecast Period
2022-2029


Historical 
Forecast CAGR
Market Size 2021
Market Size 2029


2017 to 2021
7.6%
US$ 43.5 Bn
US$ 78.16 Bn


Segments Covered


by Foam Type
• Rigid
• Flexible
• Spray
by End-Use Industry
• Building & Construction
• Automotive
• Packaging
• Others


Regions Covered


North America
• United States
• Canada
• Mexico
Europe
• UK
• France
• Germany
• Italy
• Spain
• Sweden
• Austria
• Rest of Europe
Asia Pacific
• China
• S Korea
• Japan
• India
• Australia
• Indonesia
• Malaysia
• Vietnam
• Taiwan
• Bangladesh
• Pakistan
• Rest of APAC
Middle East and Africa
• South Africa
• GCC
• Egypt
• Nigeria
• Rest of ME&A
South America
• Brazil
• Argentina
• Rest of South America



Polyurethane Foam Market Key Players
North America:

• Dow Inc. (U.S.)
• Huntsman Corporation (U.S.)
• Chemtura Corporation (U.S.)
• DuPont (U.S.)
• Rogers Corporation (U.S.)
• Eastman Chemical Company (U.S.)
• RTP Company (U.S.)
• The Lubrizol Corporation (U.S.)
• RAMPF Holding GmbH & Co. KG (U.S.)

Asia Pacific:

• Wanhua Chemical Group Co. Ltd. (China)
• Sekisui Chemical Co., Ltd. (Japan)
• Tosoh Corporation (Japan)
• Mitsui Chemicals (Japan)
• DIC Corporation (Japan)
• Mitsubishi Chemical Holdings (Japan)

Europe:

• Covestro AG (Germany)
• BASF SE (Germany)
• Saint-Gobain (France)
• Recticel NV/SA (Belgium)
• Bayer AG (Germany)

Frequently Asked Questions:

1] What is the current size of the global Polyurethane Foam market?
Ans. The current size of the global Polyurethane Foam Market USD 43.5 Bn. in 2022.

2] What are the major players currently dominating the global Polyurethane Foam market?
Ans. Covestro AG (Germany), DuPont (U.S.), The Dow Company (US), Saint-Gobain (France), BASF SE (Germany), Wanhua Chemical Group Co. Ltd. (China), Sekisui Chemical Co., Ltd. (Japan), and Mitsui Chemicals (Japan) are among the major players currently dominating the global Polyurethane Foam Market.

3] Which Polyurethane Foam market segment has the potential to register the highest market share during the forecast period?
Ans. The Building & Construction end-user segment has the potential to generate highest revenue share of the Foam market, in terms of volume and value, during the forecast period.

4] Which is the dominating region in the global Polyurethane Foam market?
Ans. Asia Pacific region is the dominating region in the global Polyurethane Foam Market. Countries like China, India, Taiwan, Japan, Malaysia, Thailand, South Korea are emerging economies with fastest-growing market share of the region.

5] What is the major factor driving the growth of Polyurethane Foam market in the Asia Pacific region?
Ans. Increase in demand for polyurethane foam in building insulation for energy conservation is one of the factor driving the growth of Polyurethane Foam Market in Asia Pacific region.