Polyurethane elastomer market forecast to increase by $5.5 billion by 2026

Dublin, Ireland – The polyurethane elastomer market share is expected to increase by USD 5.54 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 6.82% according to Technavio.

This polyurethane elastomer market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers polyurethane elastomer market segmentation by end-user (automotive, building and construction, footwear, electrical and electronics, and others) and geography (APAC, North America, Europe, Middle East and Africa, and South America). The polyurethane elastomer market report also offers information on several market vendors, including American Urethane, Argonics Inc., BASF SE, Cellular Mouldings Ltd., Covestro AG, Dow Inc., DuPont de Nemours Inc., Era Polymers Pty Ltd., Galagher Corp., Herikon B.V., Huntsman Corp., LyondellBasell Industries NV, Manali Petrochemicals Ltd., The Lubrizol Corp., Trelleborg AB, VCM Polyurethanes Pvt. Ltd., Wanhua Chemical Group Co. Ltd., China Petrochemical Corp., LANXESS AG, and Mitsui Chemicals Inc. among others.

The increasing consumption of polyurethane elastomers in the automotive industry is notably driving the polyurethane elastomer market growth, although factors such as volatility in prices of raw materials may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the polyurethane elastomer industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

One of the key factors driving the global polyurethane (PU) elastomer market growth is the increasing consumption of polyurethane elastomers in the automotive industry for coating and manufacturing applications in automotive plastic components. For instance, according to the International Trade Administration (ITA), the Chinese government is expected to increase the sales of automobiles in the country to 35 million units by 2025. Furthermore, according to the IBEF, the Indian government expects the automotive sector to attract USD 8 USD 10 billion in local and foreign investments by the end of 2023. Hence, such factors are expected to drive the growth of the automotive industry, which, in turn, will boost the demand for polyurethane elastomers during the forecast period.

Burgeoning construction industry is one of the key polyurethane elastomer market trends that is expected to impact the industry positively in the forecast period. Numerous coating materials, such as acrylic, silicone, and epoxy, are used as a surface coating in buildings due to beneficial properties, such as abrasion resistance, chemical resistance, tear strength and temperature compatibility. Thus, the rapid growth of the building and construction sector across the world is driving the demand for polyurethane elastomers. For instance, the Intel Chandler Campus Expansion project with an investment of USD 2 billion involves the expansion of its semiconductor chip production plant at the Ocotillo Campus on 5.3 hectares of land in Arizona, the US. Water Purification Facility project of USD 5 billion in San Diego, California, involves the construction of a water purification plant with a capacity of 83 million gallons per day. Such projects are expected to further support the market growth in the coming years.

One of the key challenges to the global PU elastomer market growth is the volatility in prices of raw materials such as crude oil. For instance, the demand for crude oil declined by 2.5 million barrels per day (mb/d) in Q2 2020 due to the implementation of COVID-19-induced nationwide lockdowns across the world. In Q2 2020, the demand for oil declined by around 90,000 barrels a day compared with the corresponding period in 2019. In addition, according to BP statistics, oil prices declined to USD 64.21/bbl in 2019, while they were USD 71.31/bbl in 2018. Furthermore, in February 2022, the price of crude oil crossed USD 100/bbl, primarily to the imminent war between Russia and Ukraine. Thus, such fluctuations in the prices of crude oil will hamper the growth of the market in focus during the forecast period.

This polyurethane elastomer market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.