PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1447057
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1447057
According to Stratistics MRC, the Global Thermoplastic Polyurethane Market is accounted for $3.5 billion in 2023 and is expected to reach $6.4 billion by 2030 growing at a CAGR of 9.1% during the forecast period. Thermoplastic polyurethane (TPU) is formed by processing thermoplastic elastomer using methods, such as injection, compression, and extrusion molding. It is suitable for soft engineering thermoplastic and hard rubber products. Due to its qualities including transparency, flexibility, and resistance to abrasion, oil, and grease, thermoplastic polyurethane is widely utilized in the automotive, aerospace, and medical industries. In addition, thermoplastic polyurethane is completely recyclable, biodegradable, and environmentally friendly, which makes it an effective substitute for PVC and other polymers.
According to the China Association of Automobile Manufacturers (CAAM), China includes the largest automotive production base in the world, with a total vehicle production of 27 million units in 2022, registering an increase of 3.4 % compared to 26 million units produced last year.
Rising Demand for Lightweight and Fuel-Efficient Materials
With industries such as automotive, aerospace, and consumer goods emphasizing the need for efficiency and sustainability, TPU offers a compelling solution. Its unique properties, including high strength-to-weight ratio, flexibility, and durability, make it an ideal choice for applications where weight reduction and fuel efficiency are paramount. In automotive manufacturing, for instance, TPU is utilized in components such as airbag covers, instrument panels, and interior trims, contributing to overall vehicle weight reduction and improved fuel economy.
Fluctuating raw material prices
TPU, a versatile polymer, relies on various raw materials such as diisocyanates and polyols, whose prices are subject to volatility influenced by factors like global demand-supply dynamics, geopolitical tensions, and fluctuations in crude oil prices. These uncertainties can disrupt production processes and hinder manufacturers' ability to forecast costs accurately, leading to challenges in maintaining competitive pricing and profit margins. However, sudden spikes in raw material prices may necessitate adjustments in product pricing or compromise on quality to mitigate the impact, potentially affecting market competitiveness and customer satisfaction.
Technological advancements
As technology evolves, manufacturers are able to develop new formulations of TPU with enhanced properties such as improved durability, flexibility, and resistance to chemicals and abrasion. Advancements in processing techniques enable more efficient production methods, leading to cost reductions and increased competitiveness in the market. Furthermore, emerging technologies like additive manufacturing (3D printing) are opening up new avenues for TPU utilization in industries such as automotive, healthcare, and electronics, where customized and complex geometries can be easily achieved.
Environmental concerns
TPU production involves the use of various chemicals, some of which can be hazardous to the environment if not properly managed. The disposal of TPU products at the end of their lifecycle poses challenges, as they often do not decompose readily and can contribute to plastic pollution. Furthermore, the energy-intensive nature of TPU manufacturing processes adds to its environmental footprint, especially if sourced from non-renewable energy sources. These elements are hampering the market growth.
Initially, disruptions in the global supply chain led to shortages of raw materials and logistical challenges, affecting production and distribution networks. Demand fluctuations ensued as key end-user industries such as automotive, construction, and consumer goods experienced slowdowns or shutdowns due to lockdown measures and economic uncertainties. Disruptions in logistics and shipping further hindered the timely delivery of TPU products to customers worldwide. However, fluctuations in demand patterns further exacerbated the situation, making it challenging for suppliers to predict market needs accurately
The polycaprolactone segment is expected to be the largest during the forecast period
Polycaprolactone segment is expected to hold the largest share during the forecast period, due to high flexibility, excellent abrasion resistance, and compatibility with various additives, making it an ideal candidate for enhancing the performance of TPUs. In applications ranging from automotive parts to medical devices and consumer goods, the incorporation of PCL segments provides improved durability, elasticity, and sustainability. Moreover, the growing emphasis on eco-friendly materials has propelled the adoption of PCL-based TPUs, as they offer biodegradability without compromising on performance.
The synthetic leather segment is expected to have the highest CAGR during the forecast period
Synthetic Leather segment is expected to have the highest CAGR during the forecast period, due to its versatility, durability, and eco-friendly characteristics. The growing consumer preference for sustainable alternatives to genuine leather has further propelled the adoption of TPU in this segment. Additionally, advancements in TPU technology have led to the development of innovative formulations that enhance the performance and aesthetics of synthetic leather products, catering to diverse applications ranging from footwear and automotive interiors to upholstery and accessories.
North America region commanded the largest share of the market over the projection period. With a growing emphasis on sustainability and environmental concerns, regulations have been increasingly stringent, favoring materials like TPU which offer eco-friendly alternatives to traditional plastics. TPU's versatility, durability, and recyclability make it a preferred choice for various applications across industries such as automotive, footwear, electronics, and medical devices in the region. Additionally, initiatives promoting domestic manufacturing and reducing dependence on imports further boost the demand for TPU, driving regional growth.
Asia Pacific region is projected to witness profitable growth throughout the extrapolated period because of its abrasion resistance, slip resistance, and attractive qualities. Because of their elasticity and flexibility, thermoplastic polyurethane filaments in this region allow for the production of 3D-printed items that are both flexible and long-lasting. For instance, thermoplastic polyurethane is a material to consider when making products like gaskets, phone cases, shoe bottoms, and wearables that fit precisely.
Key players in the market
Some of the key players in Thermoplastic Polyurethane market include American Polyfilm Inc, Avient Corporation, BASF SE, Covestro AG, Dongsung Corporation, Epaflex Polyurethanes SpA, Hexpol AB, Huafeng Group, Huntsman Corporation, Kuraray Co., Ltd, Lubrizol Corporation, Miracll Chemicals Co. Ltd, Sumei Chemical Co. Ltd, The Lubrizol Corporation and Tosoh Corporation.
In February 2023, Covestro AG announced the construction of the largest TPU facility. This expansion is to happen in three phases. The first phase will be completed in late 2025, the final phase will be completed in 2033, and this new site will be built in Zhuhai, South China, with an annual capacity of 120 thousand tons of TPU per year after the final phase of expansion.
In January 2023, Wanhua Chemical Group Co. Ltd. announced the development of polyether-based medical-grade TPU and radiopaque-grade TPU to provide solutions for medical applications such as extrusion tubes, injection MOLDING accessories, and cast films.
In December 2022, The Lubrizol Corporation unveiled its new thermoplastic polyurethane (TPU) production line at its Songjiang manufacturing site in Shanghai, China. This action is another milestone of Lubrizol Engineered Polymers' investment in Asia Pacific, expanding the company's TPU production capacity and strengthening regional business support.
In August 2022, The Lubrizol Corporation announced a new TPU line at the Shanghai Songjiang Site. The new production line will enhance the TPU production capacity of the company and help strengthen its business in Asia-Pacific.
In April 2022, Covestro AG announced the expansion of its production capacities for thermoplastic polyurethane (TPU) Films in the Platilon range, as well as the associated infrastructure and logistics.