Thermoplastic polyurethane market is set to growth with CAGR of 5.68% during 2020 to 2026
The Thermoplastic polyurethane market is showcasing growth with 5.68% CAGR over the forecast period. The market growth is driven by large consumption of thermoplastic polyurethane across wide range of applications including automotive, aerospace, construction, medical, and others.
In addition, the portfolio of thermoplastic polyurethane with properties such as recyclability and biodegradability of Thermoplastic Polyurethane triggers the market demand in support of eco-friendly environment.
Despite compatible properties of thermoplastic polyurethane, the features such as limited service temperature and shorter shelf life are threat to the thermoplastic polyurethane market. In addition, lack of customer awareness towards eco-friendly thermoplastic polyurethane products and volatility in crude oil prices hampers the market growth.
Large consumption of thermoplastic polyurethane by key end-users shape the market size
Increasing demand for automotive production, growth of infrastructure and construction industry predominantly drives the thermoplastic polyurethane market growth with advantages of better performance characteristics.
Key automotive OEMs are investing to procure innovative and eco-friendly materials with advantages of lightweight and high impact resistance. With thermoplastic polyurethane providing such features the market growth is triggered by automotive and transportation sector.
Further, thermoplastic polyurethane market growth is largely driven across emerging countries such as India, China as a result of ongoing streak of construction and building projects. In addition, undergoing urbanization projects such as dams, bridges, metro rails, are key construction segments accelerating thermoplastic polyurethane market growth.
In addition, demand from electronic sector with advantages of replacing silicon with thermoplastic polyurethane for manufacturing electronics products such as smartphones drives thermoplastic polyurethane the market growth. Accordingly, wide adoption of thermoplastic polyurethane engineering and global penetration of smartphones are incurring potential market opportunities over the forecast period.
Shift towards Bio-based thermoplastic polyurethane opens new thermoplastic polyurethane market opportunity
Key producers of thermoplastic polyurethane are observed to invest in bio-based raw materials such as vegetable oil in place of petroleum-based raw materials. The shift towards consumption of bio-based thermoplastic polyurethane drives key players to replace traditional production process with eco-friendly approaches. In addition, rise in awareness towards more sustainable environment drives the bio-based thermoplastic polyurethane market growth.
Further, fluctuating crude oil price is the major factor influencing the shift to bio-based thermoplastic polyurethane production.
Demand from medical and healthcare sectors shapes thermoplastic polyurethane market value over the forecast period
With a strong potential of thermoplastic polyurethane to replace PVC in medical applications with advantages of flexibility and environmentally friendly drives the market growth, marked with large consumption by medical device manufacturers.
Thermoplastic polyurethane is increasingly deployed in production of diagnosis and other medical application devices. In addition, thermoplastic polyurethane applications of medical products constitute healthcare mattresses, compression stockings, dental materials, and wound dressings.
Asian thermoplastic polyurethane market is set to growth with major market share characterized by rapid industrialization
Large consumption of thermoplastic polyurethane drives the market growth across Asian Countries including China, Japan, and South Korea. Ongoing trend of industrialization across transportation, infrastructure and construction electronics sector attributes for overall thermoplastic polyurethane market growth.
Further, the demand for thermoplastic polyurethane is driven by various industries ranging from footwear to engineering industries.
Strategic initiatives and new plants setup observed by key players sets trail for thermoplastic polyurethane market growth
Thermoplastic polyurethane manufacturers are heavily investing in R&D facilities to increase the efficiency and productivity of thermoplastic polyurethane. Key companies are taking up strategic initiatives such as establishment of new production plants across Asia Pacific to expand their business presence. For instance, in May 2019 BASF is planning to build engineering plastics and thermoplastic polyurethane compound plan in China.
Further, prominent OEMS of thermoplastic polyurethane are investing developing innovative product portfolio to meet the customized demand of end-users. For example, in 2018, BASF introduced an advanced grade of thermoplastic polyurethane (TPU) technology to improve and optimize the production of shoe shanks and decorative shoe parts.
In addition, key technology companies are entering thermoplastic polyurethane market growth with focus on expanding product portfolio to cater needs across the electronic industry. For instance, Sinterit a key OEM of SLS 3D printers launched soft thermoplastic polyurethane for small selective laser sintering (SLS) 3D printers in 2018.
Key players operating in the global thermoplastic polyurethane market are American Polyfilm, Inc., BASF Polyurethanes GmbH (BASF SE), Covestro AG, API Plastics, Hexpol AB, Huntsman Corporation, Kuraray Co., Ltd., The Lubrizol Corporation, Polyone Corporation, and Wanhua Chemical Group Co., Ltd.