Thermoplastic Polyurethane (TPU) Market Size, Share & Industry Analysis, By Type (Polyester, Polyether, Polycaprolactone, and Others), By Application (Automotive, Construction, Engineering, Footwear, Hose & Tubing, Wire & Cable, Medical, Synthetic Leather, and Others), and Regional Forecast, 2024-2032

The global thermoplastic polyurethane (TPU) market size was USD 2.53 billion in 2023 and is projected to grow from USD 2.76 billion in 2024 to USD 5.44 billion in 2032 at a CAGR of 8.9% during the forecast period. Asia Pacific dominated the thermoplastic polyurethane market with a market share of 58.1% in 2023. Moreover, the thermoplastic polyurethane (TPU) market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 583.1 million by 2032, driven by the growing demand for automotive interior parts.

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 flexibility. The growing polyurethane advancement by several manufacturers will escalate product adoption. Growing demand for biodegradable and flexible plastics from the consumer goods and footwear industries is expected to drive the growth of the market. Additionally, the growing product preference from automotive industry due to its biocompatibility and hydrolytic stability will create growth opportunities for the market.

Thermoplastic polyurethane production was significantly influenced by government restrictions imposed during the COVID-19 pandemic. The product manufacturing & processing was halted due to the shortage of labor, insufficiency of raw materials, and machinery closures. A huge impact was seen from the demand side with the supply chain disturbances and the assembly plant closures from various end-use industries. However, with significant control over the spread of the pandemic by the end of 2020, the respective country governments made supportive policies to re-organize their economy, which began the recovery of the market.

Thermoplastic Polyurethane (TPU) Market Trends

Rising Biodegradable Plastics Demand due to Growing Environment Pollution Will Augment Market Growth

The increasing expansion of bio-based plastics will drive thermoplastics polyurethane consumption. Traditional petroleum-based plastics release harmful chemicals in the soil on dumping, reaching the groundwater sources. This leads to severe health impacts on animals and humans. Hence, governments have imposed many regulations to produce and utilize environmental-friendly plastics. Thermoplastic polyurethane is biodegradable and provides grease resistance, abrasion resistance, and strong mechanical properties. Furthermore, the U.S. National Library of Medicine has recognized TPUs as environmentally friendly because this type of polymers are produced using polyester diols as soft segments and degradable chain extenders. Thus, the abovementioned factors are expected to create growth opportunities for the market.

Thermoplastic Polyurethane (TPU) Market Growth Factors

Preference for Lightweight and High-Performance Materials from Sports Industry to Drive Market Growth

Thermoplastic polyurethane is a versatile, lightweight, tough material with excellent abrasion and slip resistance. These properties have made this polyurethane an ideal material for several footwear producers and have increased adoption in their products. Further, the sports and leisure industries have embraced TPU due to its high-performance properties. This polymer is used in sports equipment to produce lightweight, robust, and flexible components. It is important in improving athletes' performance and safety and is preferred from high-performance sports shoes to lightweight protective gear. As sports and leisure industries attempt to improve the performance and efficiency of their goods, the demand for TPU has increased.  The increasing health consciousness will raise the demand for running shoes globally. Moreover, the rising disposable income will drive product demand from the sports industry for footwear applications.

Rising Product Demand from Automotive and Wire & Cable Applications to Drive Market Growth

The increasing demand for thermoplastic polyurethane in automotive and wire & cable applications is propelling the market growth. In the automotive sector, the product is valued for its exceptional properties, such as flexibility, durability and resistance to abrasion, chemicals, and weathering. It is used in various automotive components, including interior trim, seals, hoses, and under-the-hood applications, where its versatility and performance enhance product longevity and reliability.

Similarly, in wire & cable applications, TPU’s properties, such as flexibility, flame retardancy, and electrical insulation, make it a preferred material for insulation, jacketing and protective covering. The rising production of electric vehicles, expansion of telecommunications infrastructure and increasing emphasis on lightweight and high-performance materials further drive the demand for TPU in these sectors. This is fostering market growth as manufacturers strive to meet evolving industry requirements.

RESTRAINING FACTORS

High Manufacturing Costs to Hinder Market Growth

TPU has a comparatively high cost of production than traditional materials. The product's higher price restricts its adoption, mainly in less demanding end-uses. This high price is associated with a great variation and customization of the product. Further, the polymer production processes, including injection molding, extrusion, and compression molding need large machinery and skilled workforce. This increases the total product manufacturing cost. Moreover, the availability of substitutes such as rubbers, silicone, and polypropylene may exert downward pressure on prices, affecting profit margins for manufacturing companies. This is expected to hamper the market expansion during the forecast period.

Thermoplastic Polyurethane (TPU) Market Segmentation Analysis

By Type Analysis

Polyester Segment Held Largest Market Share Owing to its Superior Properties

Based on type, the market is segmented into polyester, polyether, polycaprolactone, and others.

The polyester segment held the largest thermoplastic polyurethane market share in 2023.  Polyester-based thermoplastic polyurethane is vastly adopted in applications requiring resistance to water, oils, and fuels. Additionally, the polyester type offers superior transparency, owing to which it is highly used in construction and engineering applications. The rising preference for polyether types from the automotive sector will surge the segment growth during the forecast timeline. Polycaprolactone is estimated to grow at the fastest rate due to its inherent toughness and abrasion resistance properties. Polycarpolactome is widely utilized in potential bone tissue engineering applications due to its antimicrobial and mechanical properties.

By Application Analysis

Footwear Segment Held Highest Market Share due to Increasing Product Adoption

Based on application, the market is segmented into automotive, construction, engineering, footwear, hose & tubing, wire & cable, and others.

The footwear application held the largest market share in 2023. Growth in the demand for durable and comfortable shoes and rising consumer spending on footwear will boost product adoption in footwear applications.

The automotive segment is anticipated to grow at the fastest CAGR during the review period. The rising product preference from automotive parts & components, including rocker panels, body-side trim cladding, and ditch covers will drive the segment's growth.

In the construction industry, the rising demand for thermoplastic polyurethane as an insulator to improve buildings’ aesthetics and durability will boost market growth. The high tensile strength and shock absorption properties have increased the preference for polyester type in the engineering application. The rising demand for thermoplastic polyurethane tubes, hoses, and pipes from consumer goods is expected to fuel hose & tubing segment growth. The rapidly growing electronic industry is anticipated to drive product usage in wire & cable applications during the projected period.

REGIONAL INSIGHTS

The market size in Asia Pacific stood at USD 1.47 billion in 2023. The countries in the Asia Pacific, especially China and India, have witnessed significant industrialization and urbanization. High development and growth, industry consolidations, and population expansion have resulted in innovation, positioning Asia Pacific as a global industrial hub. Additionally, the need for high-performance materials has increased thermoplastic polyurethane demand from automotive, construction, and consumer goods industries. Furthermore, rising infrastructure developments and product demand as an insulator in the construction industry will drive China's thermoplastic polyurethane market growth.

The increasing focus on sustainable and eco-friendly materials has driven the demand for bio-based and recycled thermoplastic polyurethane formulations in North America, as they offer improved environmental performance. The increasing demand for polyester-based products from the electronics industry is anticipated to drive the market in the region.

The rapidly growing automotive industry in countries, such as Germany, France, and the U.K. will propel market growth in Europe. The technological advancements by the manufacturing companies in the region to enhance the product properties, such as UV resistance, chemical resistance, and flame retardancy, will lead to a wide range of application opportunities.

The Middle East & Africa is witnessing substantial infrastructure development, which has positively impacted the demand for thermoplastic polyurethane in applications, such as wire & cable coatings, roofing membranes, and architectural fabrics.

Latin America is expected to grow considerably due to increasing product demand from engineering applications. Moreover, the automotive and footwear industries are experiencing growth in the region. The polymer is widely used in these industries due to its durability, versatility, and lightweight properties, leading to an increased product demand in the region.

List of Key Companies in Thermoplastic Polyurethane (TPU) Market

Capacity Expansion is the Key Strategic Initiative Implemented by Companies

BASF SE, Lubrizol Corporation, Covestro AG, and Huntsman Corporation are key producers operating in the market. These companies are involved in capacity improvement, product innovation, and collaborations in the market. These companies have a wide geographic presence and distribution network to serve their customers efficiently.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)


• Lubrizol Corporation (U.S.)


• Covestro AG (Germany)


• Huntsman Corporation (U.S.)


• COIM Group (Italy)


• American Polyfilm Inc (U.S.)


• Kuraray Co., Ltd (Japan)


• ALPHAGARY (U.S.)


• Kent Elastomer Products (U.S.)


• AMERICAN POLYFILM, INC. (U.S.)


• Entec Polymers (Belgium)

KEY INDUSTRY DEVELOPMENTS:

• February 2023: Covestro AG announced that it is going to build its largest thermoplastic polyurethane manufacturing plant in Zhuhai, South China. The company has planned to complete the expansion in three phases, one to be completed in late 2025. After final completion, the plant is to have a total manufacturing capacity of 20,000 tons of TPU per year.


• August 2022: The Lubrizol Corporation announced a new TPU line at the Shanghai Songjiang Site. The new production line will enhance the company's TPU production capacity and help strengthen its business in Asia Pacific.


• September 2021: Huntsman’s divisions of Polyurethanes and Performance Products participated in the 63rd Center for the Polyurethanes Industry’s (CPI) 2021 Technical Conference. Topics covered included low-aldehyde catalysts for flexible and rigid polyurethane foams, innovations in automotive seating, and sustainability in raw materials.


• September 2021: BASF collaborated with Hotter, a leading shoe manufacturing company, to provide its first expanded thermoplastic polyurethane (E-TPU) product called Infinergy (E-TPU) for the manufacturing of shoes. Infinergy (E-TPU) provides exceptional cushioning and greater energy return. The move is anticipated to help the company in market volatility.


• August 2021: LANXESS showcased new and innovative materials at the annual meeting of Polyurethane Manufacturers Association (PMA). The meeting presented two new prepolymers of the Adiprene range produced using low free (LF) technology which are can be used to contain low content of diisocyanate. It is easier to process when compared to prepolymer systems in high-temprature applications. The cast elastomers demonstrated properties of high-performance and high-temprature retention.


• May 2020: Huntsman Corporation announced spray polyurethane foam (SPF) Business branding as Huntsman Building Solutions (HBS). The SPF Business was made in February when Huntsman acquired SPF Company Icynene-Lapolla and combined it with Demilec, which was acquired by Huntsman in 2018.

REPORT COVERAGE

The market report provides a detailed market analysis and focuses on key aspects such as leading companies, technologies, and leading application areas. Besides this, the research report offers insights into the market trends and highlights key industry developments. In addition to the abovementioned factors, the sample report encompasses several factors that have contributed to the market's growth in recent years.

REPORT SCOPE & SEGMENTATION