U.S. Polyurethane Market Size, Share & COVID-19 Impact Analysis, By Product Type (Rigid Foam, Flexible Foam, Molded Foam, Elastomers, Adhesives & Sealants, Coatings, and Others), By Application (Furniture, Construction, Electronics, Automotive & Transportation, Packaging, Footwear, and Others), and Country Forecast, 2023-2030

The U.S. polyurethane market size was valued at USD 16.93 billion in 2022 and is projected to grow at a CAGR of 5.9% during the forecast period.

Polyurethane (PU) is a versatile plastic material that can be either tailored in a rigid or flexible form, making it a preferred choice of material for a wide range of applications. Some key applications include refrigerator insulation, furniture cushioning, car parts, adhesives, coatings, and rubber applications. Its excellent insulation and hydrochlorofluorocarbon-free (HCFC-free) nature make it an ideal choice for modern refrigerators. Its adoption has made modern refrigerators 60% more efficient than refrigerators 15 years ago.

The compound is largely used in the furniture, automotive, and construction industries. These industries were heavily affected by the COVID-19 outbreak owing to lower demand from consumers for these products in the U.S. As several building and construction projects were postponed and automotive production declined, this had a severe impact on the U.S. market during the COVID-19 pandemic.

U.S. Polyurethane Market Trends

Trend of Electric Mobility to Create Additional Product Demand

The past five years have recorded a soaring demand for electric mobility due to rising environmental concerns among customers and favorable initiatives taken by governments across the globe. As per the International Energy Agency, the share of sales of new electric vehicles in the global automotive industry in the past three years has increased by three times. The demand for electric vehicles is projected to see similar growth in the upcoming years.

The expansion of the U.S. polyurethane market is associated with the rising product utilization in electric vehicles. PU is used in the form of molded parts for bumpers, exterior trim, wheel arch liners, and others. In addition, it is also used as a battery enclosure as it is more heat conductive, which helps improve power and fast charging. The product’s unique properties and growing electric vehicle market are set to fuel the U.S. market growth. 

U.S. Polyurethane Market Growth Factors

Growing Demand from Furniture Industry to Fuel Market Growth

Polyurethane is primarily used as foam for upholstery and bedding applications in the furniture industry. Its flexibility, durability, and comfort make it suitable for use in the industry. Due to people's lifestyle changes and population growth, the demand for furniture is increasing. Post-COVID-19, the U.S. furniture & home furnishings market has experienced significant growth. As per data released by the Federal Reserve Bank of St. Louis, home furnishing and furniture product sales increased by 25% in the year 2021 compared to 2020. In addition, the U.S. construction industry will experience moderate growth during the forecast period, fueling the product demand. The growth will be mainly on the back of an infrastructure bill worth USD 1.2 trillion passed by the U.S. Congress in November 2021. As a result, the demand for furniture & home furnishing products will increase, which will fuel market growth. 

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RESTRAINING FACTORS

Use of Volatile Organic Compounds May Create Challenges for Polyurethane Suppliers

PU is a versatile material used in various end-use industries and applications. However, many alternatives available in the market outperform the product in certain applications. For example, linseed oil is used to treat wood in the furniture industry instead of toxic products. In the marine sector, polysiloxane coatings are used instead of PU coatings (isocyanate-based). In addition, PU adhesives are facing stiff competition from alternatives such as epoxy and acrylic adhesives. The availability of such a variety of alternate options may limit the U.S. market growth.

U.S. Polyurethane Market Segmentation Analysis

By Product Type Analysis

Based on product type, the market is subdivided into elastomers, flexible foam, rigid foam, molded foam, coatings, adhesives & sealants, and others.

The flexible foam segment held the dominant U.S. polyurethane market share in 2022 and is poised to remain the leading product type segment during the forecast period. Flexible foam is a preferred material in various applications, including automotive seating, furniture, bedding, and athletic equipment. Efficient in offering cushioning, acoustic, and force damping properties, it has become a choice of material in almost all furniture and bedding applications, which will drive the demand for polyurethane in the foreseen period.

The rigid foam and molded foam segments are expected to grow owing to the increasing adoption in industries such as electronics, automotive, and packaging in the U.S. According to the U.S. Department of Energy, heating and cooling account for approximately 56% of the energy used in a typical U.S. home, making it the largest energy consumer for most homes. Rigid polyurethane is an effective insulator that can be used to insulate roofs, walls, windows, and doors and seal air barriers. As a result, rigid foams are used in commercial and residential buildings to maintain temperatures and keep noise levels low.

By Application Analysis

Based on application, the market is segregated into construction, furniture, packaging, electronics, footwear, automotive & transportation, and others.

The furniture segment accounted for a major share in 2022 owing to the increased adoption of polyurethane foam. Polyurethane offers the best cushioning and formability properties, which makes it an ideal material for furniture applications, thus making this segment a leading consumer.

The automotive industry is poised to record significant product demand on the back of electric mobility. Polyurethanes are highly utilized in the automotive industry for car seats, which also reduces the overall vehicle's weight, making it a preferable material. In addition, electric vehicles require less weight. Hence, automotive manufacturers prioritize reducing their weight. As a result, polyurethane has emerged as a choice of material for automotive seats that will fuel their demand. 

In addition, attributed to excellent properties, the product demand will continue to grow in line with insulation applications across various sectors. These include construction, cold storage, refrigerators, and others.

List of Key Companies in U.S. Polyurethane Market

Considering the competitive landscape, the U.S. market depicts the presence of established and emerging companies. Foamcraft, Inc., Huntsman Corporation, Dow Inc., and BASF SE are the key players in the market with a considerable share. Increasing product demand is making companies expand their production capabilities. Companies are making various organic investments to meet the growing demand. For instance, companies such as Huntsman Corporation, Dow, and LANXESS Corporation were involved in various strategic initiatives such as product launches, production capacity, and partnerships to cater to the growing demand.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)


• Dow Inc (U.S.)


• Covestro AG (Germany)


• Huntsman Corporation (Germany)


• Foamcraft, Inc. (U.S.)


• Capital Resin Corporation (U.S.)


• Lanxess AG (Germany)


• Mitsui Chemicals & SKC Polyurethanes Inc. (South Korea)

KEY INDUSTRY DEVELOPMENTS: 

• March 2023: Huntsman launched a new polyurethane product named POLYRESYST IC6005 to meet the increasing demand from the construction industry. This product features unique properties, such as passive fire performance with enhanced water and chemical resistivity.


• March 2021: Dow inked a Memorandum of Understanding (MoU) with the Zhanjiang Economic and Technological Development Zone Administrative Committee. Under this MoU, Dow would invest USD 250 million to expand its production capacity for specialty polyurethanes and alkoxylates.

REPORT COVERAGE

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The report thoroughly examines key factors such as leading companies, product types, and applications. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market growth in recent years and the factors listed above. It examines the industry's latest dynamics and opportunities, historical data, and revenue growth estimates at the country level.

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