The "Polyurethane Additives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The Polyurethane Additives Market is projected to register a CAGR of over 6% during the forecast period (2021-2026).
The market was negatively impacted due to COVID-19 in 2020. Countries like India, China, Italy, France, Poland, the United Kingdom, South Africa, and New Zealand went into lockdown during 2020.
Moreover, owing to restrictive mass quarantines due to coronavirus, the construction industry has also been impacted, as the workers keep themselves away from the project sites. In India, construction workers are kept away from work sites, which has put a hold on almost 20,000 ongoing projects in the country.
According to the OICA data, global automotive production declined significantly in 2020 due to COVID-19, registering a declining growth of -15.8% by the end of 2020. Hence, such impact and uncertainties in various sectors due to the COVID-19 outbreak may act as a stumbling block in the demand and growth of the polyurethane additives market during an initial couple of months of the forecast period.
Over the short term, the rising demand for polyurethane in the construction industry is likely to propel additives consumption. One of the largest applications is the use of rigid PU foam as wall and roof insulation, insulated panels, and gap fillers for the space around doors and windows. Some rigid PU foams can be applied to seal gaps and cover irregular shapes. Such foams include spray, pour-in-place, and one-component foams, thereby augmenting the growth of the market.
On the flipside, stringent government regulations and negative impact of COVID-19 pandemic are likely to hinder the market's growth.
Increasing demand for more innovative and cost-effective additives are projected to act as an opportunity for the market in future.
Asia-Pacific region is expected to account for the largest share and also expected to register highest growth rate over the forecast period.
Key Market Trends
Increasing Demand from the Automotive Industry
The automotive industry provides one of the best examples of the diverse applications of PU materials. Nearly every type of PU product is used in the automotive end-user industry.
Flexible PU foams are used in seating, headrests, arm rests, HVAC, and other interior systems for automotive, like in airliners, trains, and buses. PU coatings provide a vehicle's exterior with the high gloss, durability, scratch resistance, and corrosion resistance. PU coatings are also used to glaze windshields and windows, increasing strength and providing fog resistance.
PU elastomers protect against tire punctures and are used in other molded components, such as shock absorbers. Thermoplastic PU materials are used in the manufacture of many automotive parts, including exterior body parts, trunk liners, anti-lock brake systems, timing belts, and fuel lines. The unique properties of PU elastomers contribute for their exclusive usage in gaskets, O-rings, and other seals.
Seating is the largest application of PU in the automotive industry. Many automotive seating manufacturers demand flexible foam producers for products made with bio-based polyols. However, market penetration of "green" PU is still in emergence in most global PU markets.
Globally, more than 90% of automobiles are produced with bonded windshields and rear windows using one-component PU sealants. The automotive industry is the largest end-user industry for reaction injection molding (RIM) PU parts. RIM is used to maximize the shock absorption of vehicle fenders, bumpers, and spoilers, without adding weight or bulk.
Despite an encouraging term of growth in the automotive sector during the past decade, the momentum slowed down in recent years. The sales and production of new vehicles are going down in various parts of the world, including Europe, Asia-Pacific, and the United States. This affected the previously growing automotive production in most nations. Business models, the markets, and the competitive landscape are undergoing changes.?? This is slowing the demand for polyurethane additives.
According to the OICA data, the global automotive production declined by around 5% and reached 92,175,805 million in 2019. ?The car sales declined by more than 3 million in 2019. In the first six months of 2020, automobile production witnessed a huge downfall across the globe owing to the impact of COVID-19. According to OICA, in 2020, the global automotive production, reached 77,621,582 vehicles, declining about 15.8% respectively, from the previous year.
However, with growing concerns related to environmental pollution from petrol and diesel-based vehicles, the production of electric vehicles is expected to pick up pace over the next five years. This is likely to drive the demand for market studied over the forecast period.
According to IEA, in 2030, global electric vehicle sales are expected to reach 125 million as per the New Policies Scenario (excluding two/three-wheelers). In the EV30@30 Scenario, in 2030, around 70% of the vehicle sales in China are expected to be EVs. Also, half of the vehicles sold in Europe are EVs, 37% in Japan, 30% in Canada and the United States, and 29% in India.
All the aforementioned factors, is expected to drive the global market during the forecast period.
Key players in the polyurethane additives market include:
Air Products Inc.
GEO Specialty Chemicals, Inc.
Huntsman International LLC
Eastman Chemical Company
Evonik Industries AG
Momentive Performance Materials Inc.
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