AI Drives Transformation in Thermoplastic Polyurethane Market, Projected to Grow by USD 945.7 Million from 2024-2028, Boosted by APAC Automotive Demand

NEW YORK, Oct. 15, 2024 /PRNewswire/ -- Report with the AI impact on market trends- The global thermoplastic polyurethane market  size is estimated to grow by USD 945.7 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 6.21%  during the forecast period.  Increasing opportunities in automotive industry in APAC is driving market growth, with a trend towards upcoming developments in bio-based products. However, damage to thermoplastic polyurethane structure caused by moisture  poses a challenge. Key market players include API Spa, BASF SE, Avient Corp., COIM Spa, Covestro AG, DIC Corp., Dongsung Corp, Epaflex Polyurethanes Spa, HEXPOL AB, Huntsman Corp., Kolon Industries Inc., Koninklijke DSM NV, KURARAY Co. Ltd., Mitsui Chemicals Inc., Sanyo Corp of America, Songwon Industrial Co. Ltd., Taiwan PU Corp., The Lubrizol Corp., Tosoh Corp., and Wanhua Chemical Group Co. Ltd..

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Key Market Trends Fueling Growth

The thermoplastic polyurethane (TPU) market is witnessing significant growth due to the increasing demand for bio-based TPUs. Their biodegradability, low density, and recyclability make bio-based TPU films a commercially competitive alternative to synthetic TPUs. Bio-based TPUs are replacing their synthetic counterparts in various applications, including household objects, packaging, automobiles, and furniture. Companies such as Koninklijke DSM NV and BASF SE are leading producers of bio-based TPU compounds, utilizing natural raw materials like castor oil. Castor oil, a non-edible and non-volatile vegetable oil, is rich in triglycerides of hydroxyl fatty acid, making it an ideal industrial oil for TPU production. The Lubrizol Corp. Offers bio-based TPUs like Pearlthane ECO and Pearlbond ECO for various applications. Moreover, BASF SE's bio-based PolyTHF 1000 is used as a building block for TPU production, finding applications in ski boots and skates, shoe soles, and automotive instrument panel skins. Covestro AG and Reverdia have also partnered to develop bio-based TPUs for the footwear and consumer electronics industries. The market for bio-based TPU products is expected to expand substantially during the forecast period, driven by their eco-friendly properties and versatile applications. 

The Thermoplastic Polyurethane (TPU) market is experiencing significant growth, particularly in industries that require materials with superior slip resistance, abrasion resistance, and chemical resistance. Notable sectors include the footwear industry and industrial coatings. TPU's unique properties make it a popular choice for manufacturing rubber-like parts in the automotive industry, such as rocker panels and bodyside trim cladding. In the electronics sector, TPU is used for cable applications due to its excellent insulation properties. The sports industry also benefits from TPU's durability and flexibility. Manufacturing companies are increasingly turning to TPU as a sustainable alternative to petroleum-based plastics like Polyethylene and PVC. TPU is produced using raw materials like Adipic acid, Nylon, Diisocyanate, MDI, Polyester diols, and Polyester-based thermoplastic. TPU can be manufactured using various processes, including injection molding, extrusion molding, and compression molding. Key players in the TPU market include Lubrizol and Huntsman's Specialty. Biobased TPUs are gaining popularity due to their environmental-friendly nature. Other trends include the use of flame retardancy and the development of sustainable materials like Polycaprolactone and Polycarpolactome. 

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Market Challenges

• Thermoplastic Polyurethane (TPU) elastomers absorb moisture from atmospheric humidity, which can negatively impact their properties. Aromatic TPUs undergo depolymerization reactions above 355 degrees F, releasing amines and carbon dioxide when exposed to water. This can lead to polymer rearrangement, molecular weight reduction, and loss of physical properties. Excess moisture in TPU resins can also cause voids and defects during extrusion or molding. Aliphatic TPUs undergo polymerization or depolymerization reactions at lower temperatures but can still cause processing instabilities and melt defects due to moisture. The normal thermal degradation temperature for aliphatic TPUs is 518 degrees F, regardless of moisture content. The presence of moisture in TPUs can increase waste and inefficient use of resources, potentially restricting market growth during the forecast period.
• The Thermoplastic Polyurethane (TPU) market faces several challenges in various industries. In electronics, TPU usage in cable applications and electronic industry requires high flame retardancy and durability. In the sports industry, TPUs made from polyester and polycaprolactone are used for rocker panels, bodyside trim cladding, and ditch covers. Manufacturing companies seek sustainable materials like biobased TPUs derived from raw materials such as polyester diols and polycarpolactome. The tubing segment requires injection molding, extrusion molding, and compression molding for production. Automotive demand and industrial clusters in commercial construction drive the market growth. However, competition from petroleumbased plastics and environmental concerns pose challenges. Key players like Huntsman's Specialty and Lubrizol innovate with new production technologies to meet these challenges. Sustainable materials and architectural fabrics are the future of TPU market.

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Segment Overview 

This thermoplastic polyurethane market report extensively covers market segmentation by

1. Application 
• 1.1 Footwear
• 1.2 Consumer goods and electronics
• 1.3 Automotive
• 1.4 Construction
• 1.5 Others
2. Product 
• 2.1 Polyester
• 2.2 Polyether
• 2.3 Polycaprolactone
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Footwear-  Thermoplastic Polyurethane (TPU) is a versatile material widely used in the manufacturing of durable and waterproof footwear due to its properties such as wear resistance, flexibility, shock absorption, and low weight. Despite challenging market conditions in the footwear industry caused by the global economic downturn, the sector is currently experiencing growth due to increasing demand from emerging markets like India. In safety shoe applications, polyester-based TPUs offer superior resistance to chemicals and substances such as oil and petrol, making them ideal for direct-on processing and casting unit soles in both single and double densities. On the other hand, polyether-based TPUs provide excellent pattern definition, regardless of processing technique or desired density. These factors are anticipated to fuel the demand for TPUs in the footwear industry during the forecast period.

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Research Analysis

Thermoplastic Polyurethane (TPU) is a versatile material, offering the properties of both rubber and plastic. It finds extensive applications in various industries, including footwear, due to its excellent slip resistance and abrasion resistance. TPU is also known for its chemical resistance, making it suitable for use in harsh environments. The manufacturing process of TPU involves the reaction of raw materials like Adipic acid, Nylon, Diisocyanate, and MDI. The tubing segment is a significant market for TPU, with applications in automotive industries for rocker panels and bodyside trim cladding, as well as in ditch covers. TPU also offers flame retardancy and is available in various forms, including injection molding, extrusion molding, and compression molding. With a growing focus on environmental-friendly plastics and sustainable materials, biobased TPU is gaining popularity in architecture fabrics and product manufacturing. Other applications include footwear, tubing, and various industrial uses. TPU is a valuable alternative to traditional materials like PVC and Polyethylene due to its superior properties.

Market Research Overview

Thermoplastic Polyurethane (TPU) is a versatile material, offering the properties of both rubber and plastic. It is widely used in various industries due to its superior slip resistance, abrasion resistance, and chemical resistance. The footwear industry is a significant consumer of TPU, using it for soles and uppers. TPU's manufacturing process involves the reaction of diisocyanates, such as MDI, with polyols like polyester diols and polycaprolactone. Raw materials for TPU production include adipic acid, nylon, and polyurethane. TPU finds applications in industrial coatings, electronics, cable applications, and the sports industry. Manufacturing processes include injection molding, extrusion molding, and compression molding. TPU is also used in flame-retardant applications, automotive demand, and sustainable materials like biobased plastics and architectural fabrics. Other industries utilizing TPU include commercial construction, ditch covers, tubing segment, and rocker panels. TPU's production technology continues to evolve, with companies focusing on environmental-friendly plastics and sustainable materials.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Footwear
• Consumer Goods And Electronics
• Automotive
• Construction
• Others
• Product
• Polyester
• Polyether
• Polycaprolactone
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio