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The polyols market size is forecast to increase by USD 10.08 billion, at a CAGR of 5.96% between 2023 and 2028. Market growth hinges on multiple factors, notably the rising demand for polyols across various sectors. The electronics industry's escalating need for polyols, coupled with increased usage in the automotive and construction sectors, drives market expansion. Additionally, the growing application of polyurethane insulation in refrigeration appliances further propels growth. These trends reflect the versatility and utility of polyols, positioning them as indispensable components across diverse industries such as construction and underpinning the market's upward trajectory. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.
Polyol is a crucial component in various industries, sourced from both plant-based raw materials and petrochemical-derived polyols. It serves as a key ingredient in the production of polyurethane systems, which find applications in vehicles, including passenger cars and commercial vehicles. Additionally, polyol is used in manufacturing cushions, carpets, corrugated boxes, furniture, and packaging goods such as plastic boxes and wooden boxes. With the growing demand for organic personal care products and low-calorie meals, bio-based polyols like soy-based bio polyols are gaining prominence, further driving the expansion of the polyol market. The polyols market is experiencing growth driven by increased demand for innovative packaging solutions that enhance product stability and extend shelf life. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for polyols in the automotive and construction industries is notably driving the polyols market growth. Polyols are essential in the production of polyurethane foams. Polyurethane foams are used in many end-user industries such as automotive, construction, paints, and coatings. Polyurethane foams are widely used to make various automotive parts such as side skirts, wiper covers, roll bars, and bumpers. The market is expected to register moderate growth during the forecast period, owing to rising demand for automobiles. The development of polyurethane foams for insulation has increased the global demand for polyols. Polyurethane foams are widely used in automotive seats, headrests, armrests, headliners, dashboards, and instrument panels.
Additionally, the increasing use of polyurethane foams in the construction industry is a major driver of the market. Polyurethane foam provides a weatherproof seal and creates an insulating layer. They cover irregular and difficult-to-insulate shapes and fill gaps and seams. The growth of the construction industry has increased the demand for polyurethane foam. Rising demand for housing, hospitality, flooring, and home furnishings is expected to increase the consumption of polyurethane foam during the forecast period. Such factors are expected to boost the growth of the polyols market during the forecast period.
A growing shift toward flexible polyurethane foams is the primary trend shaping the market. Flexible polyurethane foams are highly versatile materials with applications spanning from bedding and furniture to automotive seating. This trend is primarily driven by increasing consumer demand for comfort, durability, and customization in various end-user industries. In the automotive industry, flexible foams are utilized extensively in seating applications due to their ability to conform to complex shapes and provide superior comfort for passengers.
Furthermore, the rise in disposable income levels, particularly in emerging economies, is fueling the demand for premium and customizable furniture and automotive interiors, further driving the adoption. Manufacturers are also focusing on innovation to develop advanced formulations of flexible polyurethane foams that offer enhanced comfort, durability, and environmental sustainability, thereby catering to evolving consumer preferences and regulatory requirements. Thus, the growing shift toward flexible polyurethane foams will propel market growth during the forecast period.
Stringent government regulations are the major challenge to market growth. Polyols are used in a variety of applications, including polyurethane foams, coatings, adhesives, and elastomers. The production and use of polyols are associated with environmental and health concerns, prompting governments around the world to introduce regulations to reduce their impact. One of the biggest regulatory challenges facing the market is the Restriction of Hazardous Substances (RoHS) Directive, which restricts the use of certain substances such as lead, mercury, and cadmium in electrical and electronic equipment.
Moreover, another regulatory challenge for the market is the REACH regulation, which regulates the production, importation, and use of chemicals in the EU. Under REACH, companies that manufacture or import chemicals, including polyols, must register them with the European Chemicals Agency and prove that they are safe to use. Thus, such factors are expected to hinder the growth of the market during the forecast period.
Polyol manufacturers play a pivotal role in meeting the demand for various applications, including rigid foams used in automotive and refrigeration sectors. These manufacturers also cater to industries requiring corrugated boxes, ensuring efficient packaging solutions. With applications extending to the food and beverage industry, polyol suppliers ensure a steady supply chain of polyisocyanurate, a critical component in several food-related products and packaging materials.
The market share growth by the polyether polyols segment will be significant during the forecast years. Polyether polyol is formed by the polymeric reaction between an organic oxide and an initiator compound that has two or more active hydrogen atoms. In the presence of a base catalyst, the active hydrogen compound initiates oxide addition until the desired molecular weight is obtained. Rigid polyurethane foams are used in commercial refrigeration and packaging.
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The polyether polyols segment accounted for USD 19.94 billion in 2018. Further, various types of environment-friendly blowing agents, such as HFC 365mfc and HFC 245fa, are used to fabricate rigid polyurethane foams from crude methylene diphenyl diisocyanate and polypropylene glycols. Also, new variants of polyurethane foams are being launched in the market. For instance, in September 2022, Covestro launched sustainable based on bio-circular raw materials. Such factors are expected to drive the growth of the segment in the market during the forecast period.
Flexible polyurethane foam is lightweight, durable, and comfortable. It can be cast into a variety of shapes and is commonly used in bedding, furniture, packaging, carpet underlays, and a variety of upholstery products used in automotive interiors. Further, the environmental benefits of flexible polyurethane foams include clean combustion, pollution filtering, and waste reduction. They are highly recyclable and sustainable materials. Factors such as growth in the furniture, construction, transportation, electronics, and packaging industries and economic growth in APAC and other emerging markets are expected to increase the demand for flexible polyurethane foam during the forecast period.
APAC is estimated to contribute 40% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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The number of construction projects in India is expected to increase during the forecast period, as the government is expected to implement numerous development projects. Polyols are widely used as building insulation in construction projects. The construction industry in China, Vietnam, Indonesia, and Thailand will show moderate growth during the forecast period. The increase in residential, non-residential, and public infrastructure projects, especially in India, China, Malaysia, and other developing countries, will lead to increased consumption of polyurethane foam in this region. The construction industry in India is growing due to factors such as increasing purchasing power and urbanization.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Arkema Group, BASF SE, Covestro AG, DIC Corp., Dow Chemical Co., Evonik Industries AG, Huntsman International LLC, Lanxess AG, Mitsui Chemicals Inc., N Shashikant and Co., Nippon Shokubai Co. Ltd., Otto Chemie Pvt. Ltd., POLYOLS and POLYMERS PVT. LTD., Shakun Industries, Shell plc, Stepan Co., Thermo Fisher Scientific Inc., Wanhua Chemical Group Co. Ltd., and Repsol SA
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The market plays a pivotal role in various industries, particularly in automakers, where they're utilized for producing car seats, carpet backing, and footwear cushioning. Derived from natural raw materials like plant oils such as rapeseed oil and soy-based polyols, they contribute to renewable polyurethanes. Used extensively in furniture production for mattresses, pillows, and furniture cushions, they also find applications in healthcare packaging and labelled dairy products. Additionally, they're integral in building insulation, decorative paints, and flooring systems, offering thermal insulation and contributing to environmental sustainability by reducing carbon footprints.
Further, the market is experiencing robust growth driven by various sectors such as the furniture industry, building insulation, and automakers. Derived from renewable biomass like corn stalks and natural oil polyols, they serve as key components in producing rigid polyurethane foam used in thermal insulation materials for refrigerator and freezer production. They are also crucial in coil coatings, Venetian blinds, and doors, providing durability and weather resistance. Additionally, they are used in sugar-free sweeteners like erythritol and sorbitol, contributing to weight management and addressing type-2 diabetes concerns, making them essential in the low-calorie food industry.
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Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.96% |
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Market Growth 2024-2028 |
USD 10.08 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.4 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 40% |
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Key countries |
US, China, India, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Arkema Group, BASF SE, COIM Spa, Covestro AG, DIC Corp., Dow Chemical Co., Evonik Industries AG, Huntsman International LLC, Lanxess AG, Mitsui Chemicals Inc., N Shashikant and Co., Nippon Shokubai Co. Ltd., Otto Chemie Pvt. Ltd., POLYOLS and POLYMERS PVT. LTD., Shakun Industries, Shell plc, Stepan Co., Thermo Fisher Scientific Inc., Wanhua Chemical Group Co. Ltd., and Repsol SA |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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