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The polyurethane (PU) dispersions market size is forecast to increase by USD 941.88 million, at a CAGR of 6.71% between 2023 and 2028. Market growth rates are influenced by various factors, such as heightened regulations concerning VOC emissions, rising demand across end-user sectors, and a growing emphasis on bio-based and environmentally friendly products. These dynamics shape the trajectory of market expansion, highlighting the importance of sustainability and regulatory compliance in driving industry trends and consumer preferences. The market report 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.
Polyurethane dispersion is a type of polyurethane resin that has the ability to be finely dispersed in water rather than in a solvent; it includes low-solvent types, which endow it with a combination of mechanical properties, toughness, and durability. These resins are used on a wide range of surfaces and applications, such as plastics, metal, wood, masonry, and textiles.
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The global economy faces unprecedented challenges amid the pandemic, reminiscent of the Great Depression era. Restrictions on business operations across the industrial, construction, and manufacturing sectors have disrupted supply chains and curbed demand, exacerbating the crisis period. Despite challenges, sectors like the packaging, textile, and leather industries adapt, with exporters focusing on synthetic leather production for handbags. Research and development emphasize zero-VOC targets, utilizing tin catalysts and acid-epoxy adhesives for environment-friendly epoxy-based coatings on floors, walls, and steel structures. Government regulations drive the shift towards solvents like NMP, NEP, and DMSO to reduce VOC emissions. 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 focus on bio-based and eco-friendly products is the key factor driving the market. Consumer preference for environment-friendly and sustainable products is a trend in the market. Several research studies have found significant commercial uses for bio-based resins and polymers, in low-VOC paints. Vegetable oil-based polyol is synthesized through epoxidation and hydroxylation methods from vegetable oil. Therefore, the vegetable oil-based polyol interacts with isophorone diisocyanate and dimethylol propionic acid to make the polyurethane prepolymer, which then reacts with 1,4-butanediol to create polyurethane dispersions. The final product is obtained through the addition of water.
Furthermore, growing environmental food and drug regulations are fostering the consumption of bio-based polymer paints in food packaging, consumer goods, and other products. Market players are focusing on the adoption of sustainable processes that have a minimal impact on the environment. Consequently, the growing focus of end-users (paints and coating manufacturers) on the development of eco-friendly products is likely to propel the growth of the global market during the forecast period.
Increasing innovation is the primary trend in the market. With a broad range of cutting-edge water-borne technologies, companies are collaborating with end-users to offer flexible, tailored solutions that satisfy particular demands, application specifications, and new regulations. market players are committed to providing performance, simplicity, and long-term benefits by collaborating closely with their clients and by constantly innovating their polyurethane dispersion products.
For instance, in April 2021, LANXESS extended the range of its distinct water-based blocked isocyanate dispersions, known as Trixene Aqua. New grades have been added to the company product line, to expand its application areas and meet more exacting consumer demands. Trixene Aqua BI 202 is the result of LANXESS continuous focus on fiber sizing technologies. Thus, such innovation by companies will positively impact the market in focus during the forecast period.
High costs involved in the production is the significant challenge hindering the market expansion. Polyurethane dispersions are increasingly used in industrial applications. Because of the high cost, they are employed in applications where the performance achieved using waterborne acrylic, alkyd, polyester and epoxy resins is not adequate, or they are used in combination with other resins to improve certain properties such as the adhesion capability. They are synthesized using different methods and processes, unlike acrylic or other vinyl dispersion polymers. Most acrylic and vinyl dispersions are produced through the emulsion polymerization process in the presence of an external surfactant or colloidal stabilizer.
However, most of them are produced by a prepolymer process, which involves the preparation of a low-molecular-weight isocyanate terminated ionomer, either in bulk or in a solvent, by dispersing this ionomer in water followed by chain extension. This makes the process of producing makes complex and increases its cost. This will also increase the demand for other alternatives such as epoxy and acrylic resins, in various applications, such as paints, coatings, and others. Thus, the high costs involved in the production will negatively affect their production and demand and, therefore, will hamper the growth of the market during the forecast period.
The market share by the solvent-free segment will be significant during the forecast years. [mention brief about segment growth]. Under certain conditions, a quick reaction between liquid prepolymers produces solvent-free polyurethane dispersions. In this technique, the molecular weight of the polymer is raised to create polymeric materials with a carbamate-based structure very quickly. The solvent-free synthesis technique totally eliminates the use of organic solvents, hence eliminating all the issues related to their use.
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The solvent-free segment accounted for USD 1.90 billion in 2018. Various market players, such as BASF and Covestro, offer solvent-free polyurethane dispersions. For instance, BASF offers low-viscous aliphatic polyisocyanate for lightfast and weather-resistant polyurethane coatings, which are suitable for solvent-free systems (paints and coatings). Thus, such product offerings by leading market players, coupled with their applications in various coatings, will drive the growth of the solvent-free segment and the market in focus during the forecast period.
The paints and coatings segment will account for the largest share of this segment.?Polyurethane dispersions are increasingly favored in coatings and adhesives due to their eco-friendliness compared to solvent-based polyurethanes, which emit hazardous air pollutants and VOCs. Waterborne polyurethane dispersions, with water as the main solvent, offer superior adhesion, low toxicity, water resistance, and gloss. They excel in controlling corrosion on metal surfaces, providing durable protection against abrasions, chemicals, and weathering. In paints for wooden furniture, they ensure resistance to scratches, chemicals, and UV rays, alongside excellent durability and gloss properties. These attributes drive demand, supported by offerings from market players like SNP and Covestro.
APAC is estimated to contribute 45% 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 APAC polyurethane dispersion market is poised for growth, propelled by the expansion of the commercial and residential construction sector and heightened demand across various industries like wood and furniture, electrical and electronics, automotive, and transportation. Increased renovation activities in commercial and residential buildings, coupled with rising foreign direct investments in construction, will further stimulate demand. In APAC, economic growth has bolstered per capita income, amplifying purchasing power, especially in sectors like automotive, packaging, and electronics.
Moreover, the burgeoning construction industry in the region, particularly in India and Indonesia, is a significant driver, especially in wood and furniture applications. Additionally, governmental initiatives and policy changes are attracting automotive manufacturers to invest in APAC, further fueling demand for low-VOC coating solutions, particularly in the context of electric and hybrid vehicles. Thus, such factors collectively contribute to the anticipated growth of the APAC polyurethane dispersion (PUD) market during the forecast period.
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:
BASF SE, Bolger and Ohearn Inc., Bond Polymers International, C. L. HAUTHAWAY and SONS CORP., Capital Resin Corp., CHEMCROWN GROUP, Covestro AG, DIC Corp., Dow Chemical Co., Lanxess AG, Marathwada Chemicals, Michelman Inc., Mitsui Chemicals Inc., Nan Pao Resins Co. Ltd., PETRONAS Chemicals Group Berhad, PTT Global Chemical Public Co. Ltd., SNP Inc., Stahl Holdings B.V., The Lubrizol Corp., and Wanhua Chemical Group Co. Ltd.
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 report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028.
In the wake of the pandemic and its impact on the global economy, industries worldwide, including the manufacturing sector and industrial sector, faced unprecedented challenges. Polyurethane Dispersions (PUDs), crucial components in various applications such as automotive coatings, furniture & interiors, and textiles & footwear, encountered disruptions due to supply chain restrictions and manpower & equipment shortages during the crisis period. The severity of the economic impact prompted major economies to implement fiscal responses and policy measures to mitigate economic ruin and ensure financial stability. Despite setbacks, sectors like the packaging industry, textile industry, and leather industry adapted, with a focus on environmental sustainability and zero-VOC targets.
Furthermore, compliance with regulations such as REACH regulation and initiatives to meet Local Air Quality Regulators and Environmental Protection Agency (EPA) standards drove the shift towards water-based formulations and solvent-free types in adhesives & sealants and paints & coatings industry. Technological advancements in polyols, MDI, and TDI aimed to address volatility in crude oil prices and ensure raw material supply stability for water-based polyurethane dispersions and solvent-based Polyurethane Dispersions. As infrastructure development and the automotive sector rebound, the demand for waterproofing membranes and automotive coatings is expected to rise, reflecting a gradual recovery in disposable income and consumer spending on performance properties-rich products like Isocyanates, Acrylics, and Epoxies.
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Polyurethane Dispersion (PUD) Market Scope |
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Report Coverage |
Details |
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Page number |
176 |
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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 6.71% |
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Market Growth 2024-2028 |
USD 941.88 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.09 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 45% |
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Key countries |
US, China, India, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alberdingk Boley GmbH, BASF SE, Bolger and Ohearn Inc., Bond Polymers International, C. L. HAUTHAWAY and SONS CORP., Capital Resin Corp., CHEMCROWN GROUP, Covestro AG, DIC Corp., Dow Chemical Co., Lanxess AG, Marathwada Chemicals, Michelman Inc., Mitsui Chemicals Inc., Nan Pao Resins Co. Ltd., PETRONAS Chemicals Group Berhad, PTT Global Chemical Public Co. Ltd., SNP Inc., Stahl Holdings B.V., The Lubrizol Corp., and Wanhua Chemical Group Co. Ltd. |
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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, 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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