TAGS: Polyurethane Adhesives Sealants Solvent borne Adhesives Waterborne Adhesives
Fact.MR anticipates that the global polyurethane dispersion market is forecast to exceed a valuation of USD 2.5 Bn by 2023 and is anticipated to grow at a CAGR of 7.7% to reach US$ 5.2 billion by the end of 2033.
The polyurethane dispersion (PUD) market is witnessing high growth due to the surging demand for sustainable and eco-friendly coatings, adhesives, and sealants in various end-use industries such as automotive, textiles, and construction.
Market Dynamics Outlook
Increasing Demand for PUDs in Leather and Textile Products Pave the Market Growth
The leather and textile industries are prominent end-use industries for polyurethane dispersion (PUD), driving the growth of the PUD market. The increasing demand for high-quality, durable, and eco-friendly coatings, adhesives, and sealants for leather and textile products is fueling the growth of the PUD market.
In the leather industry, PUD is widely used for the production of synthetic leather, which is used in various applications such as upholstery, automotive interiors, and fashion accessories. PUD-based synthetic leather offers several advantages over traditional leather, such as high durability, water resistance, and scratch resistance.
In the textile industry, PUD is used for coating and laminating various fabrics to enhance their performance and durability. PUD-based coatings offer several advantages, such as water resistance, UV resistance, and high adhesion, making them suitable for various applications such as sportswear, outdoor gear, and upholstery.
Availability of Alternatives & Fluctuating Raw Material Prices to Hamper Market Growth
One of the prominent factors restraining the growth of the polyurethane dispersion (PUD) market is the availability of alternatives such as solvent-based coatings and adhesives. Despite the growing demand for sustainable and eco-friendly products, some industries still prefer solvent-based coatings and adhesives due to their lower cost and faster curing times.
Solvent-based coatings and adhesives also offer certain performance advantages over PUDs in some applications, such as higher gloss, faster drying, and better adhesion to certain substrates. Additionally, the raw materials used in solvent-based coatings and adhesives are often readily available and less expensive than the raw materials used in PUDs.
The production process of PUDs is relatively complex and requires specialized equipment, which can increase the overall cost of production. This can make PUDs less competitive in some price-sensitive markets.
Country-wise Insights
Factors Driving Polyurethane Dispersion Demand Across the U.S.
The demand for polyurethane dispersion (PUD) is growing across the U.S. due to the increasing adoption of eco-friendly and sustainable products in various end-use industries. The U.S. is a major market for PUD, driven by the presence of several key players and the growing demand for high-performance coatings, adhesives, and sealants in various applications.
The automotive and construction industries are prominent end-use industries for PUD in the U.S. PUD-based coatings and adhesives offer several advantages, such as high durability, scratch resistance, and water resistance, making them ideal for automotive and construction applications.
In addition, the growing demand for sustainable and eco-friendly products is driving the adoption of PUD-based products in various industries such as textiles, leather, and packaging. PUD-based coatings and adhesives offer several advantages over traditional materials, such as low VOC emissions, high solid content, and low odor.
Hence, the demand for PUD is expected to continue growing in the US due to the increasing focus on sustainability and eco-friendliness in various industries.
Chinese Polyurethane Dispersion Market Expected to be Highly Lucrative
The demand for PUD-based coatings and adhesives in the construction industry is expected to grow due to the increasing focus on energy efficiency and reduction in carbon emissions in the country.
The Chinese government is promoting the use of sustainable and eco-friendly products through various initiatives such as the Green Development Fund and the New Energy Vehicle Industry Development Plan, which is expected to drive the demand for PUD-based products in various industries.
Further, the PUD market in China is highly competitive, with several domestic and international players competing for market share. Some of the key players in the PUD market in China include BASF SE, Covestro AG, Dow Inc., and Huntsman Corporation, among others.
Category-wise Insights
Water-Based Polyurethane Dispersion Hold a Higher Market Share
Water-based polyurethane dispersion (PUD) holds a higher market share compared to solvent-based PUD as it is considered more environmentally friendly than solvent-based PUD as it emits lower levels of volatile organic compounds (VOCs) and has a lower carbon footprint. Water-based PUD is safer to handle and use compared to solvent-based PUD as it has lower flammability and explosion risks.
Further, water-based PUD can be easily diluted with water and does not require special equipment for the application, making it easier to use and reducing costs. Water-based PUD provides better performance in terms of adhesion, abrasion resistance, and durability compared to solvent-based PUD.
Additionally, water-based PUD complies with stricter environmental regulations such as REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) and the Clean Air Act, making it more appealing to customers who prioritize sustainability and regulatory compliance.
High Demand in Leather Finishing Application
Polyurethane dispersions are used for finishing leather, as they offer resistance to temperature, high elasticity, excellent tear strength, and high abrasion resistance. Therefore, increasing the use of leather in the manufacturing of garments, handbags, shoes, seat covers, and other products is expected to increase the demand for polyurethane dispersions
The leather finishing segment is estimated to be the fastest-growing application during the forecast period. This growth is due to large industrial manufacturers using synthetic leather.
PUD synthetic leather is low in volatile organic compounds and environmentally friendly. High-solid polyurethane dispersions make it possible to obtain synthetic leather economically without the use of solvents. Therefore, increased production of artificial leather will require large amounts of polyurethane dispersions, strengthening the market for PUDs for this application.
Eminent Players Key Stratagems
Prominent polyurethane dispersion manufacturers are Alberdingk Boley, Inc., Bayer Material Science, BASF SE, Chemtura Corporation, Covestro AG, Cytec Industries Inc., DSM, Hauthaway Corporation, Huntsman Corporation, Lanxess, Lubrizol Corporation, Mitsui Chemicals Inc., Perstorp, Stahl Holding, The Dow Chemical Company, and Wanhua Chemical Group
The manufacturers of polyurethane dispersion are expanding their manufacturing capabilities, attributed to the increase in demand across key end-use industries.
For instance: Covestro is planning a new production facility for polyurethane dispersions (PUDs) at the Covestro Integrated Site in Shanghai, China (CISS) to address the rising demand for environmentally compatible coatings and adhesives in the Asia-Pacific region. The company has scheduled the completion of this plant for 2024.
Source: Fact.MR