Market Overview
The Global Polyurethane Dispersions Market is estimated to grow at a CAGR of 8% during the forecast period (2024-2031).
PUD is a binary colloidal system formed by particle dispersions in an aqueous phase. It is a suitable candidate for coatings because of its low organic content, ease of handling, and wide range of film hardness. Furthermore, PUDs versatility and improved qualities such as abrasion resistance, greater adhesion to numerous polymers, and low-temperature flexibility have a wide application in the Polyurethane coating business. Polyurethanes are a rapidly evolving coatings product with exceptional performance. However, because of the high cost of raw materials, they are in short supply. PUD is high-performance adhesives made of crystalline, hydrophobic polyester polyols like hexamethylene adipate and aliphatic diisocyanates. These PUDs are on the higher end of the waterborne adhesives market, but they deliver excellent results.
Market Summary
| Metrics | Details |
| Market CAGR | 8% |
| Segments Covered | By Type, By Application, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | Asia Pacific |
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Source: DataM Intelligence Analysis (2023)
Market Dynamics
The tremendously growing automotive industry and improving the involvement of PUDs in the sector are driving the market share for PUDs. The high demand for PUDs from the leather and textile industry creates immense opportunities for the product to grow in the forecast period.
The tremendously growing automotive industry and improving the involvement of PUDs in the sector are driving the market share for PUDs.
Automotive production has increased dramatically, especially in developing nations like the Asia Pacific and Central and South America. Along with witnessing a strong increase in vehicle demand, these countries also offer manufacturers inexpensive manufacturing costs. FDI in the automobile sector has been promoted by various government programs such as "Make in India."
PUDs have been used as adhesives in interior components such as instrument panels, dashboards, interior door panels, and gear change levers in the automotive sector. PUDs can also be found in automobile paints and seat leather coverings. They are appropriate for such applications because of their high initial bond strength, stable bonds with excellent heat resistance, safe working environment due to low VOC content, and long-lasting adhesion qualities.
Over 80% of top coating systems are made of base coats and clear coats in the automotive sector. The main characteristics of PUDs that make them suited for base coat systems include brilliance, flow characteristics, adhesion, and elasticity. Thus excellent features offered by PUDs is the prime factor driving the application demand for the product in the automotive industry.
High demand for PUDs from the leather and textile industry is creating immense opportunities for the product to grow in the forecast period.
Due to various end-use industry apparel demands, the overall PUR dispersion market is likely to be driven by the growing textile sector. Synthetic leather applications accounted for 36.2 Kilo Tons of global demand in 2014 and are expected to grow at a significant CAGR percent during the forecast period. The global textile and leather sectors will grow with the increased demand for these items.
Textiles are a massive business in APAC countries, including China, India, South Korea, Pakistan, and Vietnam. Apart from these countries, key textile manufacturers include Germany, Portugal, Brazil, and the U.S. Many of these nations are also big textile exporters. Another important industry is driving the growth of PUDs in the leather industry. PUDs are used to polish the surface of leather. Their application in the manufacture of synthetic leather is on the rise. Furthermore, the increasing use of leather in handbags, footwear, seat coverings, apparel, and other products is increasing in demand.
Despite increased competition from Asian and Latin American markets, manufacturers in Europe, the Middle East, and Africa are increasing their focus on creating PUDs for textile and leather applications, which has boosted the market share for the product in recent times.
Growing fluctuations in prices coupled with stringent government regulations are more likely to hurdle the growth of PUDs.
Polyols, MDI and TDI, are the most common raw ingredients used in the production of PUDs. Polyols and isocyanates are sourced from crude oil, one of the market's significant drawbacks. The fluctuations in the prices of crude oil affect the prices of TDI and MDI, which are the main isocyanates preferred for the production of PUDs.
Furthermore, the fluctuation in crude oil prices affects the availability of raw materials to manufacturers, forcing them to raise the cost of their isocyanate products to compensate for the losses. Any change in the price of these essential raw ingredients has an immediate impact on the finished Polyurethane goods. Thus, PUDs are blended with other low-cost dispersions such as acrylic emulsions due to familiarity with their properties to make up for the greater price and improve adherence to certain substrates.
In addition, governmental regulations and directives are also expected to impact the global PUD business significantly. The Environmental Protection Agency (EPA), the ASEAN Energy Supply Security Planning Agency (ESSPA), and the Occupational Safety and Health Administration (OSHA) have all established regulations and directions to protect customers from the negative impacts of PUR dispersion.
COVID-19 Impact on Market
COVID-19 has had a major economic influence on several financial and industrial sectors, including tourism, travel, manufacturing, and aviation. Economic activity is decreasing due to more countries implementing and extending lockdowns, which impacts the global economy.
Furthermore, the pandemic has halted construction in the commercial, residential, and industrial sectors. PUD demand from this industry is predicted to be moderate to medium during the current crisis. Major challenges are that order delivery delays, supply chain constraints, labor and equipment shortages, and material shortages. The market is likely to recover following this crisis, and demand for PUDs is expected to increase.
Furthermore, most countries began to ease restrictions in the second half of 2020. Corporate operations in various industries gradually restarted, thus expected to regain market momentum in the forecast period.
Market Segmentation Analysis
The global Polyurethane Dispersions Market analysis is bifurcated based on type, application, and region.
Water-based Polyurethane dispersions are adaptable and eco-friendly coating materials that are used in a wide range of film hardness and solid content
The global Polyurethane Dispersions Market applications based on type are segmented into water-based Polyurethane dispersions and solvent-based Polyurethane dispersions. Out of the two types, water-based Polyurethane dispersion is more likely to hold a dominating market share as they are adaptable and eco-friendly coating materials used in a wide range of film hardness and solid content. It has excellent blocking resistance, weather resistance, long-term flexibility, UV resistance, and high abrasion resistance while containing no free isocyanate residuals.
Furthermore, water-based Polyurethane dispersions (PUDs) are a fast-increasing section of the Polyurethane coating business due to environmental regulations like the Clean Air Act and technological advancements that have made them viable alternatives to solvent-based analogs.
Source: DataM Intelligence Analysis (2023)
Market Geographical Share
Growing industrial operations, rising consumer and infrastructure spending, and strong economic growth are driving the demand for PUDs in the Asia-Pacific region
The Asia-Pacific is projected to show rapid growth in the forecast period. China, Brazil, South Africa, and India are likely to lead their respective regional marketplaces. Growing industrial operations, rising consumer and infrastructure spending, and strong economic growth drive demand in Asia-Pacific. In 2019, the most promising market was Asia-Pacific, and this trend is likely to continue throughout the forecast period. A rising population, higher disposable income, rapid industrialization, and increased urbanization drive the Asia-Pacific PUD market.
In the Asia-Pacific area, China is the largest market for PUDs. Low production costs, technical development, flexible government regulations, and cheap labor availability have enticed global businesses to invest in China. Furthermore, environmental laws such as the Clean Air Act and technological improvements have made water-based paints an effective option for solvent-based coatings across the Asia Pacific. Due to end-use industry saturation and a weak European economy, the European and North American markets are expected to grow slowly.
Source: DataM Intelligence Analysis (2023)
Market Manufacturers
The Polyurethane Dispersions market is highly competitive with the presence of local and global companies. Some prime companies contributing to the market's growth include Lanxess, Stahl Holding, Perstorp, Covestro AG, DSM, BASF SE, Wanhua Chemical Group, Dow Chemical Company, Huntsman Corporation, Mitsui Chemical, and others.
The major companies are adopting several growth strategies such as acquisitions, product launches, and collaborations, contributing to the global growth of the Polyurethane Dispersions Market demand.
- For instance, in February 2021, Lanxess acquired a 100% share of Emerald Kalma chemical. Lanxess estimates an additional annual EBITDA contribution of roughly US$ 30 million due to this acquisition.
Perstorp
Overview: Perstorp offers vital features for items in pockets, homes, offices, and communities globally, based on 140 years of experience. From phone to the local dairy farm, the company represents a whole chain of organic chemistry, process technology, and application development in high-growth niches like powder and UV-cured coatings, plasticizers, synthetic lubricants, grain preservation, and animal gut health. Furthermore, Perstorp owns seven manufacturing facilities in Asia, Europe, and North America. Three different regions are represented in sales. In addition to sales offices in all key markets and over 50 agents, it ensures a global presence.
Product Portfolio: The Company has a product portfolio of Polyurethane dispersions that includes:
- Ymer N120: YmerTM N120 is a nonionic polymeric dispersing monomer with two primary hydroxyl groups incorporated in the polymer that can disperse Polyurethanes, alkyds, and polyesters in water. While preserving stability, YmerTM N120 is suitable for fine-tuning the precise features of the aqueous polyurethane dispersions. It has a well-balanced ethoxylated chain length allows users to select the exact qualities they need, ranging from hard and unyielding to soft and flexible.
Key Development
- For instance, on 18 November 2019, Perstorp added two new grades to their ymer range: ymer n90, which has a longer EO chain, and n180, which has a shorter EO chain. The new products open up new applications while improving human health and the environment. The substance can improve the feel of the leather's surface.
Why Purchase the Report?
- Visualize the Polyurethane Dispersions Market applications segmentation by type, application, and region, highlighting key commercial assets and players.
- Identify commercial opportunities in the Polyurethane dispersions market by analyzing trends and co-development deals.
- Excel data sheet with thousands of Polyurethane dispersions market-level 4/5 segmentation data points.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players
The global Polyurethane dispersions market report would provide approximately 53 market data tables, 43 figures, and 180 pages.
Target Audience 2024
- Service Providers/ Buyers
- Paints and Coating Companies
- Adhesive Companies
- Emerging Companies
- Manufacturers
- Logistics companies
- Distributors
