Two-component polyurethane foam market is Segmented By Type (Open Cell Foam, Closed Cell Foam), By Form (Rigid, Semi-Rigid, Flexible), By End-User (Building & Construction, Bedding & Furniture, Automotive & Transportation, Electronics, Footwear, Packaging, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031.
Market Overview
Two component polyurethane foam market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 7.4% during the forecast period (2023-2030).
Market Scope and Summary
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Metrics |
Details |
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Market CAGR |
7.4% |
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Segments Covered |
By Type, By Form, By End-User, and By Region |
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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. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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Polyurethane is a polymer created by joining organic units with urethane links. The industrial production of polyurethane is carried out by reacting di-isocyanates with polyols in the presence of a catalyst. The versatile nature of polyurethane allows for its application across various industries. Polyurethane foam is available as either one-component or two-component foam.
Two-component polyurethane foam includes resin and hardener mixed just before application. The chemical reaction that occurs after mixing leads to the curing of the foam and does not require external sources such as moisture or sunlight. The ratio of resin and hardener can vary depending on the required application.
Market Dynamics and Trends
The two-component polyurethane foams demand is mainly driven by the increasing global growth of the construction industry. Volatility in raw materials prices for two-component polyurethane foam production is a key factor in limiting the growth of this market.
Increasing global growth of the construction industry
The world's developing regions are undergoing rapid economic development caused by the expansion of export-driven manufacturing and service sectors. It has led to profound societal changes, including large-scale urbanization and growing demand for better urban services. It has led to a major construction boom, especially commercial and residential projects in all major urban areas. Governments encourage infrastructure-led growth by enabling access to cheap credit and commodities for major construction projects. Governments also undertake major public infrastructure projects such as airports, railways, bridges, dams, and metros.
New construction projects are relatively few in developed countries. Construction activities in developed countries mainly include the redevelopment of old and heritage areas and maintenance work on existing infrastructure. Two foam polyurethane foam is mainly used for insulation in the interior and other hard-to-reach places of construction projects. Two-component of polyurethane foam undergoes chemical curing without the need for sunlight and moisture. Therefore, the growth of the global construction industry is a major driver of the growth of the global two-component foam market.
Volatility in prices of raw materials for two-component polyurethane foam production
The industrial production of polyurethane foam is carried out by reacting di-isocyanates with polyols in the presence of a catalyst. Both raw materials required for polyurethane foam production are obtained from crude oil. The fluctuations in crude oil prices, depending upon economic and geopolitical factors, directly impact the prices of di-isocyanates and polyols.
Recently, polyols have been produced from natural oils as an environmentally friendly and renewable alternative to crude oil. Natural oils are derived from vegetables and cash crops such as palm, soybean, cotton, and peanuts. The prices of natural oils fluctuate depending on crop harvest, labor availability, and oil production rates. The volatility in raw material prices creates uncertainty in the market and prevents polyurethane foam manufacturers from planning long-term expansions. It is a key challenge for the growth of the global market.
COVID-19 impact on Two Component Polyurethane Foam Market Growth
The global two-component polyurethane foam market experienced massive upheaval and disruption due to the COVID-19 pandemic. The world health organization (WHO) recommended social distancing and temporary halting of all major non-essential services to contain the pandemic's spread. National governments acting on WHO recommendations declared strict lockdowns, causing mass shutdowns of all major activities.
The major use of two-component polyurethane foam occurs in the building and construction industry. The pandemic lockdowns brought all construction activities to a complete halt. It caused a massive depression in demand for two-component polyurethane foam. The fall in demand contributed to major revenue falls for chemical companies.
With encouraging signs of falling COVID-19 cases in late 2020, many countries started lifting restrictions, kickstarting all major economic activities. China took the lead in the global opening by eliminating all major restrictions by July 2020 and announcing special stimulus packages for various industrial sectors to aid the national economic recovery. All of these were encouraging signs of the recovery in global demand for two-component polyurethane foam.
However, the second wave of the pandemic and global logistical and supply chain problems hampered the global demand recovery. Supply chain problems exacerbated the shortage of essential components required to produce two-component polyurethane foam. It reduced production rates and forced manufacturers to increase prices, creating inflationary pressure in all major end-user industries. A complete return to normalcy is not expected to happen before 2022.
Despite the pandemic and post-pandemic challenges, the global two-component polyurethane foam market maintains a positive outlook. The growth of the construction industry, especially in developing countries, is expected to continue at a healthy growth rate. The demand for two-component polyurethane foams remains strong and is expected to grow significantly in the coming years.
Segmentation and Shares Analysis
The global two-component polyurethane foam market is segmented into type, form, end-user, and region. The two-component polyurethane foam market by end-user is further segmented into building & construction, bedding & furniture, automotive & transportation, electronics, footwear, packaging, and others. Building and construction are leading within this segmentation since it is the most widely used end-user for two-component polyurethane foam. Two-component polyurethane foam undergoes chemical curing without the need for moisture. It is widely used for sealing and insulation purposes in the interior and hard-to-reach places of various construction projects.
Geographical Analysis
Asia-Pacific is projected to have a leading share in the global two-component polyurethane foam market. The large share of Asia-Pacific is mainly due to the region's ongoing infrastructure and construction boom. Asia-Pacific has many countries currently undergoing rapid economic development. Many public and private infrastructure projects are currently under construction in the region.
China is currently experiencing a massive construction boom in urban real estate funded mainly through cheap credit from state-owned banks and political connections by construction conglomerates. The Chinese government is also undertaking various public infrastructure works such as a national high-speed rail network, urban metro systems, and airports.
India is another major country in Asia-Pacific, undertaking major infrastructure projects. Most of the projects are planned by the Indian government on a public-private partnership model. Upgradation of the national rail network, metro systems in all major urban areas and domestic and international airports are some projects currently under construction. Rapid urbanization is also fuelling the growth of residential and commercial buildings in India.
Malaysia, Vietnam, Thailand, and Indonesia are some other countries currently undertaking major infrastructure projects. The primary usage of two-component polyurethane foam is for insulation purposes in construction projects. Asia-Pacific will continue to retain the largest regional share in the global two-component polyurethane foam market in the coming years.
Companies and Competitive Landscape
The global two-component polyurethane foam market is competitive since many companies manufacture different types of two-component polyurethane foam formulations that cater to various end-use applications. Some major players contributing to growth in the market are BASF SE, Lanxess AG, Covestro AG, Huntsman International LLC, Dow, Wanhua, Sekisui Chemical Co., Ltd, Rogers Corporation, Trelleborg AB, and Tosoh Corporation. The major companies in the global two-component polyurethane market adopt several growth strategies such as launching new formulations, production capacity expansion, and collaborations to contribute to the growth of the global industry.
BASF SE
Overview: BASF SE is a multinational chemical and engineering technology company. The company develops and manufactures resins, coatings, solvents, industrial gases, and petrochemicals. It is also a significant producer of performance products and plastics. BASF SE also has a specialist division that manufactures pesticides, herbicides, vitamins, and animal feed. BASF Plant Science is an emerging company division that focuses on biotechnology research and development. The company has a global presence with subsidiaries, joint ventures, and more than 390 production sites in 80 countries. BASF SE was founded in 1865 by German engineer Fredrich Engelhorn and is headquartered in Ludwigshafen, Germany.
Product Portfolio
• AutoFroth is the company's proprietary two-component rigid form polyurethane foam for commercial and industrial applications. It is primarily manufactured in sprayable form and is available in pressurized cylinders with sizes ranging from 50 gallons to 1000 gallons. The pressure cylinder allows the operator to make changes in foam composition, making it isocyanate-rich or polyol-rich as per application requirements. The flow rate is adjustable, with outputs ranging from 6 to 90 pounds per minute.
Key Developments:
• In 2019, at the UTECH Europe international polyurethane trade show at Maastricht in the Netherlands, BASF SE unveiled a new range of two-component polyurethane foam systems for construction and commercial refrigeration systems.
