According to a research report published by the U.S.-based market research company Grand View Research, the global rigid polyurethane (PU) foam market was expected to reach USD 73.6071 billion by 2020. Furniture and interior applications have traditionally accounted for a significant share of polyurethane demand, with demand in this segment reaching approximately 3,991.6 tonnes in 2013. Growing use of polyurethane in the automotive, electronics and electrical appliance industries-including seat cushions, interior components and refrigerator insulation-is expected to further stimulate demand for polyurethane materials.
The Asia-Pacific region is the world's largest market for flexible polyurethane foam. In 2013, polyurethane demand in the region was approximately 7,352.6 tonnes, and demand was expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2014 to 2020. Increasing construction spending in emerging markets such as China and India was expected to support the development of the regional polyurethane market. Strong demand from the automotive, electronics and electrical appliance sectors was also an important growth driver. From a manufacturing perspective, relatively competitive raw material prices in the Asia-Pacific region provided a major advantage for industry participants.
In 2013, global polyurethane demand was approximately 15,670.6 tonnes. By 2020, global demand was expected to reach 22,058.4 tonnes, representing a CAGR of approximately 5% between 2014 and 2020.
In 2013, flexible polyurethane foam and rigid polyurethane foam accounted for approximately 38% and 26%, respectively, of the global polyurethane market.
The automotive sector was expected to become one of the most promising application markets for polyurethane, with a projected CAGR of 5.3% from 2014 to 2020.
Within the Asia-Pacific region, China was the largest consumer of polyurethane. In 2013, China accounted for more than 25% of regional demand. Strong domestic consumption and expanding production capacity were expected to continue supporting polyurethane demand in China.
The United States was the largest polyurethane consumer in North America, accounting for more than 83% of regional polyurethane demand in 2013.
The global rigid polyurethane foam market is highly competitive, with product innovation and application development playing an important role in market growth. Research and development investment was expected to continue increasing, while many manufacturers were focusing on the development of bio-based polyurethane solutions and more sustainable materials. These trends were expected to create further opportunities for polyurethane applications across construction, automotive, furniture, refrigeration and other industrial sectors.