Global Thermoplastic Polyurethane (TPU) Market - 2020-2027

Market Overview

The global thermoplastic polyurethane (TPU) size was worth US$ XX billion in 2019 and is estimated to reach US$ XX billion by 2027, growing at a CAGR of XX % during the forecast period (2020-2027).

Thermoplastic polyurethane (TPU) is the thermoplastic elastomer with excellent properties such as transparency, elasticity and resistance to abrasion, oil and chemical solvents. TPU consist of linear segmented block copolymers formulated as different materials from soft and flexible elastomer to fill gap between plastics and rubbers.

It is composed of hard and soft segments with plastics with high modulus. TPU can be mixed with specific agents and different proportion of compounds to achieve a certain appearance and features like fire-retardancy, biocompatibility, optical clarity and more. TPU possesses several characteristics and properties including excellent abrasion resistance, soft, elastic and good flexural strength, resistance to cracks, good tensile property and elongation coefficient, good tactile properties, compound and properties versatility and good flexibility over a wide temperature range.

Thermoplastic Polyurethane (TPU)is substantially used in end-user industries such as medical, industrial electrical machinery, automotive, aerospace, marine, building & construction and among others.

Market Dynamics

The global thermoplastic polyurethane (TPU)is driven by rising demand automobiles applications instrument panels,cattle tags, constant velocity boots, drive belts body panels etc. with surge in automotive production around the globe. Further growing demand of thermoplastic polyurethane (TPU) in the end-user industries such as buildings &construction, electronics, textile, building &construction etc. around the globe have propelled the demand for this market.

Rising demand of the TPU for the end-user industry such as footwear, wire and cable, film and sheet, compounding, adhesives and specialty molded parts. etc.

The market is driven by surge in the demand by the end-user industries such as building & construction, wire & cable, film & sheet, compounding, adhesives and specialty molded parts, power genertation, electronics& electrical and among others. Increasing consumers goods sale and production in the developing countries have propelled the TPU market growth. For instance, as per the India Brand Equity Foundation Organization report in 2017, Indian appliance and consumer electronics (ACE) market reached to around US$ 31.48 billion and is projected to reach around US$ 48.37 billion increasing at a 9% CAGR in between 2017 to 2022.

Growing production and sale of the automobile vehicles which require for manufacturing of the automotive components

Further growing demand for the energy saving in the electrical power to prevent corrosion with growing strict policies rules & regulations by governments.TPU has many applications in automotive instrument panels,cattle tags, constant velocity boots, body panels, drive belts etc. As per the International Organization of Motor Vehicle Manufacturers, gloabally sale of the light commercial and passenger vehicles including heavy trucks, buses and coaches were registered top around around 92 million number of units and is increasing at rapid pace.

Total turnover of automotive vehicles reached to around US$ 2 trillion in 2019 as per the Crescendo worldwide organization in 2019. It created massive demand for the TPU market around the globe.Further TPUdemand is also driven by increasing demand in several applications such as wire and cables, jacketing, hose & tube, in adhesive, textile, apperal, coating etc.

Growing demand of Thermoplastic Polyurethane (TPU) in the automotive, electronics, footwear, aerospace industry with the help of advanced material launching by the leading players is expected to strengthen market growth

Increasing launching of the advanced material for footwear industries to provide comfort to the people while walking by the leading manufacturers have created huge opportunity for the growth of the TPU market. For instance, on 19th Feb 2019, API an Italian specialized Company in production of thermoplastic elastomeric launched Apilontm 52 Bio Light new sustainable TPU material.

Further in July 2017, Trinseo global materials company acquired API, an Italian company compounds and bioplastics. Further on 7thAugust 2018, BASF SE launched "Elastollan" a new thermoplastic polyurethane (TPU) which improves production of shoe shanks and decorative shoe parts and provides high-performance shoes. It offers excellent mechanical properties, such as UV resistance. The new TPU produces is also used inautomation as it allows parts to be easily removed from the mold and enabling greater design freedom for decorative shoe parts.

COVID-19 Impact Analysis

The global thermoplastic polyurethane (TPU) Market has shown immense declination due to the Covid-19 pandemic, as several leading manufacturing industries were closed. Several countries have restricted production activities during the covid-19 pandemic. Further growth of the textile & apperal, garments, automotives, industrial machineries was also declined due low demand in June 2020.

For instance, as per the International Labour Orgaization, the major buying countries' imports from garment-exporting countries in Asia-Pacific region dropped by nearly 70% in the first quarter 2020, due to lack of consumer demand, government lockdown measures as well as disruptions to raw material imports necessary for garment production.

However, the demand for the thermoplastic polyurethane (TPU) is slightly increased in August 2020, as several leading manufacturer started production. The leading manufacturers of the TPU have planned the investment for enhancing the production require for the automotive and electronics equipment due to growing demand.

Further increasing demand of medical devices during the covid-19 pandemic created huge opportunity for the thermoplastic polyurethane (TPU) market. As the demand for several medical devices such as ventilators, devices producing N95 face masks and many others has been increased.

TPU has wide range of applications for medical as itis environmentally friendly replacement to PVC and plastics and rubbers as well as it does not contain plasticizers. Hence its demand in medical industry has been increased astoundingly. Further demand of Thermoplastic Polyurethane (TPU)s will increase as soon as pandemic over.

Segment Analysis

The global Thermoplastic Polyurethane (TPU)is segmented based on type, raw material, end-user and region.

Rising demand in the automotive sector with surge in the global sale of the passenger vehicles have propelled the market

In terms of product, the global Thermoplastic Polyurethane (TPU) is bifurcated into Polyether, polyester, polycaprolactone and others. Among this,polyetherhas the highest market share in 2019, owing to rising demand in the manufacturing facilities of the consumer electronics, automotive components etc.

As per the International Organization of Motor Vehicle Manufacturers, the global passenger vehicles sale reache to around 671,491,96 number of units which propels the thermoplastic polyurethane (TPU) market require in the manufacturing of the automotive electrical components such as wirings,acoustic parts, seats and steering wheels, back-foam instrument panels and doors to meet the increasing requirements of car manufacturers.

Similalry, polyester, polycaprolactonesegments are also growing at faster pace owing to surge in demand by the textile, apparal industries such as footwear, clothing etc in the developing countries like India and China. For instance, as per the India Brand Equity Foundation Organization in 2017, the domestic textile industry in India was valued to around US$ 150 billion and is projected to reach US$ 223billion by 2021.It created massive demand for the thermoplastic polyurethane (TPU) market.

Increasing eco-friendly products demand with surge in government support and initiatives have propelled the demand for the high solid polyurethane (PU) market

Based on the raw material, the global thermoplastic polyurethane (TPU) market is divided into Diols, Diisocyanate, polyolsand others. Among this polyols has the highest market share owing to rising demand in the industrial applications such as insulation of the cables, wires and electrical & electronics equipments.

It is more eco-friendly and has low cost than other type of the materials. Further increasing government support and initiatives for producing the high for the development projects such as smart city in the developing countries have propelled thepolyols demand for this market. For instance, in 2018, Covestro, one of the world's largest polymer manufacturer launched awide range of smart and sustainable polyurethane (PU) coatings for the construction, footwear, automobile and furniture industries at Paint India 2018 exhibition.

Increasing sale and production of the automobiles around the globe have propelled the TPUmarket

Based on the end-user, the global TPU market is divided into textile, building and construction, footwear, consumer goods, sports and leisure, industrial machinery, medical, electronics and others. Among this automotive segment has the highest market share in 2019, this is primarily due to surge in electric vehicle sale and production around the globe. Further automotive segment is divided into interior and exterior.

As TPU is used to manufacture acoustic panels, airbags, door panels, wheel guards and anti-vibration panels.have propelled the demand for the transformer segmental growth. According to the International Energy Agency organization in 2018, global electric vehicle sale reached to around 5.2 million and is increasing at rapid pace which created massive demand for the TPU used by the OEMs of the automotive companies.

Similarly,textile, building and construction, footwear, consumer goods, sports and leisure, industrial machinery, medical, electronics segments are also growing at faster pace owing to surge I global population demand and growing industrialization around the globe. As TPU films are extensively used in textile and apparel industry to manufacture footwear, hats, waterproof gloves costumes, socks etc. Further rising demand for sportswear with government support and initiatives for production have propelled the TPU market growth.Further building and construction sector is divided into residential, commercial, industrial and infrastructure.

Footwear segment of the global thermoplastic polyurethane (tpu) market is divided into sole, slipper, shoes and others. Also sports and leisure segment is bifurcated into in-line skates, ski boots and others. Industrial machinery segmment of the global TPU market is divided into hoses and tubing, seals and gaskets, belts and profiles, wheels and rollers and others.

Geographical Analysis

Asia-Pacific region holds the largest market share global Thermoplastic Polyurethane (TPU) Market

Asia-Pacific region is dominating the global Thermoplastic Polyurethane (TPU)market accounted for the largest market share in 2019, due to presence of several manufacturing companies related to automotive, consumer electronics etc. with growing industrialization and rising investment by the leading playersin this region followed by North America and Europe.

Further increasing government and private companies investment in the Asia-Pacific region for several projects have propelled the demand for the thermoplastic polyurethane (TPU) market in this region. Further increasing automobile production in developing countries like India and China have propelled the demand for the TPU market growth.

As per the Crescendo Worldwide Organization, commercial vehicle production in China reached to around 5.3 Million Vehicles in 2019 followed by India and Japan. Similarly, North America region is also growing at faster pace owing to rising demand in the medical industry and presence of several manufacturing facilities of automobiles, medical and consumer electronics followed by Europe.

Competitive Landscape

The Thermoplastic Polyurethane (TPU) Market is moderately competitive with the presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include Kansai Paint, The Fisher Barton Group, Elantas GmbH, Nippon Paint, AkzoNobel, Chemetall Group, Axalta Coating Systems, PPG Industries, Jotun Group, The Sherwin-Williams Company, Mascoat and among others.

The major players are adopting several growth strategies such as product launches, acquisitions and collaborations, which are contributing to the growth of the Thermoplastic Polyurethane (TPU) Market globally. For instance, on 12th June 2018 Covestro LLC expanded the production capacity of the thermoplastic polyurethane by 25% at New Martinsville, West Virginia, United States.

BASF SE:

• Overview: BASF SE is a multinational Germany-based chemical company founded in 1865 and headquartered at Ludwigshafen, Germany. The Company offers its products in six segments, which includes Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. The Chemicals segment consists of the thermoplastic polyurethane (TPU), petrochemicals, adhesives and intermediates divisions. The Materials segment consists of performance materials and monomers divisions.
  • The company offers several products for industrial applications, such as Thermoplastic Polyurethane (TPU), polymer dispersions, pigments, resins, electronic materials, antioxidants and additives for its key industries such as automotive, plastics and electronics. BASF SE comprises 11 operating divisions with 76 strategic business units and employed more than 117,628 people as of 2019.

• Product Portfolio: The Company has a product portfolio of the Thermoplastic Polyurethane (TPU) includes:
  • Elastollan1598 A 10 FC: It is used for wide range of new industrial applications It has combination of the properties of with advantages of ether and ester which reduces creep behavior combined with good wear behavior. This product is ideal for the conveyor and belt sector due to its lower creep tendency leads to less slippage and, therefore, improves the conveyor belts operating life. In addition, Elastollan 1598 A 10 FC is available in different colors and made with fire safety standard according to UL94 HB. Applications: pneumatic hoses, Conveyor, belts, etc.
  • BASF TPU Granules: These are available in different colors in 25Kg packaging bags. Applications: Mobile Case, Shoe Sole, Skate Wheels, Automotive Panels, Wheels, Sports Accessories
  • Elastollan 11 85 A 10 W 000: It has Excellent hydrolysis resistance, cold flexibility, resistance to microorganisms, Water-vapor permeable, good tear propagation strength, good mechanical properties, good cold flexibility, good wear resistance and highly transparent Applications: Electronics devices, automotives and industrial applications

Key Development:

• On 21^st September 2018 - BASF, the world's first innovator of Infinergy expanded its capacity thermoplastic polyurethane (E-TPU) with launch of new production facility at its Changhua manufacturing site in Taiwan. The expanded capacity will meet growing demand for the revolutionary material solution across a variety of applications and industries.

• Further on 11^th August 2020 BASF the future of the footwear industry with its first global Footwear Innovation Center in Taiwan. New facilities to bolster BASF's global network of footwear development centers Features include interactive footwear exhibits, biomechanics lab and manufacturing facilities to boost footwear design capabilities. Interactive zones enable brands and molders to select footwear materials and improve manufacturing processes.

• On 2^nd October, 2020, BASF launched new Elastollan 1598 A 10 FC TPU which combines the advantages of ether and ester TPU in its new product which are suitable for wide range of industrial application specially for pneumatic hose applications.

Why Purchase the Report?

• Visualize the composition of the thermoplastic polyurethane (TPU) Market) market segmentation by type, raw material and end-user highlighting the key commercial assets and players.

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