PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1808966
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1808966
The market for polyols was valued at USD 16.01 billion in 2024 and is projected to reach USD 21.59 billion by 2030, growing at a CAGR of 5.1% during the forecast period. Demand for polyols is driven by their widespread use in producing polyurethane-based products, which are essential materials across many industries. Polyols are utilized in construction to create rigid foam insulation that supports energy-efficient buildings.
Scope of the Report | |
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Years Considered for the Study | 2024-2030 |
Base Year | 2024 |
Forecast Period | 2025-2030 |
Units Considered | Value (USD Million) Volume (Kiloton) |
Segments | Type, Application, End-Use Industry, and Region |
Regions covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
In the automotive and furniture sectors, flexible polyurethane foams made from polyols enhance comfort and durability while keeping products lightweight. The rising packaging industry also boosts demand for polyols, as they are used to produce cushioning and protective materials. Additionally, increasing interest in sustainable and high-performance materials is driving the development of bio-based polyols. Overall, the versatility of polyols improves product performance, reduces environmental impact, and increases demand in both established and emerging markets.
By type, polyether polyols segment to record highest CAGR during forecast period
By type, polyether polyols accounted for the highest CAGR for the forecast period due to their growing use in a wide range of applications. Polyether polyols are known for their low viscosity, quick reaction with isocyanates, and excellent compatibility with various additives. Because of these qualities, they are commonly used in both flexible and rigid foams. These foams are utilized in automotive seats, bedding, furniture, insulation materials, and packaging markets, all of which are experiencing increased demand in both developed and emerging markets.
The strong growth of this segment is further driven by increasing focus on energy efficiency and lightweight materials, especially in construction and automotive markets. Polyether polyols offer better hydrolytic stability and processing advantages over polyester polyols. Polyether polyols are also expected to gain market share over polyester polyols due to the emergence of bio-based options, creating new opportunities for growth.
Polyether polyols now dominate both in volume and value because of their ability to ensure consistent production, impressive performance, and a wide variety of formulation options. As industries increasingly prioritize performance, cost-efficiency, and environmental compliance, the polyether polyols segment is expected to remain at the forefront until the end of the forecast period.
By end-use industry, building & construction segment to exhibit highest CAGR during forecast period
The building and construction segment experienced the highest CAGR throughout the forecast period for end-use industries, driven by the rapidly growing demand for energy-efficient materials and sustainable building solutions. Polyols are a key raw material for rigid polyurethane foams, which are extensively used in insulation applications such as wall panels, roofs, floor insulation, and pipe insulation. Additionally, rapid urbanization, infrastructure development, and regulatory requirements for energy conservation have both directly and indirectly increased demand for high-performance insulation materials, especially in developing economies, notably in the Asia Pacific and Middle East regions. Polyurethane insulation made from polyols offers all these performance features, including thermal resistance, moisture barriers, and stability. Furthermore, awareness of green-building certifications and environmental standards is fueling continued adoption of polyurethane construction materials. As construction practices evolve to emphasize longer service life and environmental performance, polyols are essential in developing new materials that meet these modern requirements.
The combination of regulatory support, rising construction activity, and a growing focus on developing sustainable infrastructure will continue to drive the growth of the Building & Construction segment of the polyols market throughout the forecast period.
Asia Pacific to account for highest CAGR during forecast period
By region, Asia Pacific is projected to experience the highest CAGR over the forecast period due to rapid industrialization and urbanization, along with rapidly growing end-use industries such as construction, automotive, furniture, and packaging. Specifically, countries like China, India, South Korea, and Southeast Asian nations are growing quickly. This has led to increased infrastructure development, higher disposable incomes, and greater customers' demand for durable goods, consequently raising the demand for polyol products.
The construction industry in Asia Pacific has grown substantially due to government investments in residential, commercial, and industrial infrastructure, leading to higher consumption of polyol, a key ingredient in rigid polyurethane foams used for thermal insulation. Furthermore, the expanding automotive and furniture sectors have boosted the demand for flexible polyurethane foams used in seating, bedding, and other interior components.
Asia Pacific also has a strong manufacturing base, a dependable source of inexpensive raw materials, and greater government support for industrial development. Additionally, domestic and international companies are quickly expanding their production capacities through significantly increased R&D spending or enlarging their manufacturing capabilities to meet customer demand. All of these factors will help Asia Pacific become the largest regional market for polyols globally and the fastest growing during the forecast period.
Companies Covered
DOW (US), Covestro AG (Germany), BASF SE (Germany), Huntsman International LLC (US), Shell (UK), Stepan Company (US), Wanhua Chemical Group (China), Repsol S.A. (Spain), PCC SE (Germany), and LANXESS (Germany) are some key players in polyols market.
Research Coverage
The market study examines the polyols market across various segments. It aims to estimate the market size and growth potential in different segments based on type, application, end-use industry, and region. The study also includes an in-depth competitive analysis of key market players, their company profiles, observations related to their products and business offerings, recent developments, and key growth strategies they have adopted to strengthen their position in the polyols market.
Key Benefits of Buying Report
The report is designed to help market leaders and new entrants estimate the revenue figures of the entire polyols market and its segments and sub-segments. It aims to assist stakeholders in understanding the competitive landscape, gaining insights to strengthen their business positions, and developing effective go-to-market strategies. Additionally, the report provides stakeholders with insights into the market's current trends, including key drivers, challenges, and opportunities.
Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the polyols market