PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1750255
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1750255
Global polyurethane elastomers market is projected to witness a CAGR of 5.18% during the forecast period 2025-2032, growing from USD 17.11 billion in 2024 to USD 25.63 billion in 2032. The polyurethane elastomers market is increasing at a robust rate due to its application in the various sectors such as automotive, footwear, construction and building. It also has a variety of features such elasticity, durability, and ease of flexing, which help in developing seals, gaskets and interior parts which will enhance the life of vehicles and its efficiency.
Polyurethane elastomers are useful for high-performance coatings, adhesives, and sealants. They excel at standing up to harsh weathering and heavy loads, which makes them well-suited for infrastructure and building projects. As industries like automotive, construction, electronics, and footwear increasingly using these materials, global polyurethane elastomers market is expanding significantly. Further, technological advancements and a growing need for lightweight and robust materials are driving the market. Environmental awareness is also pushing for eco-friendly polyurethane products which further increases demand for polyurethane elastomers.
Increasing Demand from the Automotive Industry Plays a Major Role in Polyurethane Elastomers Market
One of the main drivers for the increasing demand of the polyurethane elastomers market is the automotive industry. With the increasing technological innovation and rising focus on more fuel-efficient cars, the greater the demand of raw material to manufacture, thus it will increase the consumption of polyurethane elastomers in the automotive sector. Polyurethane elastomers offer properties such as low density with strength and durability. Due to these properties, it will be used in the fabricating variety of parts such as bushing, seals, gasket, suspension systems and some interior parts as well. In a scenario where countries promulgate increasingly stringent regulations on emissions and offer incentives for the sale of EVs, automakers are increasingly required to turn to lightweight materials such as polyurethane elastomers to boost energy efficiency and increase the range of vehicles.
For instance, in August 2023, the valuation of Mahindra Electric Automobile Limited (MEAL), Mahindra's four-wheeler passenger EV subsidiary, increased to USD 9.8 billion following a binding agreement for Temasek Holdings (Private) Limited to invest USD 145 million. This investment is expected to provide a strong boost to Mahindra's EV business, which will result in the increased demand for polyurethane elastomers.
Growing Demand for High-Performance Materials in Construction Industry
The key driving force behind the growing adoption of polyurethane elastomers within the building and construction industry is its ability to provide greater energy efficiency and sustainability to buildings. Elastomers showcase very good thermal insulation, which helps in cutting down energy consumption by maintaining constant temperatures inside a building without loss of heat. And hence, they are the preferred choice for use in energy-efficient building design, which has prime importance following the enhanced relation to reduction of carbon footprint by the governments, businesses, and other entities in line with environmental regulations.
Besides the insulation properties, polyurethane elastomers offer an extremely high level of mechanical strength and resistance to environmental factors such as water, chemicals, and UV radiation. That makes them very ideal for use in rough environments and different climates, whereby they can potentially allow contribution to the extension of a building's life or infrastructure. Another boosting factor is the rising emphasis that the construction industry is putting on sustainability and green building practices, as polyurethane elastomers can add to the environmental performance of buildings. Thus, driven by both the need for infrastructure development and population increase with urbanization across the globe, the construction industry may continue to grow. In emerging markets, especially within the Asia-Pacific, the demand for residential, commercial, and industrial buildings is driven by rapid industrialization and urbanization; all such demands harboring high-performance materials, such as polyurethane elastomers.
Increasing Demand for High-Performance Footwear
The footwear segment continued to thrive with greatly demanding users from the polyurethane elastomers. Polyurethane elastomers have been widely applied in the shoe industry due to their excellent characteristics toward abrasion, resistance, flexibility, and lightness. The products are utilized for manufacturing soles, insoles, and other critical parts of sporting shoes, casual shoes, and work boots. Additional innovative progress toward the manufacture of shoes that possess overall improved shock absorption, energy return, and unique foot comfort for sports and outdoor activities will add desirable attributes to polyurethane elastomers. This direction is expected to drive additional growth in polyurethane elastomer demand from the footwear industry.
Asia-Pacific Dominates the Global Polyurethane Elastomers Market
In the polyurethane elastomers market, Asia-Pacific dominates. The robust demand in this region arises from the countries such as China, India and Japan. Large base of end-user industries such as automotive, construction and footwear in the Asia-Pacific countries have increased the demand for polyurethane elastomers. With the growing population and disposable income, the automotive sector is rapid increasing in these countries which in turn increasing the demand of the polyurethane elastomers. India is a one of the key markets in the region. There is a rapidly growing automotive and construction industry in India. Further, the Indian government is initiating programs to promote industrialization and infrastructure sector growth, which has been proving quite beneficial in demand generation for polyurethane elastomers in all sectors. Moreover, the country is supported by the vast and increasing middle-class population, resulting in the growth of the footwear industry in the region.
For instance, in 2023, the Asia-Pacific region dominates the global footwear market. China remains the top consumer, consuming more than 17% of global consumption, while India is the second largest, consume 12% of global consumption, in terms of pairs. Both countries drive significant market dynamics in the region.
Future Market Scenario (2025-2032F)
The growth of the automotive segment will continue to increase, especially with the growing trend for lightweight material, in an effort to reduce the fuel consumption and emissions of vehicles.
At the regional level, Asia-Pacific is expected to dominate the market, driven by rapid industrialization, urbanization, and booming infrastructure projects in countries like China and India.
Improvement in the formulations of polyurethane elastomers for a reduced environmental footprint and better recyclability is likely to gain substantial attention in Europe and North America, driven by the regulatory framework and consumer preference for sustainable materials.
In North America, particularly the United States, the automotive and construction markets will make the most attribution for the polyurethane elastomers market growth. The polyurethane market in the United States will grow significantly with the increasing demand for lightweight automotive materials to improve fuel efficiency in vehicles, energy-efficient insulation products in the construction sector with new government incentives supportive in encouraging sustainable building.
Key Players Landscape and Outlook
The market for polyurethane elastomers is driven by continuous improvements to material science, with a key focus on durability, flexibility, and environment performance. Besides, rising demand from industries such as automotive, construction, and footwear continues to boost the outlook. Companies involved in the production of polyurethane elastomers have focused on sustainability, process innovation, and strict adherence to environmental standards.
For instance, in August 2023, Covestro AG started production in its new plant for polyurethane elastomers at its integrated site in Shanghai, China. In another instance, in February 2025, BASF India Ltd. broke ground on a new plant in Dahej, India, to increase its production capacity for Cellasto microcellular polyurethane (MCU). This expansion, expected to be operational in the second half of 2026, aims to meet the rapidly growing demand for noise, vibration, and harshness (NVH) reduction solutions in the Indian automotive industry, particularly driven by the electric vehicle (EV) market.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.