Global Polyols Market Overview
The global Polyols Market was valued at USD 28.2 BN and is estimated to grow at a CAGR of 6% during the forecast period. Rising energy conservation attempts are fuelling demand for rigid foams with high insulation properties, especially in the construction industry. This is likely to arise as a significant factor driving the market. In addition to this, the growth of the construction sector, mainly in the Asia Pacific, to fulfill the need of a rapidly growing population is foreseen to boost the demand. Expansion of automotive and packaging industries are also supporting towards the growth of the market. By volume, the market is growing at a CAGR of 7.5% between 2020 and 2026 and is estimated to reach 15,500 KT by 2026.
Further, major manufacturers have been focusing on exploring bio-based polyols to reduce dependence on traditional petrochemical-derived polyols, given growing environmental concerns and instability in the process of raw materials. the nature of the competitive landscape is highly concentrated and oligopolistic. In 2019, top players accounted for a share of over 39% in the market.
Polyurethane-based binders find significant applications in composite wood products to permanently glue organic materials into medium-density fiberboard (MDF), long-strand lumber, laminated-veneer lumber, oriented strand board (OSB), strawboard, and particleboard. polyurethane elastomers are rubber-like materials manufactured with an extensive range of variety and properties while molded into almost any shape. the elastomers having low weight and their machinability make elastomers an excellent choice for dozens of building and construction applications. the significant growth of the polyurethanes market is expected to boost the polyols market extensively.
The major intermediate chemicals or raw material building blocks used to produce polyurethane polyols are propylene oxide and ethylene oxide. changes in the cost of these basic raw materials flow directly through the production chain to final polyurethane products. As the cost of energy to run petrochemical production plants increases, the cost to manufacture polyurethane products derived from petroleum products also increases. the volatility in the petrochemical raw material prices could curb the growth of the global polyol market within the forecast period. Some of the key players are BASF, Covestro, Shell, The Dow Chemical Company, and Huntsman. Companies such as BASF, Dow Chemical, and covestro have well-developed research and development facilities, along with a global footprint and a loyal customer base.
In this market research report, the market is segmented by product, application and region.
Analysis by Product
Based on product, the market is bifurcated into polyether and polyester. Polyether polyols held a majority share in the global polyols market and will continue to remain dominant over the forecast period. Flexible and rigid foam polyols drive the segment growth. The majority of polyether polyols are utilized to make flexible and rigid foam polyols widely used in packaging, bedding, transportation, construction, and other well-being. Other non-foam uses of Polyether polyols include adhesives, sealants, and surface coatings.
China is a major producer and consumer of polyether polyols highly influenced by the polyurethane foam market. Dow Chemical is the largest global producer of polyether polyols, with the largest number of plants and capacities in the most significant number of countries.
In terms of production, the growing shift is towards green or sustainable sources. Most major producers are in the process of developing or have already developed bio-based polyols. These new sources include renewable edible oils such as soybean, castor, rapeseed, and corn oils.
Analysis by Application
Based on application, the market is segmented into Rigid Foam, Flexible Foam, Coatings, Adhesives, Sealants and Elastomers. The majority of polyols are utilized for the production of flexible foam. The segment is expected to continue its dominance over the forecast period. Polyether and polyester polyols produce flexible foams for industrial and consumer markets. The flexible foams find wide applications in furniture, mattresses, upholstery, automotive seats, and packing systems.
Polyols-based flexible foam is the substance of solace in numerous consumer products. Over the years, advancement in this segment brought to the world the delicate and unique feel of adaptive padding in beddings and cushions, the comfort of bed-in-a-box, uphold and improved ergonomics in furniture, and prosperity in numerous different applications, for example, transportation, outdoor supplies or floor covering underlay.
Growth trends in packaging, construction, and consumer products will flourish demand for polyols throughout the forecast period. There is a growing trend of preparing flexible foam by bio-based material replacing commercial petroleum sources.
Analysis by Region
The global polyols market is analyzed across five regions, namely North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Asia-Pacific tops the leaderboard in terms of regions, with a large and expanding population and industries representing a diverse end-use market. The region offers a huge opportunity for industry success. The rapid growth of polyols can be attributed to demand from developing countries such as China, India, Japan, and escalating demand from the sector, including automotive, and construction where it has broad application, among other uses.
Europe, dominated by Germany, U.K., and France, emerged as the second-largest polyols-consuming region in 2019. Increasing demand for insulation in low-income households to conserve energy efficiently, coupled with governments' favorable regulatory support, is anticipated to propel the demand for polyols in Europe. North America is also performing well in the global polyols market. The region stands out as the third-largest market. Demand for polyols is also set to rise in North America at a moderate pace owing to intense competitive pressures, rising construction, and emerging automotive markets.
Latin America is considered a market that is developing more aggressively in line with GDP, demographics, and purchasing power. Substantial growth will be attributed to flourishing Brazil and Argentina, favorable government support, and a wave of investment in new manufacturing facilities, simultaneously creating and capitalizing on growing demand. Middle East and Africa held the considerable share in the overall polyols market. The regional market growth will probably improve owing to the improvement in the downstream demand for foam products.
Market Segmentation covered in the Report:
- Rigid Foam
- Flexible Foam
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
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