Polyurethane dispersion market size will expand at a robust CAGR during the analysis period 2021-2027, with the increasing demand for high-performance polymers and advanced materials across numerous sectors. Polyurethane dispersions being an environmentally friendly alternative to conventional dispersions which cause significant VOC emissions are experiencing substantial demand across the globe.
The polyurethane dispersion industry will also benefit from the growing automotive demand and production, the expansion of the construction sector, and emerging opportunities across the textile and leather sectors. Polyurethane dispersion refers to a polyurethane polymer resin dispersed in water. These dispersions offer excellent chemical characteristics, high solvency, robust flexibility, excellent adhesion, and superior resistance against scratches and abrasion.
Considering the application landscape, the polyurethane dispersion market is anticipated to witness notable consumption across the adhesives & sealants segment through 2021-2027. Adhesives and sealants are the building blocks of numerous key end-use industries including automotive, construction, aerospace, and others. Adhesives and sealants made with these dispersions offer exceptional adhesive performance and high initial bond strength for better efficiency. Besides automotive and construction, furniture, textiles, and footwear are some of the other application areas of polyurethane dispersion-based adhesives.
In terms of the end-users, the furniture sector is projected to acquire a fair share of the polyurethane dispersion industry in the forthcoming years. The segment growth is largely driven by the increasing disposable income levels of consumers and the rising spending on home décor. The changing trends in the interior design sector is fueling the consumer demand for new, more aesthetic furniture solutions. The demand for furniture with high scratch and abrasion resistance will create promising opportunities for the industry.
From a geographical perspective, the market for polyurethane dispersions in Europe will record notable growth during 2021-2027, driven by the presence of established automakers in the region. Europe is one of the leading manufacturers of automobiles in the world. The growing popularity of electric cars and autonomous vehicles and increasing automotive production will provide lucrative opportunities to the regional manufacturers. In addition, the consumer demand for premium quality leather products including bags and footwear will augment the substance demand. Furniture applications could also capture a notable share of the regional market due to increasing consumer attraction towards aesthetic interior design options.
BASF SE, DowDuPont, Inc., Covestro AG, The Lubrizol Corp (Berkshire Hathaway), Lamberti S.p.A., Chemtura Corporation (LANXESS AG), Cytec Industries, Inc. (Solvay S.A.), Mitsui Chemicals Inc., Chase Corporation, VCM Polyurethanes Pvt Ltd, Allnex, Alberdingk Boley GmbH, Perstorp Holding AB, and Michelman, Inc. are a few notable companies constituting the global polyurethane dispersion industry. The market players are focusing on expanding their production capacity to meet the burgeoning global demand. In January 2020, for example, BASF had announced a new investment to expand its capacity of water-based polyurethane dispersions at its facility in Castellbisbal, Spain by 30%.
The global economic slowdown during COVID-19, supply chain disruptions, stricter protocols, and workforce shortages are among the key factors that are impacting polyurethane dispersion industry trends. The market is witnessing a declining consumption in many regions due to the temporary slowdown of automotive manufacturing activities and suspension of construction projects. During the initial stages of the pandemic, furniture, textiles, and leather products witnessed a decreased demand as the majority of consumers prioritized the purchase of essential goods. This, in turn, has also led to a weakened demand for polyurethane dispersions. The COVID-19 impact, however, is expected to be fairly temporary and the polyurethane dispersion market is anticipated to bounce during 2021-2027.