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Global market for polymeric, green/bio polyols driven by growing PU demand in auto, construction, furniture

Global market for polymeric, green/bio polyols driven by growing PU demand in auto, construction, furniture

13-Aug-14

Global market for Polymeric Polyols is forecast to reach 33.1 bln pounds (lbs) by 2020, driven by growing demand for polyurethane in the automobile, construction and furniture industries, as per Strategyr.com. Global market for polymeric polyols is exhibiting rapid growth, backed by increasing demand for polyurethane across major end-use sectors such as furniture, construction, automotive and refrigeration, among others. Polyols are important raw materials used in the production of polyurethane, coatings, thermoplastic elastomers, adhesives, sealants, medical devices and artificial leather. Developing countries supported by huge appetite for plastics represent primary consumers of polymeric polyols. Southeast Asia, Latin America and Eastern Europe are registering robust growth, due to the adoption of expansionary monetary policies for boosting domestic demand.

As stated by the market research report by Global Industry Analyst, Asia-Pacific represents the largest and the fastest growing market worldwide with a compounded annual growth rate (CAGR) of 9.6% over the analysis period. Growth in the region is led by growing population, rapid industrialization and the ensuing high concentration of construction, automotive and other industries. Eastern Europe and Latin America are also poised to witness rapid growth in the coming years. Growing emphasis on sustainability is one of the key trends driving growth in the market. Development of a number of innovative and green technologies for polyol production is expected to benefit demand patterns. Of special note is the growing popularity of CO2-based polyol production technology. Against a backdrop where combustion of fossil fuels for manufacturing processes is being replaced by smokeless processes, the concept of using CO2 as raw material for the production of polyols is gaining immense interest. CO2-based polyol technology is relatively inexpensive and makes use of cheaper and renewable raw materials. The resulting high performance polymers produced are cheaper, eco-friendly, and possess low polydispersity indices. A large number of companies are focusing on the production of bio polyols from natural oils, such as castor oil, corn oil, canola oil, palm oil, rapeseed oil, and soybean oil, among others. Of these, soybean and corn are the most widely used. Soy-based polyols are finding increasing use in rigid foam insulation, carpet backing, structural foams, pickup truck bedliners, and flexible foams. These polyols are cheaper to produce and have wide applications. The polyurethanes derived using soy-based polyols are used in binders, urethane foams, coatings, adhesives, and sealants. Stringent environmental regulations are driving investments in the production of polyols by recycling polyethylene terephthalate (PET) and Polyurethane (PU) wastes. Global market for green polyols is forecast to witness strong growth supported by rising consumption in Asia-Pacific and other emerging markets. Polyols demand in these markets is fuelled by increased consumption in major end-user sectors such as consumer durables, transportation, furniture or bedding, carpet, packaging and construction, among others. Major players covered in the report include BASF Group, Bayer AG, Chemtura Corp, Daicel Corporation, The Dow Chemical Company, Huntsman International LLC, Perstorp Holding AB, Shell Chemicals Ltd., SINOPEC Shanghai Gaoqiao Company, and Stepan Co., among others.

Global polyols and polyurethanes market is expected to reach US$22.6 bln by 2018, as per Transparency Market Research. Polyol demand was over 7.5 mln tons in 2012 and is expected to cross 10.4 mln tons by 2018, growing at a CAGR of 5.5% from 2012 to 2018. Polyurethane demand in 2012 was worth US$43.2 bln and is expected to reach US$66.4 bln by 2018, growing at a CAGR of 7.4 % from 2012 to 2018. Polyurethane (PU) is the most widely used polymer in the world. Key raw materials used in manufacture of polyurethane are diisocyanates, polyols and other additives. Polyols comprise the largest volume of polyurethanes. The rebound in furniture, interiors and construction industry in North America and Europe, as well as rapid economic growth in Asia Pacific is expected to remain the major driving force for the polyurethane market. Volatile raw material prices coupled with increasing regulatory pressure for sustainable solutions is expected to be a key challenge for market participants. Industrial polyols are mainly used in production of polyurethane; hence the drivers and restraints impacting the polyurethane market are also expected to affect the polyols market. Polyether polyols dominated the overall market, accounting for over 70% of the total demand in 2011. Flexible and rigid foam were the most dominant product segments, accounting for over 65% of total PU demand in 2011. Polyurethane is mainly employed in furniture and interiors, construction, electronics and appliances, automotive, footwear and packaging. Furniture and interior industry dominated the global market followed by construction industry. Furniture and interiors dominates the global polyurethane consumption and the positive growth in this industry across the globe is driving the global polyurethane market. Increased health and comfort expectations are driving the use of polyurethane in the furniture industry. However electronics and appliances are the fastest growing end user industry in the polyurethane market. Asia Pacific accounted for 40.4% of the total polyurethane market in 2011, followed by Europe and North America. Asia Pacific is also expected to be the fastest growing regional market in terms of both PU consumption and production. This can be attributed to the growing economies and increase in amount spent on luxurious products in this region. Cheap availability of raw materials, skilled labor, land, and equipment has resulted in Asia Pacific emerging as a key destination for manufacturers of polyurethanes. Europe is the other major region where polyurethane consumption was very strong and is expected to grow in demand with a CAGR of about 7.3% in terms of revenue from 2012 and 2018. BASF SE, Bayer MaterialScience, Huntsman Corporation, Dow Chemicals, and Yantai Wanhua are some of the major participants in the polyurethane.

The green & bio polyol market is estimated to be worth US$3077 mln for a Consumption Base of 1104 Kilotons by 2018, as per MarketsandMarkets. North America is currently the largest consumer of green & bio polyols. The U.S. is the largest consumer of green & bio polyols in North America. Corn and Soybean are primarily used as feedstock to produce bio-based polyols in North America. The demand for green & bio polyols in this market is driven from end user industries such as automotive, packaging and furniture. The automotive industry in North America is the largest consumer of green & bio polyols. Almost 70% vehicles manufactured by Ford Motor Company in North America contained seat components that use green & bio polyols. Cargill Inc., The DOW Chemical Company, Johnson Controls Inc. are among the largest manufacturers of green & bio polyols in North America. Polyurethane rigid foams are currently the biggest application for green & bio polyols. Its consumption is expected to increase from 456.8 kilotons by 2018. Polyurethane rigid foams have insulating properties; thus, making them appropriate for use in applications such as refrigeration, packaging, construction, etc. The environmental benefits of rigid polyurethane foam are significant, and include increasing energy efficiency and reductions in construction costs, and reducing overall project costs. The better insulation typically results in lower energy use. In some cases, mechanical heating and cooling equipment can be downsized, further increasing space utilization. Less complicated and lightweight products are usually produced using fewer manufacturing steps, less energy in manufacturing, and less energy consumption during transportation. Asia-Pacific is currently the fastest growing consumer of green & bio polyol based polyurethane rigid foams. An estimated annual consumption of 145.8 kilotons 2012 makes construction industry a leading consumer of green & bio polyols. Green & bio polyols are used to manufacture insulating materials, foams, and sealants as well as admixtures for anti fire and corrosion products, facade systems, refurbishment products, and concrete additives. It is also used to make decorative paints & flooring systems, coil coatings for exteriors & roof elements, venetian blinds and doors. Cargill Inc. (U.S.), BASF SE (Germany), Emery Oleochemicals (H) SDN BHD (Malaysia) etc are major manufacturers of bio-based polyols. Petopur GmBH (Germany), Rampf Ecosystems (Germany), etc are major manufacturers of green/recycled polyols.


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