Construction will continue to dominate the global bio-based Polyurethane market until 2020

The global bio-based polyurethane market is expected to grow at a CAGR of close to 7% until 2020, as per Technavio. Based on application, the report categorizes the global bio-based polyurethane market into the following: Construction Automotive Electronics Bedding and furniture The construction industry was the largest end-user of bio-based polyurethane in 2015. The industry is growing extensively globally. The US and developing countries, including China and India will likely account for 60% of the global construction industry by 2025. Rigid polyurethane foam is used in thermal insulation and other modern construction activities. These materials are comparatively thinner than other insulating materials such as fiber glass, increasing the living space. Therefore, the growth in the construction industry is expected to reflect an increase in the market's revenue share during the forecast period. According to Chandrakumar Badala Jaganathan, a lead analyst at Technavio for the plastics, polymers, and elastomers sector, “Growing emphasis on green infrastructure to reduce energy consumption is anticipated to intensify during the forecast period. This factor along with the innovations in the construction industry and the development of advanced bio-based polymers is expected to propel the segment's growth.” The market for bio-based polyurethanes in the automobile segment is expected to grow significantly during the forecast period. Polyurethane foams are used in automobiles for manufacturing vehicle fascias and their interior and exterior parts. The global production of motor vehicles is estimated to increase to about 90 mln in 2015 from 75 mln in 2010. The increase in per capita income and the improvement in the living standards of people in developing countries are driving the market demand. Bio-based polyurethane foam allows automobile designers and manufacturers to produce seating that can be easily assembled, disassembled, and recycled. It also offers maximum performance specifications over a wide range of firmness without adding extra weight. This means that the lifespan of bio-based polyurethane is much longer than conventional polyurethanes. High-density polyurethane foam insulation is used for minimizing heat loss. Bio-based polyurethane foams are widely used in the electronics industry, especially in refrigeration. Panels made of bio-based polyurethane foam provide 30%-40% more insulation per given thickness than expanded polystyrene. Refrigerators, coolers, heaters, and boilers use panels made of a polyurethane rigid foam core that offers insulation. In addition, insulation also increases energy efficiency as it prevents unwanted heat loss. Bio-based polyurethane also provides moisture resistance to help ensure long-term performance of the insulation in a refrigeration panel. Earlier, manufacturers of bedding and furniture were reliant on petroleum-based polyols as the prime component for the production of flexible foam. However, the consistent, high-quality foam generated by bio-based polyols is leading to the elimination of non-renewable petroleum resources. These polyols also aid in reducing emissions and consequently global warming. The constant rise in the global population is propelling the demand for bedding and furniture. The increase in the demand for luxury bedding and furniture is also on the rise due to the growth of production capacities of suppliers in emerging economies. These suppliers are also expanding rapidly to cater to the increasing demand from the domestic markets like Brazil and India. The top vendors highlighted by Technavio’s research analysts in this report are BASF, Cargill, Covestro, Dow Chemical, Lubrizol.