The Global synthetic (Thermoplastic polyurethane) TPU films market size was estimated at over 47 kilo tons in 2015 and is likely to grow with a CAGR of more than 5% up to 2023. TPU film market revenue is likely to be valued at more than US$750 mln by 2023, as per Global Market Insights.
Automotive applications dominated and accounted for more than 24% of the total demand in 2013. Aerospace applications are likely to witness high gains, at an estimated CAGR of over 6.5% up to 2023.
Asia Pacific was the dominant region and accounted for over 34% of the total demand in 2013. China & India TPU films market were the leading consumers in Asia Pacific together accounting for over 60% of the total demand in 2015. Europe and North America are likely to witness moderate gains and they accounted for over 19% and 27% respectively in 2015. Japanese TPU films market was estimated at more than 3.5 kilo tons in 2015.
Increasing awareness of light weight material demand in automobile applications in order to increase fuel efficiency and reduce carbon emissions is likely to drive TPU films market growth. They are used in automobile component manufacturing which helps in reducing the weight of the vehicle (by almost 40%). Also, they are used for substituting rubber components in vehicles. They are used for automobile applications such as door & acoustic panels, Instrument & anti-vibration panels, seats and airbags. Replacement or after sales market are expected to become an important focal point for TPU films demand in automobile industry. Pricing plays an important role in the market with consumers being price sensitive. TPU films market price trend is relatively higher by 25% to 35% in Europe and North America in comparison to prices in Asia Pacific.
Growing construction spending in emerging economies of Asia Pacific is likely to drive demand. Asia Pacific dominated the construction spending and accounted for 40% of the global revenue spending in 2012. Increasing application scope in solar & wind power installation systems is likely to drive Thermoplastic polyurethane films market. These films offer surface protection for windmill blades and solar panels. Growth in aviation sector coupled with continuous technological advancements is likely to drive demand. They are involved in aerospace applications such as seat cushions, armrest surfaces, wire & cable jacketing, masks and interior panels.
Volatile polyols and MDI price, due to fluctuation in propylene & aniline prices are likely to affect industry profitability. Also, stringent environmental regulations against use of hazardous raw materials are likely to pose challenge to industry participants. Companies are investing to develop the bio-based TPU films market which are likely to offset volatile pricing derived from crude oil and would also help in reducing carbon footprints. Companies such as Arkema, DuPont, PolyOne and Merquinsa have set sights bio TPU film market development.
Covestro (formerly Bayer MaterialScience) and Reverdia (joint venture of DSM and Roquette Freres) recently announced to enter into an agreement to jointly develop & promote thermoplastic polyurethane based on renewable feedstock. Covestro will use s Biosuccinium succinic acid from Reverdia to manufacture its Desmopan brand thermoplastic polyurethane used for applications such as consumer electronics and footwear. This strategy is expected to help Covestro venturing into biopolymers market and the company plans to expand its industrial setup in Taiwan for increasing its regional presence.
Growth in per-capita middle class consumer income coupled with government initiatives to bring in FDI particularly in countries such as India and China is likely to drive regional demand. Growth of automobile industry in countries such as Thailand and Indonesia is also anticipated to drive regional growth. North America is likely to witness moderate growth owing to post recession recovery in construction & automobile industries coupled with increase in consumer spending capacity.
Global TPU films market share is fragmented with top four companies catering to over 40% of the total demand in 2013. Presence of large number of domestic manufactures & suppliers mainly in China is responsible for high fragmented market.