The global polyols and polyurethane market is expected to show a significant rise during the forecast period of 2015 to 2023. According to a report by Transparency Market Research, the market is likely to rise due to its demand in various applications such as home furnishing, appliances, automotive, and construction sectors. The demand for polyols and polyurethane is expected to see healthy growth in 2018. The demand for energy efficient technologies are leading to demand for polyols and polyurethane market globally. Some of the key companies in the market dealing with the same are The Dow Chemical Company, Mitsui Chemicals Inc., Chemtura Corporation, Huntsman Corporation, Bayer MaterialScience, and BASF SE.
The global market for polyols will rise at a healthy CAGR of 4.7% during the forecast period of 2015 to 2023. Its valuation in revenue was calculated to be US$ 16.67 bn in 2015 and is expected to reach US$ 25.29 bn by 2023. Whereas, the global market for polyurethane is expected to rise at a CAGR of 5.9% by 2023 and is estimated to reach a value of US$ 80.76 bn.
According to the product segmentation of polyols, polyether polyols is dominating the market in terms of volume. According to the product segmentation of polyurethane market, the flexible foam is dominating the market compared to other product types.
Geographically, Asia Pacific holds the major shares of polyols and polyurethane among all other regions. In 2014, it held 35% of share in the global market. Many companies are rushing to establish capacities in Asia Pacific.
Demand from Developing Industries to Boost Global Polyols and Polyurethane Market
The increase demand in construction industries, furniture and interiors, and flourishing automotive is likely to boost the polyols and polyurethane market in the forecast period. Rise in demand for furniture in developing regions due to significant rise in construction to improve economy will boost the market remarkably in the coming years. The manufacturers are engaging in providing their consumers quality products so as to increase the demand in the market and to retain them. The qualities of polyurethane such as resistance to hot and cold conditions, weather changes, oil and solvents, wear and tear, and abrasion is likely increase its demand in the market. The multiple uses of polyols and polyurethane by various end users will also increase its demand globally. The primary reason for demand of polyols and polyurethane is its usage in automotive, construction, furniture, and interior industries globally. Strong growth of construction industries is the major reason for growth in the market. These factors are anticipated to boost the polyols and polyurethane market globally during the forecast period.
Fluctuating Prices of Raw Material to Hamper the Growth in Market
The global polyols and polyurethane market is likely to see downfall due to limitations in regards to price volatility and supply of raw materials in the market. The limitation of supply is likely to affect developing regions more than developed regions. Manufacturers are trying to cope up with this by engaging more resources but it is predicted to hamper the market. The prices of raw material also keeps fluctuating leading to sluggishness in the market. The developing economies are more likely to face these crisis due to lack of resources. The economic downturn will also affect the sales of products. These factors will hamper the growth of market and make it slow during the forecast period.
This post was originally published on Food and Beverage Herald