Thermoplastic Polyurethane Market Size & Forecast

The Thermoplastic Polyurethane Market is expected to reach $5.3 billion by 2031, at a CAGR of 7.3% from 2024 to 2031. By 2031, Thermoplastic Polyurethane Consumption is Expected to Reach 1519 K Tons. The growth of this market is driven by factors such as the rising use of thermoplastic polyurethane in the automotive sector, the increasing demand for TPU from the footwear sector, and the growing demand for biodegradable plastic to reduce environmental pollution. In addition, the rising utilization of TPU in the industrial sector is expected to create market growth opportunities. However, the higher cost of TPU compared to traditional materials may restrain market growth. Additionally, the volatility of raw material prices poses a challenge to the market's growth.

Thermoplastic Polyurethane Market Growth Drivers

Rising Use of Thermoplastic Polyurethane in the Automotive Sector

Thermoplastic Polyurethane (TPU) films, known for their exceptional mechanical properties and versatility, have become indispensable materials in the production of lightweight components, resulting in high demand in the automotive sector. TPU films find applications in various sound insulation components for vehicles, including door panels, fender walls, engine covers, pump covers, and more.

Moreover, the increasing initiatives by market players are anticipated to accelerate the adoption of TPU for automotive applications. For instance, in September 2021, KPX Chemical and Huntsman Corporation announced the establishment of a joint venture named KPX HUNTSMAN POLYURETHANES AUTOMOTIVE CO., LTD. (KHPUA). This venture aims to create and provide innovative polyurethane system solutions to Korean automakers from a specialty polyurethane manufacturing facility at KPX Chemical's Ulsan plant.

The rising use of TPU in the automotive sector to address processing and design challenges while simultaneously enhancing passenger safety, comfort, and convenience is expected to drive market growth.

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Growing Demand for Biodegradable Plastic to Reduce Environmental Pollution

There is a rising demand for eco-friendly packaging, disposable cutlery, food containers, and various consumer goods crafted from biodegradable materials. Biodegradable alternatives are gaining traction as traditional petroleum-based plastics release harmful chemicals into the soil upon disposal, potentially contaminating groundwater sources and posing health risks to both animals and humans. As a result, governments worldwide have implemented numerous regulations to promote the production and use of environmentally friendly plastics.

Thermoplastic polyurethane (TPU) is a biodegradable solution that offers grease resistance, abrasion resistance, and robust mechanical properties. Products manufactured with TPU are biodegradable, breaking down fully in approximately three to five years. Another notable advantage is that TPU is non-toxic, and its biodegradation process does not alter the pH levels of soils or groundwater. These factors are poised to propel market growth in the foreseeable future.

Increasing Demand for TPU from the Footwear Sector

TPU plastic is widely utilized in the production of soles and midsoles for sports, hiking, and work footwear. Due to its resistance to abrasion, wear, and traction, TPU soles offer excellent grip, cushioning, and durability. Moreover, TPU can be tailored with different properties, such as stiffness or flexibility, to cater to the specific requirements of various types of footwear.

Additionally, the growing focus of market players on advancing TPU for footwear applications is anticipated to drive market growth. For instance, in September 2023, Huntsman Corporation (U.S.) developed a liquid thermoplastic polyurethane (LTPU) that facilitates the rapid manufacture of high-performing midsoles.

The surge in footwear and apparel production and continuous technological advancements are driving the demand for TPU from the footwear and apparel sectors.

Thermoplastic Polyurethane Market Challenge

Higher Cost of TPU Compared to Conventional Plastics

The cost of thermoplastic polyurethane is often higher compared to traditional materials, primarily due to its enhanced properties. The manufacturing process for TPU entails significant investment and is more intricate than that of conventional plastics. Moreover, certain grades of TPU have a relatively short shelf life. Similar to other Thermoplastic Elastomers (TPEs), TPUs require drying before processing. Additionally, TPUs typically exhibit a narrower hardness range and a narrower temperature range for processing, which imposes certain limitations on manufacturability. The substantial investment and complex manufacturing process contribute to the high costs of thermoplastic polyurethane, posing a challenge to the growth of the market.

Thermoplastic Polyurethane Market Analysis: Key Findings

By Type: in 2024, the Polyester Segment to Dominate the Thermoplastic Polyurethane Market

Based on type, the thermoplastic polyurethane market is segmented into polyether, polyester, polycaprolactone, and other thermoplastic polyurethane types. In 2024, the polyester segment is expected to account for the largest share of 48.0% of the thermoplastic polyurethane market. This segment's large market share can be attributed to its properties, including high tensile strength, puncture resistance, superior durability in abrasive environments, and excellent chemical resistance, making them well-suited for use in environments where contact with fuels and solvents is common. Additionally, the growing preference for polyester in construction, automotive, and footwear applications contributes to the significant market share of this segment. In response to the increasing demand, market players are launching new solutions. For instance, in September 2023, Trinseo (U.S.), a specialty materials solutions provider, launched a new transparent thermoplastic elastomer (TPE) grade tailored for footwear applications. The APILON 52 XB-75A CRISTALLO marks Trinseo's first ester-based transparent thermoplastic polyurethane (TPU), representing a significant addition to the company's growing portfolio of solutions for the fashion & footwear industry.

However, the polycaprolactone segment is projected to register the highest CAGR during the forecast period. The growth of this segment can be attributed to the excellent properties of polycaprolactone, including high resistance to hydrolysis, exceptional durability, resistance to cuts and chips, low-temperature flexibility and toughness, and chemical resistance. Furthermore, the increasing utilization of this TPU in the production of pneumatic and hydraulic seals, as well as conveyor belts, contributes to its increased demand. Additionally, polycaprolactone-based TPUs have a lower melting point and are easily processable, making them suitable for a diverse range of applications, such as medical devices, automotive components, and coatings.

By Processing Method: in 2024, the Injection Molding Segment to Dominate the Thermoplastic Polyurethane Market

Based on processing method, the thermoplastic polyurethane market is segmented into injection molding, extrusion, blow molding, and other processing methods. In 2024, the injection molding segment is expected to account for the largest share of the thermoplastic polyurethane market. Injection molding is a method used to produce molded products by injecting molten plastic materials into a mold, which then cools and solidifies the material. This segment's large market share can be attributed to the increasing utilization of injection molding processes across various sectors, including automotive, medical, aerospace, consumer electronics, packaging, and construction.

However, the blow molding segment is projected to register the highest CAGR during the forecast period. The growth of this segment can be attributed to the robust physical and mechanical properties of blow-molded products, including excellent processibility, high extrusion stability, and resistance to both cold and heat. Additionally, the increasing utilization of blow molding processes for the production of thin film, ultra-thin film, air cushions, and pipes further drives the growth of this segment.

By Sector: in 2024, the Footwear Segment to Dominate the Thermoplastic Polyurethane Market

Based on sector, the thermoplastic polyurethane market is segmented into footwear, industrial machinery, automotive, electronics, medical devices, consumer goods, sports & leisure, building & construction, and other sectors. In 2024, the footwear segment is expected to account for the largest share of 35.0% of the thermoplastic polyurethane market. This segment's large market share can be attributed to the increasing demand for durable and comfortable shoes and growing consumer expenditure on footwear. Additionally, footwear manufacturers are increasingly utilizing thermoplastic polyurethane in footwear production. For instance, in September 2021, BASF SE (Germany) collaborated with Hotter (U.K.), a leading shoe manufacturing company, to introduce its first expanded thermoplastic polyurethane (E-TPU) product called Infinergy (E-TPU) for shoe manufacturing. Infinergy (E-TPU) offers exceptional cushioning, contributing to enhanced comfort and performance in footwear.

However, the medical devices segment is projected to register the highest CAGR during the forecast period. The growth of this segment is attributed to the increasing adoption of medical-grade thermoplastic polyurethane (TPU) in various applications such as cardiology, urology, vascular, wound care, and others. Additionally, the rising utilization of thermoplastic polyurethane (TPU) as a raw material for extracorporeal and implantable blood-contacting medical devices, including blood pockets, catheters, vascular grafts, and arteriovenous shunts, is anticipated to drive the segment's growth.

Geographical Analysis

In 2024, Asia-Pacific is expected to account for the largest share of 56.0% of the thermoplastic polyurethane market. Asia-Pacific's significant market share can be attributed to the increasing demand for thermoplastic polyurethane across various sectors, including automotive, construction, and consumer goods. This trend is further fueled by rising infrastructure developments, rising disposable incomes, growing urbanization, and expanding footwear and apparel production in the region.

Moreover, the market in Asia-Pacific is projected to register the highest CAGR of 8.5% during the forecast period. The increasing focus of market players on expanding their presence in Asia-Pacific is expected to drive the growth of this regional market. For instance, in February 2023, Covestro AG (Germany) announced plans to construct its largest thermoplastic polyurethane manufacturing plant in Zhuhai, South China. Upon completion, the plant will have a total manufacturing capacity of 20,000 tons of TPU per year. Furthermore, in August 2022, The Lubrizol Corporation (U.S.) announced the establishment of a new TPU line at the Shanghai Songjiang Site. The new production line was aimed at enhancing the company's TPU production capacity and strengthening its business in Asia-Pacific.

Thermoplastic Polyurethane Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players' product portfolios and geographic presence and the key growth strategies adopted by them over the past 3–4 years. Some of the key players operating in the thermoplastic polyurethane market are BASF SE (Germany), The Lubrizol Corporation (U.S.), Covestro AG (Germany), Taiwan PU Corporation (Taiwan), AMERICAN POLYFILM, INC. (U.S.), Coim Group (Italy), Mitsui Chemicals, Inc. (Japan), Sanyo Corporation of America (U.S.), Huntsman International LLC (U.S.), Wanhua Chemical Group Co., Ltd. (China), Avient Corporation (U.S.), HEXPOL AB (Sweden), SONGWON (South Korea), Tosoh Corporation (Japan), and Kolon Industries, Inc (South Korea).

Thermoplastic Polyurethane Industry Overview: Latest Developments from Key Industry Players

• In January 2024, Novoloop (U.S.) announced the construction of a pilot plant in India to pilot its process for manufacturing chemically upcycled thermoplastic polyurethane (TPU) from post-consumer plastic waste.
• In October 2023, CRP Technology (Italy) launched a new material within the TOP-LINE range for industrial 3D printing services: the rubber-like Windform TPU.
• In August 2022, RODIM, a paint-related product brand of BASF SE (Germany), launched its new invisible Thermoplastic Polyurethane (TPU) Paint Protection Film (PPF) in Asia-Pacific. This solution provides multifaceted and long-lasting protection for automotive coatings.

Thermoplastic Polyurethane Market Research Summary

Key questions answered in the thermoplastic polyurethane market Report: