The Waterborne Polyurethane Market size is forecasted to reach US$2.2 billion by 2027, after growing at a CAGR of 5.3% during the forecast period 2022-2027. Waterborne polyurethane, which is made from hexamethylene diisocyanato, polystyrene, carbamate and other chemicals, is produced by dispersing polyurethane polymer resins in water. Waterborne polyurethane is frequently used for low volatile organic compounds (VOC), water-based paints & coatings, adhesives and ink binders that are safe for the environment. The growth of the building & construction activities are primarily propelling the Waterborne Polyurethane Market growth. However, in 2020, the shortage of raw materials, restrictions on the labor movement and other restrictions due to the Covid-19 pandemic negatively impacted the growth of the Waterborne Polyurethane industry. In 2021, the surge in the production activities, due to economic stimulus packages, ease of Covid-related regulations and other factors aided the market growth. Moreover, the bolstering transport industry will boost the demand for Waterborne Polyurethane. This, in turn, will accelerate the expansion of the Waterborne Polyurethane Market size in the coming years.
Report Coverage
The "Waterborne Polyurethane Market Report–Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Waterborne Polyurethane Market.
Key Takeaways
- Asia-Pacific dominated the Waterborne Polyurethane Market, owing to the growth of the building & construction activities in the region. For instance, according to the International Trade Administration (ITA), South Korea's construction industry was valued at US$164 billion in 2020, up 15.5% from 2019.
- The growth of the transport industry is accelerating the demand for composite materials coatings to ensure superior protection from temperature, corrosion and more. This factor is driving the Waterborne Polyurethane industry growth.
- Moreover, the surging government regulations for low VOC content in coatings and other products are accelerating the Waterborne Polyurethane Market growth.
- Nevertheless, the volatility in the raw material prices of Waterborne Polyurethane may restrict the Waterborne Polyurethane during the forecast period of 2022-2027.
Figure: Asia-Pacific Waterborne Polyurethane Market Revenue, 2021-2027 (US$ Billion)
Waterborne Polyurethane Market Segment Analysis – By Application
The paints and coating segment held the largest Waterborne Polyurethane Market share in 2021 and is forecasted to grow at a CAGR of 5.4% during the forecast period 2022-2027. Waterborne polyurethane formulations are employed in paints and coatings to ensure superior flexibility and reduce moisture and solar radiation absorption. This enables high environmental resilience and fewer solvent emissions. Also, in Waterborne Polyurethane, the hydrophobic/hydrophilic balance is used because it offers good conditions for concentration at the polymeric particle's surface area during the dispersed stage. This property ensures the superior appearance and higher durability of paints and coatings. Thus, Waterborne Polyurethane coatings with excellent transparency, solvent resistanceand hardness have found widespread application in furniture, leatherand other industries. This, in turn, is leading to the Waterborne Polyurethane Market growth.
Waterborne Polyurethane Market Segment Analysis – By End-Use Industry
The building and construction segment held the largest Waterborne Polyurethane Market share in 2021 and is forecasted to grow at a CAGR of 5.7% during the forecast period 2022-2027. Waterborne polyurethane has several advantages, including temperature curing, superior adhesion, high strength and other advantages that ensure superior durability. Thus, owing to these benefits, it is frequently used in building and construction applications such as flooring, roofing and more. The surging demand for affordable housing, increasing demand for commercial spaceand other factors are vital for the growth of the building and construction activities. For instance, in Q3 of 2021, the development of various offices started in Germany, which included Markisches Zentrum Redevelopment (completion year Q4 2023), Minden Headquarters Building (completion year Q3 2024), Kolbenhoefe Mixed-Use Complex (completion year Q4 2023) and others. Moreover, according to the United States Census Bureau, in 2021, the total new residential construction projects started in the USA was 1,610 thousand units, an increase of 16.7% over 2020. Hence, the growth of the building and construction industry is propelling the demand for waterborne polyurethane-based paints & coatings, adhesions and more. As a result, accelerating the Waterborne Polyurethane Market growth.
Waterborne Polyurethane Market Segment Analysis – By Geography
Asia-Pacific is the dominating region as it held the largest Waterborne Polyurethane Market share in 2021 up to 41%. The growth of the building & construction activities, transportand other industries are driving the economic growth of the Asia-Pacific region. The key variables such as rising retail store building construction, rising commercial centers and more such variables are creating an opportunity for the construction industry growth in Asia-Pacific. For instance, in August 2021, New Zealand's Auckland Airport announced plans to develop 100 retail stores. The new retail area would entail the construction of a 23,000-square-meter-plus outlet center on undeveloped property near the airport's north-eastern boundary. Moreover, as of May 2022, the construction of the 466 trillion Indonesian rupiahs ($32.3 billion). Indonesia's new capital is in progress. The capital city's construction will be complete by the end of 2024. The construction activities include the construction of offices, residential apartments, shopping centers and more. Also, according to Invest India, there is a total of 115 future construction projects which are under the planning phase in India and the value of these projects is about US$11.63 million. These projects include the construction of hotels & office buildings, shopping complex and more. Therefore, the growth of the building and construction industry is propelling the demand for waterborne polyurethane to enhance adhesion and sealants. This, in turn, is accelerating Waterborne Polyurethane Market size growth.
Waterborne Polyurethane Market Drivers
Growth of the Transport Industry
The critical benefits of waterborne polyurethane include Chemical resistance, high elongation, UV resistance, low-temperature flexibility and more. These advantages result in enhancing the durability of the coatings. Thus, owing to these benefits, it is often deployed in the coating of transport vehicles elastomers, sealants and more. The factors such as the increasing adoption of passenger cars, the booming transport production and other factors are accelerating the growth of the transport industry. For instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2021, the global automotive production was 80,145,988 units, an increase of 2% over 2020. Moreover, according to airbus the widebody aircraft production in the year 2018 was 96 units and in 2019, it was 153 units, an increase of 59.4%. Thus, the growth of the transport industry is accelerating the demand for waterborne polyurethane, thereby, driving the market growth.
Surging Adoption of Sustainable Products
Waterborne polyurethane (PU) is growing rapidly, owing to environmental legislation. For instance, the Clean Air Act and advancements in technology that have made them a feasible substitute for solvent-based analogs. Waterborne polyurethane is versatile and environmentally friendly coating material that comes in a variety of hardness and solid content levels. Moreover, their zero to low volatile organic content makes it easier to formulate them into a compliant coating for a wide range of substrates. Therefore, waterborne polyurethane adaptability and a wide range of superior properties, such as abrasion resistance, impact strengthand low-temperature flexibility, are driving forces behind their ever-increasing use in a variety of applications. As a result, the Waterborne Polyurethane Market is expanding.
Waterborne Polyurethane Market Challenges
Volatility in Raw Materials Prices
Polystyrene and other materials are utilized as raw ingredients in the manufacturing of Waterborne Polyurethane. The majority of these materials are crude oil-based derivatives that are susceptible to commodity price volatility. Moreover, the ongoing Russia-Ukraine war has highly impacted crude oil prices. For instance, according to the World Bank, Brent crude oil prices are expected to average $100 per barrel in 2022, the highest level since 2013and a more than 40% increase over 2021. This causes ethylene carbonate raw material costs to fluctuate. Thus, the fluctuations in the prices of the raw materials may restrict the growth of the waterborne polyurethane industry during the projected forecast period.
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Waterborne Polyurethane Industry Outlook
Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Waterborne Polyurethane Market. The top companies in Waterborne Polyurethane Market are:
- Dow
- Bayer Materialscience
- Axalta Coating Systems
- Henkel
- PPG Industries
- BASF
- H.B. Fuller
- RPM International
