Aqueous Polyurethane Dispersion (PU) Market Size, Share, and COVID-19 Impact Analysis, By Type (One-Component (1K), Solvent-Borne, and Two-Component (2K)), By Application (Coating and Adhesive, Textile Finishing, Natural Leather Finishing, Synthetic Leather, Others), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS         

The Global Aqueous Polyurethane Dispersion (PU) Market size was valued at USD 1.1 billion in 2021 and is expected to grow by USD 1.8 billion in 2030 at a CAGR of 7.4%. Aqueous Polyurethane Dispersion (PU) is used in adhesives and coatings, textile finishing, and leather finishing. PU is a chemical that is widely used as a purification agent for drinking water and wastewater treatment.   

Growing global demand for natural and synthetic leather, technological improvements in conjunction with environmental laws, and a shift in demand from solvent-borne coating to waterborne system coating are all expected to enhance the market over the forecast period. Abrasion and temperature impact resistance, as well as improved weather stability, have boosted its use in the industrial and commercial sectors. Aqueous PU Dispersion is also employed as a binding agent in inks and ceramic powders, as well as semi-permeable membranes and single-ion electrolytes in batteries. This is expected to boost aqueous PU market growth during the forecast period. 

COVID-19 ANALYSIS   

COVID-19 has had a major economic influence on a number of financial and industrial sectors, including travel and tourism, manufacturing, and aviation. Economic activity is diminishing as an increasing number of countries impose and extend lockdowns, affecting the global economy. Infrastructure activities had come to a halt due to the country-wide lockdowns. According to the International Monetary Fund (IMF), the world economy will contract by 4.4 percent in 2020, the most since the great depression of the 1930s. Most governments began to ease restrictions in the second half of 2020, and corporate operations in various industries gradually restarted. Despite the lifting of limitations, normalcy in the industrial, construction, and manufacturing sectors is not expected until the second half of 2021. 

The pandemic had brought the residential and commercial construction and manufacturing sectors to a halt. During current crisis, Aqueous Polyurethane Dispersion (PU) Market   demand is likely to be low to medium. Delays in order delivery, supply chain constraints, staffing and equipment shortages, and material shortages are all serious concerns. Following the end of this crisis, the market is predicted to recover, and demand for PU is expected to rise. 

LATEST TREND

Increasing Adoption of Higher Quality PU Coating Construction Industry Propel Market Growth

PU adhesives are long-lasting, flexible, and have excellent bonding and impact resistance. This type of adhesive is commonly used to bond windshields, seal gasoline tanks, and in construction applications. One of the most important market trends is predicted to be the high demand for adhesives from the building industry. Moreover, corrosion, abrasion, and weathering are all prevented by PU coatings. These coatings attach to the base material to a large extent. The market will rise due to rising demand for PU coatings in the construction, automotive, and furniture industries. 

DRIVING FACTORS

High demand form textile and leather Industries Drives Market Growth  

Textiles are a big industry in APAC countries including China, India, South Korea, and Vietnam. Apart from these countries, important textile producers include Germany, Portugal, Brazil, and the United States. Many of these nations are also big textile exporters. Another important industry driving the global growth of aqueous PU is the leather industry. PU is used to polish the surface of leather. Their application in the creation of synthetic leather is growing. The increased use of leather in the production of handbags, footwear, seat coverings, garments, and other products is driving up demand. Despite increased competition from Asian and Latin American markets, manufacturers in Europe, the Middle East, and Africa are increasing their focus on creating aqueous PU for textile and leather applications.

RESTRAINTS

Strong Substitute Presence Could Limit Growth

PU is a versatile material with a wide range of uses and industries. However, there are several alternatives on the market that might outperform the product in some situations. Linseed oil is used to cure wood instead of hazardous materials in the furniture sector. In marine applications, polysiloxane coatings are utilized instead of PUR coatings (which are based on isocyanates). Polysiloxane coatings are also a strong option for PUR coatings due to their excellent endurance and weathering qualities for maritime applications. This would limit market growth.

SEGMENTATION

The Global Aqueous Polyurethane Dispersion (PU) Market is segmented by Type, Application, and Region. Based on the Type, the market is categorized into One-Component (1K), Solvent-Borne, and Two-Component (2K). Based on Application, the market is categorized into Coating And Adhesive, Textile Finishing, Natural Leather Finishing, Synthetic Leather, Others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.        

REGIONAL INSIGHTS

The Global Aqueous Polyurethane Dispersion (PU) Market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.   

The PU market in North America is predicted to increase significantly. The United States, as the region's main country, uses this material in automotive and construction applications, boosting market growth. In terms of revenue and volume, Asia Pacific is likely to hold a substantial portion of the worldwide market share and to grow rapidly. The growing need for applications in the furniture and construction industries will help this region's industry grow. Due to the booming construction sector, China accounted for the greatest share within the area in 2020 and is likely to stay so throughout the projection period.

Europe will see significant increase due to the increasing use of polyurethane in the construction of machinery and furniture. These will contribute to the market's value increasing in the region. 

In South America, the Middle East, and Africa, one of the primary factors impacting market size is raising demand from the building industry. Saudi Arabia and Brazil were the primary drivers of its expansion. The adoption of these materials in a variety of applications, such as furniture manufacture and wall insulation, is driving market expansion in these regions.

KEY INDUSTRY PLAYERS

Asia-Pacific is home to the majority of Aqueous Polyurethane Dispersion (PU) producers, resulting in a fragmented industry. BASF SE, Wanhua., Covestro AG, Huntsman International LLC., and Mitsui Chemicals & SKC Polyurethanes Inc. are some of the major market players. BASF is one of the world's top chemical, material, and industrial solutions companies. Furniture, electronics, construction, automotive & transportation, footwear, packaging, paints & coatings, and homecare & nutrition are among the industries where the company has experience.     

KEY INDUSTRY DEVELOPMENTS:

In January 2020, BASF announced a single-digit million-euro investment in expanding capacity for water-based polyurethane dispersions at its Castellbisbal location in Spain. BASF will be able to boost its manufacturing capacity by 30% as a result of the development.

In February 2021, Lanxess inked a contract to buy the entire Emerald Kalma chemical company. Lanxess estimates an additional annual ebitda contribution of roughly USD 30 million as a result of this transaction.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)
• Dow (U.S.)
• Covestro AG (Germany)
• Wanhua (China)
• Huntsman International LLC. (U.S.)
• Foamcraft, Inc. (U.S.)
• Mitsui Chemicals & SKC Polyurethanes Inc. (South Korea)
• LANXESS (Germany)
• Euro foam (Austria)  
• INOAC CORPORATION (Japan)
• Rogers Corporation. (U.S.)

SEGMENTATION

By Type

• One-Component (1K)
• Solvent-Borne
• Two-Component (2K)

By Application

• Coating And Adhesive
• Textile Finishing
• Natural Leather Finishing
• Synthetic Leather
• Others

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America 
• The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa