Thermoplastic Polyurethane (TPU) Market

The TPU market is supposed to go up to USD 4.6 billion by 2027 with a CAGR of 7.1% which will be from USD 3.2 billion in 2022. The market is mainly driven by the relatively wide use of TPU in different end-use industries. The retail sector in emerging countries like India, Brazil, and China is preparing itself. This is due to the fact that TPU displays rubber and plastic characteristics such as temperature flexibility at low-level, biocompatible, hydrolytic stability, optical clarity, flame-retardancy, high tensile strength, high elongation, elasticity, microbicidal ability, as well as oil, grease, chemical, and abrasion resistance. As the environmental problems become more severe, the companies are seeking green options to replace the existing plastic models. The major benefit of TPU is that it is biodegradable and non-toxic, so it fits perfectly with sustainability goals. As a result, it is preferred in packaging, consumer goods, and some other applications.

Attractive Opportunities in the TPU Market

To know about the assumptions considered for the study, Request for Free Sample Report

TPU Market Dynamics

Driver: Increasing demand from the footwear industry

TPU derives its growth in the footwear industry from its special features, additional resistance to slip and abrasion. The need for TPU in the footwear sphere is being determined by diverse factors. TPU is the most durable material that can be used in manufacturing various sorts of shoes for so long. Flexibility, along with its excellent resistance to chemicals, wear, and abrasion, makes it a perfect option to be used in many different footwear applications, including outsoles, midsoles, toe caps, etc. On the one hand, it is portable and provides pleasant cushioning for sports and athletic shoes which will in turn lead to the reduction of shoe weight and thus better personal comfort and efficiency.

Restraint: Higher cost of TPU than conventional material

TPU is commonly manufactured with huge investments and challenges when compared to other traditional raw materials like polyethylene, PVC, Rubbers and Polyurethanes. TPU is made under excessively high temperatures and requires a significant level of technical know-how. High investments and complicated manufacturing procedures have influenced the price increase for this material. The higher production costs limit its application areas especially in high-end segments. Thus, other classes like compounded types of polyethylene, polypropylene, Acrylonitrile butadiene styrene, etc.produced at lower prices are made available which possess similar properties to that of TPU. Therefore it faces stiff competition from such products in certain end-use areas including machinery, real estate construction and electronics. On another note, an increase in raw material prices ultimately affects prices of TPU.

Opportunity: Substitute for PVC in medical applications

TPU can be utilized in various medical applications like catheters, medical devices, orthodontic products, and even wound care products. As some of the medical products are inserted into human bodies, the choice of materials for medical products is guided by the need for safety and comfort. The selection of materials considers factors that are friendly to patients such as flexibility and biocompatibility. TPU is known to have a good combination of chemical and mechanical traits plus biocompatibility which are crucial for use in medicine. Additionally, TPU possesses better abrasion resistance, low temperature resistance, oil and chemical resistance and resilience when compared with PVC. The temperature responsiveness of TPU makes it capable of being stiff on insertion but flexible once inside the body. These properties have increased the use of TPU in medical industry.

Challenge: Volatility in raw material prices

Raw material price volatility has led to TPU price instability. One polyester polyol used to produce TPU is adipic acid. Globally 15% of adipic acid production is for TPU while 85% goes to nylon. The increased demand for nylon alongside rising standards of living in emerging markets like China and India has created an imbalance in adipic acid supply. As a result, TPU prices have risen even further. Since TPU raw materials originate from petroleum-based products, changes in crude oil prices directly influence the costs of these essential inputs. Consequently unpredictable pricing on TPU market exists due to crude oil price volatility posing challenges for manufacturers who strive to maintain steady profit margins at all times. Natural calamities, international conflicts and pandemics are examples of events that lead to supply chain disruptions; hence, leading to shortages or delays in raw materials supplies thus resulting into extended lead times and high costs.

TPU Market Ecosystem

Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis

"Diisocyanate was the largest raw material for TPU market in 2021, in terms of value"

Diisocyanate accounted for the largest market share in the global TPU market, in terms of value, in 2021. plays an important part in TPU production as this compound is highly reactive with polyols, leading to a formation of polyurethane with desirable properties. Methylene diphenyl diisocyanate (MDI) is the most common raw material used to make TPU because it provides excellent mechanical characteristics including high strength, resistance to abrasion and elasticity. Consequently, such features make MDI - based TPU appropriate for various industries such as automotive, foot wears and industrial coatings. The versatility of diisocyanates allows manufacturers to customize their formulations of TPUs according to desired performances thus increasing its demand. In conclusion, although diisocyanate dominated the market both in terms of value and growth rate projection over the next few years due to its significance in producing TPUs and continuously expanding uses of TPUs across different industries.

"Footwear was the largest end-use industry for TPU market in 2021, in terms of value"

In footwear applications, thermoplastic polyurethane (TPU) accounted for the largest market share in the global TPU market in value terms in 2021 as a result of the unique properties of TPU that meet the demands of the footwear sector. TPU is known for its durability, flexibility and abrasion resistance, making it suitable for different parts of shoes including outsoles, midsoles and toe caps. Due to its light weight; it makes shoes comfortable while its ability to absorb shock and provide cushioning are essential for athletic and performance footwear hence reducing fatigue and enhancing overall performance among the feet. Besides that, TPU can be easily modified in terms of design thus giving manufacturers an opportunity to come up with appealing designs that include user preferences.

"Asia Pacific was the largest market for TPU in 2021, in terms of value."

Asia Pacific was the largest market for global TPU market, in terms of value, in 2021. China is the largest market in Asia Pacific. Asia Pacific with strong manufacturing industries and increasing disposable incomes have resulted in heightened demand for high-end goods using TPU in the automotive, footwear and medical sectors. This is caused by the unique properties of TPU like flexibility, toughness and resistance against wear that come with it. Moreover, recent technological advancements and changes in TPUs have expanded its possible areas of utilization, thus attracting manufacturers’ attention towards this product. The main condition for the development of this industry was its emerging role as both domestic and global supplier of TPU materials which are highly needed in China. The transition toward sustainable resources is taking place throughout this region by mainly referring to TPUs due to their greater eco-friendliness as opposed to traditional plastics. The major players operating in Asia pacific region includes Wanhua Chemical Group Co. Ltd. (China) and Mitsui Chemicals, Inc. (Japan), among others.

To know about the assumptions considered for the study, download the pdf brochure

Key Market Players

The key players in this market BASF SE (Germany), The Lubrizol Corporation (US), Covestro AG (Germany), Huntsman Corporation (US), Wanhua Chemical Group Co. Ltd. (China), American Polyfilm, Inc. (US), Epaflex Polyurethanes SpA (Italy), COIM Group (Italy), Mitsui Chemicals, Inc. (Japan), and Avient Corporation (US). Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow. Leading manufacturers of TPU have opted for new product launches to sustain their market position.

Want to explore hidden markets that can drive new revenue in Thermoplastic Polyurethane (TPU) Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

This report categorizes the global TPU market based on technology, type, raw material, end-use industry, and region.

On the basis of technology, the TPU market has been segmented as follows:

• Blow Molding
• Solvent Casting
• Lamination
• Extrusion
• Injection Molding
• Others

On the basis of type, the TPU market has been segmented as follows:

• Polyester
• Polyether
• Polycaprolactone
• Polycarbonate-based TPU

On the basis of raw material, the TPU market has been segmented as follows:

• Diisocyanates
• Polyols
• Diols
• Adipic acid

On the basis of end-use industry, the TPU market has been segmented as follows:

• Footwear
• Industrial Machinery
• Automotive & transportation
• Electronics
• Medical
• Others

On the basis of region, the TPU market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In January 2023, Wanhua Chemical Group Co. Ltd. developed polyether-based medical-grade TPU and radiopaque-grade TPU to provide solutions for medical applications such as extrusion tubes, injection MOLDING accessories, and cast films.
• In December 2022, The Lubrizol Corporation launched a new thermoplastic polyurethane (TPU) production line at its Songjiang manufacturing site in Shanghai, China. This helped Lubrizol Engineered Polymers to expand its TPU production capacity and strengthened the regional business.
• In April 2022, Covestro AG expaned its production capacities for thermoplastic polyurethane (TPU) Films in the Platilon range, as well as the associated infrastructure and logistics. This helped the company to plan new projects for 2023.
• In August 2020, BASF SE collaborated with Maincal, the leading company in the manufacture of safety footwear in Argentina. The two companies collaborated for the launch of South America's first safety shoe made with Infinergy.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst