Polyurethane Dispersions Market by Type, Application and Region – Global Forecast to 2025

Research Reports

Oct 08, 2021

According to the new market research report “Polyurethane Dispersions Market by Type (Solvent-free and Low-solvent), Application (Paints & Coatings, Adhesives & Sealants, Leather finishing and Textile finishing), and Region – Global Forecast to 2025“, The global polyurethane dispersions (PUDs) market size is projected to reach USD 2.7 billion by 2025 from USD 1.9 billion in 2020, at a CAGR of 7.1% during the forecast period.

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Solvent-free is the most widely used form of PUDs in end-use industries, such as construction, automotive, aerospace and textile. They are formed when a polyurethane pre-polymer containing isocyanate functional group is dispersed into the water either directly or by means of the phase-inversion emulsification process. Solvent-free PUDs dry fast, have a good lifespan, and are more stable under UV rays. This makes them more suitable for external applications like paints & coatings, textile finishing, adhesive, glass fiber sizing, leather finishing, and others.

PUDs are widely used in paints & coatings in various industries, such as construction, automotive, aerospace, electronics, leather, textile, and wood. These dispersions possess excellent resistance to chemicals, solvents, and water. Paints & coatings are used for extending the lifespan of the surface they are applied to. PUDs’ high resistance to corrosion, abrasion, and excellent mechanical properties are increasing their popularity for use in paints & coatings in the industrial and architectural sectors. The use of PUDs for coatings has drastically reduced the emission of volatile organic contents (VOCs) and unreacted toxic monomers.

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The global PUDs market size is projected to reach USD 2.7 billion by 2025 from USD 1.9 billion in 2020, at a CAGR of 7.1% during the forecast period. Increasing industrial, construction, and infrastructure activities in APAC, the Middle East & Africa, and South America, and growing demand for low VOC content solutions are driving the demand for PUDs during the forecasted period. The mandatory regulations are also expected to drive the market.

Wide applications of PUDs in various end-use industries are expected to create opportunities for manufacturers during the forecast period. The key players in the PUDs market are Covestro AG (Germany), DSM (Netherlands), BASF (Germany), Wanhua Chemical Group (China), Lanxess (Germany), Stahl Holding (Netherlands), Perstorp (Netherlands), Dow Chemical Company (US), Huntsman Corporation (US) and Mitsui Chemical (Japan). The PUDs market report analyzes the key growth strategies, such as merger & acquisitions, and joint venture by the leading market players between 2016 and 2021.

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Covestro AG is a major producer of polymer materials. The company is one of the leading manufacturers of high-tech materials and operates its business through different business segments: polyurethanes, polycarbonates, coatings, adhesives & specialties, and others. These segments cater to various end-use industries such as furniture, automotive, electronics, aviation, construction, and medical technology. Covestro operates around 30 production sites in Europe, Asia, and North America, including countries such as China, Thailand, the US, Germany, and Belgium. Its diversified product portfolio largely reduces its market risks. BASF SE focuses on expansions to expand its business in growing economies. In February 2021, Covestro planned to open a new plant for PUDs at the Covestro Integrated site in Shanghai, China (CISS). This will significantly increase its production capacity in China. The plant is expected to be completed in 2024.

DSM is one of the leading science-based companies engaged in offering health, nutrition, and materials across the globe. The company operates through three business segments: nutrition, performance materials, and innovation center. It offers polyurethane dispersion under the materials segment. The company has a diversified geographic presence around the globe. The company expands its global presence through partnerships & collaborations and agreements. For instance, DSM signed an agreement with TFL, India, a leading provider of specialty chemicals to leather and related industries. This agreement covers the supply and R&D of cutting-edge, sustainable waterborne PUD systems.

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