The global TPU market size is expected to advance at a CAGR of 7.0% during 2022–2030, to reach USD 5,326 million by 2030. This can be mainly ascribed to the increasing demand for thermoplastic polyurethane from different end-use verticals including footwear, medical, automotive, and construction, due to its several advantages such as good mechanical capabilities, easily colored, oil lubricants & grease resistance, and abrasion resistance; and the surging need for biodegradable plastics across the world.
The increasing demand for biodegradable products is propelling the need for thermoplastic polyurethane in the market. This is because chlorinated plastics release harmful chemicals into the environment, which impacts the health of humans and animals. Due to this, governments have made several policies to stop using these types of plastics, which, in turn, is fueling the market growth. Also, the U.S. National Library of Medicine confirmed thermoplastic polyurethane as a nature-friendly product.
Based on type, the polycaprolactone category is expected to witness a steady growth rate during the forecast period. This can be because polycaprolactone is a biodegradable material that is broadly utilized in the fabrication of 3D scaffolds in the field of tissue engineering, due to its several benefits such as less degradation rate, low viscosity, better biocompatibility, and less acidic breakdown. Moreover, it is widely adopted in the production of thermoplastic polyurethane and in sealants, coatings, adhesives, and elastomers. Also, polycaprolactone products are used as an effective solution in the healthcare industry due to their biodegradability.
On the basis of technology, the injection molding category is projected to grow at a significant CAGR during the forecast period. This can be because the automobile industry is using injection molding a lot to develop parts of vehicles. It is also adopted for making several products such as dust covers, tire chains, and ball and socket joints. Further, this technology is used for making industrial components such as rollers, packings, seals, and castors. Moreover, it is used for the production of watch straps and shoe heels.
The European market is expected to grow at a steady growth rate over the next few years. In the countries such as France, the U.K., and Germany, the automotive sector is rapidly growing, which is driving the demand for TPU.
In addition, the demand for textiles, luxury goods, and animal identification tags is increasing in the region. Due to this, the number of medium and large-scale manufacturers is also rising. Several industry manufacturers are using thermoplastic polyurethane to increase their products' strength, durability, and fungal and abrasion resistance, which, in turn, drives the growth of the regional market.
Moreover, the medical industry is replacing the use of polyvinyl chloride (PVC) with thermoplastic polyurethane. Thus, the surging demand for eco-based thermoplastic polyurethane is increasing the profit opportunity for market players. Also, companies' research and development teams are more focused on the making of bio-based products.
Some of the major players operating in the TPU market are BASF SE, The Lubrizol Corporation, Covestro AG, Huntsman Corporation, Wanhua Chemical Group Co. Ltd., American Polyfilm Inc., Epaflex Polyurethanes SpA, COIM Group, Mitsui Chemicals Inc., and Avient Corporation.