The market size for the bio-based polyurethane finished product was 1.63 million tons in 2013 and is expected to grow at a high rate during the forecast period 2017-2022. Bio-based polyurethane, which is a downstream derivative of crude oil with low cost, has a wide range of applications due to their chemical versatility and higher performance. Natural oil polyols (NOP) which are derived from vegetable oils like castor oil, soy oil, peanut oil and canola oil are key sources which react with diisocyanates with biomass in the production of bio-based polyurethane.
It is used in applications such as coating and paints, electronics, construction (building materials), vehicles, housing, furniture, shoe soles etc. and moreover the customers are beginning to prefer bio-based green products. The most of the demand for application of polyurethane is as foams of various types like flexible-foam, semi-rigid foam and rigid foam which are used in cars and 2-wheeler seats (flexible foam), for insulation (rigid foam) etc.
Growth in the global bio-based polyurethane market is mainly driven by increase in demand from construction industry in developing countries. Increase in demand for pre-set products in electronic appliances and automotive industry is also expected to boost the product demand globally. In addition, the ease government regulations towards the use of sustainable materials is also anticipated to drive the bio-based polyurethane market.
The high cost of the R&D activities for the development of bio-based polyurethane can act as a restraint on the growth of global bio-based polyurethane market. Development of the bio-based building materials for the construction activities could provide an opportunity to grow for the global bio-based polyurethane market.
AREAS WITH SCOPE FOR BIO-BASED POLYURETHANE
The geographic regions taken into consideration in this report are Asia-Pacific, North America, Europe, South America, and Middle-East & Africa. North America, Asia-Pacific and Europe are the major countries with more than 90% demand for bio-based polyurethane whereas Asia Pacific, South America, and Eastern Europe will have the bio-based polyurethane (PU) boom in coming decade with increasing population and also government’s encouraging regulations with the use of carbon-free elements has helped the industries to expand their market size. The Middle East has also witnessed a tremendous growth over few years. Continued investments and governments’ help in a positive way with regulations in bio-based polyurethane has caused a robust growth in the region.
Source: Mordor Intelligence Analysis
NOTABLE DEVELOPMENTS IN THE MARKET
In May 2017, Huntsman Corporation acquired one of the United Kingdom’s key independent formulators of MDI based systems, IFS Chemicals Limited. The acquisition of IFS will strengthen Huntsman differentiated downstream capabilities with more than 25 facilities worldwide.
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