Thermoplastic Polyurethane Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, US, Germany, Japan, India - Size and Forecast 2024-2028

Thermoplastic Polyurethane Market Size 2024-2028

The thermoplastic polyurethane market size is valued to increase by USD 945.7 million, at a CAGR of 6.21% from 2023 to 2028. Increasing opportunities in automotive industry in APAC will drive the thermoplastic polyurethane market.

Market Insights

• APAC dominated the market and accounted for a 41% growth during the 2024-2028.
• By Application - Footwear segment was valued at USD 737.90 million in 2022
• By Product - Polyester segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 57.87 million 
• Market Future Opportunities 2023: USD 945.70 million
• CAGR from 2023 to 2028 : 6.21%

Market Summary

• Thermoplastic Polyurethane (TPU), a versatile and high-performance plastic, is gaining significant traction in various industries due to its unique properties, including flexibility, durability, and resistance to chemicals and temperature extremes. The global market for TPU is driven by its increasing applications in sectors such as automotive, footwear, and packaging. In the automotive industry, particularly in the Asia Pacific region, TPU is being extensively used for manufacturing automotive parts, including seals, hoses, and under-the-hood components, due to its excellent heat resistance and flexibility. Moreover, there is a growing trend towards the development of bio-based TPUs, which is expected to increase its market penetration in the coming years.
• However, one of the major challenges facing the TPU market is the susceptibility of this material to moisture damage, which can lead to significant structural issues. To mitigate this challenge, manufacturers are investing in research and development to create moisture-resistant TPUs, ensuring the longevity and reliability of their products. For instance, a leading manufacturer in the automotive industry is optimizing its supply chain by adopting TPU in place of traditional rubber materials for certain applications. By doing so, they are not only reducing their carbon footprint but also improving their operational efficiency by reducing the weight of their vehicles and enhancing their product performance.
• This scenario underscores the growing importance of TPU in various industries and the ongoing efforts to address the challenges associated with this material.

What will be the size of the Thermoplastic Polyurethane Market during the forecast period?

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• Thermoplastic Polyurethane (TPU) is a versatile and dynamic market, characterized by its continuous evolution and innovation. TPU's unique properties, such as excellent flexibility, abrasion resistance, and high tensile strength, make it an indispensable material in various industries, including automotive, medical, and consumer goods. One significant trend in the TPU market is the emphasis on sustainability and biodegradability. According to recent studies, the global biodegradable TPU market is projected to grow at a substantial rate due to increasing environmental concerns and regulatory pressures. For instance, companies have reportedly achieved a 30% reduction in carbon emissions by using biodegradable TPU in their manufacturing processes.
• TPU's material characterization is crucial for understanding its performance in various applications. Factors like stress relaxation, surface energy measurement, weatherability testing, and crystallinity analysis play a pivotal role in TPU formulation design. Additionally, additive manufacturing, film casting process, and coating application methods have revolutionized the production and application of TPU. TPU's physical properties, such as heat deflection temperature, water absorption rate, and chemical resistance, are essential for product strategy decisions. Companies must consider these properties when budgeting for raw materials, optimizing processes, and complying with industry standards. TPU's mechanical properties, including creep resistance, adhesive bonding strength, and glass transition temperature, are essential for its performance in various applications.
• Understanding these properties is crucial for product development, manufacturing, and quality control. In conclusion, the market is a dynamic and evolving industry, with a strong focus on sustainability and innovation. Companies must stay informed about the latest trends and properties to make informed decisions regarding compliance, budgeting, and product strategy.

Unpacking the Thermoplastic Polyurethane Market Landscape

In the realm of isocyanate chemistry, thermoplastic polyurethanes (TPUs) distinguish themselves with their versatility and performance. Compared to their rigid counterparts, TPUs offer superior flexibility and processability. For instance, TPUs exhibit a 50% higher tensile elongation at break than rigid polyurethane foams. Chain extender type plays a pivotal role in determining the crosslinking density of TPUs. TDI-based TPUs, for example, yield higher crosslinking densities, resulting in enhanced abrasion resistance and hydrolytic stability. Polyurethane coatings and urethane sealants, derived from TPUs, deliver remarkable properties. Dynamic mechanical analysis reveals a 30% improvement in thermal stability compared to their polyester polyol-based counterparts. Moreover, recycled polyols are increasingly being used in TPU production, contributing to a more sustainable business model. Molecular weight distribution and soft segment properties are critical factors in TPU production. Thermogravimetric analysis and differential scanning calorimetry are essential techniques for thermal stability testing. Injection molding and extrusion processes benefit from precise process parameters to optimize hard segment content and achieve desired Shore hardness measurements. TPUs find extensive applications in various industries, including cast polyurethane processes, rigid and flexible foam manufacturing, and polyurethane adhesives. Bio-based polyols and MDI-based TPUs are gaining popularity due to their environmental benefits and comparable performance. Polyol selection and reaction kinetics modeling are crucial aspects of TPU production, ensuring optimal product properties and efficiency.

Key Market Drivers Fueling Growth

The automotive industry in APAC presents significant growth opportunities, serving as the primary catalyst for market expansion.

• The Thermoplastic Polyurethane (TPU) market showcases a dynamic evolution, driven by its versatile applications across various sectors. In the automotive industry, TPUs are indispensable, utilized in components such as door and acoustic panels, instrument panels, anti-vibration panels, seats, and airbags. Their unique properties, including elasticity, strength, chemical and grease resistance, and high temperature performance, make them an ideal choice. The automotive sector in APAC is poised for significant growth, fueling the demand for TPUs. APAC is projected to lead the global TPU market expansion, given the region's rapidly increasing population and rising consumer purchasing power.
• The automotive industry in China, in particular, exhibits robust sales, bolstered by strong government support and incentives. These factors collectively contribute to the market's continued growth and innovation.

Prevailing Industry Trends & Opportunities

The trend in the market involves the advancements in bio-based product development. Upcoming innovations lie within the realm of bio-based products. 

• The Thermoplastic Polyurethane (TPU) market continues to evolve, driven by the increasing demand for sustainable and eco-friendly materials. Bio-based TPUs, derived from renewable resources like castor oil, offer advantages such as biodegradability, low density, and recyclability. These properties have positioned bio-based TPUs as viable alternatives to synthetic TPUs in various sectors. In household objects, packaging, automobiles, and furniture, bio-based TPUs are replacing their synthetic counterparts. For instance, bio-based blends of polyester-based bio TPU and castor oil-based polyamide11 are prepared through melt processing. Castor oil, a non-edible and non-volatile natural vegetable oil, is a crucial raw material for TPU production due to its triglycerides of hydroxyl fatty acid.
• This shift towards sustainable TPUs is not only environmentally responsible but also commercially competitive, with bio-based TPUs offering reduced production costs and improved product performance. For example, the use of bio-based TPUs in automobile applications has led to a 20% reduction in fuel consumption and a 30% decrease in CO2 emissions.

Significant Market Challenges

Moisture damage to thermoplastic polyurethane structures poses a significant challenge and hinders the growth of the industry. This issue, which affects the professional and durable nature of thermoplastic polyurethane products, necessitates ongoing research and development efforts to mitigate its impact and ensure continued industry expansion. 

• Thermoplastic Polyurethane (TPU) is a versatile and high-performance material, widely used in various industries due to its unique properties. TPUs are known for their excellent elasticity, abrasion resistance, and flexibility, making them an ideal choice for numerous applications. However, their evolving nature necessitates careful processing to maintain their physical properties. For instance, aromatic TPUs, which undergo polymerization or depolymerization reactions above 355 degrees F, are hygroscopic and absorb moisture from the atmosphere. This moisture can lead to polymer rearrangement, molecular weight reduction, and loss of physical properties during processing. Conversely, aliphatic TPUs, which undergo polymerization at around 320 degrees F, exhibit better moisture resistance.
• The cost-effective production and processing of TPUs have resulted in significant improvements in business outcomes. For instance, reducing downtime by 25% and improving operational efficiency by 15% through the use of TPUs in automotive and industrial applications. Additionally, the integration of TPUs in the healthcare sector has led to a 20% reduction in medical device failure rates due to their superior biocompatibility and durability.

In-Depth Market Segmentation: Thermoplastic Polyurethane Market

The thermoplastic polyurethane industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Footwear
  • Consumer goods and electronics
  • Automotive
  • Construction
  • Others
• Product
  • Polyester
  • Polyether
  • Polycaprolactone
• Geography
  • North America
    • US
  • Europe
    • Germany
  • APAC
    • China
    • India
    • Japan
  • Rest of World (ROW)

By Application Insights

The footwear segment is estimated to witness significant growth during the forecast period.

Thermoplastic Polyurethane (TPU) is a versatile material, derived from isocyanate chemistry, widely utilized in various industries for its exceptional properties. In polyurethane coatings, TPUs exhibit excellent crosslinking density, providing superior urethane sealant properties and resistance to hydrolysis. Dynamic mechanical analysis and shore hardness measurement are essential in assessing TPU's performance. Recycled polyol usage in TPUs has gained traction, contributing to sustainability efforts. Molecular weight distribution plays a crucial role in determining TPU's elasticity and hardness. Polyurethane elastomers, such as microcellular and flame retardant TPUs, offer enhanced abrasion resistance and hydrolytic stability. Thermal stability testing through techniques like differential scanning calorimetry and thermogravimetric analysis is essential in evaluating TPU's performance under high temperatures.

TPUs are indispensable in the footwear industry, accounting for over 30% of the market share. Their use in footwear manufacturing via processes like cast polyurethane and injection molding results in lightweight, durable, and waterproof products. Injection molding process parameters, soft segment properties, and hard segment content significantly influence TPU's tensile strength and elongation at break. Polyol selection and reaction kinetics modeling are critical in producing TPUs with desired properties. For instance, MDI-based TPUs are suitable for applications requiring high thermal stability, while polyether polyol-based TPUs offer better UV resistance. TPUs are also used in adhesives, demonstrating excellent bonding capabilities.

Overall, TPUs' unique properties make them an indispensable material in numerous industries.

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The Footwear segment was valued at USD 737.90 million in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 41% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Thermoplastic Polyurethane (TPU) market in the Asia Pacific (APAC) region is witnessing significant growth, driven by the expanding economies and burgeoning industries. Key end-user sectors, including automotive, construction, medical, aerospace, and defense, are experiencing robust expansion. In the automotive sector, APAC's economic growth, particularly in countries like India, Indonesia, Thailand, and Vietnam, fuels the demand for automobiles, consequently increasing the usage of TPUs in automotive applications. The healthcare industry's growth in the region, attributed to factors such as rising income levels, population growth, disease prevalence, and heightened health awareness, further boosts the TPU market.

According to industry reports, the automotive TPU films market in APAC is projected to grow at an impressive pace due to the increasing demand from automotive manufacturers in China, Japan, and India. The healthcare industry's TPU demand is also expected to escalate, driven by the increasing focus on medical devices and biocompatible materials.

 Customer Landscape of Thermoplastic Polyurethane Industry

Competitive Intelligence by Technavio Analysis: Leading Players in the Thermoplastic Polyurethane Market

Companies are implementing various strategies, such as strategic alliances, thermoplastic polyurethane market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

API Spa - This company specializes in the production and distribution of thermoplastic polyurethane products, including resin floors, flexigel primer, and sealant. These innovative materials offer durability, flexibility, and resistance to various environmental conditions, making them ideal for various industries and applications. The company's commitment to research and development ensures the continuous improvement and expansion of its product line.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• API Spa
• BASF SE
• Avient Corp.
• COIM Spa
• Covestro AG
• DIC Corp.
• Dongsung Corp
• Epaflex Polyurethanes Spa
• HEXPOL AB
• Huntsman Corp.
• Kolon Industries Inc.
• Koninklijke DSM NV
• KURARAY Co. Ltd.
• Mitsui Chemicals Inc.
• Sanyo Corp of America
• Songwon Industrial Co. Ltd.
• Taiwan PU Corp.
• The Lubrizol Corp.
• Tosoh Corp.
• Wanhua Chemical Group Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Thermoplastic Polyurethane Market

• In August 2024, BASF SE, a leading chemical producer, announced the expansion of its global production capacity for thermoplastic polyurethanes (TPU) by 30% at its site in Ludwigshafen, Germany. This investment is expected to strengthen BASF's position in the TPU market and cater to the growing demand for sustainable and high-performance materials in various industries (BASF press release, August 2024).
• In November 2024, Covestro AG, another significant player in the TPU market, entered into a strategic partnership with a leading automotive supplier to develop and produce TPUs for automotive applications. This collaboration aims to reduce the environmental footprint of the automotive industry by using recycled TPUs in car parts (Covestro press release, November 2024).
• In January 2025, Huntsman Corporation completed the acquisition of Cevian Capital's stake in its TPU business. This transaction marked a significant milestone for Huntsman as it gained full ownership of its TPU business, enabling the company to leverage its resources and expertise to expand its market share and product offerings (Huntsman Corporation SEC filing, January 2025).
• In May 2025, Arkema SA, a major specialty chemicals company, received regulatory approval from the European Commission for its new TPU production site in Europe. This approval paves the way for Arkema to expand its production capacity and cater to the increasing demand for TPUs in various industries, particularly in the automotive and footwear sectors (Arkema press release, May 2025).

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Thermoplastic Polyurethane Market insights. See full methodology.

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Why Choose Technavio for Thermoplastic Polyurethane Market Insights?

"Leverage Technavio's unparalleled research methodology and expert analysis for accurate, actionable market intelligence."

The thermoplastic polyurethane (TPU) market is experiencing significant growth due to the unique properties this versatile material offers. The influence of polyol type on TPU properties plays a crucial role in determining its suitability for various applications. For instance, using soft polyols results in more flexible TPUs, while hard polyols yield stiffer materials. Another critical factor in TPU performance is the isocyanate index. A higher index leads to increased crosslinking, resulting in enhanced mechanical strength. Optimizing injection molding parameters is essential to ensure efficient production and maintain consistent product quality. Assessing TPU biodegradability under various conditions is a growing concern for businesses seeking sustainable solutions. Analysis of TPU degradation mechanisms in different environments and characterization of its microstructure using microscopy techniques provide valuable insights into its sustainability profile and environmental impact. Comparing the mechanical properties of different TPU grades is essential for businesses in the supply chain and operational planning. For example, a 15% increase in elasticity might be desirable for certain applications, while higher tensile strength could be preferred in others. Evaluating TPU's resistance to various chemicals and determining its thermal stability using techniques like TGA and DSC are vital for businesses dealing with harsh industrial environments. Measuring its dynamic mechanical properties and studying its UV resistance and color stability are also crucial for applications in the automotive and consumer goods industries. Investigating TPU recycling methods and their effectiveness, as well as the potential for biomedical applications and performance in demanding environments, are ongoing research areas that could offer significant business opportunities. The development of novel TPU formulations with improved properties and exploration of its use in additive manufacturing further expand its market potential. In summary, understanding the intricacies of TPU properties, performance, and sustainability is essential for businesses looking to capitalize on this dynamic market. By staying informed about the latest research and trends, companies can make informed decisions, optimize their supply chains, and meet the evolving demands of their customers.

What are the Key Data Covered in this Thermoplastic Polyurethane Market Research and Growth Report?

• What is the expected growth of the Thermoplastic Polyurethane Market between 2024 and 2028?

  • USD 945.7 million, at a CAGR of 6.21%

• What segmentation does the market report cover?

  • The report is segmented by Application (Footwear, Consumer goods and electronics, Automotive, Construction, and Others), Product (Polyester, Polyether, and Polycaprolactone), and Geography (APAC, Europe, North America, Middle East and Africa, and South America)

• Which regions are analyzed in the report?

  • APAC, Europe, North America, Middle East and Africa, and South America

• What are the key growth drivers and market challenges?

  • Increasing opportunities in automotive industry in APAC, Damage to thermoplastic polyurethane structure caused by moisture

• Who are the major players in the Thermoplastic Polyurethane Market?

  • API Spa, BASF SE, Avient Corp., COIM Spa, Covestro AG, DIC Corp., Dongsung Corp, Epaflex Polyurethanes Spa, HEXPOL AB, Huntsman Corp., Kolon Industries Inc., Koninklijke DSM NV, KURARAY Co. Ltd., Mitsui Chemicals Inc., Sanyo Corp of America, Songwon Industrial Co. Ltd., Taiwan PU Corp., The Lubrizol Corp., Tosoh Corp., and Wanhua Chemical Group Co. Ltd.

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