The growing demand from construction and automotive industry are prominently driving the growth of the global polyol market.
The Global Polyol Market was estimated at USD 26.9 billion in the year 2020 and is expected to reach USD 44.8 billion by 2027. The market is growing with a CAGR of 7.6%, in the forecast period (2017-2027).
The major factor driving the growth in polyol market is the burgeoning application of polyol across the globe. Polyol used to manufacture polyurethanes foam, are widely used in manufacturing cars and offers several benefits in terms of protection, energy conservation and comfort. Polyurethane foams provide cushioning properties in the vehicles which makes useful in manufacturing several parts such as armrests, headrests, and seats. This helps in reducing the stress and fatigue associated with driving, thus providing comfort to the driver. Apart from this, polyurethanes foam provides insulation properties in the vehicle which makes it suitable to provide protection against the noise and heat of the engine. In addition, the high strength-to-weight ratio offered by polyurethanes foam makes results in greater fuel efficiency and improved environmental performance. As, polyol is an indispensable material in manufacturing polyurethanes foam, growth in the automotive industry is projected to increase the demand for polyurethanes foam, thereby driving global polyol market.
Moreover, rapid industrialization, combined increasing demand for construction industries, is another crucial factor propelling the growth of the polyol market. The rapidly increasing population has resulted in the growing requirement for houses across the globe. This rising demand is expected to increase the consumption of building materials made-up of polyols such as polyurethane rigid foam. Polyurethane rigid foam provides effective temperature control by insulating roofs, panels, doors, and walls. Based on a study by published by US Department of Energy, commercial and residential buildings in U.S. consume 40% of the energy produced. Therefore, effective insulation in the buildings helps in reducing energy consumption, thereby, leading to less carbon emissions. Also, energy conservation regulations and laws implemented by several nations regarding energy efficient and green building buildings are further boosting the demand for rigid polyurethane foam for construction and building. Furthermore, growing investment by several nation in various construction projects is also expected to drive the market growth. For instance, in 2016, Canadian government introduced its ‘Investing in Canada Plan’ project. This project involves an investment of over $180 billion for several major projects relating to affordable housing, developing rural communities among others. Such investment projects are projected to increase the demand for polyurethane rigid foam, hence impacting the polyol industry.
Despite such growth factors, the volatile prices of raw material such as ethylene oxide, propylene oxide, carboxylic acid and adipic acid needed to manufacture polyols are posing severe challenges in the growth of polyol market. As, majority of these raw materials are petroleum-based derivative, any change in the oil prices directly affects the market. However, increasing adoption for bio-based polyols is offering high growth opportunity in the global polyol market. Bio-based polyols are serving as an alternative for existing polyols as they offer similar properties and are derived from renewable raw materials. In addition, they provide several benefits in comparison to conventional polyols such as improved sustainability and reduction in the dependence of petroleum. Owing to this, several key players in the market like BASF SE, Cargill Inc., DowDupont, and Stepan Company have started manufacturing the production of bio-based polyols.
Global Polyol Market by Region Outlook (Revenue, USD Billion, 2017-2027)
Based on region, Asia-Pacific is projected attain the fastest growth in polyol market during the forecast period. The growth in this region is mainly attributed to rapidly growing automotive industry in the developing economies such as China, South Korea, and India. Favourable government policies along with increasing investments are driving the growth of the automotive industry in this region. Policies such as “Made in China 2025” and the “Automobile Industry Mid and Long-Term Development Plan” are aiding the production of automotives in the region, thereby positively impacting the polyol industry. Apart from this, growing construction industry is also boosting the demand for the product in this region. Rapid population growth along with increasing living standards is rising the demand for new and efficient building across the region. Moreover, increasing investment in construction projects by major economies is also expected to propel the market demand in this region. For instance, China accounts to the largest share in the building market globally and plans on spending approximately USD 13 trillion on constructing buildings by 2030. All these aforementioned factors are majorly driving the polyol market demand in this region.
The Global Polyol Industry Segmentation:
Global Polyol Market Type Outlook (Revenue, USD Billion, 2017-2027)
Global Polyol Market Application Outlook (Revenue, USD Billion, 2017-2027)
Key Findings:
Company Profiles and Competitive Intelligence
The key players operating in the polyol market are:
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