The global TPU market

Market Report: A global overview of the Thermoplastic Polyurethane market, EUR 3,500, IAL Consultants, London, UK

London based IAL Consultants has recently published a 2nd edition of its report entitled A global overview of the Thermoplastic Polyurethane market.
This market is relatively mature in the Western hemisphere while strong growth prospects remain in the East, particularly in China. The Asian region leads world TPU production and consumption at a total of 174,500 t in 2007, thereby accounting for 47 % of world demand of 370,050 t.

Production trends have been and will continue to be shaped by the increasing presence of European manufacturers in Asia.

Environmental pressures are increasing the use of bio-based materials for plastic formation, as chemical producers are increasingly becoming involved in renewable raw material generation and use. At the opposite end of the life cycle, recycling is becoming increasingly important and this is already well-trenched in the automotive and electronics sector.

Many specialist materials are among the objectives of TPU producers, either in terms of their advanced performance attributes or in order to substitute for other materials where the effects of legislation have reduced their consumption.
Engineering and footwear are the two most dominant applications for TPUs, accounting for 105,230 t and 101,290 t of TPUs respectively and together they account for 55 % of the market. The pattern of global TPU consumption by sector is shown in the figure below.

The versatility of TPUs continue to drive investment in their development and commercialisation around the world:

• Merquinsa has invested heavily in TPUs, having launched biopolyol-based            types for injection moulding, extrusion, and adhesives applications
• Materials with superior heat-resistance are being developed. These                   materials target sectors such as the automotive, cable and wire applications       as a result of smaller wires and tighter packing. Cable jacketing applications       abound, especially for those companies which are able to offer halogen-free       materials.
• In the Asia Pacific region, China, Taiwan, South Korea and Japan tend to             dominate the production scene. China is by far the largest producer and             consumer of TPUs at 108,000 t in 2007, attracting investment from top players   such as BASF and Lubrizol along the way.
• Shoe materials are especially important TPU applications in Eastern Asia.
  Growth forecasts for the global TPU sector vary considerably according to           region. Projected growth for the EMEA markets is placed at about 4 % pa over
  the period 2007 – 2012 but in the Americas this is seen at around 0.7 % pa. In   both of these regions a net contradiction of the footwear sector is foreseen,       while the automotive sector in the Americas is also expected to contract             sharply. As a result of some Asian economies escaping the full effects of the       economic crisis, as well as benefiting from the transfer of manufacturing               operations from mature economies, growth in the Asian TPU market is placed     at 10.5 % pa. Given the relative market sizes, this is equivalent to global             growth of 6.6 %.