Overview of the TPU market

This new study examines the national, regional and global markets for thermoplastic polyurethanes for 2024 and builds up on the research from our previous editions. It explores the market trends driving TPU production and subsequent demand, provides an indication of raw material consumption, and also presents future growth opportunities in the TPU market. Five-year market forecasts to 2029 are also included.

In 2024, global TPU production grew by 4.5%, reaching 1,085,700 tonnes. Extrusion and injection remained the dominant segments, together accounting for over 80% of total production. Adhesives and coatings saw moderate growth, while 3D printing remained a niche segment with minimal change.

The TPU market has not been as severely affected by the economic crisis compared to other segments within the polyurethanes industry.

The total consumption of TPU was 1.1 million tonnes in 2024. The current economic and political issues caused consumption growth to moderate to 1.4%. Globally, the demand is expected to show 2.5% growth in 2025, mainly attributed to the recovery of production in China. The consumption of injection grades moderated in 2024 after increasing by 2% in 2023. Meanwhile the consumption of coatings grades rose by over 2%.

Asia Pacific remains by far the biggest TPU producer globally, with 78% of global production taking place in this region. Western Europe remains the second largest producing region, followed by North America. The production in other regions remain limited.

The market segment for TPU converters is highly fragmented, consisting of a high number of small and medium-sized companies that manufacture custom-made products for a huge variety of end-use applications. Many of these companies source their raw materials through PU systems houses and various distributors, which makes it particularly challenging to accurately estimate the total product output and raw material demand, even though the majority of raw materials are manufactured by a limited number of companies.

TPU can be produced for virtually any application by varying the type of chemical additive packages used. Flame retardant grades can be produced for electric cables; however, increased temperature resistance still remains a challenge for research and development departments. Antistatic grades can be produced for electrical applications and even specialty industrial footwear. When reinforced with glass fibres and/or mineral fillers, TPU can be used as a paintable structural engineering material. The overall versatility of the material allows it to act as a hard rubber for wheels or as a soft plastic for coating applications.

The future growth of TPU is highly dependent on innovation. According to industry experts, investment in research and development will be key to strengthening the companies’ positioning. Many converters are also expanding their product portfolio, and more specialised grades are needed to offer highly specialised solutions. 3D printing is starting to gain market share, but grades for these applications are still niche and 3D printing companies still use extrusion grades because of a lack of materials on the market. It is reported that all large producers offer grades for 3D printing applications already.

The 3D printing technology could benefit smaller companies with limited financial capabilities in the future, because of the low initial investment compared to the production of conventional TPU parts. The market for complex parts for niche applications is especially of interest for this manufacturing process. This would enable companies to adapt quickly to high demand generated by customer expectations.

In 3D printing technology, TPU beads are covered with a heat absorbent ink, and this is then cured with infrared light through laser sintering, which causes the TPU powder to become coherent without melting. In the heated chamber, the material’s temperature is only slightly increased to bond it.

There is a growing demand for TPU in printed electronic circuit board (PCB) applications as the field of printed electronics continues to evolve. Advanced techniques, including screen printing and inkjet printing, are now being used to create smart circuitry on flexible foils with improved precision and cost efficiency. Recent developments have enhanced TPU’s processability, reducing water uptake and improving adhesion and print resolution. These advances have further enabled TPU-based foils to be more easily bent, rolled, cut and laminated—facilitating integration into smart textiles, wearable devices and building applications. Moreover, recent studies in 2023 have shown that TPU's performance in PCB applications can be further boosted by incorporating conductive nanomaterials, thus broadening its applicability in emerging IoT devices.

The TPU market faces intensified competition from emerging high performance specialty thermoplastic elastomer (TPE) grades. Manufacturers are under continuous pressure to improve TPU properties, and recent advancements through 2023–2024 have resulted in faster crystallisation times, increased elasticity and conductivity, superior chemical and light stability, enhanced microbial resistance, improved soft touch characteristics, and a broader operational temperature range. Additionally, the development of TPU hybrid materials, combining the strengths of multiple thermoplastics, has gained momentum, expanding the application scope of TPU in various high end and performance driven markets.

In 2024, the automotive industry was leading in TPU innovation, with new collaborations among European manufacturers and chemical companies. Building on the success of Citroën and BASF's electric concept car, new partnerships have emerged to integrate advanced TPU formulations into vehicle interiors. BMW and Covestro have developed a TPU-based seat cushioning system; Audi and BASF have introduced a novel TPU blend for dashboard components; and Mercedes Benz is piloting next generation TPU composites for adaptive interior lighting and flexible trim elements. These initiatives demonstrate TPU's growing role in achieving enhanced comfort, durability and lightweight performance in electric and conventional vehicles, reflecting the industry's commitment to sustainable, high-performance materials.

"Global Overview of the Thermoplastic Polyurethane Market" is now available from IAL Consultants, priced at €5,500.

www.ialconsultants.com

Pictures: Source: IAL Consultants