Thermoplastic Polyurethane (TPU) Market Raw Material (Diisocyanates, Polyols, Diols), Type (Polyester, Polyether, Polycaprolactone), End-Use Industry (Footwear, Industrial, Machinery, Automotive, Electronics, Medical), and Region - Global Forecast to 2027
The TPU market is supposed to go up to USD 4.6 billion by 2027 with a CAGR of 7.1% which will be from USD 3.2 billion in 2022. The market is mainly driven by the relatively wide use of TPU in different end-use industries. The retail sector in emerging countries like India, Brazil, and China is preparing itself. This is due to the fact that TPU displays rubber and plastic characteristics such as temperature flexibility at low-level, biocompatible, hydrolytic stability, optical clarity, flame-retardancy, high tensile strength, high elongation, elasticity, microbicidal ability, as well as oil, grease, chemical, and abrasion resistance. As the environmental problems become more severe, the companies are seeking green options to replace the existing plastic models. The major benefit of TPU is that it is biodegradable and non-toxic, so it fits perfectly with sustainability goals. As a result, it is preferred in packaging, consumer goods, and some other applications.
Attractive Opportunities in the TPU Market
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TPU Market Dynamics
Driver: Increasing demand from the footwear industry
TPU derives its growth in the footwear industry from its special features, additional resistance to slip and abrasion. The need for TPU in the footwear sphere is being determined by diverse factors. TPU is the most durable material that can be used in manufacturing various sorts of shoes for so long. Flexibility, along with its excellent resistance to chemicals, wear, and abrasion, makes it a perfect option to be used in many different footwear applications, including outsoles, midsoles, toe caps, etc. On the one hand, it is portable and provides pleasant cushioning for sports and athletic shoes which will in turn lead to the reduction of shoe weight and thus better personal comfort and efficiency.
Restraint: Higher cost of TPU than conventional material
TPU is commonly manufactured with huge investments and challenges when compared to other traditional raw materials like polyethylene, PVC, Rubbers and Polyurethanes. TPU is made under excessively high temperatures and requires a significant level of technical know-how. High investments and complicated manufacturing procedures have influenced the price increase for this material. The higher production costs limit its application areas especially in high-end segments. Thus, other classes like compounded types of polyethylene, polypropylene, Acrylonitrile butadiene styrene, etc.produced at lower prices are made available which possess similar properties to that of TPU. Therefore it faces stiff competition from such products in certain end-use areas including machinery, real estate construction and electronics. On another note, an increase in raw material prices ultimately affects prices of TPU.
Opportunity: Substitute for PVC in medical applications
TPU can be utilized in various medical applications like catheters, medical devices, orthodontic products, and even wound care products. As some of the medical products are inserted into human bodies, the choice of materials for medical products is guided by the need for safety and comfort. The selection of materials considers factors that are friendly to patients such as flexibility and biocompatibility. TPU is known to have a good combination of chemical and mechanical traits plus biocompatibility which are crucial for use in medicine. Additionally, TPU possesses better abrasion resistance, low temperature resistance, oil and chemical resistance and resilience when compared with PVC. The temperature responsiveness of TPU makes it capable of being stiff on insertion but flexible once inside the body. These properties have increased the use of TPU in medical industry.
Challenge: Volatility in raw material prices
Raw material price volatility has led to TPU price instability. One polyester polyol used to produce TPU is adipic acid. Globally 15% of adipic acid production is for TPU while 85% goes to nylon. The increased demand for nylon alongside rising standards of living in emerging markets like China and India has created an imbalance in adipic acid supply. As a result, TPU prices have risen even further. Since TPU raw materials originate from petroleum-based products, changes in crude oil prices directly influence the costs of these essential inputs. Consequently unpredictable pricing on TPU market exists due to crude oil price volatility posing challenges for manufacturers who strive to maintain steady profit margins at all times. Natural calamities, international conflicts and pandemics are examples of events that lead to supply chain disruptions; hence, leading to shortages or delays in raw materials supplies thus resulting into extended lead times and high costs.
TPU Market Ecosystem
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
"Diisocyanate was the largest raw material for TPU market in 2021, in terms of value"
Diisocyanate accounted for the largest market share in the global TPU market, in terms of value, in 2021. plays an important part in TPU production as this compound is highly reactive with polyols, leading to a formation of polyurethane with desirable properties. Methylene diphenyl diisocyanate (MDI) is the most common raw material used to make TPU because it provides excellent mechanical characteristics including high strength, resistance to abrasion and elasticity. Consequently, such features make MDI - based TPU appropriate for various industries such as automotive, foot wears and industrial coatings. The versatility of diisocyanates allows manufacturers to customize their formulations of TPUs according to desired performances thus increasing its demand. In conclusion, although diisocyanate dominated the market both in terms of value and growth rate projection over the next few years due to its significance in producing TPUs and continuously expanding uses of TPUs across different industries.
"Footwear was the largest end-use industry for TPU market in 2021, in terms of value"
In footwear applications, thermoplastic polyurethane (TPU) accounted for the largest market share in the global TPU market in value terms in 2021 as a result of the unique properties of TPU that meet the demands of the footwear sector. TPU is known for its durability, flexibility and abrasion resistance, making it suitable for different parts of shoes including outsoles, midsoles and toe caps. Due to its light weight; it makes shoes comfortable while its ability to absorb shock and provide cushioning are essential for athletic and performance footwear hence reducing fatigue and enhancing overall performance among the feet. Besides that, TPU can be easily modified in terms of design thus giving manufacturers an opportunity to come up with appealing designs that include user preferences.
"Asia Pacific was the largest market for TPU in 2021, in terms of value."
Asia Pacific was the largest market for global TPU market, in terms of value, in 2021. China is the largest market in Asia Pacific. Asia Pacific with strong manufacturing industries and increasing disposable incomes have resulted in heightened demand for high-end goods using TPU in the automotive, footwear and medical sectors. This is caused by the unique properties of TPU like flexibility, toughness and resistance against wear that come with it. Moreover, recent technological advancements and changes in TPUs have expanded its possible areas of utilization, thus attracting manufacturers’ attention towards this product. The main condition for the development of this industry was its emerging role as both domestic and global supplier of TPU materials which are highly needed in China. The transition toward sustainable resources is taking place throughout this region by mainly referring to TPUs due to their greater eco-friendliness as opposed to traditional plastics. The major players operating in Asia pacific region includes Wanhua Chemical Group Co. Ltd. (China) and Mitsui Chemicals, Inc. (Japan), among others.
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Key Market Players
The key players in this market BASF SE (Germany), The Lubrizol Corporation (US), Covestro AG (Germany), Huntsman Corporation (US), Wanhua Chemical Group Co. Ltd. (China), American Polyfilm, Inc. (US), Epaflex Polyurethanes SpA (Italy), COIM Group (Italy), Mitsui Chemicals, Inc. (Japan), and Avient Corporation (US). Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow. Leading manufacturers of TPU have opted for new product launches to sustain their market position.
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Report Metric |
Details |
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Years considered for the study |
2018-2027 |
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Base Year |
2021 |
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Forecast period |
2022–2027 |
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Units considered |
Volume (KT); Value (USD Million) |
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Segments |
Type, Technology, Raw Material, End-use Industries, and Region |
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Regions |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies |
BASF SE (Germany), The Lubrizol Corporation (US), Covestro AG (Germany), Huntsman Corporation (US), Wanhua Chemical Group Co. Ltd. (China), American Polyfilm, Inc. (US), Epaflex Polyurethanes SpA (Italy), COIM Group (Italy), Mitsui Chemicals, Inc. (Japan), and Avient Corporation (US) are the key players in the TPU market. |
This report categorizes the global TPU market based on technology, type, raw material, end-use industry, and region.
On the basis of technology, the TPU market has been segmented as follows:
- Blow Molding
- Solvent Casting
- Lamination
- Extrusion
- Injection Molding
- Others
On the basis of type, the TPU market has been segmented as follows:
- Polyester
- Polyether
- Polycaprolactone
- Polycarbonate-based TPU
On the basis of raw material, the TPU market has been segmented as follows:
- Diisocyanates
- Polyols
- Diols
- Adipic acid
On the basis of end-use industry, the TPU market has been segmented as follows:
- Footwear
- Industrial Machinery
- Automotive & transportation
- Electronics
- Medical
- Others
On the basis of region, the TPU market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In January 2023, Wanhua Chemical Group Co. Ltd. developed polyether-based medical-grade TPU and radiopaque-grade TPU to provide solutions for medical applications such as extrusion tubes, injection MOLDING accessories, and cast films.
- In December 2022, The Lubrizol Corporation launched a new thermoplastic polyurethane (TPU) production line at its Songjiang manufacturing site in Shanghai, China. This helped Lubrizol Engineered Polymers to expand its TPU production capacity and strengthened the regional business.
- In April 2022, Covestro AG expaned its production capacities for thermoplastic polyurethane (TPU) Films in the Platilon range, as well as the associated infrastructure and logistics. This helped the company to plan new projects for 2023.
- In August 2020, BASF SE collaborated with Maincal, the leading company in the manufacture of safety footwear in Argentina. The two companies collaborated for the launch of South America's first safety shoe made with Infinergy.
Frequently Asked Questions (FAQ):
What is the expected growth rate of the TPU market?
The forecast period for the TPU market in this study is 2022-2027. The TPU market is expected to grow at a CAGR of 7.1%, in terms of value, during the forecast period.
Who are the major key players in the TPU market?
BASF SE (Germany), The Lubrizol Corporation (US), Covestro AG (Germany), Huntsman Corporation (US), Wanhua Chemical Group Co. Ltd. (China), American Polyfilm, Inc. (US), Epaflex Polyurethanes SpA (Italy), COIM Group (Italy), Mitsui Chemicals, Inc. (Japan), and Avient Corporation (US) are the leading manufacturers of TPU.
What are the major regulations of the TPU market in various countries?
ECHA-Industrial use of processing aids in processes and products, not becoming part of articles. Industrial use of processing aids in continuous processes or batch processes applying dedicated or multi-purpose equipment, either technically controlled or operated by manual interventions.
What are the drivers and opportunities for the TPU market?
The increased demand from footwear, automotive, and medical industries is driving the market during the forecast period. Substitute for PVC in medical applications acts as an opportunity during the forecast period.
Which are the key technology trends prevailing in the TPU market?
The key technologies prevailing in the TPU market include advancements in polymer synthesis, compounding, and processing techniques such as extrusion, injection molding, and 3D printing. Additionally, there is ongoing research and development in areas such as functional additives and recycling technologies to improve the performance and sustainability of TPUs. .
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The study involved four major activities in estimating the market size of the TPU market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information for this study. These secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, trade directories, certified publications, articles from recognized authors, gold standard and silver standard websites, and databases.
Secondary research has been used to obtain key information about the value chain of the industry, monetary chain of the market, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, and regional markets. It was also used to obtain information about the key developments from a market-oriented perspective.
Primary Research
The TPU market comprises several stakeholders in the value chain, which include raw material suppliers, manufacturers, and end users. Various primary sources from the supply and demand sides of the TPU market have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders in end-use sectors. The primary sources from the supply side include manufacturers, associations, and institutions involved in the TPU industry.
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to technology, raw material, type, end-use industries, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of TPU and future outlook of their business which will affect the overall market.
The breakdown of profiles of the primary interviewees is illustrated in the figure below:
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2021 available in the public domain, product portfolios, and geographical presence.
Other designations include consultants and sales, marketing, and procurement managers.
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Company Name |
Designation |
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BASF |
Individual Industry Expert |
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Covestro |
Sales Manager |
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Lubrizol |
Director |
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Huntsman Corporation |
Marketing Manager |
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Wanhua |
R&D Manager |
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Market Size Estimation
The top-down and bottom-up approaches have been used to estimate and validate the size of the TPU market.
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of the key market players, along with extensive interviews for opinions with leaders such as directors and marketing executives.
TPU Market: Bottum-Up Approach
Note: All the shares are based on the global market size.
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
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TPU Market: Top-Down Approach
Data Triangulation
After arriving at the total market size from the estimation process explained above, the overall market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated by using both the top-down and bottom-up approaches and primary interviews. Hence, for every data segment, there have been three sources—top-down approach, bottom-up approach, and expert interviews. The data was assumed correct when the values arrived from the three sources matched.
Market Definition
Thermoplastic Polyurethane (TPU) is a thermoplastic elastomer that possesses characteristics of both, plastic and rubber; it is soft and processable when heated and hard when cooled. TPU can be reprocessed multiple times without losing its structural integrity due to the linkages between its soft and hard block structures. The soft block contains polyol and a diisocyanate, whereas the hard block is formed of a chain extender and diisocyanate.
Key Stakeholders
- Senior Management
- End User
- Finance/Procurement Department
- R&D Department
Report Objectives
- To define, describe, and forecast the size of the TPU market, in terms of value and volume
- To provide detailed information regarding the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market
- To estimate and forecast the market size based on technology, raw material, type, end-use industry, and region
- To forecast the size of the market with respect to major regions, namely, Europe, North America, Asia Pacific, Middle East & Africa, and South America, along with their key countries
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the overall market
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of market leaders
- To track and analyze recent developments such as expansions, new product launches, partnerships & agreements, and acquisitions in the market
- To strategically profile key market players and comprehensively analyze their core competencies
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Regional Analysis
- Further breakdown of a region with respect to a particular country or additional application
Company Information
- Detailed analysis and profiles of additional market players
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