GLOBAL THERMOPLASTIC POLYURETHANE MARKET
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1 GLOBAL THERMOPLASTIC POLYURETHANE MARKET BY END-INDUSTRY (Automotive, Building & Construction, Engineering, Footwear, Hose & Tube, Medical, and Wire & Cable) & GEOGRAPHY MarketsandMarkets
2 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace & defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. MarketsandMarkets 2
3 1 EXECUTIVE SUMMARY The TPU industry witnesses a high growth on account of growing end-use applications, technological advancements, and growing demand in the Asia-Pacific region. It is largely used in industries such as footwear, engineering, building and construction, automotive, hose & tube, wire & cable, medical. TABLE 1 TPU: MARKET VOLUME, BY GEOGRAPHY, (KT) Region CAGR% ( ) North America XX XX XX XX XX Western Europe XX XX XX XX XX Asia-Pacific XX XX XX XX XX ROW XX XX XX XX XX Total XX XX XX XX XX Source: MarketsandMarkets Analysis The market for TPU was about XX KT in 2012 and is further forecasted to grow at a CAGR of from 2013 to 2018, to reach XX KT by Asia-Pacific dominated the TPU market and consumed about in A rapidly growing end-user industry demand in this region drives the growth of the TPU market. Asia-Pacific and the ROW regions are expected to show the highest CAGR of and respectively, mainly driven by the consumption in the Asian countries namely China, India, Taiwan, and Vietnam, and various upcoming end-user industries in Latin America and the Middle East. MarketsandMarkets 3
4 2 PREMIUM INSIGHTS 2.1 TPU MARKET DYNAMICS FIGURE 1 TPU: DRIVERS VS RESTRAINTS RESTRAINTS XXXX XXXX XXXX DRIVERS Source: Expert Interviews and MarketsandMarkets Analysis It is clear from the figure above that there are quite a few number of factors in the market, that restrict its growth as compared to the factors driving the market ahead at a high growth rate. MarketsandMarkets 4
5 3 MARKET OVERVIEW 3.1 MARKET DYNAMICS DRIVERS Growing Demand from Automobile Industry Thermoplastic polyurethane is extensively used in automotive industry due to its properties such as resistance to oil, grease and ozone, impact strength, flexibility at low temperature and good resilience. It is mainly used in interior designing of vehicles. After the economic slowdown from 2008 to 2009 the automotive industry is recuperating and growing at a good pace. Demand for TPU is high in automotive industry as it can be used as a substitute for rubber and PVC without compromising on any performance parameter. The use of thermoplastic polyurethane can result in better UV resistance, good mechanical performance, and reduced thickness with finish of a softer touch. Another major advantage of TPU is that it can be manufactured in any color to match the vehicles color; it also provides better low temperature performance and high abrasion resistance. Due to above mentioned properties TPU is used in making of gear knobs, cup holders and interior door handles, cover strips, chassis spring seating and bushings. TPU is also used in electric system (wiring & cable) as they are flame resistant and can withstand high temperatures. TPU have another advantage over other materials as it is relatively cheaper to process and produces low wastage during its processing. Recent applications of TPU include exterior applications in automotive industry such as door handles, exterior moldings, etc. due to their softer touch and high hydrolytic stability. Recently, OEMs in automotive sector are collaborating with TPU manufacturers to produce modified TPU to be used by them in a variety of other new applications. More research and advancement in TPU processing is being conducted. TPUs are processed and turned into grades with high impact resistance. Such TPU grades can be used in manufacturing of transparent films & tubes, or in places where aesthetic requirements are high. MarketsandMarkets 5
6 S cope for Innovation in the Footwear Industry Footwear industry is the major consumer of the thermoplastic polyurethane industry. Footwear industry by itself consumes almost of the total TPU production. TPU has been considered as an efficient replacement of rubber and other resins used in footwear manufacturing. This is primarily due to the high elasticity and resilience, high tensile, and tear strength. The ability of TPU to be processed into any color has made it a preferred choice among footwear manufacturers to use it in shoe soles in place of rubber or other resins. Various grades of TPU can provide a range of hardness to deliver a favorable friction and flexibility. TPU also provides additional benefit of water resistance, thus increasing the life of footwear and making it an efficient material not only for the manufacture of sportswear or athletic shoes but also for domestic and casual footwear. Thus, TPU is widely used by major shoe manufacturing companies in their products. Apart from this various grades of TPU can provide high resistance and anti-static properties for use in safety footwear. Another advantage of using TPU in shoe manufacturing is that the new grades of TPU are highly breathable when compared to older TPU grades. Due to this reason their application area in footwear industry has increased. One can also mix TPU grades, with low and high breathability, to fine tune the level of breathability according to the application requirements. Nowadays, TPU is also used in leisure activities which are a fast growing segment of footwear and sports industry. It is used in manufacturing of roller-skates, golf trolley covers, ski boots, snowboard boots, etc. TPU, due to its properties is widely used by manufacturers in footwear industry to produce lightweight, ergonomic, fashionable, comfortable, and durable footwear. Because of the above mentioned factors TPU is able to penetrate markets for various kinds of plastics and rubbers. It is being used as a replacement for metals in many applications because of TPU s shock absorbing, light weight, recyclable and dent resistant properties. MarketsandMarkets 6
7 4 THERMOPLASTIC POLYURETHANE MARKET, BY END-USE 4.1 INTRODUCTION Thermoplastic polyurethane is one of the important engineering plastics commercially available. It is known for exceptional properties such as elasticity, transparency, and resistance to oil & gas and abrasion. It is highly resistant to oil & gas and abrasion and are commercially available in various grades that find applications in various end use industries. TPU is used in a wide range of applications in different industries such as automotive, building & construction, engineering, footwear, hose & tube, medical and wire & cable. FIGURE 2 TPU: MARKET CONSUMPTION SHARE, BY END USE, 2012 F E B A H W M Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis Two of the major end-use markets for TPUs, footwear and engineering, accounted for in Almost of the TPU was consumed by the footwear industry alone. The engineering, second largest segment, accounted for in In 2012, the building & construction industry consumed and posed as the third largest consumer. Automotive, hose & tube, wire & cables, medical, and other industries combined possessed share of the global TPU market. MarketsandMarkets 7
8 5 THERMOPLASTIC POLYURETHANE MARKET, BY GEOGRAPHY 5.1 INTRODUCTION ASIA-PACIFIC Japan Japan is a leading plastic manufacturer and consumer in the Asia-Pacific region. It was responsible for of the total plastic production in the world. Through years of growth, the industry currently seems to be stagnated due to the sluggish domestic market, increased competition by neighboring countries, manufacturing overcapacity, etc. Japan is the fourth largest country in the world in terms of GDP (PPP). It is third largest globally, and the second largest in Asia-Pacific, in terms of automotive production. The nation has been unfortunate to be stuck by natural disasters over the years that include the tsunami and the earthquake of 2011, which have equally affected the industry that left manufacturing plants closed across the country. The industry has well developed manufacturing facilities such as most of the developed nations globally, along with a highly trained workforce, and proximity to fast growing markets in Asia-Pacific. The industry holds the potential to regain its competitive edge in the current growing markets, and to accomplish this it needs a strong commitment to change. The country stands as the second biggest consumer of TPU in the Asia-Pacific region. The country is equipped with high potential manufacturing facilities which hold the manufacturing base of the top Asia-Pacific based TPU manufacturers. The country held of the total consumption of TPU in Engineering, automotive and footwear are the major TPU segments in terms of consumption. The top three TPU consumer segments shared around of the TPU consumption in As of 2012, Japan s vehicle production stood at XX million units, which is a change of from the previous years. In 2013, Japan produced XX units of which more than XX units were MarketsandMarkets 8
9 exported with the highest being exported to North America. Thus, Japan s automotive industry is not just growing domestically, but is also expanding its growth beyond its borders as well. Bayer Material Science AG (Germany), BASF SE(Germany), Huntsman Corporation (U.S.), and Lubrizol Corporation (U.S.) are the multinational companies which have their operations in the Japanese market along with domestic players such as Nippon polyurethane industry Co. Ltd. (Japan), Kuraray Co. Ltd. (Japan) and Takeda Sangyo Co. Ltd. (Japan). TABLE 2 JAPAN: TPU MARKET VOLUME, BY END USE, (KT) End use CAGR% ( ) Footwear XX XX XX XX XX Engineering XX XX XX XX XX Building & Construction XX XX XX XX XX Automotive XX XX XX XX XX Hose & Tube XX XX XX XX XX Wire & Cable XX XX XX XX XX Medical XX XX XX XX XX Total XX XX XX XX XX Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis Japan consumed about XX KT of TPU in 2012 and this demand is anticipated to reach XX KT by 2018, growing at a CAGR of about from 2013 to Demand of TPU in the country was led by engineering segment, which consumed about of the total TPU demanded. This demand is projected to grow at a CAGR of about. Subsequently, footwear segment was the second largest consumer, with a share of about of the total demand in 2012, with a CAGR of. MarketsandMarkets 9
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