Oil-Modified Polyurethane Market size (2024 - 2030)

Global Oil-Modified Polyurethane Market is estimated to be worth USD 13.89 Billion in 2023 and is projected to reach a value of USD 18.53 Billion by 2030, growing at a CAGR of 4.2% during the forecast period 2024-2030.

Polyurethane is a kind of polymer made of organic molecules linked together by carbamate linkages. Polyurethane is available in different modified forms. Some of them include water-modified, oil-modified, solvent-modified, UV-cured, acrylic, moisture-cured, aliphatic, and aromatic. Oil-modified polyurethane is a mixture or a blend of various dry oils and polyurethane resins. Oil-modified polyurethane is made with highly flammable and toxic solvents to allow the urethane resin to level and form a cured film. Oil-modified polyurethane uses various petroleum and mineral solvents as vehicles for polyurethane solids. The clean-up process, too, requires exposure to high-odor hydrocarbon solvents and mineral solvents. Oil-modified polyurethane coatings have advantages like being extremely resistant to abrasion and scratching making them an excellent alternative for wood floors, or any application requiring long-term durability, such as cabinets, handrails, or worktops.

Due to their applications in a wide range of industries, consumer trends, technological advancements, innovation, creativity, and the properties associated, they have a huge demand in the market. During the forecast period, the market is estimated to show significant growth.

Global Oil-Modified Polyurethane Market Drivers:

The extensive application of oil-modified polyurethane in various industries is the major factor driving the market growth.

Oil-Modified polyurethane is used in the building and construction industry for furniture, cabinets, flooring, wood finishing applications, etc. They are durable and are known to give an aesthetic appeal with rich colors. They are used in the electronic industry, packaging, automotive, industrial, and commercial applications as well. Furthermore, they can be used as adhesives, sealants, and coating materials. These factors have paved the way for the market growth significantly.

Advantageous properties of oil-modified polyurethane help to increase the demand.

Oil-modified polyurethane is durable, resistant to heat and chemicals, restorable, flexible, versatile, and water resistant. They are easy to use and provide a smooth finish and help in easy penetration into the wood surface. This helps to bring out an enhanced and bright color of wood finishing in the furniture. Oil-modified polyurethane coatings produce a rich, golden glow giving an amber-like appearance. It's a super-fast-drying clear coat that allows for 2-hour recoats making it a suitable choice for both completed and unfinished wood projects. Moreover, they are available in semi-gloss and gloss form giving a sharp shine as required. Furthermore, they are widely available and easy to use for applications which is a boon to the industry.

Global Oil-Modified Polyurethane Market Challenges:

The most prevalent way of sourcing petroleum-based raw materials like oil-modified polyurethane for polyurethane textiles, is unsustainable due to the depletion of non-renewable resources, the acceleration of climate change, and the environmental degradation generated by mining and processing fossil fuels which can be a major restraint for the market growth. Secondly, they have a high VOC content which can pose a risk to the personnel involved. Thirdly, various rules and regulations are being implemented to limit VOC emissions into the environment. This becomes a major barrier for the manufacturers. Furthermore, landfill and pollution caused cannot be neglected.

Global Oil-Modified Polyurethane Market Opportunities:

There has been a lot of growing awareness to manufacture sustainable products. Green technology is helping to tackle environmental problems by working on environment-friendly products. Secondly, research is being given prominence to search for advancements and products having a lower VOC content in them. Thirdly, Government initiatives and investments are a boon. Furthermore, collaborations between companies for newer products and technologies are presenting the market with an ample number of opportunities.

COVID-19 Impact on the Global Oil-Modified Polyurethane Market:

During the pandemic, social isolation, lockdowns, and mobility restrictions became the new norm. This impeded the supply chain and import-export trade in both directions. Furthermore, workforce scarcity, as well as the closure of industries, manufacturers, and suppliers, resulted in an economic downturn. All of these things had a detrimental impact on the industry. However, following the epidemic, with the upliftment and loosening of norms and restrictions, the business recovered with a significant growth rate.

Global Oil-Modified Polyurethane Market Recent Developments:

• In October 2022, BASF announced a new polyurethane Application development laboratory in Mumbai, India to enhance collaboration with Indian customers from high-growth sectors such as consumer appliances, construction, footwear, furniture, and transportation. The new laboratory will be inaugurated in 2024.

• In June 2022, Covestro, South Korean petrochemical company SK geo-centric, and Neste formed a cooperation to enable the production of a major polyurethane raw material based on renewable raw materials such as waste, residue oil, and fats via mass balance.

• In September 2021, BASF and Sanyo Chemical signed a Memorandum of Understanding (MoU) for collaboration on polyurethane dispersions (PUDs). The collaboration between the two parties was aimed at jointly working on the development and production of new goods with a substantial contribution to sustainability.

• In November 2020, Momentive announced a $13M Investment in Italy to Serve the European Polyurethane Foam Industry aiming for the expansion of the Termoli (Italy) site further solidifying the value chain for in-region polyurethane products.

OIL-MODIFIED POLYURETHANE MARKET REPORT COVERAGE:

Global Oil-Modified Polyurethane Market Segmentation: By Raw Material

• MDI

• Polyols

• Solvents

• Additives

• Others

MDI is the largest growing segment for raw materials. MDI is preferred as a raw material because of its properties like flexibility, durability, adhesion and bonding, chemical resistance, etc. Polyols are the fastest growing owing to weather resistance, compatibility, structure, and tailored properties.

Global Oil-Modified Polyurethane Market Segmentation: By Product

• Adhesive & Sealants

• Wood Finishing

• Custom Made Formulations

• Coatings

• Others

Wood finishing is the largest growing segment because of its extensive use in furniture, interiors, aesthetic appeal, and demand. Coatings are the fastest-growing segment because of their diverse applications in the construction, transportation, and automotive industry. Additionally, properties like being weather resistant and versatility make it a popular choice.

Global Oil-Modified Polyurethane Market Segmentation: By End User

• Building & Construction

• Automotive & Transportation

• Interiors & Furniture

• Others

The building and construction industry is the largest growing segment because of the durability, affordability, sealing, bonding, and flexibility offered. Interiors and Furniture is the fastest growing segment owing to the aesthetic look, environmental factors, cost, protection, and durability. The Automotive and transportation industry has significant growth. Oil-modified polyurethane is used for coating, protection, and sound-dampening properties.

Global Oil-Modified Polyurethane Market Segmentation: By Region

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

North America dominates the oil-modified polyurethane market. USA, Canada, and Mexico are the top leading countries. The demand for wood finishing, flooring, and residential construction is significant in North America thereby leading the market. Additionally, the Do It Yourself (DIY) trend, the presence of large companies, and technological advancements further boost the growth. Asia Pacific is the fastest growing due to rapid economic growth, urbanization, rise in manufacturing companies, emerging markets, quality awareness, and increasing consumer preference. Countries like China, Japan, and South Korea are rapidly growing. Europe is a prominent player in the market as well. Countries like Germany, Italy, and UK have seen significant growth because of the diverse markets, research and innovations, customization, preference for natural and wood finishes, and fine craftsmanship.

Global Oil-Modified Polyurethane Market Key Players:

1. Sherwin-Williams

2. Minwax

3. Duraseal

4. Behr

5. Cabot

6. Bona

7. Vermont Natural Coatings

8. Bona

9. Benjamin Moore

10. Rust-Oleum