What is the Thermoplastic Polyurethane Market, and what are its major drivers and challenges?

The Thermoplastic Polyurethane Market refers to the market for thermoplastic polyurethane, which is a highly versatile elastomer that offers a range of mechanical and physical properties, making it useful in various applications such as automotive, medical, electronics, and more. According to a report, the global thermoplastic polyurethane market was valued at USD 2,326.46 million in 2020 and is projected to register a CAGR of over 6.5% by 2026.

The major drivers of the thermoplastic polyurethane market include increasing applications in the medical industry, environment-friendly and recyclable nature, and growth in the construction industry. On the flip side, the declining automotive production in the global market and the negative impact of COVID-19 on the overall market are expected to hinder the growth of the market studied.

Additionally, shifting focus towards the development of bio-based products and increasing R&D activities are likely to create opportunities for the market in the coming years. The Asia-Pacific region is expected to dominate the market and witness the highest CAGR during the forecast period.

One of the key trends driving the demand for thermoplastic polyurethane is increasing demand from extruded products. TPU can be compounded with many materials using the extrusion process, resulting in superior structural integrity, which is required for many industrial applications such as hoses and tubes, belts, electrical wires, medical disposables, and OA equipment connectors.

However, the decline in automotive industry and the temporary shutdown of manufacturing units due to COVID-19 pandemic have affected the demand for extruded TPU products. Furthermore, the global TPU market is affected by China's automobile industry, as it is the world's largest automotive producer. As of 2019, China had produced 25.72 million vehicles, which declined to 25.26 million vehicles in 2020 due to the COVID-19 pandemic, negatively impacting the demand for regional thermoplastic polyurethane market.