TPU market grows, but TPE challenge pressing

Less affected by the economic crisis than other segments of the polyurethane industry, the TPU market continued its strong growth in 2024 and expects moderate success this year, according to IAL Consultants.

In a report entitled Global Overview of the Thermoplastic Polyurethane Market, the company found that global TPU production increased by 4.5% to reach 1.09MT in 2024. Extrusion and injection moulding remained the dominant segments, together accounting for more than 80% of total production. Adhesives and coatings saw moderate growth, while 3D printing remained a niche segment with minimal change.

Total TPU consumption last year was 1.1MT and demand this year is expected to slow to 2.5%, as economic and political issues limit consumption growth to 1.4%. The biggest consumption growth in 2024 was in coatings grades.

Asia Pacific remains by far the largest TPU producer globally, with 78% of global production taking place in this region. Indeed, a fair percentage of the 2.5% demand growth this year comes on the back of China’s production recovery. Western Europe remains the second largest producing region, followed by North America. 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 most raw materials are manufactured by a limited number of companies.

The future growth of TPU is highly dependent on innovation, claims the report. More specialised grades are needed to offer enhanced solutions; an example is 3D printing which, while gaining market share, is still limited to a niche application by a lack of materials on the market, making extrusion grades commonplace in this arena.

There is also 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 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, improved chemical and light stability, enhanced microbial resistance and 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 led in terms of 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 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.