Aromatic Polyester Polyols Market - Size, Industry Share, Growth Trends and Forecasts (2023 - 2031)

By Type :

The type of segmentation is categorized into based on PET, based on phthalic anhydride, and others. In 2022, PET based aromatic polyester polyols accounted for the highest market share in the aromatic polyester polyol market. They are viscous, transparent liquids that can be colorless to light brown. These compounds have high tensile strength, abrasion resistance, and high flame retardancy making them ideal in construction and automotive industries. Moreover, PET based aromatic polyester polyols can be obtained from recycled PET plastics making them cost efficient. Key manufacturers such as Portal Produktowy Group, have successfully manufactured aromatic polyester polyols from recycled PET.

However, phthalic anhydride based aromatic polyester polyols are expected to have the highest CAGR in the forecast year. Phthalic anhydride based polyester polyols are shown to have better performance and enhanced stability as compared to other polyols. Furthermore, these polyols are more resistant to hydrolysis than PET-based polyols. As a result, the better stability and performance of phthalic anhydride-based aromatic polyester polyols are likely to shape the market in the future.

By Application :

The application segment is categorized into flexible foam, rigid foam, coatings, adhesives, sealants, elastomers, and others. In 2022, the rigid foam segment accounted for the highest market share in the aromatic polyester polyols market. Aromatic polyester polyols are a critical component of rigid foams owing to their consistent quality and low additive requirements. These compounds are used to make rigid polyurethane foam which is a vital compound for many industries such as furniture and bedding, automotive, building and construction, packaging, textile, and others. Furthermore, rigid foams provide structural support, soundproofing, and thermal insulation to buildings which makes them a staple in all construction applications. The increasing focus of the companies involved in the production of rigid foam for the development of their business segment is driving the segment growth. For instance, in January 2023, INDEVCO North America acquired Perma R Products. The acquisition expanded INDEVCO Building Products' product offering and distribution of rigid foam insulation and building envelope products across North America. The acquisition also gave INDEVCO access to new customer segments. Moreover, increasing awareness about energy efficiency and sustainability is driving the demand for rigid foams.

However, the aromatic polyester polyol polymers segment is expected to grow at the fastest CAGR over the forecast period. The growing automotive industry is heavily reliant on elastomers based on aromatic polyester polyols. These elastomers are lightweight, easy to process, recyclable, durable, and flexible making them an ideal choice for a variety of industries. As a result, the increasing use of elastomers is likely to shape the market in the forecast year.

By End-Use-Industry :

The end use industry segment is categorized into furniture and bedding, automotive, building and construction, packaging, textile, and others. In 2022, the building and construction segment accounted for the highest market share of 31.73% in the end use industry segment. Aromatic polyester polyols are widely used in the building and construction industry due to their low molecular weight, consistent quality, better cost efficiency, and thermal resistance. Moreover, PU foams made from aromatic polyester polyols are used in the construction industry for insulation, adhesives, sealant, soundproofing, structural stability, and waterproofing. Significant growth in the construction industry is driving the demand for PU foams which is boosting the market growth. For instance, according to a report by the U.S. Census Bureau in 2023, total construction spending during August 2023 was estimated at USD 1,983.5 billion, 7.4 percent above August 2022 at USD 1,847.3 billion. Thus, the growing demand for PU foams from the construction industry is driving the demand for aromatic polyester polyols from building and construction industry across the globe.

However, the automotive segment is expected to grow at the fastest CAGR over the forecast period in the aromatic polyester polyol market. Aromatic polyester polyols are used in automotive applications to improve insulation and are used as adhesives. Increasing automotive production is driving the demand for aromatic polyols from industry. For instance, according to the report by the European Automobile Manufacturers Association in May 2023, in 2022, 85.4 million motor vehicles were produced around the world, an increase of 5.7% compared to 2021. Thus, the growing automotive industry and increasing application of these compounds in automotive applications is expected to boost the market growth in the forecast year.

By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

In 2022, North America accounted for the highest market share at 37.20% valued at USD 447.94 Million in 2022 and USD 470.18 Million in 2023, it is expected to reach USD 713.56 Million in 2031. In North America, the U.S. accounted for the highest market share of 63.03% in the base year 2022. The construction industry in North America is growing rapidly, driven by factors such as population growth, urbanization, and increasing disposable incomes. Increasing investments for the construction of energy efficient buildings are driving the market growth. For instance, according to the United Nations Environment Program in November 2022, the investments in building energy efficiency have gone up by unprecedented levels, rising by 16 percent in 2021 over 2020 levels to USD 237 billion. This growth of the building and construction industry is driving demand for aromatic polyester polyols, which are used in a variety of construction applications, such as rigid foam insulation for buildings and elastomers for roofing and flooring materials.

Furthermore, the Asia Pacific region is expected to witness significant growth over the forecast period, growing at a CAGR of 5.7% during 2023-2031. The significant growth in automotive industries across the region is increasing demand for aromatic polyester polyols. For instance, according to a study by the International Trade Administration of the U.S. in 2023, China continues to be the world's largest vehicle market by both annual sales and manufacturing output, with domestic production expected to reach 35 million vehicles by 2025. Thus, the significant growth in the automotive industry is expected to create opportunities for growth in the aromatic polyester polyols market over the forecast period.