The North America polyols market size is projected to reach USD 6.6 billion by 2025, expanding at a CAGR of 5.6%, according to a new report by Grand View Research, Inc. Rising demand for insulation from various end-use industries such as automotive, construction, and home appliances is expected to drive consumption.
The Rigid Foam Application Segment
The rigid foam application segment accounted for a significant volume share in 2018. The organic compound is used to make rigid foam that offers sound insulation properties, mechanical strength, and thermal resistance. Such rigid foams can survive extreme weather conditions. In addition, it is used to formulate polyurethane adhesives and sealants. Such adhesives and sealants are used in automotive interiors, footwear, construction, and textile lamination applications.
North America is the largest consumer of trim foam, accounting for over 50% of the global market share. The rise in usage of bio-based and green polyols in manufacturing of trim foams is expected to play a major role in driving future consumption.
Investment in Bio-based Polyols
With the green revolution and companies switching to environmentally friendly alternatives, manufacturers have also been investing in the development of bio-based and natural oil-based polyols. The trade tensions between China and U.S. have altered the scenario of polyols in North America and manufacturers have been focusing on production capacity expansions to cater to the growing product demand.
U.S. - Largest Consumer of Polyols
The U.S. is the largest consumer of the product owing to rising demand for polyurethane systems in the construction and automotive industries. The furniture and bedding industry, which is a major consumer of PU foam, has been growing steadily owing to a positive uptick in the housing sector. The implementation of stringent green building regulations, with an enhanced focus on materials, is expected to positively impact the market. The demand for green and bio-based polyols is expected to grow rapidly over the forecast period.
Source: Grand View Research