Urethane Market Report 2026

The urethane market size has grown strongly in recent years. It will grow from $43.11 billion in 2025 to $45.48 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to expansion of construction and infrastructure development, rising automotive production demand for lightweight materials, growth in furniture and bedding industries, increasing use of conventional solvent-based polyurethane systems, expansion of footwear manufacturing in asia pacific.

The urethane market size is expected to see strong growth in the next few years. It will grow to $56.81 billion by 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to shift toward sustainable and bio-based polyurethane formulations, rising demand for energy-efficient insulation materials, growing adoption of electric vehicle lightweight components, increasing regulatory pressure on low voc and eco-friendly materials, expansion of smart manufacturing and advanced polymer processing technologies. Major trends in the forecast period include shift toward bio-based and low voc polyurethane systems, rising demand for lightweight insulation foams in construction and cold chain logistics, expansion of thermoplastic polyurethane (TPU) usage in footwear and flexible industrial components, increasing adoption of waterborne polyurethane coatings and adhesives across automotive and construction sectors, growing integration of polyurethane materials in healthcare devices, wound care, and medical-grade applications.

The demand for insulation materials in energy-efficient buildings is expected to drive the growth of the urethane market going forward.Insulation materials in energy-efficient buildings refer to a variety of specialized substances and systems designed to minimize heat transfer between the interior and exterior of a structure, thereby improving thermal performance, reducing energy use for heating and cooling, and supporting overall building sustainability.The demand for insulation materials in energy-efficient buildings is increasing as property owners and developers prioritize reducing energy costs by enhancing thermal efficiency and lowering dependence on heating and cooling systems.Urethane supports energy-efficient buildings by acting as an effective insulation material that minimizes heat transfer.It enhances energy savings, improves thermal comfort, and boosts overall building performance.For instance, in March 2025, according to the Department for Energy Security and Net Zero, a UK-based ministerial department, across Great Britain, by the end of 2024, approximately 15.2 million homes (71%) had cavity wall insulation, 17.5 million (67%) had loft insulation, and 876,000 (10%) had solid wall insulation, with around 2.2 million major installations delivered through government-backed schemes.Therefore, the demand for insulation materials in energy-efficient buildings is driving the growth of the urethane market.

Major companies operating in the urethane market are focusing on developing innovative products, such as protective urethane coatings, to improve corrosion resistance and application efficiency in industrial maintenance. A protective urethane coating is a coating formulated with urethane chemistry to provide surface protection, corrosion resistance, and environmental durability. For instance, in January 2024, Carboline, a US-based manufacturer of high-performance coatings and linings, launched Carbothane DTM Mastic, a urethane hybrid coating. The product delivers strong corrosion protection and long-lasting color and gloss retention, even on minimally prepared surfaces. It enables single-coat application under challenging environmental conditions, improving maintenance speed and regulatory compliance outcomes. Its advanced formulation also offers excellent resistance to abrasion, chemicals, and weathering, making it suitable for harsh industrial environments. Additionally, the product supports sustainability goals by lowering volatile organic compound (VOC) emissions and minimizing the overall coating system complexity.

In November 2025, COIM S.p.A., an Italy-based provider of polyurethane resins, coatings, adhesives, sealants, and specialty chemicals, acquired Notedome Ltd. for an undisclosed amount. With this acquisition, COIM aims to strengthen its international presence and expand its product and service capabilities in high-performance urethane systems, particularly within the European elastomers market. Notedome Ltd. is a UK-based provider of polyurethane systems specializing in elastomer formulations for industrial and engineering applications.

Major companies operating in the urethane market are BASF SE, Saint-Gobain S.A., Dow Inc., 3M Company, Henkel AG & Co. KGaA, Sherwin-Williams Company, PPG Industries Inc., Evonik Industries AG, Covestro AG, Sika AG, Mitsui Chemicals Inc., Akzo Nobel N.V., DIC Corporation, LANXESS AG, Huntsman Corporation, UBE Corporation, Stepan Company, Carpenter Co., Woodbridge Foam Corporation, Coim Group, Recticel SA, INOAC Corporation.

Asia-Pacific was the largest region in the urethane market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the urethane market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the urethane market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The urethane market consists of sales of rigid polyurethane foams, flexible polyurethane foams, spray polyurethane foams, thermoplastic polyurethane (TPU), polyurethane resins, polyurethane dispersions, polyurethane prepolymers, and microcellular elastomers. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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