Polyols Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type (Polyether Polyols, Polyester Polyols, and Others), By Application (Flexible Foam, Rigid Foam, CASE, and Others), By End-Use Industry (Construction, Automotive, Furniture, Electronics, and Others) and Region

Polyols Market size was valued at US$ 23,278.1 million in 2023 and is expected to grow at a CAGR of 5.7% from 2024 to 2030. Polyols are versatile compounds with multiple hydroxyl groups, primarily used to produce polyurethanes. These materials are crucial in various industries, including construction, automotive, furniture, and electronics. The increasing demand for polyurethane foams in insulation and comfort applications is a key driver for the market. In 2022, the global polyurethane market, which heavily relies on polyols, highlighting the significant demand for these materials. The construction industry's expansion, particularly in developing countries, fuels the demand for rigid polyurethane foams used in insulation, further boosting the market.

The growing automotive industry, especially in emerging economies, contributes significantly to market growth as polyols are used in car seats, headrests, and other interior components. Technological advancements in bio-based polyols, driven by sustainability concerns, are opening new opportunities in the market. However, volatility in raw material prices, particularly propylene oxide, and environmental regulations regarding the use of certain chemicals in polyol production may pose challenges to market growth. The Asia Pacific region held the major market share in 2023 and is expected to dominate the global market in the forecasted years. This dominance is driven by rapid industrialization and urbanization in countries like China and India, coupled with significant growth in end-use industries.

Polyols Market Key Developments

In 2022, BASF SE introduced a new polyether polyol, Sovermol® 1102, designed for use in cast elastomer applications. This product aims to:

• Improve the performance of polyurethane systems
• Offer enhanced hydrolysis resistance
• Provide a more sustainable option with its partly bio-based content

In January 2023, Covestro AG announced the successful start-up of a new world-scale plant for polyether polyols in Brunsbüttel, Germany. This development:

• Increases the company's annual production capacity by 400,000 metric tons
• Strengthens Covestro's position in the European polyols market
• Supports the growing demand for energy-efficient insulation materials