Polyurethane Elastomers Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Type (Thermoset Polyurethane Elastomer and Thermoplastic Polyurethane Elastomer), By Application (Automotive & Transportation, Footwear, Building & Construction, Industrial Machinery and Others), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 13.82 Billion
CAGR (2026-2031)	6.06%
Fastest Growing Segment	Automotive & Transportation
Largest Market	Asia Pacific
Market Size (2031)	USD 19.67 Billion

Market Overview

The Global Polyurethane Elastomers Market will grow from USD 13.82 Billion in 2025 to USD 19.67 Billion by 2031 at a 6.06% CAGR. Polyurethane elastomers are resilient copolymers formed by reacting diisocyanates with polyols, effectively bridging the material gap between flexible rubber and rigid plastic through their exceptional elasticity and durability. The market is primarily driven by the automotive sector, which increasingly utilizes these lightweight materials for noise reduction and fuel efficiency, alongside robust demand from the mining and industrial machinery sectors for abrasion-resistant components.

However, the expansion of this market faces a significant challenge due to the volatility of raw material prices, particularly isocyanates, which disrupts supply chain stability and planning. To illustrate the economic magnitude of this sector, according to the American Chemistry Council, in 2024, the polyurethanes industry generated $34.8 billion in output within the United States. This substantial financial footprint highlights the critical industrial reliance on these materials despite the ongoing obstacles posed by fluctuating input costs.

Key Market Drivers

Rising demand for lightweight materials in automotive manufacturing is a primary catalyst propelling the Global Polyurethane Elastomers Market, particularly as the industry shifts toward electric mobility. Manufacturers are increasingly substituting heavy metal components with high-performance polyurethane elastomers in suspension systems, battery enclosures, and interior trims to reduce vehicle weight and extend battery range. These elastomers offer critical vibration damping and abrasion resistance required for modern electric vehicle (EV) architectures. This trend is underscored by the rapid adoption of EVs; according to the International Energy Agency (IEA), April 2025, global electric car sales exceeded 17 million in 2024, with electric vehicles accounting for more than 20% of the global car market. This surge in EV production directly amplifies the need for specialized elastomer solutions that deliver both durability and lightweighting benefits.

The expansion of the global athletic and casual footwear market serves as the second major driving factor, leveraging the material's superior energy return and comfort properties. Polyurethane elastomers are indispensable in the production of shoe soles, providing necessary flexibility and wear resistance that outperform traditional rubber in high-stress applications. This sector's robust activity is evident in recent manufacturing data; according to the World Footwear Yearbook, August 2025, global footwear production increased 6.9% in 2024, reaching 23.9 billion pairs. While footwear and automotive applications dominate, the market is also bolstered by broader infrastructure activities that utilize these materials for sealants and insulation. To this end, according to the U.S. Census Bureau, in February 2025, the total value of construction put in place in 2024 was estimated at $2,154.4 billion, reflecting the immense scale of industrial demand supporting the wider polyurethane ecosystem.

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Key Market Challenges

The volatility of raw material prices, specifically isocyanates, stands as a formidable barrier hampering the growth of the Global Polyurethane Elastomers Market. This price instability creates a highly unpredictable manufacturing environment where producers struggle to forecast operational costs or maintain consistent pricing structures for long-term contracts. When input costs fluctuate drastically, manufacturers are forced to either absorb the financial burden, which significantly erodes profit margins, or pass the costs to end-users, which often reduces demand in price-sensitive sectors like automotive and industrial machinery. Consequently, this uncertainty discourages necessary capital investment and disrupts the continuity of the supply chain, leading to a direct contraction in market output.

The tangible impact of these adverse market conditions is evident in recent production metrics within the broader polyurethane value chain. According to Europur, in 2024, European production of flexible slabstock polyurethane foam fell by 2.7% to 893,200 tonnes. This decline in manufacturing volume highlights how persistent raw material instability and the resulting cost pressures are actively curtailing industry activity and impeding the overall expansion of the market.

Key Market Trends

The expansion of chemical recycling and circular economy initiatives is fundamentally reshaping the market's value chain as manufacturers seek to mitigate the environmental impact of end-of-life elastomers. Unlike mechanical recycling, which often degrades material properties, advanced chemical recycling technologies are being developed to depolymerize polyurethanes back into virgin-quality monomers, thereby closing the loop for high-performance applications. This shift is substantiated by significant industrial investments; according to the European Rubber Journal, December 2024, Covestro announced a double-digit million euro investment to construct a pilot plant in Leverkusen, Germany, designed to chemically recycle elastomer waste with a target of recovering over 90% of the material mass.

Advancements in high-performance thermoplastic polyurethanes (TPU) represent a critical evolution in material science, offering superior processability compared to traditional cast thermoset elastomers. These materials are increasingly favored for their ability to be melt-processed via injection molding and extrusion, which significantly accelerates production cycles while maintaining exceptional load-bearing and abrasion-resistant properties. The market's growing reliance on this versatile material class is evident in production metrics; according to PU Magazine, March 2025, global thermoplastic polyurethane production volume grew by 4.5% in 2024, reaching a total of 1,085,700 tonnes.

Segmental Insights

The Automotive & Transportation sector currently stands as the fastest-growing segment within the Global Polyurethane Elastomers Market. This expansion is primarily driven by the escalating demand for lightweight materials to enhance fuel efficiency and reduce carbon emissions, strictly adhering to global sustainability mandates. Manufacturers are increasingly utilizing polyurethane elastomers for critical components such as suspension bushings, seals, and gaskets due to their exceptional durability and vibration-damping properties. Furthermore, the rapid transition toward electric vehicles amplifies this growth, as these materials allow producers to offset heavy battery weights while maintaining high performance and safety standards.

Regional Insights

Asia Pacific commands the Global Polyurethane Elastomers Market, primarily due to its robust industrial manufacturing ecosystem. The region's dominance is heavily influenced by the footwear sector, where it serves as a global production hub; data from the World Footwear Yearbook indicates that Asia manufactures the vast majority of the world's shoes, creating immense demand for polyurethane soles. Additionally, the flourishing automotive industry drives consumption, with the International Organization of Motor Vehicle Manufacturers (OICA) reporting high vehicle output in China and India, where these elastomers are essential for vibration control components and gaskets.

Recent Developments

• In October 2024, Lanxess entered into a definitive agreement to sell its Urethane Systems business to UBE Corporation for an enterprise value of €460 million. This transaction marked the company's strategic withdrawal from the polymer sector to focus exclusively on specialty chemicals. The divested business unit, which comprises five global manufacturing sites and technical laboratories, specializes in high-performance polyurethane cast elastomers and related systems. The Chairman of the Board of Management of Lanxess stated that the proceeds from the sale would be utilized to strengthen the company’s balance sheet and significantly reduce its net debt.
• In July 2024, Covestro showcased its latest advancements in cast polyurethane elastomers at the UTECH Asia and PU China trade exhibition in Shanghai. The company presented a robust portfolio of elastomer systems tailored for expanding industries such as offshore wind energy, material handling, and electric vehicles. The Head of the Business Entity Elastomers at Covestro emphasized the organization's commitment to delivering solutions that combine superior technical performance with sustainability. The showcased innovations included specialized elastomers for dynamic applications like automated guided vehicle wheels, reinforcing the company's support for industrial automation and renewable energy infrastructure in the region.
• In April 2024, Huntsman launched the SHOKLESS range of polyurethane systems, a new series of encapsulants and potting technologies designed for electric vehicle batteries. These innovative materials were engineered to provide stable elastic performance and structural protection for battery cells across varied operating temperatures. The Global Market Segment Leader for Automotive at Huntsman highlighted that the development addressed critical gaps in the market for lightweight and durable battery protection solutions. This product introduction expanded the company's offerings in the global polyurethane elastomers market, specifically targeting the stringent requirements of the rapidly growing e-mobility sector.
• In April 2024, BASF collaborated with a leading Chinese sports brand to unveil a fully recyclable concept shoe produced entirely from Elastollan thermoplastic polyurethane. This development demonstrated the material's versatility in the polyurethane elastomers market, offering necessary footwear properties such as durability, slip resistance, and comfort while enabling a circular economy model. The partnership aimed to prove the feasibility of manufacturing high-performance athletic footwear that can be completely recycled at the end of its life cycle. By utilizing a single material family, the companies sought to streamline the recycling process and reduce the environmental footprint of footwear production.

Key Market Players

• The Dow Chemical Company
• BASF
• Covestro
• Lubrizol
• P+S Polyurethan-Elastomere
• Tosoh
• Wanhua Chemical
• Huntsman
• Trelleborg
• Blackwell Plastics

By Type	By Application	By Region
Thermoset Polyurethane Elastomer and Thermoplastic Polyurethane Elastomer	Automotive & Transportation Footwear Building & Construction Industrial Machinery and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Polyurethane Elastomers Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Polyurethane Elastomers Market, By Type:

• Thermoset Polyurethane Elastomer and Thermoplastic Polyurethane Elastomer

• Polyurethane Elastomers Market, By Application:

• Automotive & Transportation
• Footwear
• Building & Construction
• Industrial Machinery and Others

• Polyurethane Elastomers Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE