Waterborne Polyurethane Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Anionic PUDs, Cationic PUDs, Non-Ionic PUDs, Single-Component Polyurethane, Two-Component Polyurethane, Others), By End User (Building & Construction, Automotive, Electronics & Electricals, Textile, Packaging, Others), By Region and Competition, 2020-2030F

Market Overview

Global Waterborne Polyurethane Market was valued at USD 1.85 Billion in 2024 and is expected to reach USD 2.36 Billion by 2030 with a CAGR of 4.32%. Waterborne polyurethane, a highly versatile material utilized across a wide range of applications, is produced by dispersing polyurethane polymer resins in water. Typically composed of hexamethylene diisocyanate, polystyrene, carbamate, and other chemical components, it is widely recognized for its low volatile organic compound (VOC) content. This characteristic positions it as an environmentally responsible choice for use in water-based paints, coatings, adhesives, and ink binders. The expanding building and construction industry has been a key factor driving growth in the waterborne polyurethane market.

However, the market encountered notable setbacks in 2020 due to the Covid-19 pandemic, which led to raw material shortages, labor mobility constraints, and various operational disruptions. These challenges temporarily hindered industry growth. Encouragingly, by 2021, production activities began to recover as economic stimulus measures and the relaxation of pandemic-related restrictions took effect. This rebound, coupled with renewed momentum in the transportation sector, is expected to further stimulate demand for waterborne polyurethane, setting a positive trajectory for continued market expansion in the years ahead.

Key Market Drivers

Growing Demand of Waterborne Polyurethane from Automotive Industry

Waterborne polyurethane (WPU) plays a crucial and ever-expanding role in the automotive industry due to its unique and exceptional properties. With its excellent abrasion resistance, high flexibility, superior adhesion, and remarkable low-temperature performance, WPU has become the ideal choice for a wide range of automotive applications, including coatings, adhesives, sealants, and elastomers. Automotive coatings, in particular, stand out as one of the primary applications of WPU in the automotive industry. An increase in per capita income, coupled with evolving consumer preferences toward personal mobility, is contributing to the industry's expansion. The anticipated surge in passenger car sales over the forecast period is expected to drive heightened demand for paints and coatings products. These coatings not only enhance the appearance of vehicles but also provide essential protection against the unforgiving elements of the environment, corrosion, and the daily wear and tear of everyday use.

Moreover, WPUs are extensively used as adhesives and sealants in various automotive applications, both inside and outside the vehicle, as well as under-the-hood. The strong bonding and sealing capabilities of WPU contribute significantly to the overall durability, safety, and longevity of vehicles. The demand for waterborne polyurethane in the automotive industry continues to grow, driven by several factors. There is an increasing trend towards lightweight vehicles to improve fuel efficiency and reduce emissions. WPU-based materials, being lighter than their traditional counterparts, align perfectly with this trend, offering a viable solution. In addition, the automotive industry places a growing emphasis on vehicle aesthetics and durability. To support motorcycle manufacturers in their transition toward more sustainable practices, Covestro Taiwan has introduced Bayhydrol dispersions and Bayhydur polyisocyanate crosslinkers, along with a range of waterborne coating solutions. These materials are specifically designed for the development of single- and two-component waterborne polyurethane coatings and are suitable for use across multiple applications, including exterior primers, base coats, topcoats, clear finishes, and various coating layers.

Growing Demand of Waterborne Polyurethane from Construction Industry

Waterborne polyurethane (WPU) plays a pivotal role in the construction sector due to its exceptional properties. It provides excellent abrasion resistance, high flexibility, superior adhesion, and weatherability, making it an optimal choice for various applications within the construction industry, including coatings, sealants, and adhesives. WPU-based coatings are commonly used in construction for flooring systems, wall finishes, and waterproofing applications. They offer a high-quality finish, durability, and protection against environmental factors and wear and tear. In 2024, a research team introduced an innovative crosslinked waterborne polyurethane (CWPU) coating that delivers substantially improved abrasion resistance. The dual crosslinking structure significantly enhances the coating's mechanical strength and wear resistance, marking a notable advancement in performance. These coatings not only enhance the aesthetics of the structures but also contribute significantly to their longevity.

Moreover, WPUs serve as adhesives and sealants in numerous construction applications. They deliver strong bonding capabilities and excellent sealing properties, ensuring the overall durability and integrity of the structures. Whether it is bonding different materials or sealing joints and gaps, WPU-based adhesives and sealants provide reliable performance. Several factors are driving the increasing demand for waterborne polyurethane in the construction industry. There is a growing trend towards green buildings and sustainable construction practices. WPU-based products, with their low volatile organic compound (VOC) emissions compared to solvent-based products, align well with this sustainability drive. Contractors and builders are increasingly opting for environmentally-friendly materials to meet the stringent requirements of green certifications. Rapid urbanization and the subsequent rise in construction activities worldwide are creating a higher demand for construction materials, including WPU. 

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Key Market Challenges

Volatility in Prices of Raw Materials

Waterborne polyurethane is primarily produced using crude oil-derived raw materials, particularly isocyanates and polyols, which are essential to its manufacturing process. Among these, ethylene carbonate is especially prone to frequent price volatility. The cost of these raw materials is closely tied to fluctuations in crude oil prices, which are inherently unstable due to a range of external factors, including geopolitical tensions, natural disasters, economic disruptions, and shifts in production levels by oil-exporting nations.

When crude oil prices rise, the cost of raw materials used in waterborne polyurethane production also increases, resulting in higher manufacturing expenses. On the other hand, during periods of declining oil prices, manufacturers may struggle to promptly adjust their pricing due to factors such as existing inventory levels or fixed contractual obligations. This lag can undermine their competitiveness and erode profit margins.

Key Market Trends

Increased Advancements in Formulations

Waterborne polyurethane (WPU) is widely recognized for its outstanding characteristics, including high flexibility, strong adhesion, and excellent abrasion resistance. Despite these strengths, ongoing efforts by researchers and manufacturers aim to further optimize these properties and extend the application range of WPUs. Historically, 1K solventborne polyurethane coatings were the preferred choice for wood flooring applications. However, the introduction of more stringent volatile organic compound (VOC) regulations, along with growing demand for low-odor solutions, has led to a shift toward 2K waterborne polyurethane coatings. These advanced coatings offer superior performance, including enhanced durability, stain resistance, ease of maintenance, customizable gloss levels, improved adhesion to reactive substrates, and improved aesthetic appeal. This continuous innovation has led to notable advancements in WPU formulations, making them more versatile and effective across a variety of industries.

A key development in this space is the introduction of low volatile organic compound (VOC) WPUs environmentally friendly solutions that meet the rising demand for sustainable materials. The market’s increasing focus on eco-conscious practices has positioned low VOC WPUs as a preferred choice in sectors seeking to minimize environmental impact. In addition, recent improvements in WPU technology have enhanced product performance, particularly in terms of durability, weather resistance, and chemical stability. These upgrades have enabled the use of WPUs in more demanding environments, including construction and automotive applications. The construction sector, in particular, has seen growing adoption of WPU-based solutions due to their resilience under harsh conditions and ability to deliver long-lasting, reliable performance.

Segmental Insights

Product Type Insights

Based on Product Type, Single-Component Polyurethane have emerged as the dominant segment in the Global Waterborne Polyurethane Market in 2024. This is due to its ease of application, cost-efficiency, and strong performance characteristics. These formulations are user-friendly, requiring no mixing before use, which simplifies application processes and reduces labor costs particularly valuable in large-scale industrial and construction projects. Additionally, single-component systems offer excellent adhesion, flexibility, and resistance to abrasion and chemicals, making them suitable for a wide range of end-use industries, including automotive, construction, furniture, and textiles. Their lower volatile organic compound (VOC) content also aligns with increasingly stringent environmental regulations, further supporting their widespread adoption. As industries prioritize operational efficiency and regulatory compliance, the demand for single-component waterborne polyurethanes continues to grow, solidifying their leadership position in the market.

End User Insights

Based on End User, Building & Construction have emerged as the fastest growing segment in the Global Waterborne Polyurethane Market during the forecast period. This is  driven by the increasing emphasis on sustainable development and regulatory compliance. As environmental regulations become more stringent, the demand for low-VOC and eco-friendly materials has surged, making waterborne polyurethanes a preferred choice for coatings, adhesives, and sealants in construction applications. These materials offer excellent performance characteristics, including strong adhesion, durability, chemical resistance, and flexibility, which are essential for both residential and commercial building projects.

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Regional Insights

Based on Region, Asia Pacific have emerged as the dominant region in the Global Waterborne Polyurethane Market in 2024. This is due to a combination of rapid industrialization, expanding construction activities, and strong demand across key end-use sectors such as automotive, textiles, and consumer goods. Countries like China, India, Japan, and South Korea have witnessed substantial infrastructure growth, supported by government investments and urban development initiatives, which in turn have fueled the demand for environmentally friendly and high-performance materials like waterborne polyurethanes.

Recent Developments 

• In September 2024, Covestro introduced a range of innovative adhesive solutions focused on enhancing performance, efficiency, and sustainability. Presented at the 27th China Adhesive and Tape Annual Conference held on September 5 in Hefei, these locally developed products marketed under the Dispercoll U and Dispercoll U PLUS brands aim to facilitate technological advancements across downstream industries through raw material innovation. Responding to the growing demand for lightweight and customized designs in the athletic footwear sector, Covestro unveiled its Dispercoll U high-performance waterborne polyurethane adhesive. Specifically formulated to bond challenging shoe materials, this solution enhances production efficiency while contributing to energy conservation and carbon emission reduction.
• In April 2025, Evonik Coating Additives introduced TEGO Wet 288, an advanced substrate wetting additive specifically engineered to meet the challenges associated with waterborne polyurethane and radiation-cured formulations. In waterborne inkjet inks, TEGO Wet 288 delivers a substantial reduction in surface tension while maintaining long-term performance, surpassing the capabilities of conventional solutions. In radiation-cured inks and varnishes, the additive provides effective surface tension reduction and enhanced wetting, all while preserving critical properties such as reprintability and glueability.
• In March 2024, during CHINAPLAS 2024, BASF introduced a comprehensive photovoltaic (PV) frame solution developed in collaboration with Jiangsu Worldlight New Material Co., Ltd. (Worldlight), a leading global manufacturer of PV composite frames. This innovative frame leverages a cutting-edge combination of polyurethane (PU) composites and a water-borne coating system, achieving an 85% reduction in product carbon footprint compared to traditional aluminum frames. Additionally, the water-borne coating significantly lowers the emission of volatile organic compounds (VOCs) by over 90%, reinforcing the solution’s environmental sustainability.
• In March 2025, Perstorp, a leading global innovator in specialty chemicals and a wholly owned subsidiary of PETRONAS Chemicals Group Berhad (PCG) introduced the Neptem range for alkyds, a portfolio of emulsifier solutions engineered to advance the development of high-performance, low-VOC waterborne alkyds. This initiative aligns with the coatings industry’s broader shift toward environmentally responsible technologies, similar to the growing adoption of waterborne polyurethanes. Both waterborne alkyds and waterborne polyurethanes offer significant reductions in volatile organic compound (VOC) emissions and carbon footprints, making them increasingly attractive for sustainable coatings applications. Perstorp’s innovation supports this transition by enabling formulators to develop eco-friendly coatings with comparable performance to solvent-based systems, reinforcing the industry's commitment to greener solutions.

Key Market Players

• The 3M Company
• Henkel AG & Co. KGaA
• The Dow Chemical Company
• Bayer Material Science Pvt Ltd
• PPG Industries Inc.
• BASF SE
• The Sherwin-Williams Company
• RPM International Inc.
• Lamberti SpA
• Covestro AG

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

• Waterborne Polyurethane Market, By Product Type:

o   Anionic PUDs

o   Cationic PUDs

o   Non-Ionic PUDs

o   Single-Component Polyurethane

o   Two-Component Polyurethane

o   Others

• Waterborne Polyurethane Market, By End User:

o   Building & Construction

o   Automotive

o   Electronics & Electricals

o   Textile

o   Packaging

o   Others

• Waterborne Polyurethane Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Waterborne Polyurethane Market.

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Global Waterborne Polyurethane Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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