Polyurethane Leather Market size is expected to reach USD 100 Billion by the end of 2036, growing at a CAGR of 8% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of polyurethane leather was over USD 40 Billion. With the rise in popularity of electric vehicles in recent years, the automobile sector has experienced rapid expansion in recent years.
Some of the key trends affecting the automobile industry are the decrease of harmful emissions to protect the environment, the improvement of safety and comfort, and the combination of more affordable and fuel-efficient vehicles. In 2022, 57 million passenger vehicles were made globally.
In addition, synthetic leather's ability to regulate temperature well, provide exceptional comfort, and be easily styled has led to its growing popularity in the fashion industry. In addition, top fashion labels' investments in the creation of artificial leather clothing and shoes, along with rising consumer demand, will accelerate industry expansion in the years to come.
The negative environmental implications of producing natural leather are increasingly known to consumers because of several online and social media efforts. As a result, customers are becoming more inclined to select natural leather substitutes to contribute to environmental protection.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
8% |
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Base Year Market Size (2023) |
USD 40 Billion |
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Forecast Year Market Size (2036) |
USD 100 Billion |
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Regional Scope |
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Application (Footwear, Furnishing, Automotive, Bags & Shoes, Clothing, Electronics, Sports)
In polyurethane leather market, footwear segment is poised to account for more than 30% share by the end of 2036 due to a variety of interrelated variables, a combination of artistic, ethical, and economic factors contribute to its dominance.
For shoe manufacturers, synthetic leather is an economical option that combines affordability, style, and quality in a seamless manner. Its innate resilience is crucial because it bears the strains of regular use while maintaining its shape and aesthetic appeal over time. Its prominence in the footwear sector is further reinforced by the fact that synthetic leather may be personalized. Worldwide, 23.9 billion pairs of shoes were made in 2022.
Type (PU, PVC, Bio-Based, Microfiber)
In polyurethane (PU) leather market, PU segment is estimated to account for more than 28% revenue share by the end of 2036. PU-based synthetic leather is the most widely used type in the synthetic leather market, with applications in clothing, footwear, furnishings, automotive, bags, purses & wallets, and other end-use industries.
Its versatility, affordability, durability, and environmental benefits further contribute to its popularity. Synthetic leather based on polyurethane (PU) has a long lifespan since it can tolerate wear and tear. Its appeal is further boosted by ethical and environmental concerns, as it supports sustainable and cruelty-free options.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Application |
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APAC Market Forecast
By the end of 2036, Asia Pacific region is expected to account for more than 32% polyurethane leather market share, due to a confluence of industrial, cultural, and economic factors. Urbanization and rapid economic expansion have changed lifestyles and increased consumer spending, which has increased demand for synthetic leather garments, purses, and shoes. India is a profitable market for the selling of synthetic leather because it is one of the world's biggest producers of shoes.
Growing population and rising per capita income would propel shoe sales, which in turn will increase demand for polyurethane leather in the Indian footwear sector. With a budget of USD 390 billion, the Indian government has started "the Indian Footwear, Leather and Accessories Development Programme (IFLADP)". Through this program, the government will create plans for human resource development and offer financial support in places where modernizing industrial units is required.
North American Market Statistics
By the end of 2036, North America region in polyurethane (PU) leather market is anticipated to account for more than 27% revenue share owing to the rise in electric mobility. Furthermore, it is anticipated that rising government support in the form of advantageous programs and regulations will boost market demand.
The newest technologies, such as ADAS, cater to the growing consumer preference for safety and comfort aspects in cars. Additionally, the USA Artificial Leather market was the fastest-growing in the region and had the biggest market share.
Author Credits: Smruti Ranjan, Rajrani Baghel
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