Home Speciality Chemicals Isocyanate Market Size, Share Report, 2031

Isocyanate Market

Isocyanate Market Size, Share & Trends Analysis Report By Type (Toluene Diisocyanate (TDI), Methylene Diphenyl Diisocyanate (MDI), Monomeric MDI, Polymeric MDI), By Application (Polyurethanes/ Polymers), By End-Users (Electronics, Automobile, Building and Construction, Aviation, Bedding and Furniture) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRSC969DR
Study Period 2020-2032 CAGR 7.8%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 31.5 billion
Forecast Year 2032 Forecast Year Market Size USD 62.0 billion
Largest Market Asia-Pacific Fastest Growing Market North America
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Market Overview

The global Isocyanate market was valued at USD 31.5 billion in 2023. It is estimated to reach USD 62.0 billion by 2032, growing at a CAGR of 7.8% during the forecast period (2024–2032).

Isocyanates are a class of highly reactive compounds with the isocyanate functional group (NCO). They are distinguished by a -NCO group, composed of a nitrogen atom, a carbon atom, and an oxygen atom linked by a triple bond (-N=C=O). Isocyanates are essential in manufacturing polyurethane, a flexible polymer with several industrial applications.

The isocyanate market share is expected to expand exponentially due to increased demand from end-user industries. The isocyanate chemical is an important component in producing polyurethanes and other polymers employed in various industries. It is a synthetic chemical produced by treating amines with phosgene. The global manufacturing of polyurethanes is increasing rapidly, driving demand for isocyanates over the predicted period.

Market Dynamics

Market Drivers

Growing Residential Construction

As the construction sector proliferates, there is an increase in demand for a wide range of items worldwide. Isocyanate's unique qualities make it widely used in various construction goods. The market's expansion is driven by an ever-increasing population, improved living standards, and more consumer buying power. Flexible polyurethane foam is a popular material used to cushion furniture and beds. Isocyanates are an essential raw material in the building and construction since they produce flexible and robust polyurethane foam. The top players prefer polyurethane to other materials because of its excellent performance and versatility.

Furthermore, the residential building industry in the United States is anticipated to contract by 12.6% in 2023. However, in December 2023, single-family dwelling completions increased by 8.4% over the revised November rate. In November 2023, single-family home starts increased by 18% to 1.143 million units, the highest level since April 2022. According to ConstructConnect, the United States will spend approximately USD 15 million on residential buildings in 2023. As of November 2023, the US Census Bureau anticipated construction spending would be USD 2,050.1 billion on a seasonally adjusted basis. This is 0.4% above the revised October forecast of USD 2,042.5 billion. 

As a result, increased construction activity is projected to influence demand for isocyanate in manufacturing diverse materials. Furthermore, isocyanate produces polyurethane binders and elastomers with various characteristics, projected to drive market expansion. The rising construction sector will likely contribute to a significant isocyanate market trend.

Market Restraints

Growing Health Concerns

Growing health concerns about isocyanate exposure have become a significant limiting factor for industry expansion. Isocyanates are known to pose health concerns, primarily through inhalation or skin contact, prompting increased regulatory scrutiny and the development of safer alternatives. Workers in industries that employ isocyanates, such as Construction, manufacturing, and automotive, may experience health concerns due to exposure. Isocyanates may cause breathing problems, skin irritation, and allergic responses. According to the Occupational Safety and Health Administration (OSHA) in the United States, isocyanate exposure can result in occupational asthma, which has been designated as a severe health risk. This realization has resulted in more stringent workplace exposure limits and safety measures. 

As a result of the health and environmental consequences of isocyanates, regulatory authorities worldwide, including the European Chemicals Agency (ECHA) and the United States Environmental Protection Agency (EPA), have put rigorous regulations on their usage. As of August 24, 2023, any user of diisocyanate at concentrations greater than 0.1 percent must complete and document the training. Furthermore, the European Union's REACH law contains steps to limit and monitor the use of isocyanates. This regulatory system seeks to protect human health and the environment by requiring authorization for specific isocyanate usage.

Market Opportunity

Diversifying Applications

Isocyanates have applications in the electronics sector, particularly in manufacturing protective coatings, adhesives for electronic components, and insulation materials. In recent years, global demand for consumer electronics has increased significantly. Rising consumer incomes and increased use of cutting-edge technologies are boosting the worldwide electronics industry. 

According to Statista, consumer electronics retail sales in the United States are predicted to total USD 485 billion by 2023. OLED TVs are estimated to earn USD 2.3 billion in revenue, compared to USD 1.5 billion for portable gaming consoles. From January to June 2023, the worldwide consumer electronics segment recorded a 5% gain in sales revenue and a 3% increase in units sold over the same time last year. This growth was driven mainly by smart audio and high-end components such as tuners, amplifiers, and receivers. Isocyanate is a critical component used in the production of many electronic devices. The most prevalent application for rigid polyurethane is in the thermal insulation systems of refrigerators and freezers.

Furthermore, isocyanates can be investigated for usage in the healthcare industry, such as manufacturing medical-grade adhesives, coatings for medical devices, and specialty materials for healthcare purposes. Isocyanates can also be employed in the renewable energy sector, helping to produce materials for wind turbine components and energy storage systems. Isocyanates are utilized in wind turbine components, including the mixing ratio of two elements to create a polyurethane binder. According to the International Energy Agency (IEA), global renewable energy capacity will increase by 50% in 2023, reaching almost 510 gigawatts (GW). This is the most significant absolute rise ever. According to the IEA, onshore wind capacity additions are forecast to increase by 70% in 2023 to 107 GW, setting a new record. As a result, expanding the uses of isocyanates beyond traditional sectors creates new market potential. 

Regional Analysis

Asia-Pacific Dominates the Global Market

The global isocyanate market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global isocyanate market shareholder and is estimated to grow at a CAGR of 8.0% over the forecast period. Asia-Pacific is expected to experience the fastest growth in the isocyanate market due to rising industrialization, particularly in China and India. Construction, electronics, and automotive industries are rapidly increasing in growing countries such as Taiwan, Vietnam, Thailand, China, Indonesia, and India, driving up demand for isocyanate.

In Japan, polyurethane production is increasing. Increased polyurethane manufacturing and demand from the construction, automotive, and furniture industries are expected to boost the growth of isocyanate. Sales of new automobiles in Japan fell to 4.2 million in 2022, the lowest level since 1977, as the global semiconductor shortage persisted. In addition, the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association reported that 4,201,321 new cars were sold in the country in 2022.

Last year, the Indian automobile industry saw its most significant annual domestic passenger vehicle sales. In 2022, the country sold 3.793 million (37.93 lakh) units, a 23.1% increase over the previous year. Furthermore, by 2030, India might be a leader in shared transportation, opening up prospects for electric and driverless vehicles. The Indian government wants the vehicle sector to generate USD 8-10 billion in domestic and foreign investment by 2023. Thus, Asia-Pacific is expected to dominate the market over the forecast period. 

North America is anticipated to exhibit a CAGR of 7.9% over the forecast period. This is the outcome of more excellent regulatory action by organizations such as the EPA due to the severe effects of MDI and TDI on the environment and human health. Furthermore, the U.S. isocyanates market had the most significant market share, followed by Canada. The isocyanate market was the fastest expanding in North America. The construction industry significantly contributes to the US economy, shaping communities and infrastructure. In 2022, the US construction market was estimated to be worth USD 2.1 trillion. The market is expected to rise by 3% between 2024 and 2027, owing to increasing investments in transportation, housing, energy, and manufacturing. These factors are projected to propel the market in the area.

Europe's isocyanates market held a sizable market share, according to isocyanate market insights. This is owing to weak growth in end-use industries and stringent environmental requirements. The construction sector in Europe is predicted to slow in 2024, following zero growth in 2023. In 2022, the consumer electronics market in Europe earned a total sale of US$987 billion, a 4.4% decrease from the previous year. Between January and June 2023, the TV sector's income fell 15% compared to last year. As a result, these factors will indirectly affect the regional market.

Report Scope

Report Metric Details
By Type
  1. Toluene Diisocyanate (TDI)
  2. Methylene Diphenyl Diisocyanate (MDI)
  3. Monomeric MDI
  4. Polymeric MDI
By Application
  1. Polyurethanes/ Polymers
By End-Users
  1. Electronics
  2. Automobile
  3. Building and Construction
  4. Aviation
  5. Bedding and Furniture
Company Profiles Asahi Kasei Corporation Metsui Chemicals America, Inc. Evonik Industries AG LANXESS DowDuPont, Inc. Tosoh Corporation Covestro AG BASF SE Wanhua Chemical Group Co. Ltd Huntsman International LLC Vencorex Cangzhua Dahua Group Co. Ltd Komho Mitsui Chemicals Corp China National Bluestar (Group) Co., Ltd Anderson Development
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global isocyanate market is segmented based on type, application, end-user, and region.

The market is further segmented by type into Toluene Diisocyanate (TDI), Methylene Diphenyl Diisocyanate (MDI), Monomeric MDI, and Polymeric MDI.

Methylene Diphenyl Diisocyanate (MDI) accounts for the largest share of the market.

Methylene Diphenyl Diisocyanate (MDI)

The methylene diphenyl diisocyanate (MDI) segment is projected to witness the fastest growth in the isocyanate market as it is the most commonly used chemical to produce rigid polyurethane foams. MDI is used to manufacture rigid polymers extensively used in industries as adhesives, elastomers, sealants, insulations, glues, and footwear.

MDI is critical in manufacturing sports and recreational products, such as skis, snowboard surfaces, skateboards, ski Google frames, ski boots and bindings, and archery targets. In the U.S., According to the National Ski Areas Association (NSAA), the 2022-2023 ski season saw a record 64.7 million skier visits, up 6.6% over the previous season. Thus, increasing tourism and ski activities propel the segment's growth.

Monomeric MDI

Monomeric MDI is the single-unit version of Methylene Diphenyl Diisocyanate. A chemical molecule containing two isocyanate groups can react with polyols to produce polyurethane products. Monomeric MDI is frequently employed in applications requiring precise polymerization process control. Its qualities make it ideal for creating adhesives, sealants, and coatings, providing a balance of reactivity and flexibility in the finished product.

By application, the segment can be further bifurcated into Polyurethanes/ Polymers.

Polyurethanes/ Polymers command the highest share of the market.

Polyurethanes/ Polymers

Polyurethanes are a type of polymer generated by the interaction of isocyanates with polyols. This reaction produces various compounds with variable characteristics, making polyurethanes versatile. Polyurethanes/ polymers are further segmented into Foams, Paints and Coatings, Adhesives and Sealants, Elastomers, and Electrical Insulation. Among these sub-segments, foams dominate the market. The widespread use of flexible foams in the cushion, bedding, furniture, and packaging industries is expected to bolster the isocyanates industry. Coatings protect against corrosion and ultraviolet light. The widespread use of adhesives and sealants, such as wood rocking glue, is expected to drive market expansion over the projection period.

Based on end-users, the market is sub-segmented into electronics, automobiles, building and Construction, aviation, bedding, and furniture.

Building and Construction generate the most revenue in the market.

Building and Construction

In 2023, the building and construction category dominated the isocyanate market. Isocyanates are primarily employed in the building and construction industries for various residential, industrial, and commercial applications. Rigid PU foam is one of the most often used isocyanates for insulation in walls, roofs, insulated panels, and gaps around doors and windows. Coatings and adhesives extend the life of construction components, while sealants protect effectively from environmental influences. Isocyanates are essential in guaranteeing energy efficiency and durability in the construction industry.


The electronics sector uses isocyanates to make coatings, adhesives, and insulating materials. Isocyanate-based coatings defend against environmental conditions, increasing the longevity of electronic components. Adhesives containing isocyanates serve an essential function in bonding and assembling electronics. Isocyanate-based compounds also help to insulate electrical components, which ensures their reliability.

Market Size By Type

Recent Developments

  • December 2023- Asahi Kasei and an affiliated company obtained the widely recognized international sustainability certification ISCC PLUS1 for several additional products, including thermoplastic elastomer (TPE), styrene-butadiene rubber (SBR), butadiene rubber (BR), polyethylene (PE), polyvinylidene chloride (PVDC), polyphenylene ether (PPE), polyamide (PA) compounds, and styrene monomer.
  • December 2023- Mitsui Chemicals, Inc. (Tokyo: 4183; President & CEO: HASHIMOTO Osamu) developed the Diffrar™ array of polymer wafers for waveguides in augmented reality (AR) glasses. The company aims to expand into the augmented and virtual reality markets.
  • January 2024: Evonik attained ISCC PLUS sustainability certification for specialty chemical production in Essen.

Top Key Players

Asahi Kasei Corporation Metsui Chemicals America, Inc. Evonik Industries AG LANXESS DowDuPont, Inc. Tosoh Corporation Covestro AG BASF SE Wanhua Chemical Group Co. Ltd Huntsman International LLC Vencorex Cangzhua Dahua Group Co. Ltd Komho Mitsui Chemicals Corp China National Bluestar (Group) Co., Ltd Anderson Development Others

Frequently Asked Questions (FAQs)

How big is the Isocyanate Market? The global Security as a Service Market size was valued at USD 31.5 billion in 2023. It is estimated to reach USD 62.0 billion by 2032, growing at a CAGR of 7.8% during the forecast period (2024–2032).
The global Isocyanate Market size was valued at USD 31.5 billion in 2023. It is estimated to reach USD 62.0 billion by 2032, growing at a CAGR of 7.8% during the forecast period (2024–2032).
Asia-Pacific region has the highest growth rate in the Isocyanate Market.
Growing residential construction are the key drivers for the growth of the Isocyanate Market.
The key players in the global Isocyanate Market include Asahi Kasei Corporation ,Metsui Chemicals America, Inc. ,Evonik Industries AG ,LANXESS ,DowDuPont, Inc. ,Tosoh Corporation ,Covestro AG ,BASF SE ,Wanhua Chemical Group Co. Ltd ,Huntsman International LLC ,Vencorex.

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