The isocyanate market is anticipated to grow at an exponential rate on account of its increasing demand from end-user industries. Isocyanate chemical is a crucial element in the manufacturing of polyurethanes and other polymers, which are further used in numerous industries. It is a synthesized chemical that is formed by treating amines by phosgene. The global production of polyurethanes is growing at a rapid pace, further driving the demand for isocyanates during the forecast period.
Isocyanates polymers are available in the rigid and flexible forms that can be used directly in the end-products. They are extensively used in the automotive and furniture industry for bedding purposes. Changing consumer lifestyles and increasing purchasing power are driving the demand for cars and aesthetic furniture, which is further surging the demand for isocyanate.
As the construction industry is witnessing tremendous growth, there is a surge in demand for various products across the globe. Isocyanate is extensively used in several construction products due to its unique properties. The ever-growing population, rising standard of living, and increasing consumer spending power drive the market growth. Flexible polyurethane foam is a popular material used for cushioning of furniture and beds.
Isocyanates are a critical raw material in the building and construction industry as they are used in the manufacturing of flexible and strong polyurethane foams. The key players prefer polyurethane over other materials due to the high-performance and versatility of the product. The U.S. Environmental Protection Agency (EPA) has approved the use of cured polyurethane, i.e., non-toxic, further fostering the market growth. The below-mentioned info-graph depicts the value of the U.S. residential construction work done in the period 2015–2020. (in USD million)
As per the above statistics, in the U.S., the value spent on residential construction in 2019 accounted for USD 5,28,328 million and reached USD 5,89,103 in January 2020. Increasing construction activities is expected to influence the demand for isocyanate for the production of various materials. Additionally, isocyanate is used in the manufacturing of polyurethane binders and elastomers that have a wide variety of properties, which is expected to fuel market growth.
In the past few years, the demand for consumer electronics witnessed a significant surge across the globe. Rising consumer income and increasing adoption of the latest technology are strengthening the global electronics sector. The market’s most prominent driver is the continuous innovation and development of new products by key market players. Isocyanate is a crucial component used in the manufacturing of several electronic appliances. The most common use of rigid polyurethane is in the thermal insulation systems of refrigerators and freezers.
As per the U.S. Department of Energy, heating and cooling appliances account for almost 56% of the U.S. home energy use, making it the largest expense for households. To maintain the energy ratings, the manufacturers are adopting rigid polyurethane for greater insulations in home and commercial appliances. The use of polyurethane helps saving energy costs while making the residential and commercial properties attractive and efficient.
Prolonged exposure to isocyanate during various occupational activities can lead to several health complications. Thus, it is paramount to protect the health of the workforce and maintain safety standards while working with such toxic chemicals. The workforce involved in spray painting and coatings is potentially at a higher risk of developing respiratory issues. Isocyanates are volatile and are known to cause various lung problems, further hampering the market growth.
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 for the production of rigid polyurethane foams. MDI is used to manufacture rigid polymers that are extensively used in industries as adhesives, elastomers, sealants, insulations, glues, and footwear.
MDI is a key component used in the manufacturing of sports and recreational products, such as skis, snowboard surfaces, skateboards, ski google frames, ski boots and bindings, and archery targets. In the U.S., the number of snow sport visits witnessed a sudden hike in 2018 of about 59.5 million, from the previous year’s record, i.e., 53.2 million, as per the data published by the National Ski Areas Association. Thus, increasing tourism and ski activities provide an impetus to the segment growth. The below-mentioned info-graph depicts the estimated share of isocyanate in various applications for the forecast year 2020–2029.
Asia-Pacific is anticipated to witness the fastest growth in the isocyanate market on account of rapid industrialization, particularly in China and India. Rapidly expanding end-user industries, such as construction, electronics, and automotive, in emerging countries such as Taiwan, Vietnam, Thailand, China, Indonesia, and India are boosting the demand for isocyanate in the region.
Against the backdrop of favorable government regulations, several multinational companies have established their facilities in the region. Additionally, the large presence of key participants in the region drives the market growth. The below-mentioned info-graph depicts the estimated market potential for the regions during the forecast period, 2020–2029.
Europe is expected to have a lucrative growth in the isocyanate market on account of growing automobile production and presence of leading automakers. Isocyanate coatings provide excellent abrasion resistance and help in retaining the shine of the vehicles. Additionally, it is used to enhance the appearance and the lifespan of the vehicle. The new passenger car registrations in the European Union (E.U.) in October 2018 accounted for over 930,094 units and reached 962,777 units by November 2018.
The use of isocyanate in coatings and adhesives offers a broad range of benefits to the products. As per the European Automobile Manufacturers Association (ACEA), in 2019, the demand for new passenger cars increased by 1.5%, with around 1.3 million registrations across the European Union.
|Market Size||USD in Billion By 2030|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Type (Toluene Diisocyanate, Methylene Diphenyl Diisocyanate), Application (Polyurethanes, Polymers), End-User|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||Asahi Kasei Group, Stahl Holdings B.V., BASF SE, Hebei Cangzhou Dahua Group Co. Ltd, Bayer MaterialScience, Chemtura Corporation, Yantai Wanhua Polyurethanes Co. Ltd., Mitsui Chemicals Inc, Dow Chemical Company, Vencorex Chemicals, Evonik Industries, Huntsman Corporation, Kumho Mitsui Chemicals Inc|
|Key Market Opportunities||Rapid Growth In Speciality Chemicals Industry Enhances Isocyanate Market|