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The Methylene Diphenyl Diisocyanate (MDI) market size is estimated to grow by USD 7.17 billion between 2022 and 2027, exhibiting a CAGR of 4.97%. The market is experiencing significant growth, driven by the increasing demand for Methylene diphenyl diisocyanate (MDI) in emerging economies, particularly in the construction and automotive sectors. The construction industry in these markets is witnessing a surge in demand, fueled by urbanization and infrastructure development. This trend, coupled with the growing automotive sector, is propelling the market forward. As emerging economies continue to develop, the demand for MDI is expected to rise further, presenting lucrative opportunities for market growth and expansion. Additionally, the accelerating demand for rigid foams, which are used in insulation and construction applications, is contributing to market growth, especially in regions experiencing rapid industrialization and urban development.
This report extensively covers market segmentation by End-user (construction, furniture and interiors, electronics and appliances, automotive, and others), Product (rigid foam, case, flexible foam, and others), and Geography (APAC, Europe, North America, South America, and Middle East and Africa).
The construction segment is estimated to witness significant growth during the forecast period. Due to its intrinsic properties such as lightness, strength, durability, and flexibility, MDI is widely used in this sector. It's the best and most efficient insulation agent on the market. It helps fill wall cavities in finished walls without tearing the walls apart. It also provides excellent resistance to air infiltration.
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The construction segment was the largest segment and was valued at USD 7.88 billion in 2017. In the future, it is expected that demand for isocyanate in the construction sector will be driven by an increase in its use in these applications. Furthermore, in the future, there is to be a growing demand for spray PU foam and this will have an increased impact on the production of MDI. The continuous growth of construction projects will boost the growth of the global methylene diphenyl diisocyanate market during the forecast period.
MDI is used to manufacture polyurethane rigid foams with applications in construction, transportation, electronics, and packaging. These foams are used as structural and insulating materials in residential and non-residential construction, including composite panels, insulation boards, and pipe insulation. The global construction industry, mainly in APAC, with China, India, and Japan leading, is expected to drive demand. Rigid foams also serve as excellent insulators in electronic appliances and find use in packaging, automotive, and transportation. The demand for rigid foams is driven by their lightweight nature, strength, thermal capabilities, and energy absorption. These properties make them versatile for various applications, propelling the growth of the global methylene diphenyl diisocyanate market during the forecast period.
APAC is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The major end-user industries of the methylene diphenyl diisocyanate market in APAC include the construction, automotive, and packaging industries. The industries have been flourishing in APAC due to significant economic growth.
Moreover, in countries such as India and China, the growing construction industry will drive the demand for MDI during the forecast period. For instance, in China, the Three George Dam, the South-to-North Water transfer project, and the Beijing Airport expansion are some construction projects that are expected to be completed during the forecast period. Similarly, in India, the construction of Navi Mumbai International Airport in Mumbai, the Chenab River Railway Bridge in Jammu and Kashmir, and the Delhi-Mumbai Industrial Corridor will generate strong demand for MDI. Such factors will increase the market growth in this region during the forecast period.
The market is experiencing significant growth, driven by the automotive industry and construction spending. MDI is commonly used in adhesives, binders, and coatings due to its excellent binding properties. The market is characterized by a blue ocean of opportunities, with companies implementing business/growth strategies to capitalize on this potential. The shift towards Phosgene-free MDI production processes reflects the industry's commitment to sustainability. With increasing consumption and future development prospects, the MDI market is poised for substantial growth in the coming years. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Growing demand for MDI from emerging economies is a key factor boosting market growth. The market is experiencing rapid growth in emerging economies such as China, Turkey, India, Mexico, Brazil, Russia, South Korea, and Indonesia. Many companies are relocating their manufacturing operations to these regions, especially in the Asia-Pacific (APAC) region, due to factors like cost-effective labor, less stringent government regulations, low transportation costs, and inexpensive land availability. This trend is expected to have positive effects on future development prospects, gap fillers, the global construction industry, the industrial chain, industrial coatings, industry trends, insulated panels, and insulation.
Moreover, there has been a significant increase in demand for Polyurethane (PU) products like PU flexible foams and rigid foams in countries like China. APAC has become the largest automobile producer in recent years, with countries like India and China driving the demand for PU products. Brazil has also seen an increase in demand for PU products, particularly for the construction of the Rio Olympics stadium. These factors are expected to boost the use of PU and drive market growth in the forecast period.
Initiatives for the expansion of MDI production capacity is a key trend shaping the market growth. The growing demand for polyurethane products across various end-user industries, such as automotive, furniture, bedding, and construction, is attributable to its enhanced characteristics. The use of MDI as a major raw material for manufacturing polyurethane products has led to a significant increase in its production. Moreover, these end-use industries are highly susceptible to the influence of macroeconomic factors and prone to market volatility, which has influenced the MDI manufacturers to expand or restructure their production facilities.
For instance, in July 2022, BASF announced the expansion of its production capacity for MDI at its Geismar site. The total production capacity will increase to 600,000 metric tons per year by the middle of the decade to support the ongoing growth of its North American MDI customers. Additionally, other major players in Europe are restructuring their production facilities to combat the prevailing uncertainty in the region's economy. Thus, these factors are expected to have a positive impact on the growth of the global methylene diphenyl diisocyanate market during the forecast period.
Stringent shipping regulations for MDI is a restraint faced by the vendors in the market. Strict regulations pertaining to the shipping of MDI (methylene diphenyl diisocyanate) are hindering the growth of the global market. These regulations are particularly stringent in North America and Europe. Global transportation of MDI products is subject to precise requirements outlined in agreements between countries. Regulatory bodies such as ICAO, IMO, DOT, IMDG, and TDG regulations by Transport Canada govern the transportation of hazardous materials. These regulations pose a challenge to the unrestricted movement of MDI products, impacting the growth of the global methylene diphenyl diisocyanate market in the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.
BASF SE - The company offers a wide range of methylene diphenyl diisocyanates, such as monomeric MDI, carbodiimide-modified MDI, and polymeric MDI.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Changzhou JLON Composite Co. Ltd., Chongqing ChangFeng Chemical Co. Ltd, Covestro AG, Dow Chemical Co., Everchem Specialty Chemicals, Gomati Impex Pvt Ltd, Hexion Inc., Huntsman International LLC, Isotherm Puf Panel Pvt. Ltd., Kumho Petrochemical Co. Ltd., Kurmy Corp., Lanxess AG, Redox Ltd., Sadara Chemical Co., Shilpa Chemspec International Pvt. Ltd., Shri Salasar Traders, Tosoh Corp., and Wanhua Chemical Group Co Ltd
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing significant growth, driven by factors such as increased demand from downstream markets like the electronics industry and the construction sector for applications such as decorative coatings, protective coatings, and wall and roof insulation. The market is characterized by a blue ocean market scenario, offering potential risks and opportunities for growth. The Polymeric MDI Segment dominates the market, with rigid PU foam and PU adhesives being key applications. The market is influenced by international trade, with organizations like the International Trade Administration and the Society of Indian Automobile Manufacturers (SIAM) playing a role in shaping market dynamics.
Moreover, in the market, elastomers play a crucial role in various applications due to their flexibility and durability. Isomers of MDI are important as they exhibit different properties that can be tailored for specific applications. The market's competitive situation is influenced by factors such as pricing, innovation, and product quality. Market information, including market revenue and sales, is essential for understanding market trends and making informed decisions. Organizations like OICA (International Organization of Motor Vehicle Manufacturers) can provide valuable insights into the automotive sector, a key consumer of MDI. Polyiso laminate board stock and polyols are important components in the production of MDI, contributing to the overall production value of the market. Qualitative analysis is necessary to assess market trends and consumer preferences. The toxic effects of MDI are a concern, highlighting the need for safe handling practices in the upstream segment of the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.97% |
Market growth 2023-2027 |
USD 7.17 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.02 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
BASF SE, Changzhou JLON Composite Co. Ltd., Chongqing ChangFeng Chemical Co. Ltd, Covestro AG, Dow Chemical Co., Everchem Specialty Chemicals, Gomati Impex Pvt Ltd, Hexion Inc., Huntsman International LLC, Isotherm Puf Panel Pvt. Ltd., Kumho Petrochemical Co. Ltd., Kurmy Corp., Lanxess AG, Redox Ltd., Sadara Chemical Co., Shilpa Chemspec International Pvt. Ltd., Shri Salasar Traders, Tosoh Corp., and Wanhua Chemical Group Co Ltd |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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