Methylene Diphenyl Di-Isocyanate Market - Forecast(2023 - 2028)
Methylene Diphenyl Di-Isocyanate Market Overview
Methylene Diphenyl Di-Isocyanate market size
is forecast to reach US$ 6.1 billion by 2027 after growing at a CAGR of 5.0% during 2022-2027
owing to the growing demand for polyurethane foam
in the construction sector. Methylene Diphenyl Di-Isocyanate (MDI)
is an aromatic diisocyanate reacting with aniline and placing
isocyanate in its fourth position called 4,4’-MDI. It is most often used in the
chemical production of polyurethane
foams widely used as insulators in the construction sector. According to Global Construction Perspectives and Oxford Economics, the
Global construction sector is expected to grow by US$ 8 trillion by 2030 driven by China, the US,
and India. The volume of construction output is forecasted to grow by 85% to
US$15.5 trillion worldwide by 2030, with three countries like China, the US,
and India and accounting for 57% of global growth. It is also used in non-foam applications like paints
and coating, elastomers, and adhesives and sealants, and other related products
which are acting as a driver for the growth of the MDI market during the
forecast period.
COVID-19 Impact
The
Covid-19 pandemic has impacted the global economy directly affecting
the supply chain across the globe and shut down the production facilities to
minimize the risk of virus spread. Currently, due to the COVID-19 pandemic, the
core industries such as the construction, transportation sectors have been
highly impacted. According to the Automotive industry association’s September
2021 outlook, there has been a 7.7% decline in the production of commercial vehicles
and a 24.7declineed in motor vehicles as compared to the September 2020 outlook.
There has been a sharped decline in the revenue of the different industries. The
government and private sectors are taking necessary action to recover the loss of
different industries which will help in the growth of the MDI market.
Methylene Diphenyl Di-Isocyanate Market Report Coverage
The report: “Methylene Diphenyl Di-Isocyanate Market – Forecast (2022-2027)”, by
IndustryARC, covers an in-depth analysis of the following segments of the Methylene
Diphenyl Di-Isocyanate industry.
By Product Type: Pure MDI, Modified MDI, Polymeric
MDI
By Application: Rigid Foam,
Flexible Foam, Coatings, Elastomers, Adhesives, and Sealants, Bumper infill,
Machine Construction, Umbilicals,
Rollers and centralizers, Others
By End-Use Industry:
Transportation (Automotive, Aerospace, Marine, Railways, Others), Building
& Construction (Residential Construction, Commercial Construction, Infrastructure, Others), Energy
(Solar, Wind, Oil & Gas, Others), Footwear, Furniture and Bedding,
Electrical and Electronics, Healthcare, Consumer goods, Packaging, Others
By Geography: North America (USA, Canada, and
Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia,
Belgium, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India,
Australia, and New Zeeland, Indonesia, Taiwan, Malaysia, and Rest of APAC),
South America (Brazil, Argentina, Colombia, Chile, and Rest of South America),
and
Key Takeaways
- The
Asia Pacific is expected to register a CAGR of 6.5% during
the forecast period (2022-2027). The
increasing construction activities in Asian countries such as China, India,
Japan, and South Korea are driving the market demand for Methylene Diphenyl Di-Isocyanate.
- Growing electrical & electronics industry with consumption of domestic appliances like Air Conditioners, Refrigerators, washing machines, kitchen stoves and many more is driving the market growth the methylene diphenyl di-isocyanate market in between the forecast period.
- The growing automotive
sector is helping in the growth of the Methylene diphenyl diisocyanate (MDI)
market due to its usage in Hybrid and Electric Vehicles, Powertrain and
Chassis, Interior & Exterior parts by providing protection, comfort, and
energy conservation
Figure: Asia Pacific Methylene Diphenyl Di-Isocyanate Market Revenue, 2021-2027 (US$ Billion)
Methylene Diphenyl Di-Isocyanate Market Segment Analysis - By Product Type
The Pure
MDI segments accounted for approximately 32% of
the market share in 2021 and is estimated to grow at a significant CAGR during
the forecast period. The increasing demand for pure
Methylene Diphenyl Di-Isocyanate in construction, automotive, paints &
coating are driving the market. The Pure MDI is merged with polyols to
obtain the products like sealants, adhesives, coating, Umbilicals, Rollers and centralizers, Others. According
to British Coatings Federation, In 2019, US$
403.92 billion has been spending in the United Kingdom on paint, printing inks,
and wallcoverings which are widely used in the construction, home improvement,
printing, automotive, aerospace, and other advanced manufacturing sectors are driving
the market for pure Methylene Diphenyl Di-Isocyanate during the forecast
period.
Methylene Diphenyl Di-Isocyanate Market Segment Analysis – By Application
The rigid form
segment accounted for more than 18% of the market share in 2021 and is estimated
to grow significantly during the forecast period. The increasing demand for good thermal insulation and flexibility properties of rigid foams in the manufacturing of refrigerators,
building, and automotive applications, are boosting the growth of the market. The rigid polyurethane foam is also used in insulated panels, wall &
roof insulation, and gap fillers will increase its accessibility in the global
market. According to US International Trade Administration, the U.S. consumer goods market was around US$ 635 billion in 2019. Therefore, the growing demand for
consumer goods will increase the demand for Methylene
Diphenyl Di-Isocyanate during the forecast period.
Methylene Diphenyl Di-Isocyanate Market Segment Analysis – By End-use Industry
The
Construction segment accounted for more than 26% of the
market share in 2021 and is estimated to grow significantly during the forecast
period. According to the Associated General Contractors of America(AGC),
Constructor is a major contributor to the US economy and US$ 1.4 Trillion is invested every year in the
construction industry with an enrollment of 7
million employees. The Polymeric MDIs are
used in manufacturing rigid and semi-rigid polyurethane foam which are widely
used in construction panels, polymeric concrete components, seal nuts, and
other insulating material. Therefore Construction segment will
contribute to the growth of the Methylene Diphenyl Di-Isocyanate Market.
Methylene Diphenyl Di-Isocyanate Market Segment Analysis - By Geography
Asia Pacific region held the largest share in the Methylene Diphenyl Di-Isocyanate market in 2021 up to 38%, owing to the presence of a large amount of construction activity in this region. The growing commercial and presential construction project in the countries like China, South Korea, Japan, and India due to the increasing population driving the market growth in the region. According to Global Construction Perspectives and Oxford Economics, the global construction market is estimated to grow US$ 8 trillion by 2030 driven by China, US, and India. The increasing demand for MDI in Automotive, electronic appliances, furniture, and other are also helping in the growth of the Methylene Diphenyl Di-Isocyanate Market in this region during the forecast period.
Methylene Diphenyl Di-Isocyanate Market Drivers:
Growing Demand for Polyurethane MDI in Automotive
The methylene diphenyl diisocyanate (MDI) is widely used in the Automotive sector as interior parts for cushioning and insulation purposes in headrests, armrests, seats, and others. According to the China Association of Automobile Manufacturers, The production and sales of new energy vehicles have increased to 11.6% from January 2021 to September 2021. Therefore the growing demand for energy-efficient vehicles is driving the Polyurethane MDI during the forecast period.
Increasing demand for MDI in Electrical and Electronic
The Electrical and Electronic sector showed significant growth owing to increase demand for electronic appliances like refrigerators, air conditioners, washing machines, smartphones, television, and many more across the globe. The growing usage of the MDI for Electronic goods production is driving the Methylene Diphenyl Di-Isocyanate market during the forecast period. According to Invest India, the global electronic is estimated at around US$ 2 Trillion and India is the largest contributor holding US$ 118 Billion of Electronic Market and is estimated to reach US$ 125 Billion by 2025. Therefore, the growing electronic market will boost the Methylene Diphenyl Di-Isocyanate market between 2022-2027.
Methylene Diphenyl Di-Isocyanate Market Challenges:
Growing Environment concern due to usage of Methylene Diphenyl Di-Isocyanate
Environmental concern
has always been a major challenge in the Methylene Diphenyl Di-Isocyanate market.
The increasing demand for eco-friendly products is restraining the growth Methylene
Diphenyl Di-Isocyanate market. It is highly toxic to the environment,
especially to aquatic life forms like fish and crustaceans. Excessive exposure to MDI
causes skin & respiratory tract irritation, asthma, and dermatitis, which
is restraining the MDI market during the forecast period. The other factor to
restrain the MDI Market is the increasing price of raw materials like crude
oil. The fluctuation in the prices of raw materials and growing environmental concerns
are restraining the market growth.
Methylene Diphenyl Di-Isocyanate Industry Outlook
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in the Methylene Diphenyl
Di-Isocyanate market. The Major players
in the Methylene Diphenyl Di-Isocyanate market are
- The Dow Chemical Company
- Bayer Material Science
- BASF SE,
- Du Pont de Nemours and Company
- Sumitomo Chemical Co., Ltd.,
- Wanhua Chemical Group Co. Ltd.,
- Jilin Connell Chemical Industry Co. Ltd.
- Huntsman Corporation
- Kumho Mitsui Chemicals
- Tosoh Corporation
- Everchem Specialty Chemicals
- Sadara Chemical Company
- Other Companies
Recent Development
Ø
In December 2020, the first phase of
construction of MDI capacity expansion project
in Geismar, Louisiana has been completed and is into operation and BASF targets
to double the capacity from 300,000 metric tons per year to approximately
600,000 metric tons per year into two phases of construction. The second phase
construction activity is underway is expected to complete by end of 2021
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- 2026)
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