The isocyanate market will experience growth of about 6.0% globally. Due to its reactive chemical characteristics and use in the production of adhesives, foams, and elastomers, the global isocyanates market is experiencing consistent demand from the construction industry.
One of the main factors influencing isocyanate sales is the increase in car production in nations like China, Mexico, Japan, the US, and Germany as well as the ageing of vehicles. The industry produces a range of intermediate chemicals which are being used in a wide variety of applications.
A considerable portion of the structured and manufactured goods available are coated, and isocyanates are present in most of the high-quality, long-lasting coatings.
In order to build a sizable customer base and achieve a significant market share in the isocyanates market, producers are being encouraged by the current environment of excessive demand for this futuristic material to increase their investments and broaden their product range.
Methylene Diphenyl Di-isocyanate Gains Traction Within the Global Isocyanates Market
MDI resin holds more than 2/3rd market share of overall sales in worldwide isocyanates industry. With more sealants, adhesives, and elastomers being used, demand for MDI is expected to rise over time.
During the course of the forecast, expanding end-use industries are anticipated to drive the market. The need for energy-efficient buildings, which is the primary driver of the demand for isocyanates, has increased as a result of the energy crisis in rising economies, together with incentives and public policies to support energy-efficient constructions.
Also, booming isocyanate demand in end-use markets is anticipated to fuel the expansion of the worldwide isocyanates market.
Global Isocyanates Market – Enhanced Production Capacity to Act as a Growth Lever
With the exception of MDI, which will need more production capacity by 2020, the supply and demand of some raw materials in the global isocyanates market are largely balanced. A small number of industry behemoths from the chemical industry hold a sizable portion of the market share in the moderately consolidated global isocyanates market. A hurdle to entrance is proprietary technology, but a number of other small- and medium-sized rivals are vying for the top spot through capacity expansion.
A market leader in the isocyanates sector, Vencronex, increased the size of its aliphatic isocyanate factory in Thailand in 2017. In its Ludwigshafen facility in Germany, the global chemical giant BASF increased its capacity for the production of hardeners.
The Isocyanates Market Benefits from the Myriad Applications in the Construction and Electronics Sectors
High demand from current and future applications is one of the factors driving the isocyanate market’s expansion. Constant demand from developing markets is boosting R&D initiatives among rivals.
The need for isocyanate and its derivatives, such as adhesives and coatings, is expected to drive the market. The construction and automotive industries, which account for a considerable portion of the isocyanate industry’s end users, are flourishing.
Consumer markets in rising economies, such as those for construction, automotive, and machinery and electronics, are expected to provide producers and distributors a wealth of opportunities in the future.
Isocyanates Market Industrial Outlook
Isocyanates are a family of highly reactive, low-molecular-weight chemicals primarily used in the production of polyurethane products. They are also used in the production of coatings, adhesives, sealants and elastomers. The global isocyanates market has seen steady growth in recent years, driven by the increasing demand for polyurethane products and coatings from a wide range of applications such as automotive, construction, furniture and packaging.
The automotive industry is one of the major end-users of isocyanates, as it uses them in the production of interior and exterior components such as bumpers, dashboards, doors, and roof liners. The increasing demand for lightweight and fuel-efficient vehicles is further driving the demand for isocyanates in the automotive sector.
In addition, the construction industry is another major end-user of isocyanates, as they are used in the production of sealants, adhesives, and coatings that protect buildings from the elements. The growing demand for energy-efficient buildings is expected to drive the demand for isocyanates in the construction sector.
The furniture industry is also an important end-user of isocyanates, as they are used in the production of foam cushions and mattresses. The rising demand for ergonomic furniture is expected to drive the demand for isocyanates in the furniture sector.
The global isocyanates market is further expected to benefit from the rising demand for bio-based isocyanates. The growing environmental concerns and governmental regulations are driving the demand for bio-based isocyanates, as they are biodegradable and have lower volatile organic compound (VOC) emissions than their synthetic counterparts.
Overall, the global isocyanates market is expected to continue growing in the coming years, driven by the increasing demand for polyurethane products and coatings from various end-use industries. Additionally, the growing demand for bio-based isocyanates is expected to provide a further boost to the market.