CAGR: 5.8%Current Market Size: USD 28 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The global isocyanates market is expected to grow from USD 28 billion in 2022 to USD 43.9 billion by 2030, at a CAGR of 5.8% during the Projection period 2023-2030. The growth of the isocyanates market is mainly driven by the growing demand for upholstered furniture and other furniture.
When phosgene and amines are combined with water to create molecules that contain the isocyanate group, the result is isocyanate, an organic chemical (-NCO). It is a chemical that is manufactured from crude oil, propylene, toluene, aniline, and benzene as its basic building blocks. Some of the most prevalent isocyanates include aliphatic isocyanates, methylene diphenyl diisocyanate (MDI), and toluene diisocyanate (TDI). They are primarily employed in the production of paints, coatings, sealants, adhesives, binders, and elastomers, as well as polyurethane (PU)-based foams, paints, and foams for application in the furniture, automotive, healthcare, and aerospace industries. Polyurethane polymers are created when isocyanate reacts with alcohol's hydroxyl group, and they are widely used in a variety of end-use industries. Amines are subjected to phosgene treatment in order to produce isocyanates. Due to its highly reactive chemical feature, the construction industry is expected to see an increase in demand, which is expected to be a major driver of global market growth. They are used in the creation of coatings, elastomers, adhesives, and rigid foams. Over the Projection period, it is projected that the potential use of these items in end-use sectors like automotive and electronics would further bolster their global demand. In the automobile sector, they are utilized as car exteriors to reduce vehicle weight and as insulators in the electrical industry. It is projected that the development of bio-based isocyanates will further fuel market expansion globally. In the housing business, isocyanates are widely utilized in paints and varnishes, flooring products, and decorations. Additionally, it is projected that over the course of the projection period, the isocyanate market would grow significantly due to rising demand from the furniture industry for mattress padding and carpet cushions.
Sample Request: - Global Isocyanates Market
Market Dynamics:
Drivers:
Market growth for isocyanates is anticipated to be significantly boosted by the paints and coatings sector. Isocyanates are frequently used in the production of elastomers, paints, and other coatings. Hexamethylene diisocyanate (HDI) and/or isophorone diisocyanate are commonly found in automotive paints. As a result, growing vehicle production is also anticipated to support market expansion. Additionally, isocyanates are employed in the production of flexible and rigid foams, fibres, and primers or adhesives. Methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI) are used as adhesives and sealants because of their weather resistance. Methyl isocyanate (MIC) is more frequently utilized in agriculture since it is used to make pesticides.
Restraints:
It is acknowledged that the use of isocyanates in the workplace poses a number of health risks, including skin irritability, respiratory failure, and chronic asthma exposure. The OSHA Administration has established a permitted exposure limit of 20 ppb for MDI (methyl diphenyl di-isocyanate) and other technical guidelines on exposure management (Occupation Safety and Health Administration). As phosgene is used to make isocyanates, it shows to be bad for the environment and poses serious health risks to people. Isocyanates also pose serious occupational health risks and may trigger asthma, including skin irritation, coughing, wheezing, and chronic exposures. The risks associated with isocyanates to human health and the environment are one of the main concerns preventing further market expansion.
Opportunities:
One of the main reasons influencing the growth of the market is the significant expansion of the automotive sector coupled with the swift industrialization of the entire world, particularly in emerging economies. Additionally, the building industry's widespread use of isocyanate-based goods is accelerating market expansion. Isocyanates have excellent insulation qualities, which is why they are employed as gap fillers around doors and windows and in the form of firm PU foams for insulating panels. To reduce the overall vehicle weight and increase fuel efficiency, they are also employed on the external parts of cars. Another growth-promoting breakthrough is the creation of bio-based variations, among other innovations.
Challenges:
However, being exposed to isocyanates may have a number of negative impacts on one's health. The Indian government claims that the release of MIC caused the Bhopal disaster, which led to the deaths of close to 4000 people. Isocyanate inhalation can result in occupational asthma or respiratory irritation/sensitization in humans. Other issues brought on by isocyanates include gastrointestinal irritation, dermatitis, and irritation of the mucous membranes, eyes, nose, and throat. Additionally, a number of regulatory bodies around the world have placed limitations on the usage of isocyanates. These elements are anticipated to impede market expansion.
Segmentation Analysis:
The global isocyanates market has been segmented based on type, application, end-user, and region.
By Type
The type segment is aliphatic, MDI, TDI, and others. The MDI segment led the largest share of the isocyanates market with a market share of around 45% in 2022. The largest market for isocyanates is MDI. The manufacture of diphenylmethane diamine aniline uses formaldehyde (MDA). MDI is created by MDA to treat phosgene. MDI is mostly used to make stiff foam. MDI is expected to grow quickly in the upcoming years due to its use in coolers, freezers, and the creation of seat and car interiors. Methyl isocyanate (MIC), a monofunctional industrial isocyanate with significant industrial use, is used in the manufacture of pesticides.
By Application
The application segment is flexible foam, adhesives & sealants, rigid foam, paints & coatings, binders, elastomers, and others. The flexible foam segment led the largest share of the isocyanates market with a market share of around 56% in 2022. In the cushioning, bedding, furniture, and packaging industries, flexible foams are frequently employed to support the market expansion of isocyanates. Coatings are used to block UV rays and prevent corrosion.
By End- User
The end-user segment is healthcare, building & construction, automotive, furniture, and others. The building & construction segment led the largest share of the isocyanates market with a market share of around 40% in 2022. The major end-user market for isocyanates is the building and construction sector, where it is employed in a variety of domestic, industrial, and commercial settings. The use of rigid PU foam as wall and roof insulation, insulated panels, and gap fillers for the spaces around doors and windows is one of the most common applications of isocyanates. The market for isocyanates is still primarily driven by the promotion of zero-energy buildings, which also drives the PU industry. There are a lot of buildings in Asia that aren't well insulated, especially in the growing nations of Southeast Asia, China, and India. This shows the enormous growth potential for building thermal insulation materials.
Global Isocyanates Market - Sales Analysis.
The sale of the isocyanates market expanded at a CAGR of 4.8% from 2016 to 2022.
Growing demand for isocyanates in the construction and polyurethanes end-use sectors is driving the growth of the global isocyanates market. For instance, spray polyurethane foam is a specialized packing material and an insulator, and its strong demand in both packaging and building applications globally has fueled the expansion of the isocyanates market. Isocyanates have a global demand in the automobile manufacturing industry since they can be utilized to reduce the weight of a vehicle's bodywork. Automobiles with less weight can reduce pollutants while using less energy. As a result, the worldwide isocyanate market is expanding due to rising demand from the polyurethane and automotive industries, respectively.
Sales of isocyanate are primarily driven by rising car production and vehicle aging in countries like China, Mexico, Japan, the USA, and Germany. The business produces a number of intermediate materials that are employed in numerous processes. Most long-lasting and high-quality coats for the vast majority of the produced and structured goods are covered and contain isocyanates. The current oversupply of this futuristic material motivates companies to increase their spending and diversify their product offerings in order to attract a large customer base and capture a sizeable market share. The potential use of isocyanates in end-use industries is anticipated to play a significant role in the market's future expansion.
Thus, owing to the aforementioned factors, the global isocyanates market is expected to grow at a CAGR of 5.8% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analysed for the isocyanates market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific region dominated the isocyanates market and held a 39% share of the market revenue in 2022.
Global Isocyanates Market - Country Analysis:
Germany's isocyanates market size was valued at USD 2.03 billion in 2022 and is expected to reach USD 3.21 billion by 2030, at a CAGR of 5.9% from 2023 to 2030.
Because end-use sectors like construction, electronics, and automotive are growing. The presence of significant important players will also contribute to the isocyanate market's expansion in the region over the course of the Projection period.
China’s isocyanates market size was valued at USD 2.83 billion in 2022 and is expected to reach USD 4.57 billion by 2030, at a CAGR of 6.2% from 2023 to 2030.
Demand for isocyanates is closely correlated with macroeconomic variables like GDP growth and the acquisition power parity of the region.
India's isocyanates market size was valued at USD 2.1 billion in 2022 and is expected to reach USD 3.37 billion by 2030, at a CAGR of 6.1% from 2023 to 2030.
The growing middle class, rising personal incomes, and increased urbanisation present growth prospects for the polyurethane industry, which is backed by important infrastructure improvements in India.
Key Industry Players Analysis:
To increase their market position in the global isocyanates market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
5.8% |
Market Size |
28 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Type, By Application, By End-User, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Mitsui Chemicals Inc., BASF SE, Bayer Material Science, Covestro AG, Dow Inc., Chemtura Corporation, Wanhua Chemical Group Co. Ltd., Huntsman Corp., and Kumho Mitsui Chemicals Inc. |
By Type |
|
By Application |
|
By End-User |
|
Regional scope |
|
Scope of the Report
Global Isocyanates Market By Type:
Global Isocyanates Market By Application:
Global Isocyanates Market By End-User:
Global Isocyanates Market By Region:
Global isocyanates market is expected to reach USD 43.9 billion by 2030.
The isocyanates market is projected to have a CAGR of 5.8%.
Market growth for isocyanates is anticipated to be significantly boosted by the paints and coatings sector. Isocyanates are frequently used in the production of elastomers, paints, and other coatings. Hexamethylene diisocyanate (HDI) and/or isophorone diisocyanate are commonly found in automotive paints. As a result, growing vehicle production is also anticipated to support market expansion
Leading market players active in the global isocyanates market are Evonik Industries, Mitsui Chemicals Inc., BASF SE, Bayer Material Science, The Dow Chemical Company, Tosoh Corporation, Anderson Development Co., Yantai Sanjiang Chemical Industry Material Co., Ltd., and Huntsman Corporation among others
Political Factors- The objections by pressure organisations, social and environmental activists, and labour unions should be closely examined by the isocyanates market because they are crucial to the formulation of policies. Close cooperation with these organisations may improve the isocyanates market's capacity for community engagement and the accomplishment of long-term business objectives. Additionally, a well-developed governance structure and a democratic political climate improve the business climate for markets like the isocyanates market. The business climate is badly impacted by bureaucracy and corruption. Due to the compromised public trust in commercial organisations and the entire political and economic framework, the isocyanates market's operations are increasingly uncertain in nations with high levels of corruption and lax law enforcement.
Economic Factors- Wage rates and the availability of skilled workers are influenced by the supply and demand of labour. In order to understand how it can attract outstanding individuals and utilise their abilities to boost business performance, the isocyanates market must research and Projection the state of the labour market. isocyanates market can benefit from improved labour productivity when labour markets are open. Operating in restrictive labour markets, however, may result in labour wage challenges as well as other problems brought up by strong labour unions. isocyanates market should carefully assess the availability of competent human capital as well, as a shortage of such workers can have an impact on corporate efficiency and make it more difficult to attract and retain talent.
Social factors- International marketing managers value culture as a key variable. Every civilization has unique norms and values that are crucial in determining how people behave as consumers. isocyanates market should establish local partnerships and teams to better understand local opinions and social mores in order to produce marketing plans that are appropriate for the local environment. isocyanates market also values the observation of social class stratification. isocyanates market will need to use specialist marketing tactics to provide luxury goods at premium pricing to a market where the high-end market is relatively tiny. In areas with limited social class stratification, market segmentation based on social class may also be unsuccessful.
Technological Factors- To understand how new technologies affect the firm's value chain and current cost structure, the isocyanates market must take into account the micro and macro expenditures made by competitors. In a setting where creative disruption is prevalent, research and development efforts are crucial. To maximise revenues in such a situation, the isocyanates market should invest in disruptive technologies and reinvest the proceeds in the development of new disruptive technologies. The adoption of new technology has shortened the lifecycle of developing new products. New products are created swiftly today, and supply chain partners have more clout as well. It puts pressure on isocyanate market to create new goods fast, diversify its product line, incorporate flexibility into the value chain, and cultivate positive commercial relationships with partners in the chain.
Environmental Factors- Some nations provide financial aid to encourage the use of renewable energy sources. To ensure long-term sustainability, the isocyanates market. can profit from it and make investments in renewable technologies. Due to improved brand perception, this investment will also result in higher stakeholder satisfaction and a more extensive consumer base. Weather and climatic changes can have an impact on how effectively businesses operate. For instance, severe weather might raise operating costs and force the isocyanates market to make the value chain more adaptable. These modifications may also affect consumer buying habits, which would need a firm to adjust its product and marketing tactics.
Legal Factors- Consumers' privacy and security concerns have made data protection a crucial issue. To safeguard consumer data, the isocyanates market must research data protection laws. Laws are also in place to limit prices, guarantee a particular level of quality, and shield customers from deceptive marketing promises. For the isocyanates market to be in accordance with consumer protection legislation, certain elements must be taken into account. Regulations governing intellectual property are intended to safeguard businesses' valuable ideas and patents. Losing competitive advantage due to a failure to maintain intellectual property rights may undermine the isocyanates market's position relative to other market participants.
List of Table
List of Figures