The Global MDI, TDI, and Polyurethane Market was worth US$ 7.25 billion in 2023 and is anticipated to reach a valuation of US$ 114.11 billion by 2029 and is predicted to register a CAGR of 6.95% during 2024-2029.
Market Overview:
Polyurethane is a type of thermoplastic polymer that contains the NHCOO group and is used for insulation basis in the building and construction industry. It is also used in the production of resins for elastomers, fillers, and adhesives. Polyurethanes are fabricated by reacting diisocyanates with polyols and other chemicals. They are produced in both rigid and flexible foam forms and provide the toughness and rigidity of elastomers. Therefore, polyurethanes are used in a wide range of commercial and industrial applications. It is composed of two important raw materials, such as toluene diisocyanate (TDI) and methylene diphenyl diisocyanate (MDI).
According to the industry association Plastics Europe, as a general rule, 6% less weight means an average fuel saving of 4%. Therefore, the use of plastic in the automotive industry is an emerging trend. In the electronics industry, polyurethanes are referred to as potting compounds, which are often used in electronics industries to encapsulate, seal and insulate fragile and pressure-sensitive microelectronic components, submarine cables, and printed circuit boards. These potting compounds are specially formulated by developers to meet a wide range of physical, thermal, and electrical properties. Due to the increasing demand, the polyurethane market is experiencing an upward trend.
Market Drivers:
The increase in the number of light vehicles is promoting the consumption of MDI, TDI, a polyurethane product that is driving the growth of the world market. The increasing demand for bio-based polyurethane is likely to drive market growth in the near future. Growing demand for lightweight and durable products in the automotive and electronics industries is driving the growth of the market. The constant pressure to replace fossil feedstocks with bio-renewable resources helps to provide a sustainable environment, and hence bio-based feedstocks are proving to be one of the main drivers of the growing market of MDI, TDI, and polyurethane during the forecast period.
Market Restraints:
The disposal of polyurethane is proving to be a major concern for environmental agencies, as disposal releases many hazardous compounds into the environment that hamper the market growth. There are factors that are holding back the growth of the MDI, TDI, and Polyurethane markets. Some of them include the growing concern for the environment and the availability of environmentally friendly substitutes like epoxy-based coatings. However, the polyurethane industry continually strives to promote sustainability in business practices and focuses on the development of renewable raw materials for polyurethanes, as well as researching alternative production methods to exclude the use of products—highly toxic and dangerous chemicals. The volatility of crude oil prices, which has pushed up MDI and TDI prices in recent times, has been a key factor hampering the market growth.
Market Opportunities:
The increased energy efficiency requirements are driving the demand for polyurethane materials which are expected to provide several market growth opportunities during the forecast period.
Market Challenges:
The volatility of raw material prices is a challenge for the MDI, TDI, and Polyurethane markets as MDI and TDI are key isocyanates that are used as raw materials for polyurethane. These compounds are highly toxic, and therefore the polyurethane industry is highly regulated and highly dependent on the dynamics of crude oil. The market for a metered-dose inhaler (MDI), TDI, faces a persistent shortage of supply as demand grows at a faster rate than expected. Rising raw material prices for isocyanates resulted in squeezing margins for P.U. Manufacturers, like most of them, have not been able to increase the prices of their end products quickly enough to cope with the rising prices of isocyanates. Another challenge is the disposal of polyurethane which raises environmental concerns due to the emission of hazardous waste. The disposal of polyurethane is proving to be a major concern for environmental agencies, as disposal releases many hazardous compounds into the environment. Polyurethane recycling options are limited and possible only for uncured polyurethanes, while most of them are cured.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023-2029 |
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Base Year |
2023 |
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Forecast Period |
2024-2029 |
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CAGR |
6.95% |
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Segments Covered |
By Application, End-use Industry, and Region. |
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Various Analyses Covered |
Global, Regional and Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities. |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa. |
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Market Leaders Profiled |
BASF SE, Dow, Covestro AG, Huntsman International LLC, Era Polymers Pty Ltd, Shandong INOV Polyurethane Co., Ltd, Kuwait Polyurethane Industries W.L.L, Wanhua Chemical Group Co.Ltd, Tosoh Corporation, Yantai Shunda Polyurethane Co.Ltd., and Others. |
Market Segmentation:
Depending on the application, the rigid foam segment is expected to grow at the highest rate during the forecast period. Rigid foams find uses in a variety of applications, primarily as insulating foams and structural foams in the construction industry.
The footwear segment is expected to grow at the highest CAGR between 2021 and 2026. The lightness, high abrasion resistance, and excellent long-term mechanical properties of polyurethane make it preferable for rugged shoe soles.
Market Regional Analysis:
On the basis of region, North America held the largest market share in 2020 and is expected to show continued regional economic growth during the forecast period.
The Asia-Pacific MDI, TDI, and polyurethane market are expected to grow at the highest rate from 2024-2029 as the countries in this region are expected to experience strong growth in the construction, electronics, and automotive industries; this would lead to strong demand for MDI, TDI, and polyurethane.
Asia-Pacific continues to be the dominant region for growing market demand due to a skilled workforce, easy access to raw materials, and support from local governments. Increasing utilization of the MDI, TDI, and polyurethane is expected to boost the market size. The greatest demand comes from China as it is the largest producer of automobiles, shoes, construction, etc. The rise of construction operations in the Middle East, as the oil company begins to restore its exceptional markets, is also driving the industry. Due to the mild climate, North America and Europe use a lot of insulation to keep them warm during the winter. As the population increases, an increasing number of new buildings are being constructed to satisfy all new visitors to these areas.
Since the COVID-19 virus outbreak, the World Health Organization has declared it a public health emergency. The global manufacturing, tourism, and financial markets, in particular, have been hit hard. The downward pressure on the global economy that once showed signs of recovery in the previous period has increased again, and as a result, the negative global impacts of the coronavirus are already here, significantly affecting the market for MDI, TDI, and polyurethane market.
Market Key Players:
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