MDI, TDI, and Polyurethane Market

Global MDI, TDI, and Polyurethane Market Size (2024 to 2029)

The Global MDI, TDI, and Polyurethane Market was worth USD 7.25 billion in 2023 and is anticipated to reach a valuation of USD 114.11 billion by 2029 and is predicted to register a CAGR of 6.95% during 2024 to 2029.

Current Scenario of the Global MDI, TDI, and Polyurethane Market

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 growing shift towards environment-friendly and high-performance bio-based or renewable solutions is driving the MDI, TDI, and polyurethane market growth.

This transition happened due to the rising emission of important volatile organic compounds (VOC) throughout the manufacturing process which contributes to unusual weather changes and air pollution. Moreover, the mounting 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 factors of the growing industry. Therefore, this increase in environmental pollution by petrochemical-based products in recent times has boosted the market demand for sustainability.

The increase in the number of lightweight, ecological and fuel-efficient vehicles is promoting the consumption of MDI, TDI, and polyurethane products which is surging the market share. Additionally, digital technologies are providing potential opportunities for the polyurethane industry by enhancing its processing and properties and are also ecologically viable. Companies in the market are using predictive tools like big data, reverse engineering and digital twins for polyurethane digitalization.

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.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global MDI, TDI, and Polyurethane Market By Application

The flexible foams segment is expected to grow at the highest rate during the forecast period for the MDI, TDI, and polyurethane market. Its extensive application in several industries is primarily driving the segment’s market growth. Similarly, to boost the production of mobile phones in India, the government decreased the import duty on parts used in its manufacturing i.e. 10 percent from 15 percent. This includes the back cover, middle cover, battery cover, front cover, main lens, GSM Antenna/Antenna of any technology, PU case/sealing gasket, and other goods based on polyurethane such as sealing case or gaskets. In addition, the rising focus on the development of sustainable polyurethane solutions in Asia Pacific, Europe, and the United States is elevating the flexible foam’s market share.

Global MDI, TDI, and Polyurethane Market By End-use Industry

The construction segment is expected to propel at an elevated CAGR between 2024 and 2029 for the MDI, TDI, and polyurethane market.

On the other hand, the automotive segment is also a significant user of polyurethane. It helps in better crash performance and stiffness standards and is especially essential for parts such as headrests to absorb shock. Likewise, the European Association of Manufacturers of Moulded Polyurethane Parts for the Automotive Industry is actively encouraging the mass balance approach for sustainable polyurethane in automobiles. Also, it is aimed at bringing down its carbon emissions in this sector.

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 to 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.

KEY PLAYERS IN THE GLOBAL MDI, TDI, AND POLYURETHANE MARKET 

The major key players of the global MDI, TDI, and Polyurethane Market are the global 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., Karoon Petrochemical Company, Shanghai Hungsun Chemicals Co., Ltd., Hanwha Chemical Corporation, Merck KGaA, KUMHO MITSUI CHEMICALS CORP, Royal Dutch Shell plc, SABIC, Tokyo Chemical Industry Co., Ltd., OCI COMPANY Ltd., Mitsubishi Shoji Chemical Corporation, and others.

RECENT HAPPENINGS IN THE MARKET

• In April 2024, Huntsman introduced the new Shokless polyurethane devices and equipment to assist in safeguarding electric vehicle batteries. The company expanded its battery solutions portfolio by adding a whole range of the latest lightweight, strong and enduring polyurethane foam for fixation and potting of cells mounted in EV batteries.
• In April 2024, Evonik display its newest next-generation sustainable additive product for the polyurethane sector. This shifted its portfolio to solutions based on renewable raw materials.
• In February 2024, BASF press released that it is closing down itsToluene Diisocyanate (TDI) factory in Ludwigshafen (Germany) due to poor economic results and underutilization
• In January 2024, Covestro signed a contract with Encina for the long-term delivery of chemically recycled and round feedstock made from post-consumer end-of-life plastics. Covestro is a high-performance polymer company and Encina is a US manufacturer of ISCC PLUS-certified circular chemicals.

DETAILED SEGMENTATION OF THE GLOBAL MDI, TDI, AND POLYURETHANE MARKET INCLUDED IN THIS REPORT

This research report on the global MDI, TDI, and polyurethane market has been segmented and sub-segmented based on product, type, end-user, and region.

By Application

• Flexible Foams
• Rigid Foams
• Paints & Coatings
• Elastomers
• Adhesives & Sealants
• Others (PUD, RIM, Binders)

By End-use Industry

• Construction
• Furniture & Interiors
• Electronics & Appliances
• Automotive
• Footwear
• Others (Apparel, Marine, Medical, Packaging)

By Region

• North America 
• Europe 
• Asia Pacific 
• Latin America 
• Middle East & Africa