MDI, TDI and Polyurethane Market is forecast to reach $7 billion by 2024, after growing at a CAGR of 5% during 2019-2024. Increasing demand in the automotive, construction, and electronics industries for lightweight and durable products is projected to increase the overall market growth during the forecast period.
Report Coverage
The report: “MDI, TDI and Polyurethane Market – Forecast (2019-2024)”, by IndustryARC, covers an in-depth analysis of the following segments of the MDI, TDI and Polyurethane Market
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Key Takeaways
- Asia-Pacific dominates the MDI, TDI, and Polyurethane Market owing to strong growth in major end-use industries leading to increasing consumption from countries such as India, China.
- Growing demand for bio-based polyurethane is likely to drive the market growth in the near future.
- The disposal of polyurethane demonstrates to be one of the major concerns of environmental agencies, as the disposal releases many dangerous compounds into the environment which hinders the market growth.
- Furniture and construction industries are the fastest-growing end-use industries in the market.
Application - Segment Analysis
Flexible foam segment held the largest share in the MDI, TDI, and Polyurethane Market in 2018. Due to the increasing use of polyurethanes in several end-use industries as a cushioning material for furnishings, bedding and mattresses, seating and other soft products. The building and construction industry is the largest consumer for polyurethane foam. With an increasing amount of building codes promoting energy-efficient buildings, home builders and consumers are moving gradually towards construction strategies that deliver long-term efficiency and energy savings. According to the Department of energy, heating, and cooling costs account for 48% of the energy consumption in a typical U.S. household.
End-Use Industry - Segment Analysis
The construction industry dominates the global market as these thermoplastics are used on a very large scale in the construction industry for insulation and flooring & roofing applications. Emerging nations such as India, South Africa, Thailand, and others are the significant players in the construction use of these plastics. Further, the furniture segment follows the construction industry, where it is used for bedding, seating, upholstery, and others. Increased living standards have resulted in an enhanced preference for luxury furniture, creating new opportunities for the market. Another prominent industry is the electronics where polyurethane is used in cables, circuits, and sensors, etc.
Geography - Segment Analysis
Asia-Pacific continues to be the dominant region for growing market demand due to skilled labor, easy raw material accessibility, and local government support. Further strong growth from various end-use sectors, including construction, automotive, mining, footwear, and so on, which is further fuelling the demand for polyurethanes. APAC is the largest producer of automotive with a share of 55% in the global automotive market in 2018. Major demand is coming from China as it is the largest producer of automotive, footwear, construction, and so on.
Innovative schemes in nations such as India's "Make in India" or Thailand's "Favorable Buyers" accelerate demand for these plastics. Asian-Pacific region is followed by South American countries with steady growth in recent years, majorly in the automotive sector. According to OICA, APAC automotive sales witnessed a growth of over 6.52% during 2012-2018, with South East Asian countries having huge potential to grow.
Drivers – MDI, TDI and Polyurethane Market
- Growing demand for lightweight and durable products in the automotive and electronics industries.
The ease of molding, combined with polyurethanes strength, durability and lightweight, making them ideal for use in all important areas of manufacturing automobiles. According to Plastics Europe industry association, a rule-of-thumb is that 5% less weight means average fuel savings of 3%. Hence, using plastic in automotive is an emerging trend.
In the electronics industry, polyurethanes are referred to as potting compounds which are frequently used in electronic industries to encapsulate, seal and insulate fragile, pressure-sensitive, microelectronic components, underwater cables, and printed circuit boards. These potting compounds are specially formulated by developers to meet a diverse range of physical, thermal, and electrical properties. Due to the increasing demand, the market for polyurethane is experiencing an upward trend.
- Bio-based feedstock to replace the fossil-based feedstock with their enhanced mechanical characteristics.
The constant thrust to replace fossil-based feedstock with bio-renewable resources helps in providing a sustainable environment and hence, bio-based raw materials prove to be one of the important drivers for the growing MDI, TDI, polyurethane market during the forecast period. Furthermore, the bio-PUs provide good shape memory properties at body temperature and cytocompatibility. Therefore, this bio-PUs are promising for applications in biomedical fields.
Challenges – MDI, TDI and Polyurethane Market
- Volatility in raw material prices
MDI and TDI are key isocyanates used as raw materials for polyurethane. These compounds are highly toxic, and hence polyurethane industry is highly regulated as well as heavily dependent on crude oil dynamics. The market for MDI, TDI is facing persistent supply shortages while demand is growing at a faster rate than expected. Higher raw material prices for Isocyanates resulted in compressed margins for P.U. Manufacturers, as most were unable to raise their end-product prices quickly enough to match the upward movement in isocyanate costs.
- Disposal of polyurethane propels environmental concerns due to the emission of hazardous waste.
Disposal of polyurethane proves to be one of the major concerns for the environmental agencies, as the disposal emits a lot of hazardous compounds into the environment. Recycling options for polyurethanes are limited and are possible only in the case of uncured polyurethanes, while most of them are cured.
Market Landscape
Product &Technology launches and R&D activities are key strategies adopted by players in the MDI, TDI, and Polyurethane Market. In 2018, the market of fuel additives had been consolidated by the top five players accounting for xx% of the share. Major players in the MDI, TDI and Polyurethane Market are Arian Polyurethane Jsc, BASF SE, Chematur Engineering Ab, Chemtura Corporation, Coim S.P.A, Covestro AG, E.I. Du Pont De Nemours & Company, Foamex Innovations, Hebei Cangzhou Dahua Group Co. Ltd, among others.
Product & Technology Launches
- In February 2018, BASF presented its latest developments regarding Elastopan® (P.U. systems) and Elastollan® (TPU) with an international expert team at SIMAC, the international machinery and technology trade fair for footwear in Milan.
- In May 2018, pushing the limits of cast Polyurethane, Covestro developed a dedicated Desmodur® system with outstanding performance in terms of wear resistance. The Desmodur® MDQ75164 systems show excellent behavior in regards to the properties expected in the demanding mining applications.
