Global Methylene Diphenyl Diisocyanate (MDI) Market is projected to exhibit a CAGR of over 5.2% during the review period.
Methylene diphenyl diisocyanate (MDI) is an aromatic diisocyanate produced by reacting aniline and formaldehyde using hydrochloric acid as a catalyst. Majority of the MDI produced is used in the manufacturing of polyurethane foam. Hence, the growth of the polyurethane foam market with increasing demand from major end-use industries such as construction, HVAC, and packaging are driving the demand for MDI.
MDI finds use in a wide array of applications apart from polyurethane foam such as adhesives & sealants, coatings, and elastomers. The growth of the global methylene diphenyl diisocyanate market is primarily driven by the growth of the building & construction industry with an increase in residential construction globally. Additionally, increasing commercial construction in the developing markets with the establishment of big retail stores, departmental stores, and malls is likely to drive the growth of HVAC industry and thus, create lucrative opportunities for the players operating in the global methylene diphenyl diisocyanate market.
However, factors such as environmental regulations and fluctuations in raw material prices are affecting market growth.
In the market, MDI is popular by the trade names: Millionate (Tosoh), Rubinate (Huntsman), Suprasec (Huntsman), Isonate (Dow), Papi (Dow), Wannate (Wanhua), and Adwel (Wanhua).
Regulatory, Pricing, and Trade Analysis
The prices for pure MDI increased in 2019 with the increase in the demand across geographies. However, the oversupply of polymeric MDI resulted in decline in prices of polymeric MDI. US-China trade war is one of the prime factors resulting in oversupply as China is the largest exporter of MDI to the US. However, with increase in construction activities worldwide, the demand for MDI is likely to increase.
The overall MDI exported in its primary form increased by around 1.9% from USD 6,548 million in 2019 to USD 6677 million in 2019, whereas total MDI imported increased by around 23% from USD 5,576 million in 2019 to USD 6,869,028 in 2019. The increasing regulations by the regulatory authorities such as the US Environmental Protection Agency, EPA (US), and the European Chemical Agency, ECHA (Europe) regarding use of MDI due to adverse impact on human health when exposed is affecting the market growth.
- Expanding construction industry worldwide particularly with an increase in residential construction worldwide
- Growing automobile production in the developing markets
- Increasing product consumption in the electrical & electronics industry with rising demand for consumer electronics
- Increasing environmental regulations
- Pure MDI: Pure MDI contains 98% 4,4 MDI. It finds use in applications where high reactivity and linearity are required in the formation of hard components in polyurethanes such as thermoplastic polyurethanes, CASE application, and fibers.
- Polymeric MDI: Polymeric MDI is a mixture of MDI and larger molecular weight oligomers of MDI.
- Modified MDI: Modified MDI is used to produce molded foam, adhesives, and elastomers.
- Rigid Foam: Rigid foam was the largest and fastest-growing segment of the global methylene diphenyl diisocyanate (MDI) market in 2019 and is expected to register a significant CAGR during the review period. The growth is attributed to the increasing demand for rigid foam in numerous applications particularly construction and refrigeration.
- Flexible Foam: Flexible foam finds application in bedding, automobile interiors, carpet, and packaging.
- Coatings, Adhesives, Sealants, and Elastomers, CASE: Polyurethane coatings enhance the product’s durability, and adhesives provide strong bonding advantages.
- Others: Others segment accounted for the least share of the global methylene diphenyl diisocyanate market.
By End-Use Industry
- Building & Construction: Building and construction segment accounted for the largest market share in 2019. Expanding building & construction industry with rising residential construction activities is expected to drive the demand for methylene diphenyl diisocyanate (MDI) at a significant rate worldwide.
- Automotive: Automotive segment accounted for the second-largest share of the global methylene diphenyl diisocyanate market.
- Electrical & Electronics: Growing electrical & electronics industry with increasing consumption of domestic appliances is driving the market growth.
- Packaging: Flexible polyurethane foam is being commonly used in protective packaging applications, which is expected to drive the demand for MDI.
- Furnishing and Interiors: The surge in demand for modern furniture as a result of changing living standard and rising per capita disposable income is supporting the market growth.
- Footwear: Rising demand for sports shoes with improved sole is driving the demand for thermoplastic polyurethane and thus, MDI.
- Asia-Pacific: Asia-Pacific was the largest and fastest-growing market for MDI in 2019. Expanding construction industry in India with a rise in both residential and commercial construction coupled with increasing government support for infrastructure development is expected to be the prime factor supporting the market growth in Asia-Pacific. In union budget 2019–2020, the government of India allocated around USD 63.20 billion for the growth of the infrastructure sector.
- North America: The North American methylene diphenyl diisocyanate (MDI) market is driven by the presence of established electrical & electronics and automotive industries and increasing investments in residential construction, particularly in the US.
- Europe: The European market for MDI is likely to grow at a moderate CAGR during the review period owing to slow down in automobile production and construction activities in Western Europe.
- Middle East & Africa: Growth of the construction and automotive industries in the region particularly in Egypt is likely to drive the market growth.
- Latin America: The growth of the methylene diphenyl diisocyanate (MDI) market in the region is primarily fueled by the growth of the automotive industry in Brazil, along with steady economic growth across the entire region.
- Tosoh Corporation (Millionate), (Japan)
- Hexion (US)
- Huntsman International LLC (Rubinate), (US)
- BASF SE (Germany)
- Redox Pty Ltd (Australia)
- Wanhua Chemical Group Co., Ltd (China)
- TCI Chemicals Pvt. Ltd (India)
- Merck KGaA (Germany)
- KUMHO MITSUI CHEMICALS CORP (South Korea)
- DHALOP CHEMICALS (India)
- Dow (Isonate) (US)
Frequently Asked Questions (FAQ) :
The Methylene Diphenyl Diisocyanate market can expand at 5% CAGR by 2025.
By 2027, the Methylene Diphenyl Diisocyanate market value can significantly increase.
Wannate (Wanhua), Isonate (Dow), and Papi (Dow) are some reputed names in the Methylene Diphenyl Diisocyanate market.
The increase in automobile demand can promote the Methylene Diphenyl Diisocyanate market.
Growing environmental regulation can restrain the Methylene Diphenyl Diisocyanate market.