Methylene Diphenyl Di-isocyanate (MDI) Market Size
| Study Period | 2019 - 2029 |
| Market Volume (2024) | 8.09 Million tons |
| Market Volume (2029) | 10.46 Million tons |
| CAGR (2024 - 2029) | > 5.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
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*Disclaimer: Major Players sorted in no particular order |
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Methylene Diphenyl Di-isocyanate (MDI) Market Analysis
The Methylene Diphenyl Di-isocyanate Market size is estimated at 8.09 Million tons in 2024, and is expected to reach 10.46 Million tons by 2029, growing at a CAGR of greater than 5% during the forecast period (2024-2029).
The market witnessed growth in 2021 after recovering from the dip caused by the COVID-19 pandemic in 2020. The consumption of MDI increased in various end-user industries, such as construction, automotive, and others. In these end-user industries, MDI is used in various applications, including PU foam, coatings, adhesives, elastomers, and binders.
- Over the short term, the growing demand for PU in insulation in the construction industry is expected to drive the market's growth.
- On the other side, stringent regulations associated with MDI and the toxic effects of MDI may act as barriers to the growth of the market.
- The phosgene-free MDI production process is expected to offer lucrative opportunities for market growth.
- Asia-Pacific dominates the global market, with the most significant consumption in countries like China, Japan, and South Korea. Asia-Pacific is likely to witness the highest CAGR during the forecast period.
Methylene Diphenyl Di-isocyanate (MDI) Market Trends
The Construction Segment is Expected to Dominate the Market
- Construction is the largest end-user industry for the MDI market. MDI is used in various household, commercial, and industrial applications in the construction end-user industry.
- One of the largest applications is the usage of rigid PU foam as wall and roof insulation, insulated panels, and gap fillers for the space around doors and windows. Polyiso laminate board stock, used primarily in roofing and wall insulation, accounts for the majority share of total rigid PU foam in construction applications.
- Some rigid PU foams, such as spray, pour-in-place, and one-component foams, can be applied to seal gaps and cover irregular shapes. The environmental benefits of rigid PU foam are significant, including increased energy efficiency and reduced project weight.
- PU adhesives represent another large market for PU materials in this end-user industry. Owing to their fast cure time, bond strength, and weather resistance, PU adhesives are used in roofing, flooring, wallboard, and window/door installations.
- According to Oxford Economics, the global construction end-user industry will likely reach a value of USD 13.9 trillion by 2037.
- According to the US Census Bureau, construction spending during November 2023 was estimated at a seasonally adjusted annual rate of USD 2,050.1 billion, representing an 11.3% growth over November 2022. This led to an increase in the consumption of MDI across various construction applications.
- According to the National Bureau of Statistics (NBS), in China, the construction industry's business activity index (BASI) rose to 56.9 as of December 2023 from 55.9 in November 2023. The BASI score above 50 indicates growth in the industry; the BASI score for October 2023 was 53.5.
- India's construction industry is projected to reach a value of USD 1.4 trillion by 2025. By 2030, an estimated 600 million people will live in urban centers, resulting in a need for 25 million additional mid- and ultra-luxury units. Under the National Investment Plan (NIP), India has an infrastructure investment budget of USD 1.4 trillion, with 24% of the budget earmarked for renewable energy, roads and highways, and urban infrastructure and 12% for railways.
- Therefore, all the aforementioned factors related to the construction industry are expected to significantly impact the market demand in the coming years.
The Asia-Pacific Region is Expected to Dominate the Market
- The Asia-Pacific region dominates the global MDI market. With the increasing demand from industries such as construction, furniture, electronic appliances, and automotive in countries like China, India, and Japan, the usage of MDI is increasing in the region.
- In the Asia-Pacific region, China is the major market for MDI. MDI is primarily used for polyurethane in China, and the country is the world's largest producer and consumer of polyurethane products.
- According to the International Trade Administration, in terms of annual sales and manufacturing production, China remains the biggest automotive market globally. Domestic production is anticipated to reach 35 million cars by 2025. According to OICA, motor vehicle production in the country reached 30.16 million units in 2023, registering an annual increase of 16%.
- Also, China has the largest market for buildings in the world, making up 20% of all construction investments globally. The country alone is expected to spend nearly USD 13 trillion on buildings by 2030.
- Japan is one of the largest countries in the electronics industry. According to the Japan Electronics and Information Technology Industries Association (JEITA), the production value of the electronics industry in 2023 reached JPY 10.7 trillion (USD 72.32 million).
- India is home to over 2,500 decorative coatings and 800 industrial coatings manufacturers. According to Akzo Nobel India's annual report, the size of the Indian paints and coatings industry is estimated to increase to USD 12.1 billion in the next five years from USD 7.5 billion in 2023. This is further expected to increase the demand for MDI in the country.
- Therefore, all the above-mentioned factors are likely to significantly impact MDI demand in the Asia-Pacific region in the years to come.
Methylene Diphenyl Di-isocyanate (MDI) Industry Overview
The methylene diphenyl diisocyanate (MDI) market is consolidated in nature, with top players accounting for a major share of the market. Some of the key players in the market include Wanhua Chemical Co. Ltd, BASF SE, Covestro AG, Dow, and Huntsman Corporation.
Methylene Diphenyl Di-isocyanate (MDI) Market Leaders
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Wanhua Chemical Co. Ltd
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BASF SE
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Covestro AG
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Huntsman Corporation
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Dow
*Disclaimer: Major Players sorted in no particular order
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Methylene Diphenyl Di-isocyanate (MDI) Market News
- January 2024: BASF SE announced that either with immediate effect or as contract terms allow, it will increase prices for its Lupranate MDI basic products by USD 200 per metric ton in ASEAN and South Asia due to higher raw material prices and continued pressure in the cost of energy and regulatory efforts.
- October 2023: BASF SE announced that its Yeosu site in Korea had successfully produced the first biomass-balanced (BMB) methylene diphenyl diisocyanate (MDI).
- September 2023: Dow announced the opening of a new MDI distillation and prepolymers facility at its world-scale manufacturing site in Freeport, Texas, United States, to replace the company's North American capacity in La Porte, Texas, and supply an additional 30% of product to Dow's customers.
- January 2023: BASF SE broke ground on the third (final) phase of the methylene diphenyl diisocyanate (MDI) expansion project at its Verbund site in Geismar, Louisiana, to increase production capacity to approximately 600,000 metric tons per year by the middle of the decade in order to support the growth of its North American MDI customers.
- July 2022: BASF invested USD 780 million in expanding the MDI plant at its Verbund site in Geismar, Louisiana, increasing its production capacity to 600,000 metric tons per year by the middle of the decade.
Methylene Diphenyl Diisocyanate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Growing Demand for PU in Insulation in the Construction Industry
4.1.2 Expanding Scope of Application
4.2 Restraints
4.2.1 Stringent Regulations Associated with MDI
4.2.2 Toxic Effects of MDI
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Production Process Analysis
4.6 Technology Licensing and Patent Analysis
4.7 Price Trend Scenario
4.8 Regulatory Policy Analysis
5. Market Segmentation (Market Size in Volume)
5.1 Application
5.1.1 Rigid Foam
5.1.2 Flexible Foam
5.1.3 Coatings
5.1.4 Elastomers
5.1.5 Adhesive and Sealants
5.1.6 Other Applications
5.2 End-user Industry
5.2.1 Construction
5.2.2 Furniture and Interiors
5.2.3 Electronics and Appliances
5.2.4 Automotive
5.2.5 Footwear
5.2.6 Other End-user Industries
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 France
5.3.3.4 Italy
5.3.3.5 Russia
5.3.3.6 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BASF SE
6.4.2 Covestro AG
6.4.3 Dow
6.4.4 Hexion
6.4.5 Huntsman Corporation
6.4.6 Kumho Mitsui Chemicals Corp.
6.4.7 Sadara
6.4.8 Shanghai Lianheng Isocyanate Co. Ltd
6.4.9 Sumitomo Chemical Co. Ltd
6.4.10 Tosoh Corporation
6.4.11 Wanhua
6.4.12 Chongqing ChangFeng Chemical Co. Ltd
6.4.13 KAROON Petrochemical Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Phosgene-free MDI Production Process
Methylene Diphenyl Di-isocyanate (MDI) Industry Segmentation
Methylene diphenyl diisocyanate (MDI) is a type of aromatic isocyanate with a wide application base in large-scale commercial and consumer sectors. For the production of MDI, aniline is condensed with formaldehyde to form methylenedianiline (MDA), which is reacted with phosgene to form MDI.
The methylene diphenyl diisocyanate (MDI) market is segmented by application, end-user industry, and geography. By application, the market is segmented into rigid foam, flexible foam, coatings, elastomers, adhesives and sealants, and other applications. By end-user industry, the market is segmented into construction, furniture and interiors, electronics and appliances, automotive, footwear, and other end-user industries. The report also covers the market sizes and forecasts in 16 countries. For each segment, the market sizing and forecasts were made based on volume (kilotons).
| Application | |
| Rigid Foam | |
| Flexible Foam | |
| Coatings | |
| Elastomers | |
| Adhesive and Sealants | |
| Other Applications |
| End-user Industry | |
| Construction | |
| Furniture and Interiors | |
| Electronics and Appliances | |
| Automotive | |
| Footwear | |
| Other End-user Industries |
| Geography | ||||||||
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Methylene Diphenyl Diisocyanate Market Research FAQs
How big is the Methylene Diphenyl Di-isocyanate Market?
The Methylene Diphenyl Di-isocyanate Market size is expected to reach 8.09 million tons in 2024 and grow at a CAGR of greater than 5% to reach 10.46 million tons by 2029.
What is the current Methylene Diphenyl Di-isocyanate Market size?
In 2024, the Methylene Diphenyl Di-isocyanate Market size is expected to reach 8.09 million tons.
Who are the key players in Methylene Diphenyl Di-isocyanate Market?
Wanhua Chemical Co. Ltd, BASF SE, Covestro AG, Huntsman Corporation and Dow are the major companies operating in the Methylene Diphenyl Di-isocyanate Market.
Which is the fastest growing region in Methylene Diphenyl Di-isocyanate Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Methylene Diphenyl Di-isocyanate Market?
In 2024, the Asia Pacific accounts for the largest market share in Methylene Diphenyl Di-isocyanate Market.
What years does this Methylene Diphenyl Di-isocyanate Market cover, and what was the market size in 2023?
In 2023, the Methylene Diphenyl Di-isocyanate Market size was estimated at 7.69 million tons. The report covers the Methylene Diphenyl Di-isocyanate Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Methylene Diphenyl Di-isocyanate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Methylene Diphenyl Diisocyanate Industry Report
The Methylene Diphenyl Di-Isocyanate (MDI) market research offers a comprehensive analysis segmented by application, end-user industry, and geography. The market research provides insights into the market size and market share across various segments, including rigid foam, flexible foam, coatings, elastomers, adhesives and sealants, and other applications. The industry report also delves into the end-user industries such as construction, furniture and interiors, electronics and appliances, automotive, footwear, and others.
The market report highlights the market trends and price trends within the MDI industry, offering a detailed market forecast and market analysis. The industry analysis includes a historical overview and a future outlook, projecting the market growth and industry growth rate over the forecast period. The industry research also identifies the market leaders and provides a market review of their performance and strategies.
The annual report on the MDI market includes industry information and industry statistics, offering a thorough industry overview and market overview. The report example and report PDF are available for download, providing valuable market data and market predictions. The market segmentation and market value are also covered, offering insights into the market dynamics and industry trends.
The industry outlook and market outlook are discussed, emphasizing the key factors driving the market growth and the opportunities within the market. The research companies involved in the study provide detailed industry reports and industry sales data, contributing to a comprehensive understanding of the MDI market. The market forecast and market review sections offer a forward-looking perspective on the market, helping stakeholders make informed decisions.
