MDI, TDI and Polyurethane Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global MDI, TDI and Polyurethane Market is segmented By Type (Toluene diisocyanate (TDI) (2,4-Toluene Diisocyanate, 80/20 Toluene Diisocyanate, 65/35 Toluene Diisocyanate, Modified Toluene Diisocyanate), Methylene diphenyl diisocyanate (MDI)), By Raw Material (Crude Oil, Natural Gas, Benzene, Toluene, Nitric Acid, Methanol, Chlorine, Others), By Application (Polyurethane Foam, Thermoplastic Polyurethane (TPU), CASE (Coatings, Adhesives, Sealants and Elastomers), Others), By End-User (Textile, Footwear, Furniture, Appliance, Automotives, Building and Construction, Healthcare, Others), and By Region (North America, South America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

MDI, TDI, and Polyurethane Market Overview

180 pages report analyses the MDI, TDI, and Polyurethane Market Size, Growth, Trends and Analysis. MDI, TDI, and Polyurethane Market are expected to grow at a CAGR of 5.5% during the forecasting period (2024-2031). Polyurethane is a type of polymer composed of organic units that are joined together via carbamate links. Most of the polyurethane show thermosetting properties, thus do not get easily melt when heated. Asia-Pacific region dominated the global MDI, TDI, and polyurethane market and accounted for the largest market share in the past few years. Competitive rivalry intensifies Huntsman Corporation, Wanhua Chemical Group Co. Ltd, Yantai Shunda Polyurethane Co. Ltd and others operating in the market.

MDI, TDI, and Polyurethane Market Scope and Summary

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Polyurethane offers thermoplastic properties, which impart pliable or moldable properties at a certain temperature and solidify upon cooling. These polymers contain the NHCOO group and are generally used for insulation purposes in construction industries and buildings.

They are made up of two important raw materials- Toluene diisocyanate (TDI), primarily for flexible foam applications, including furniture and bedding, carpets, underlay, and packaging application. TDI is also in great demand in the manufacture of sealants, coatings, elastomers, and adhesives.

Methylene diphenyl diisocyanate (MDI) is the second raw material for polyurethane production. It is used for many key applications, such as manufacturing rigid polyurethane foams used for refrigerators and home insulation. Coating, adhesives, sealants, and elastomers found in paints, glue, and weather-resistant materials is another application impart by MDI in polyurethane.

MDI, TDI, and Polyurethane Market Dynamics and Trends

The global MDI, TDI, and Polyurethane market is majorly driven by increasing demand for polyurethane in some of the key end-users such as automotive, construction, footwear, etc. Growing demand for polyurethane in the consumer sector owing to predominant demand in television, refrigerators, and other consumer electronics. Besides, increased product demand from economically stable countries has built opportunities for the key players to actively pursue R&D to bring the biocompatible product concerning environmental protection rules.

Unprecedented demand for polyurethane from different end-users such as automotive, footwear, construction, and others has created a booming market for the product in recent times.

The predominant usage of MDI, TDI has been seen in the manufacturing of polyurethanes. The range of polyurethane types varies from flexible or rigid lightweight foam to tough or tight foams and stiff elastomers, which allow them to be used for various applications among several end-users. Foams are commonly used to manufacture furniture, automotive seating, and mattresses.

For shoe application, elastomers are used, and rigid foam is related to construction and insulation purposes. Apart from this, polyurethane is in great demand in the plastics, textile, and coating sectors. As mentioned above, all the industries are estimated to grow at the fastest rate due to rapid urbanization and industrialization in economically stable countries, thus directly responsible for upgrading the market of MDI, TDI, and polyurethane in the forecast period.

According to an industry estimate, PU production reached up to 22.3 tonnes and grew at 4.0% during 2016. The market's significant growth is due to low raw material cost and plentiful supply, and steady market growth in regions like Europe and North America.

Continuous advancements in technology lead arrival of polyurethane in the biomedical sector with biocompatible products in the market

Polyurethane covers a huge spectrum of polymers market as it offers a variety of physicochemical, structural, and mechanical properties for a large range of fields. In recent years, with the arrival of the latest technology every year, launch polyurethane for biomedical applications and proliferate in the domain. The biomass currently used has extended the diversity of starting materials to elaborate new bio-based polyurethane with advanced properties such as biotic and abiotic degradation. The current biomass source is polysaccharides such as cellulosic derivative, starch, chitin, animal, vegetable proteins, and molecules produced by microorganisms biotechnology tools.

These PU structures have precise tissue biomimicking properties and are adequate for the proliferation, adhesion, and differentiation of many cell types. New smart shape-memory PUs are adjustable in shape-recovery properties and have demonstrated promising biomedical applications such as wound healing. Thus the arrival of such eco-friendly and recyclable technology has boosted the polyurethane market by getting added into the healthcare sector. The growth of the market is expected to gain momentum in the forecast period.

For instance, in September 2020, Huntsman came up with a recyclable solution- ERIOPON E3 save textile auxiliary for polyester processing. The product came into the market in 2019 and has collectively used 130 million litres of water. This new design is made to overcome some challenges, such as the need for separate pre-scouring, easily allowing pre-scouring, dyeing, and reducing the clearing.

Turbulence in the market, changing the raw material's price, growing side effects, and safety concerns are key challenges.

Polymers are made from petroleum-derived products. The industry is susceptible to turbulence in the crude-oil market, leading to serious product fluctuation. The significant reason behind such price fluctuation is the conflicts between middle eastern countries over the past few years. Thus, increasing raw materials, transportation, and labour cost are currently the major challenges faced by the MDI, TDI, and Polyurethane markets. Also, despite the arrival of the biocompatible solution in the market, several safety concerns regarding each step of polyurethane synthesis remain the same.

Use of phosgene in the synthesis pathway, which is a highly toxic gas at room temperature, discharge of impurities in the prepared polyols and polyisocyanates and remaining unreacted residues in the final product is expected to act as a hurdle as they increase the production steps, thus increase the overall production cost. However, MDI causes skin and respiratory irritation such as asthma and dermatitis in a general production unit. It has affected many of the regular workers daily, thus severely affecting the growth of the market.

COVID-19 Impact on MDI, TDI, and Polyurethane Market

The global MDI, TDI, and polyurethane market has shown a slight decline due to the COVID-19 pandemic since most manufacturing plants were shut for months. Further several countries have restricted production activities during the covid-19 pandemic.

The major lockdown due to the COVID-19 outbreak leads to suddenly dropping down consumers' interest in purchasing any goods and halt in transportation and consumer sectors with severely hampered MDI, TDI and polyurethane market disruption the product's supply chain management. Key players such as Huntsman have shifted their manufacturing units and started bringing disinfectants, sanitisers, and masks into the market, thus hampering their major products.

The majority of the MDI, TDI, and polyurethane market is dependent on other sectors as it does not directly involve the manufacturing or production of end-user products. Rather market supplies raw material required as per the production for other sectors. The majority of businesses are shut down, and operations across several end-users of MDI, TDI, and polyurethane markets such as construction units, automotive, and footwear sectors are currently on halt for an unpredicted period of negative growth in the overall demand of the product.

MDI, TDI, and Polyurethane Market Segmentation Analysis

The global MDI, TDI, and polyurethane market is segmented based on type, raw materials, application, end-user, and region.

Rising demand for polyurethane foam in various applications across different end-users and key properties responsible for cutting down energy costs creates lucrative opportunities for the segment to grow in the upcoming tenure.

In terms of application, the MDI, TDI, and polyurethane market is segmented into polyurethane foam, thermoplastic polyurethane, CASE (coatings, adhesives, sealants, and elastomers), and others. Out of the mentioned segments, polyurethane foam dominates the MDI, TDI, and polyurethane market share. Polyurethane foam can be further segmented into rigid polyurethane foam, flexible PU foam, and spray PU foam.

Spray PU foam is known to create the world's most popular, energy-efficient, and versatile insulations. This foam can significantly drop-down energy costs while making commercial and residential properties more comfortable and efficient at the same time.

The insulation material made up of polyurethane foam provides high strength to weight ratio, moisture resistance and ease to use. Owing to high insulation properties, they are effectively used in roof and wall insulations, doors, insulated windows, and air barrier sealants. Thus this rising demand for commercial and resident buildings is estimated to boost the conjecture period market.

As per the U.S Department of Energy, heating and cooling account for nearly 56% of the energy use in a typical U.S house, making it the largest energy expense for most houses. Therefore to maintain temperature uniformity and lower noise levels in commercial properties and homes, builders prefer to use rigid polyurethane foam and spray foams.

MDI, TDI, and Polyurethane Market Geographical Share

Presence of key players, growing end-user of the product, and leading MDI, TDI, and polyurethane manufacturing countries in the Asia-Pacific region.

Asia-Pacific region dominated the global MDI, TDI, and polyurethane market and accounted for the largest market share in the past few years. The prime cause of the growing demand for MDI, TDI, and polyurethane in the region is leading countries responsible for maintaining the market single-handedly. China is the leader of MDI, TDI, and polyurethane manufacturing. Major players generate their revenue from China due to the high production rate and increasing consumption of the region's products.

The rebound in the Middle East region's construction activities as the oil giants start to revive their sagging economies is also triggering the market of MDI, TDI, and polyurethane in the region. Apart from this growing construction projects, electronics and automotive sectors in countries like India, Japan, and China create opportunities for various key players to target larger end-users.

MDI, TDI, and Polyurethane Market Companies and Competitive Landscape

The MDI, TDI, and polyurethane market is moderately fragmented with the presence of global companies. Some of the key players contributing to the market's growth include Huntsman Corporation, Wanhua Chemical Group Co. Ltd, Yantai Shunda Polyurethane Co. Ltd, Tosoh Corporation, Karoon Petrochemical Company, Hanwha Chemical Corporation, BASF SE, Dow, Du Pont, Mitsui Chemicals Inc., and among others.

The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the MDI, TDI, and polyurethane market growth. However, many key players focused on this market prefer to expand or collaborate with other firms to build their system's revenue.

• In November 2019, Wanhua Chemical Group Co. Ltd announced its business expansion by opening a new manufacturing unit of MDI in North America to target the region's larger end-user base.
• In August 2017, Karoon Petrochemical Company launched Iran's first MDI plant at the euro 350m. The new system is self-sufficient to save the country some US$ 300m annually in import costs

Huntsman Corporation

Overview: The 50 years old chemical company works forms building blocks for uncountable consumers and international products—the company work in a different division in-depth, applying specific chemistries and technologies. Polyurethane, advanced materials, performance products, and textile effects are currently the four domains Huntsman is working on.

Product Portfolio: The company has a product portfolio of MDI, TDI, and polyurethane includes:

• TEROL: The product comes from the polyester polyols' family and is the critical component in the MDI-based polyurethane insulation system production. Insulation products based on TEROL include board stock system (PUR), polyisocyanurate (PIR), spray polyurethane foam (SPF), and pour-in-place applications, which include garage doors, entry doors, refrigerators, coolers, and commercial freezers.

Key Development

• On 21st October 2020, Huntsman corporation opens a new 22,000-ton TEROL aromatic polyester polyols plant in Kuan, Taiwan. The new plant expands Huntsman's downstream polyurethane capabilities in the Aisa-Pacific region and makes the first TEROL plant outside the U.S.