TAGS: Architectural Coatings Automotive Coatings Polyurethane Coatings
The global Diphenylmethane Diisocyanate (MDI) market size was USD 28.26 billion in 2021 and is expected to register a revenue CAGR of 5.1 percent during the forecast period, according to latest analysis by Emergen Research.
The growing adoption of diphenylmethane diisocyanate in the construction industry is the key factor driving market revenue growth.
Rising Trend for Phosgene-free MDI Production
In addition, rising trend to produce phosgene-free MDI or non-toxic phosgene is expected to drive revenue growth during the forecast period. The strategy is to create a non-toxic phosgene-free alternative production process for Methyl Diphenyl Diisocyanate (MDI). Phosgene-free MDI helps to support government health-related standards. Some of the companies are producing climate-friendly MDI and introduced it to the market.
For instance, in February 2022, German multinational chemical company BSAF introduced Lupranat ZERO, which is climate-friendly diphenylmethane diisocyanate. The product is useful for production of rigid polyurethane foam and as thermal insulation in the construction industry.
The rising growth of the construction sector across the world creates high demand for MDI, which is used to produce rigid polyurethane foam and has a wide application in the construction industry. It is used in insulated panels, roof installation, and filling gaps around windows and doors.
The rigid polyurethane foams, such as spray, pour-in-place, and one-component foams, can be used to fill gaps and cover complex shapes. The rigid polyurethane foam has significant environmental benefits including increased energy efficiency and lower construction load.
The construction industry is booming across the world, especially in the U.S., China and India. According to research, the global construction industry will expand to USD 15.5 trillion by 2030 and added USD 900 billion to the U.S. economy in first three months of 2020. China, the U.S. and India are leading the way, accounting for 57 percent of global growth.
Key Highlights from Report
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The adhesive and sealant segment is expected to register a steady revenue growth rate over the forecast period due to increasing demand for Diphenylmethane Diisocyanate (MDI) for production of adhesive and sealant. MDI is widely used for production of adhesive and sealants that are useful for industrial and other applications. For example, Covestro, a chemical company produces an aromatic polyisocyanate prepolymer DESMODUR E 210, which is MDI-based and applied in reactive adhesives and sealants for various applications in furniture and construction.
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The furniture & interiors segment revenue is expected to increase at a steady rate over the forecast period due to the rising demand for diphenylmethane diisocyanate in furniture and interiors MDI is used for production of flexible foams that are applied in various furniture and interior applications. Flexible foam is a cushioning material used to manufacture upholstered furniture that is fashionable and durable. It is a good flame retardant that is ideal for mattresses, pillows, couches, chairs, and other home or office furniture cushioning.
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The North America market is expected to register a steady growth rate during the forecast period due to rising adoption of diphenylmethane diisocyanate in construction and automotive applications. Rising growth of automotive and construction sectors in countries across the region, especially the U.S., is creating ample opportunities for the market. According to research, the construction industry added USD 900 billion to the U.S. economy in the first three months of 2020.
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Some major companies in the global market report include BASF SE, Dow Chemical Company, Huntsman Corporation, Covestro AG., Everchem Specialty Chemicals, Wanhua Chemical Group Co., Ltd., Kumho Mitsui Chemicals, Lanxess AG., Tosoh Corporation, Hexion Inc., and TCI Chemicals (India) Pvt. Ltd.
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On 24 February 2022, Covestro AG, chemical company based in Germany launched climate-friendly diphenylmethane diisocyanate. The new MDI grades have a wide range of applications in construction, cold chain and automotive industries. Covestro's climate-neutral MDI helps to reduce embodied carbon and energy consumption over a building's life cycle. The use of PU insulating materials made from it in new buildings and renovations of older real estate can thus contribute greatly to responsible use of primary resources and reduction of CO2 emissions.
Source: Emergen Research