Isocyanate Market Size

The global isocyanates market is expected to show substantial growth, with a projected high Compound Annual Growth Rate (CAGR) of 7.03% during the forecast period from 2018 to 2023. By the end of 2023, the market is anticipated to reach USD 37,906.6 million. Key factors contributing to this growth include the expanding application areas of polyurethane foam, significant industrial growth in emerging markets, and increasing demand for isocyanates in the construction industry. Moreover, the market is likely to be driven by the development of high-efficiency bio-based isocyanates and continuous investment in research and development (R&D) activities.

Despite these positive aspects, certain challenges may hinder market growth in the coming years. Factors such as growing environmental regulations, the availability of isocyanate-free polyurethane foam, and potential issues related to raw material availability and price instability are expected to impact the market adversely.

The global isocyanates market is segmented based on type, application, end-use, and region. In terms of type, it is divided into aromatic diisocyanates and aliphatic, with the aromatic diisocyanates segment holding a significant market share of 91.70% in 2017 and projected to reach USD 34,751.9 million by the end of 2023. The demand for toluene diisocyanate (TDI) and methylene diphenyl diisocyanate (MDI) in various industries, including building & construction, automotive, footwear, and electronics, is expected to be a primary driver for this market segment.

The application segment includes rigid foam, flexible foam, paints and coatings, adhesives and sealants, elastomers, binders, and others. Rigid foam, with a market share of 40.60% in 2017, is anticipated to grow at the highest CAGR of 7.95% during the review period. The increased demand for rigid foam in low and high-temperature insulation applications across construction, refrigeration, and packaging industries is expected to drive this market segment.

Categorizing by end-use, the market includes building and construction, furniture, automotive, electronics, packaging, footwear, and others. The building and construction segment held the largest market share in 2017 and is estimated to reach USD 13,665.3 million by the end of 2023. This is attributed to the rising demand for lightweight and energy-efficient construction materials in response to growing environmental regulations against CO2 emissions. The automotive segment is projected to be the fastest-growing, with a CAGR of 7.59%, driven by the increasing use of isocyanates-based polyurethane foams to meet the demand for energy-efficient vehicles and comply with emission standards set by environmental regulatory agencies.