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Methylene Diphenyl Di-isocyanate (MDI) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Global Methylene Diphenyl Di-isocyanate (MDI) Market was accounted for 6,919. 13 kilo metric tons in 2021 and is expected to grow with a CAGR of 5. 17% during the forecast period (2022-2027).
New York, April 27, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Methylene Diphenyl Di-isocyanate (MDI) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06249237/?utm_source=GNW
The market has seen growth in 2021 after the recovery from 2020 due to the COVID-19 pandemic. Considering the post-COVID-19 lockdown scenario in 2021, the consumption of MDI has increased from various growing end-user industries, such as construction, electronics and appliances, automotive, and others. The construction industry is the prime application sector for methylene diphenyl di-isocyanate (MDI), around the globe. In these end-user industries, MDI is used in various applications, including, PU foam, coatings, adhesives, elastomers, and binders.
Key Highlights
Over the short term, growing demand for PU in insulation in the construction industry and expanding the scope of application in various end-user industries are expected to drive the market’s growth.
On the flip side, stringent regulation associated with MDI and toxic effects of MDI may act as barriers to the growth of the market studied.
Phosgene-free MDI production process is expected to offer lucrative opportunities to the growth of the market.
Asia-Pacific dominated the market across the world with the largest consumption from countries, such as China, Japan, and South Korea.
The Asia-Pacific region dominated the market across the world and is also likely to witness the highest CAGR during the forecast period.
Key Market Trends
Construction Segment to Dominate the Market
Construction is the largest end-user industry for the MDI market, where it is used in various household, commercial, and industrial applications.
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 can be applied to seal gaps and cover irregular shapes. Such foams include spray, pour-in-place, and one-component foams. The environmental benefits of rigid PU foam are significant and include increased energy efficiency and reduced project weight. Given the widespread use of rigid PU foam in construction, these savings are multiplying at an increasing rate, worldwide.
Protective coatings are one of the most popular applications of PUs in building and construction. They are used in the production of wood floors, basements, buildings, bridges, and many other commercial and consumer products.
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. PU sealants, including sealants for expansion joints, basement and driveway sealants, and energy-efficient windows also come under notable applications.
PU elastomers are employed in the construction of running tracks and thermal breaks in metal frame windows.
PU binders are used to bind reconstituted wood products into oriented strand board (OSB) products, which are used as structural panels for construction
High insulation demand for high energy levels is currently driving demand for polyurethanes. Insulation made of polyurethane is one of the most effective ways to achieve great energy efficiency and zero emissions.
The global construction industry was valued at about USD 12 trillion in 2019, registering a growth rate of about 4%, compared to the previous year. The value of the global construction industry had declined in 2020, as construction activities were temporarily paused during the government-imposed lockdown to curb the spread of new COVID-19 cases. However, in 2021, the global construction industry has picked up pace and is expected to continue the same momentum in the coming years.
For instance, according to the National Bureau of Statistics of China, the China’s construction industry has been continuously expanding, with total output accounted about CNY 25.9 trillion in 2021. The construction industry in China recorded more than CNY 29 trillion in output in that year, owing to growing urbanization.
Moreover, in the United States, according to the United States Census Bureau, the total new construction put in place was valued at about USD 1,469 billion during the year 2020, registering a growth rate of 4.9% compared to the USD 1,391 billion in 2019. Moreover, in 2021, according to the US Census Bureau, construction spending amounted to USD 1,590 billion, witnessing a growth rate of 8.2% compared to 2020, thereby, increased the consumption of MDI from various construction applications.
Therefore, all the aforementioned factors from construction industry are likely to significantly impact the demand for the studied market, through the years to come.
Asia-Pacific Region to Dominate the Market
Asia-Pacific region dominated the global market share. With the increasing demand from the industries, such as construction, furniture, electronic appliances, and automotive in countries, such as China, India, and Japan, the usage of MDI is increasing in the region. In Asia-Pacific, China provides the major market for the MDI of the regional market. MDI is primarily used for polyurethane in China and the country is the world’s largest producer and consumer of polyurethane products.
China is the largest manufacturer of automobiles in the world. The country’s automotive sector has been shaping up for product evolution, focusing on manufacturing products to ensure fuel economy while minimizing emissions, owing to the growing environmental concerns.
The automotive production in the country increased from 25.225 million vehicles in 2020 to 26.08 million vehicles in 2021. Moreover, the production increased by 1% compared to 25.75 million vehicles produced in 2019. The increase in automotive production compared to pre-COVID-19 levels has been supporting the growth of the MDI market.
China is the largest manufacturer and consumer of electric vehicles. In 2019, there were 1.2 million new electric vehicle registrations, up by 3% compared to 2018. However, it was very low compared to the growth rate of more than 75% for the past four years. About 2,000 fuel cell electric vehicles (FCEVs) will be on the road by the end of 2019.
According to the National Development and Reform Commission of China, the Chinese government approved 26 infrastructure projects at an estimated investment of about USD 142 billion in 2019, which are expected to be completed by 2023. The growing infrastructure investment and building of complex structures are expected to drive the market. Also, the country has the largest building market in the world, making up 20% of all construction investment globally. The country alone is expected to spend nearly USD 13 trillion on buildings by 2030.
According to the National Bureau of Statistics of China, the construction industry value added in 2020 is around CNY 7,244.47 billion. Eight cities and provinces announced their investment budgets worth USD 4.8 trillion. Another eight provinces said they would invest up to CNY 2.79 trillion in total.
According to China’s five-year plan unveiled in January 2022, the construction industry in the country is estimated to register a growth rate of 6% in 2022.
China is the largest base for electronics production in the world. Electronic products, such as smartphones, TVs, wires, cables, portable computing devices, gaming systems, and other personal electronic devices recorded the highest growth in the electronics segment. The country serves domestic demand for electronics and exports electronic output to other countries. The growing demand for electronic products in the country is estimated to drive the demand for the market studied during the forecast period.
Furthermore, in India, the government has been formulating initiatives to attract FDI in the manufacturing sector, primarily to establish the country as a manufacturing hub. The government is focusing on increasing the share of the manufacturing sector to GDP, from 16% to 25%, by 2022.
According to OICA, the country produced 3.39 million vehicles in 2020, which severely declined by 25% compared to 2019. The country produced 4.399 million vehicles in 2021, which increased by 30% compared to 3.38 million vehicles in 2020 and was still 3% lower compared to 4.52 million vehicles produced in 2019.
India is home to over 2,500 decorative coatings and 800 industrial coatings manufacturers. The demand for paints and coatings in the Indian market is expected to grow at a CAGR of around 8% during the forecast period. This increasing demand for paints and coatings has been prompting companies to increase their production capacities in the country. This is further expected to increase the demand for methylene diphenyl Di-isocyanate (MDI) in the country.
The Indian electronics market is expected to reach USD 400 billion by 2025. Additionally, India is expected to become the fifth-largest consumer electronics and appliances industry in the world by 2025. In India, technology transitions, such as the rollout of 4G/LTE networks and IoT (Internet of Things), are driving the adoption of electronics products. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have raised the demand for IoT in the country.
Therefore, all the above mentioned factors are likely to significantly impact the demand for the studied market in Asia-Pacific region, through the years to come.
Competitive Landscape
The global methylene diphenyl di-isocyanate (MDI) market is consolidated in nature, with the top five players contributing to more than 80% of the market share in 2021. Some of the key players in the market include Wanhua, BASF SE, Covestro AG, Dow, and Huntsman International LLC, among others.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06249237/?utm_source=GNW
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