Global Isocyanates Market – A Multi-Billion Dollar Industry Proving to Be a Boon and a Bane
A recent study by Fact.MR foretells the global isocyanate market to record an expansion rate of around 6.0%. The global isocyanates market is witnessing consistent demand in the construction industry due to its reactive chemical properties and its usage in the production of adhesives, foams, and elastomers.
Rise in vehicle production in countries like China, Mexico, Japan, US, and Germany, along with vehicle aging is one of the critical drivers for sales of isocyanates. The industry produces a range of intermediate chemicals which are being used in a wide variety of applications.
A considerable portion of the structured and manufactured goods available are coated, and isocyanates are present in most of the high-quality, long-lasting coatings.
The present scenario of excessive demand for this futuristic material is encouraging manufacturers to invest more and enlarge their product portfolio to acquire a large customer base and gain high market share within the isocyanates market.
The potential applications for these products in end-use industries is expected to be a crucial factor in the growth of the global isocyanates market over the foreseeable future.
Presently, isocyanates are significantly being used in paints, varnishes and additionally, the increased demand from the furniture industry such as carpet cushioning is anticipated to exponentially boost the global isocyanate market.
However, volatile raw material prices and accessibility, and isocyanate compounds being extremely toxic and hazardous in nature as compared to standard mineral oils is proving to be an important constraint on the worldwide market for isocyanates.
Methylene Diphenyl Di-isocyanate Gains Traction Within the Global Isocyanates Market
MDI resin holds more than 2/3rd market share of overall sales in global isocyanates market. Demand for MDI is anticipated to increase over the years due to the increased application in sealants, adhesives and elastomers.
Growing end use industries are expected to fuel the market over the forecast period. Energy crisis in emerging economies has increased the demand for energy-efficient buildings combined with incentives and public laws to support energy-efficient structures which are the main drivers of demand for isocyanates.
Moreover, burgeoning isocyanate demand in end-use segments is expected to boost the global market growth for isocyanates.
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The Isocyanates Market Benefits from the Myriad Applications in the Construction and Electronics Sectors
Isocyanate market growth factors include elevated demand from present and emerging applications. Continuous demand from developing markets is driving R&D activities among competitors.
Construction and automotive industry, a significant end-user of isocyanate industry, is thriving, with demand for isocyanate and its derivatives such as adhesives and coatings anticipated to boost the market.
Consumer markets in the emerging economies, including machinery and electronics, automotive and construction, are anticipated to provide huge possibilities in the future for producers and distributors.
Stringent, Government Imposed Regulations to Slow Down Growth Statistics
The usage of isocyanates in industries is known to pose several occupational health hazards, including skin irritation, breathlessness, with prolonged exposure to leading to asthma.
The Occupation Safety and Health Administration (OSHA) puts forward a permissible exposure limit of 20 ppb for MDI (Methylene diphenyl di-isocyanate) and other technical guidelines on dealing with exposure.
Phosgene utilized in isocyanate manufacturing is proving to be detrimental to the ecosystem and carries serious health risks to human health. In addition, isocyanates pose serious occupational health risks, including irritation of the skin, wheezing, cough, and extended isocyanate exposure may also contribute to asthma. The environmental and health risks associated with isocyanates are one of the main variables that restrict the market growth for isocyanates.
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“Green” Polyurethanes from Renewable Isocyanates to Be the New Norm
Development of bio-based isocyanates is expected to further drive market growth since crude oil is typically used to generate isocyanates and its pricing on the worldwide market changes the amount in the context of manufacturing.
This has resulted in the current market growth of the bio-based isocyanates. Suppliers and suppliers engaged in infrastructure apps are anticipated to benefit greatly from consumer markets as the boom in developing economies in these industries will boost the demand for products based on it.
East Asia Leads with More Than 1/3rd of the Market Share in the Global Isocyanates Market
East Asia is anticipated to see substantial development within the global isocyanates market over the forecast period, with developing economies such as China and India driving the bulk of demand.
Flourishing end-use sectors such as building & construction, consumer electronics, and automotive in China and India's emerging markets are anticipated to complement market growth in the Asia Pacific over the forecast period.
North America is anticipated to record moderate demand over the forecast period mainly as a result of increased regulatory involvement by organizations such as EPA (the United States Environmental Protection Agency) on MDI and TDI (Toluene di-isocyanate)-related environmental and health impacts. Due to several strict environmental regulations and low development in end-use sectors, Europe is expected to develop at a reduced pace.
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Global Isocyanates Market – Enhanced Production Capacity to Act as a Growth Lever
Supply and demand commerce within the global isocyanates market is generally balanced for some raw materials except for MDI which requires more production capacity by 2020. The global isocyanates market is moderately consolidated with a few chemical industry giants capturing a large part of the market share. Proprietary technology is a barrier to entry and several other small and medium scale competitors are contending for the top spot through capacity expansion.
In 2017, Vencronex, a frontrunner within the isocyanates market, expanded its aliphatic isocyanate plant in Thailand. German chemical giant BASF expanded its capacity for the production of hardeners at its Ludwigshafen site in Germany.
Dow Chemical partnered with several companies including Univar Solutions, to channel its isocyanates offerings throughout North America and Europe. New competitors are working on developing new isocyanate-free alternatives from renewable isocyanates and bio-based white dextrins.
Global Isocyanates Market: In-Depth Assessment on Key Segments
The global isocyanates market is segmented on the basis of resin, application and end-use.
Country-specific assessment on demand for isocyanate compounds has been provided for each regional market, along with the market size valuation and forecast price point assessment, price index and impact analysis of key regional and country-wise dynamics, which were obtained through quotes from numerous isocyanate compound manufacturers, experts, and suppliers.
Y-o-Y growth projections have also been offered on all regional markets incorporated in the report. Moreover, future trends, growth prospects, and other possibilities related to the market have been answered in the report.
Global Isocyanates Market – Scope of the Report
The following report provides forecast and analysis of the global isocyanates market along with the historical data of 2013, estimated data 2019 and forecast data up to 2027 in terms of revenue (US$ Mn) and volume (Thousand Tons), according to a Fact.MR study.
The research propounds critical trends that are currently influencing growth within the global isocyanates market along with several macro-economic indicators. This newly published and insightful report on isocyanate compounds sheds light on key dynamics, and their impact on the overall value chain from suppliers to end-users, which are expected to transform the future of the global isocyanates market.
The report also comprises the study of current issues with end users and opportunities for isocyanate compounds. It also contains value chain analysis, including the key market participants.
To provide users of this report with a comprehensive view of the market, we have included a detailed competitive analysis about the key players involved in the market and strategic overviews.
The dashboard included in the report provides a detailed comparison of isocyanate manufacturers on parameters such as total revenue, product offerings, and key strategies. A list of key companies operating in the isocyanates market provided in the report adds to the credibility of this exhaustive research study.
The report provides company-level market share analysis, which has been derived on the basis of the company’s annual sales and segmental revenue in all the target end-use industries. The market has been forecasted based on constant currency rates.
The report provides detailed competitive and company profiles of key participants operating in the global market. Some of the major competitors operating in the isocyanates market are BASF SE, Asahi Kasei, Covestro AG, Chemtura Corporation, Dow Chemical, and Evonik Industries.
Global Isocyanates Market: Research Methodology
A number of primary and secondary sources were consulted during the course of the study. Secondary sources include Factiva, Morningstar and Hoovers, and company annual reports and publications.
Comprehensive interviews have been conducted by our analysts, and the intelligence and insights obtained have been used for validating the information gained through secondary research. The report also includes a description of assumptions and acronyms utilized for research purposes. Data gathered has been validated using the triangulation method to offer useful quantitative and qualitative insights into the isocyanates market.
For ascertaining the market size on the basis of volume and value, revenues generated by leading players, coupled with their production capacities are taken into consideration which is backed by a proven & tested research approach, the report offered necessary information on the isocyanates market.
Qualitative aspects gained from industry experts and opinion leaders have also been adhered to by the analysts while developing this insightful report on the global isocyanates market. Secondary research is leveraged for ascertaining the overall size of the isocyanates market.
A short market viewpoint offered in the report elucidates the macro-economic aspects that influence the growth of the isocyanates market, which includes global GDP growth rate, various industries growth rate, such as foaming, surface coating, and automotive paints.
This report serves as an authentic resource of intelligence on the isocyanates market, enabling the readers to take fact-based decisions on the future direction of their businesses.
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Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
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