Global Diphenylmethane Diisocyanate (MDI) Market to Reach 8.7 Million Metric Tons by 2026

Methyldiphenyl diisocyanate (MDI) is one of the raw materials used in the production of polyurethanes. After experiencing a slowdown in 2020 under the impact of COVID-19 crisis, demand for MDI is projected to stage a recovery in 2021, led by improvement in major end-use sectors including building & construction, furniture & bedding, packaging, and automotive. Resurgence in the construction sector and increased demand for lightweight and fuel efficient vehicles is anticipated to drive market growth for polyurethane foams, thereby accelerating the demand for MDI. In the building & construction industry, polymer foams adoption is supported by its increasing use in insulation purposes. Produced using MDI, these foams are widely used in refrigerators and homes for insulation applications, enabling users to save on cooling and heating costs that account for around 48% of energy consumption in an average household in the US. Growing emphasis on sustainability is also expected to drive up demand for green building materials such as eco-friendly polymeric foams. Automotive is another prominent end-use market, with polyurethane foams being used in a wide variety of applications such as cables, gaskets, cushioning and headliners.

Amid the COVID-19 crisis, the global market for Diphenylmethane Diisocyanate (MDI) estimated at 6.3 Million Metric Tons in the year 2020, is projected to reach a revised size of 8.7 Million Metric Tons by 2026, growing at a CAGR of 5.5% over the analysis period. Rigid Foams, one of the segments analyzed in the report, is projected to record a 6.1% CAGR and reach 5 Million Metric Tons by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the CASE System segment is readjusted to a revised 5.2% CAGR for the next 7-year period. Rigid foams, which are the biggest outlet for MDI, are mainly used in insulation, packaging, refrigeration, and construction. CASE urethanes (coatings, adhesives, sealants and elastomers) are widely used in construction, furniture and automotive industries. Additional usage also comes from textiles, fibers, electronics and machinery.

The U.S. Market is Estimated at 1.2 Million Metric Tons in 2021, While China is Forecast to Reach 2.7 Million Metric Tons by 2026

The Diphenylmethane Diisocyanate (MDI) market in the U.S. is estimated at 1.2 Million Metric Tons in the year 2021. China, the world`s second largest economy, is forecast to reach a projected market size of 2.7 Million Metric Tons by the year 2026 trailing a CAGR of 6.3% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.8% and 4.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.9% CAGR. Asia-Pacific represents the major regional market, led by rapidly expanding building & construction and industrial sectors. Increasing automobile sales, rapid urbanization trend and focus on major infrastructure development initiatives also support market growth.

Flexible Foams Segment to Reach 1 Million Metric Tons

Flexible polyurethane foams find application in automobiles and housing, in addition to other durable goods. Due to their high impact strength, flexible foams find wide use in furniture cushioning. Further, they are also used in mattresses and seat cushions particularly in higher priced furniture. In the global Flexible Foams segment, USA, Canada, Japan, China and Europe will drive the 4.6% CAGR estimated for this segment. These regional markets accounting for a combined market size of 603.7 Thousand Metric Tons in the year 2020 will reach a projected size of 825.2 Thousand Metric Tons by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach 153.4 Thousand Metric Tons by the year 2026, while Latin America will expand at a 4.8% CAGR through the analysis period.