Isocyanates Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Key Highlights

• One of the major factors driving the market study is the huge growth in the polyurethane foam application.
• However, shortages and increased prices of raw materials are likely to restrain the market's growth.
• High-efficiency of bio-based isocyanates is likely to act as an opportunity for market growth in the future.
• Asia-Pacific dominated the isocyanates market due to increased industrialization and is likely to witness a high growth rate during the forecast period.

Isocyanates Market Trends

Building and Construction to Dominate the Market

• Building & construction is the largest end-user industry for the isocyanates market, where it is used in various household, commercial, and industrial applications.
• One of the largest applications of isocyanates is using rigid PU foam as wall and roof insulation, insulated panels, and gap fillers for the space around doors and windows.
• Promoting zero-energy buildings continues to be the major driver for the PU market, thereby driving the isocyanates market. Numerous buildings are poorly insulated in Asia, especially in the developing markets of Southeast Asia, China, and India. Thus, depicting immense growth potential for thermal insulation materials in buildings.
• The government in China is investing heavily in infrastructure development. From January to March 2022, the national investment in real estate development was CNY 2,776.5 billion (USD 432 billion), a year-on-year increase of 0.7%. Among them, the residential investment was CNY 2,076.1 billion (USD 323 billion), an increase of 0.7%.
• The government of India gave a massive push to the infrastructure sector by allocating INR 10 lakh crore (USD 130.57 billion) to enhance the infrastructure sector. In November 2021, the Asian Development Bank (ADB) approved a USD 250 million loan to support the National Industrial Corridor Development Programme (NICDP) development. It is a part of the USD 500-million loan to build 11 industrial corridors bridging 17 states.
• In 2021, the floor space of newly constructed residential real estate in Chongqing amounted to almost 27.24 million sq m. In the same year, the total expanse of new residential real estate in China exceeded 238 million sq m.
• Longer-term demand is expected to grow across all regions, with particular strength in South America and Asia, where major construction and infrastructure improvement projects are planned.
• Hence, for the reasons above, the building and construction sector will likely dominate the market during the forecast period.

Asia-Pacific to Dominate the Market

• In Asia-Pacific, China is the world's largest producer and consumer of polyurethane products. MDI is primarily used for polyurethanes and their products in China which is widely used in rigid and flexible foam manufacturing.
• Polyurethane is also used in the automotive, furniture and interior, and footwear industries. With these industry growths, the MDI market is expected to grow over the forecast period.
• Polyurethane, MDI's primary application in India, is witnessing a boom in opportunities, with the expanding middle class, increasing disposable incomes, and rising urbanization, supplemented strongly by investments in infrastructure.
• In Japan, polyurethane production is on the rise. This increased polyurethane production and increasing demand from the construction, automotive, and furniture industries will likely augment the market growth for isocyanates.
• Sales of new cars in Japan dropped to 4.2 million in 2022, the lowest level since 1977, as the global semiconductor shortage continued. Additionally, as per Japan Automobile Dealers Association and Japan Light Motor Vehicle and Motorcycle Association, 4,201,321 new cars were sold in the country in 2022.
• The Indian automobile industry had its highest-ever annual domestic passenger vehicle sales last year. A total of 3.793 million or 37.93 lakh units were sold in the country in 2022, 23.1% higher than the preceding year.
• Moreover, India could lead in shared mobility by 2030, providing electric and autonomous vehicle opportunities. The Government of India expects the automobile sector to attract USD 8-10 billion in local and foreign investments by 2023.
• Hence, Asia-Pacific is likely to dominate the market during the forecast period.

Isocyanates Industry Overview

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support