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The Global Isocyanates Market is estimated to grow at the CAGR of 7.5% during 2016-2022. Market anticipated to reach above $44500 million by 2022. The key factors driving the market are increasing applications in end user industry, rising economies of developing countries, and continuous expanding polyurethane market. Many end users of the market such as automotive industry, equipment & electronics industry, and construction industry are propelling the demand of isocyanate. Opportunities for makers and merchants are increasing in developing countries in upcoming time. Developing isocyanate for infrastructure market is a key opportunity for isocyanate market. Annually world spending approximately $2.5 trillion on infrastructure development. Expenditure on infrastructure anticipated to increase from $4 trillion to $9 trillion by 2025. It will positively impact the isocyanate market. Hence the demand of isocyanate will grow in developing countries. The key drivers of isocyanate market are huge demand from rising economies, increasing demand from existing applications, and continuous expanding technologies. Infrastructure and automotive industry is a main end-user industry of isocyanate market and is expanding globally. Every year approx. 80 million cars are manufactured in the world. China and U.S. are ruling over the automated market. It will surely rise the demand for isocyanate market as well as isocyanate derivatives such as painting & coatings, rigid foams, adhesives and sealants. Due to rising cost of chemicals such as Carbamoyl Chloride cause high production cost of isocyanate. MDI and TDI are the types of isocyanates. TDI is organic composite and used to produce flexible polyurethanes. The huge demand of polyurethane in the market is one of the most important driver of the global isocyanate market. Market share of MDI is approximately 49% of the global isocyanates market and TDI approximately 34% of the global isocyanate market. Almost 80% of the MDI is spent to produce polyurethane. MDI is also used as an adhesives and in production of high strength glue. Hence the rising demand in polyurethanes market is anticipated to boost global isocyanates market during the 2016-2022. Hazardous nature of isocyanates is restraining the global isocyanate market. Isocyanates are formed by reaction between amines and phosgene. Phosgene is highly poisonous and it makes isocyanate hazardous. Many health problems such as occupational asthma and hypoxemia occur by inhaling isocyanate gas. Methyl isocyanate is the most toxic gas. In 1984, methyl isocyanate gas was exposed into the air accidently, resulting in approx. 3787 deaths in India. High dependency on polyurethane market is another restraint for the isocyanate market. Polyurethane is used in car paints & coating, industrial adhesives, and foams. By inhaling a smaller amount of polyurethane, it can damage lungs of human. Polyurethane fumes can swell brain cells which can cause excessive headache and chances of Migraine. Several health disorders by polyurethane fumes are vomiting, unsettled stomach, dizziness, cough and cold.
The global isocyanate market is segmented into types and applications. Types of the market is further segmented into three categories, first is MDI (methylene diphenyl di-isocyanate), second is TDI (toluene diphenyl di-isocyanate), and third is aliphatic isocyanates. MDI is used in manufacturing of refrigerators, freezers, vehicle seats and vehicle interior. Expected growth in electronics and automotive market will surely increase the demand of the global isocyanates market. TDI and MDI are the segments who gets the maximum funding. Companies are doing huge investments in development and improving technologies such as Gas-phase technology in plants. Gas-phase technology can reduce plant’s energy consumption up to 60% hence reducing the cost of isocyanate. By establishing new plants and improvement in technology, company can increase its isocyanates production capability. On the basis of application the market is further segmented into flexible foam, rigid foam, adhesives & sealants, paints & coatings, elastomers & binders, and additional applications. The application of rigid foam is rising at high rate followed by flexible foam application of isocyanate market.
On the basis of geography the market is segmented into North America, Asia pacific, Europe and Rest of world. Asia pacific has the major market size on the basis of rising end users industries such as electronics, construction, and automotive in developing market of China and India. Europe banned 46 chemical products such as MDI contents products, and polyurethane products due to its toxic nature. Moreover, Asia pacific is dominating in automotive market. Approx. 30% of cars in the world are produced by China. Isocyanate is used to paint and water proof coating of cars and drives the global isocyanate market.
Some of the major market players are Ashai Kasei, trelleborg AB, BASF SE, Woodbridge foam corp., Bayer Material Science, Chemtura Corporation, Yantai sanjiang chemical industry material, Evonik Industries , Hebei Changzhou Dehua Group Co. Ltd, Huntsman internationals LLC, Kumho Mitsui Chemicals Inc., Vencorex, etc. They are adopting various strategies such as product innovations, joint ventures, mergers & acquisitions in the isocyanate market.
On 1st April, 2015 Mitsui chemicals, Inc. and SKC Co. Ltd. signed a joint venture agreement. Mitsui chemicals, Inc. is the isocyanate maker and SKC Co. Ltd. Deals in polyurethane material. From this joint venture, SKC Co. Ltd. will manufacture polyurethane with the help of Mitsui chemicals Inc. making it profitable for both the companies.