The market for toluene diisocyanate is expected to grow at a CAGR of more than 4.5% globally during the forecast period. Toluene Diisocyanate is a synthetic mixture of the 2,4- and 2,6-isomers is a volatile, colorless to pale yellow liquid that is soluble in many organic solvents. They are mainly used to make polyurethane products, such as rigid and flexible foams, coatings, adhesives, sealants, and elastomers. The growing demand from flexible foam has been driving the market growth.
- However, the outbreak of coronavirus across the globe is likely to hinder the growth of the studied market.
- The growing application of toluene diisocyanate in the coating industry is likely to provide opportunities for the toluene diisocyanate market over the next five years.
- Asia-Pacific dominated the market across the globe with the largest consumption from countries such as China and India.
Key Market Trends
Foams to Dominate the Market
- Foam has been widely used in various industrial applications due to its reliability in the sector. Besides the excellent properties, the reduction of the cost of raw material is a significant advantage in using these materials.
- Flexible foam is one of the most promising materials due to its outstanding overall performance, such as durability, better insulation, high resistance towards chemicals, easy recycling, and thermal stability at high temperatures for a variety of applications.
- Growing furniture demand owing to increasing purchasing power combined with an increase in the durability and longevity of the products is expected to increase the growth of the foam.
- Polyurethane-based foams are used as insulating materials in homes, refrigerators, as well as for several other purposes. With the rising number of building codes that promote energy-efficient structures, home builders and consumers are gradually moving toward building strategies that deliver performance and energy savings in the long run.
- All the aforementioned factors are expected to drive the toluene diisocyanate market during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia Pacific region is expected to dominate the market for the toluene diisocyanate market over the forecast period. The surge in demand for foam products from diverse applications like furniture, paints & coatings, and packaging is expected to influence market growth in the region.
- According to Mordor Intelligence, the furniture market in the Asia-Pacific is anticipated to grow at a CAGR of more than 5.4% during the forecast period.
- Owing to the rising demand from the industrial and infrastructural sectors, the production of paints and coatings is increasing in the Asia-Pacific region. Additionally, due to a positive outlook in the construction industry in the Asia-Pacific region, various major coatings manufacturers are setting up newer plants in the region.
- Furthermore, the growing usage of flexible foam in the packaging industry are providing growth in the large population areas like India and China.
- Hence, all such market trends are expected to drive the demand for toluene diisocyanate market in the region during the forecast period.
- However, the Asia-Pacific automotive industry is declining coupled with the outbreak of COVID-19 disease is affecting the growth of the toluene diisocyanate market.
The global toluene diisocyanate market is fragmented in nature owing to the presence of numerous players in the market with no significant market share. Some of the major companies are Tosoh Corporation, SIMEL Chemical Industry Co., Ltd., BASF SE, Covestro AG, and TSE Industries, Inc. amongst others.
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