Methylene Diphenyl Di-isocyanate (MDI) Market Outlook - Supply and Demand Analysis 2025-2034

Methylene Diphenyl Di-isocyanate (MDI) Market

Methylene diphenyl di-isocyanate (MDI) refers to polymers formed through the polyaddition of isocyanate-reactive polyfunctional compounds and polyfunctional isocyanates. It is available in different forms, like pure MDI and polymeric MDI (PMDI). While PDMI is used in the manufacturing of flexible, rigid, semi-rigid, and thermoset foams, pure MDI finds application in polyurethane products such as glues, paints, and weather-resistant materials. Around 80% of the global MDI produced is used in foams.

Global Supply/Demand Outlook

The global methylene diphenyl di-isocyanate (MDI) market stood at a volume of around 8,500 KT in the year 2023. The market is projected to grow at a CAGR of 3.90% between 2025 and 2034 to reach a volume of about 12,000 KT by 2032. One of the key factors propelling the MDI market is the increasing production of polyurethane foams that are used in a variety of commercial products and consumer goods. The rising demand for rigid and flexible polyurethane foams in different applications, including insulation, construction, and packaging, among others, is fuelling the market growth. Rigid PU foam is commonly used as an insulated panel, roof and wall insulation, and gap filler for the cavity around windows and doors. Further, the increasing focus on phosgene-free MDI production process is expected to create lucrative opportunities for the market expansion.

The global capacity of MDI was about 10,600 KT in the year 2023. It is estimated to reach 14,500 KT by 2032. The Asia Pacific holds the major share of MDI capacities, representing around 50% of the global production capacity. The plant capacity utilization of MDI remained 80% in 2023.

Key Market Players

Wanhau Chemicals Co. Ltd is the world's leading producer of MDI. The company holds approximately 22% of the overall MDI capacity, followed by Covestro and BASF SE. Other major manufacturers of MDI are Hunstman International, and Tosoh Corporation. In January 2023, BASF SE broke ground on the final phase of the methylene diphenyl diisocyanate (MDI) expansion project at its Verbund site in Geismar, Louisiana, to enhance its production capacity to nearly 600,000 metric tons per year.

The market is characterised by a high level of concentration, with five leading producers holding more than 80% of global capacity in 2023. This is due to their accessibility to sophisticated technologies, improved raw material availability including aniline and chlorine, and high capital cost barriers which make it difficult for new businesses to enter the market. There continues to be consolidation in the market.

Key Questions Answered in the Report:

• What are the high-growth opportunities and markets for methylene diphenyl di-isocyanate (MDI) by application and region?

• What are the different forms of methylene diphenyl di-isocyanate (MDI) available by region?

• Which segments and regions are projected to grow at a faster pace and why in the methylene diphenyl di-isocyanate (MDI) market?

• What is the nameplate capacity of methylene diphenyl di-isocyanate (MDI) by region from 2018 to 2032?

• How does the plant capacity utilisation of methylene diphenyl di-isocyanate (MDI) vary by region between 2018 and 2034?

• Who are the major players in the methylene diphenyl di-isocyanate (MDI) market by capacity and region?

• What major plant shutdowns and expansions have occurred in the methylene diphenyl di-isocyanate (MDI) market in the last year and the last quarter?

• What major plant shutdowns and expansions are planned in the methylene diphenyl di-isocyanate (MDI) market over the next year and quarters?

• How did export and import dynamics of methylene diphenyl di-isocyanate (MDI) vary by region in terms of value between 2018 and 2023?

• How did export and import dynamics of methylene diphenyl di-isocyanate (MDI) vary by region in terms of volume between 2018 and 2023?

• What impacts have shutdowns, force majeure events, and plant closures had on demand and pricing of methylene diphenyl di-isocyanate (MDI)?

• What are the environmental considerations and regulatory impacts affecting the methylene diphenyl di-isocyanate (MDI) market?

• What technological innovations are having an impact on the production and application of methylene diphenyl di-isocyanate (MDI)?

• What are the key trends and innovations in the methylene diphenyl di-isocyanate (MDI) market?

• What are the challenges and opportunities faced by methylene diphenyl di-isocyanate (MDI) manufacturers?

• What are the potential risks and barriers to entry for new players in the methylene diphenyl di-isocyanate (MDI) market?

• What strategic investments and expansions have major players made in the methylene diphenyl di-isocyanate (MDI) market?

• How are geopolitical factors and international trade policies affecting the global methylene diphenyl di-isocyanate (MDI) market?

• What are the price trends for methylene diphenyl di-isocyanate (MDI), and how are they expected to change?

• How does the supply chain of methylene diphenyl di-isocyanate (MDI) operate, and what are its key components?