Global isocyanate market to grow at a CAGR of 6.56% during the period 2018-2022.
According to the report, one driver in the market is rising demand for PU from the automotive industry. The demand for isocyanate is primarily growing due to the increased consumption of PU as a material in automotive seating. TDI and MDI are the primarily used raw materials in the production of PU. It has been noticed that the applications of PUs have increased in the past few years. PUs are used in various applications such as coatings and bed liners, boat floors and tire covers, and body parts and instrumental panels. In automobiles, PU solutions are helpful for the formation of lighter-weight parts, shorter production duration, lower cost, higher quality, and fewer volatile organic compounds (VOC) due to the use of water-based PU and reduced emissions.
Further, the report states that one challenge in the market is fluctuations in the price of raw material. The global isocyanate market is influenced by the fluctuation in the price of crude oil or natural gas. Chemical compounds, such as propylene and benzene, are used in the production of TDI (key product type of isocyanate). Any fluctuation in the price of these essential raw materials directly influences the price of isocyanate, which poses a challenge to manufacturers to set prices for the products manufactured by them. A continuous fluctuations in the price of crude oil has been observed since 2000.