The Isocyanates Market to Witness Robust Growth in North America and Asia Pacific

Organic compounds that contain an isocyanate group are referred to as isocyanates. They are a family of highly reactive, low molecular weight chemicals. Isocyanates are extensively used in the automobile, electronics, and construction industry. Moreover, they are used in a variety of industries using chemicals such as certain coatings/linings, adhesives, lacquers, two pack spray paints, and in foam production such as fillers or insulation. Isocyanates are also used in the production of rigid foams, coatings, elastomers, and adhesives. Increasing demand form the construction industry due to its highly reactive chemical property is expected to be a key factor driving the isocyanates market growth.

Among regions, the isocyanates market is witnessing robust growth in North America and Asia Pacific due to the rapid growth of various end-use industries such as automotive, electronics, and construction, with India, China, and the U.S. being the major growth engines. According to the India Brand Equity Foundation (IBEF), India is expected to become the third largest construction market in the world by 2025. In fact, China, India and the U.S. are expected to account for almost 60% of all global growth in the sector by 2025. Moreover, according to the same source, Indian automotive industry (including component manufacturing) is expected to reach US$ 251.4-282.8 billion by 2026.

The aforementioned factors are expected to augment the growth of the isocyanates market growth in North America and Asia Pacific. Furthermore, market players are adopting various strategies to strengthen their product portfolio or market presence. For instance, in July 2020, BASF and Vertrauen Chemie Solutions (VCS) signed an agreement to extend their partnership. Through this alliance, VCS supports BASF in streamlining the global aliphatic isocyanate supply chain. Aliphatic isocyanate is a key product in BASF’s Resins and Dispersions chemical portfolio. BASF customers will now be able to specify customized packaging and receive their shipment anywhere in the U.S. within five business days. This in turn is expected to accelerate the isocyanates market growth in the United States.

 In the automobile industry, paints usually contain isophorone diisocyanate or hexamethylene diisocyanate (HDI). Thus, increasing production of vehicles is expected to propel to the market isocyanates growth. However, potential health effects associated with exposure to isocyanates may restrain the market growth. Inhalation of isocyanates may lead to occupational asthma or cause respiratory irritation. Gastrointestinal irritation, irritation to the mucous membranes, and dermatitis (skin irritation) are some other complications caused due to isocyanates. Thus, many authorities worldwide have imposed various restrictions on the use of isocyanates. This in turn is expected to hamper the isocyanates market growth.