Dublin, Jan. 21, 2026 (GLOBE NEWSWIRE) -- The "Methylene Diphenyl Di-isocyanate (MDI) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The Methylene Diphenyl Di-isocyanate (MDI) market is predicted to expand from 8.14 million tons in 2025 to 8.55 million tons in 2026, with expectations to reach 10.95 million tons by 2031, achieving a 5.08% CAGR from 2026-2031. This growth is driven by strategic supply expansions in Asia-Pacific, alongside stringent net-zero building mandates in North America and Europe.
Industry leaders are advancing bio-circular and mass-balanced grades to enhance customer retention, while exploring phosgene-free manufacturing processes. Despite feedstock price fluctuations, such as a 36.81% year-on-year aniline price drop in 2025, integrated producers remain resilient. Enhanced worker-exposure regulations and the capital requirements for new plants contribute to the industry's high barriers to entry, promoting consolidation among technologically advanced companies.
Global Methylene Diphenyl Di-isocyanate (MDI) Market Trends and Insights
- Surge in PU-Insulation Demand from Net-Zero Buildings: EU regulations necessitate a EUR 3.5 trillion investment in energy upgrades by 2030. Rigid polyurethane panels, favored for their excellent thermal conductivity, play a crucial role in meeting these targets, further aided by building automation requirements. Such dynamics position rigid foams as a key growth segment in the MDI market.
- Cold-Chain Capacity Build-Out for Food and Pharma: The pandemic has underscored the need for ultralow-temperature storage solutions, boosting reliance on polyurethane systems. India's subsidized cold-chain initiatives and lifestyle-driven refrigeration demands in ASEAN and Latin America emphasize the importance of premium MDI grades, ensuring market resilience against raw material costs.
- Stricter Worker-Exposure Limits for Diisocyanates: New EU mandates on workplace exposure and training elevate production costs, pushing market consolidation towards capital-rich firms. This necessitates a pivot towards low-monomer or prepolymer solutions, enhancing market competitiveness.
Other drivers and restraints analyzed in the detailed report include:
- HVAC Efficiency Regulations Boosting Appliance Foams
- Battery-Thermal-Management Foams in EV Packs
- High Capital Intensity of Phosgenation Plants
Segment Analysis: Rigid foams constituted 36.78% of the MDI market in 2025 and are projected to grow at a 5.63% CAGR through 2031, driven by their superior thermal performance and compliance with construction standards. Flexible foams continue to serve in automotive and bedding sectors, though with slower growth potential. Coatings and elastomers maintain steady demand due to industrial applications, while emerging uses in EV battery encapsulants highlight MDI's versatility.
The rise of rigid foams in re-roofing and curtain-wall applications underscores their critical role in MDI market expansion. Insurers and financiers' preference for rigid polyurethane or PIR products for R-value compliance further cements their market dominance. Companies like Recticel, with innovations such as the Eurowall Impact board, are leading the charge, reducing embodied CO? without sacrificing performance.
Specialty elastomers contribute to mining and industrial applications, providing stable aftermarket revenue. Collectively, these segments anchor rigid foams at the heart of MDI market growth.
Geography Analysis: Asia-Pacific held a 46.35% share of the MDI market in 2025 and is forecasted to grow at a 5.90% CAGR by 2031. China and India's development initiatives significantly boost regional consumption. North America benefits from eco-incentives and construction tax credits bolstering demand, while European policies drive synthetic growth surpassing organic market expansion. The Middle East and Africa exhibit strong growth potential in logistics and climate-controlled projects, though largely dependent on imports.
Companies mentioned in this report:
- BASF
- Covestro AG
- Dow
- Hexion Inc.
- Huntsman International LLC
- Karoon Petrochemical Company
- Kumho Mitsui Chemicals Inc
- KURMY CORPORATIONS
- Sadara
- Shanghai Lianheng Isocyanate Co. Ltd
- Sumitomo Chemical Co. Ltd
- Tosoh Corporation
- Vardhman Chemicals
- Wanhua
For more information about this report visit https://www.researchandmarkets.com/r/vhd9u9
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