The global 1,6-diisocyanate (HDI) market is expected to witness a significant growth due to its varied applications in various industries.

Drivers of the 1,6-diisocyanate (HDI) Market

The drivers of the 1,6-diisocyanate (HDI) Market are as follows:

1. Increasing Demand for Lightweight and High-Performance Materials: The increasing demand for lightweight materials with high performance characteristics is driving the growth of the 1,6-diisocyanate (HDI) market. HDI is widely used in the automotive industry to produce lightweight and durable parts.

2. Growing Automotive Industry: The growing automotive industry across the globe is one of the major factors driving the growth of the 1,6-diisocyanate (HDI) market. HDI is extensively used in automotive coatings, adhesives & sealants, and other interior parts due to its superior qualities such as scratch resistance and superior durability.

3. Growing Construction Industry: The increasing demand for construction activities in both developed and developing countries has increased the demand for advanced construction materials such as 1,6-diisocyanate (HDI). HDI is used in roofing membranes, wall coatings, insulation foams, sealants, and other waterproofing materials due to its excellent properties such as good weatherability and toughness. 

4. Technological Innovations: The introduction of new technologies in various industries has increased the use of HDI for various applications

Advantages of the 1,6-diisocyanate (HDI) Market

Some of the advantages of the 1,6-diisocyanate (HDI) Market are as follows: 

1. High Demand: The 1,6-diisocyanate (HDI) market is experiencing a growing demand due to its use in a variety of applications including coatings and adhesives, elastomers, insulation, and others.

2. Low Price: HDI has lower production costs than other isocyanates and provides a cost-effective solution for manufacturers.

3. Flexibility: It can be used in various types of formulations and can be tailored to fit specific customer requirements.

4. Environmentally Friendly: HDI does not cause environmental pollution as it does not contain chlorine or lead compounds like many other isocyanates do.

Market Value and CAGR of the 1,6-diisocyanate (HDI) Market (2021-2032)

The market value and CAGR is expected to reach USD 8,871.5 Million and 5.2% respectively by 2032 for the 1,6-diisocyanate (HDI) market. The global HDI market was valued at USD 5,616.3 Million in 2022 and is expected to register a CAGR of 5.2% over the forecast period from 2022 to 2032.

This growth is driven by rising demand from the polyurethane foam industry, growing automotive production, and increasing demand from the construction industry. Growing awareness about energy efficiency in buildings is also expected to drive the demand for HDI during the forecast period. However, stringent regulations imposed on hazardous chemicals are likely to hamper market growth over the forecast period. 

Challenges of the 1,6-diisocyanate (HDI) Market

Some of the challenges of the 1,6-diisocyanate (HDI) Market are as follows: 

1. Volatility of Raw Material Prices: The price of raw materials used to produce HDI is subject to frequent and unpredictable fluctuations, which can have a direct impact on the cost structure of the market players.

2. Stringent Environmental Regulations: To protect workers and the environment from hazardous emissions and other health risks, several countries have implemented stringent environmental regulations for companies engaged in HDI production.

3. Availability of Alternatives: Polyurethane foams used in various applications are also substitutable with 1,6-diisocyanate (HDI). This has limited the market’s growth prospects as it reduces demand for HDI products.

4. High Capital Requirements: Setting up a new facility to manufacture HDI involves high capital investments due to its technical complexity and the presence of strict environmental regulations.

Key Players in the 1,6-diisocyanate (HDI) Market

Some of the key players in the 1,6-diisocyanate (HDI) Market are BASF SE (Germany), Covestro AG (Germany), DowDuPont Inc. (US), Mitsui Chemicals, Inc. (Japan), CHEMICAL Co. Ltd (China), Huntsman Corporation (US), Evonik Industries AG (Germany), Nippon Polyurethane Industry Co., Ltd. (Japan) and KOUSHIKI CHEMICAL INDUSTRY Co., Ltd. (Japan).

Segment Analysis by type, application, end user and region of 1,6-diisocyanate (HDI) Market

The most demanded product of the 1,6-diisocyanate (HDI) Market is expected to be polyurethane (PU) products. PU products are widely used in automotive and construction applications due to their excellent properties such as good electrical insulation, chemical resistance, high strength, and low cost. The growth of the automotive industry is expected to drive the demand for 1,6-diisocyanate (HDI) over the forecast period.

The application segment of 1,6-diisocyanate (HDI) market includes packaging, electronics & electricals, smart building & construction, furniture & furnishings, automobiles and others. The furniture & furnishings segment is expected to be the largest consumer of 1,6-diisocyanate (HDI), owing to its use in production of foam for bedding and upholstery.

The end user segment of 1,6-diisocyanate (HDI) market includes residential consumers and commercial users. The residential consumers are expected to be the major consumer of 1,6-diisocyanate (HDI), as they use it in various applications such as furniture& furnishings and packaging.

Asia-Pacific is expected to be the top region with increasing demand from the developing countries such as China, India etc

Impact of Covid-19 on the 1,6-diisocyanate (HDI) Market

Covid-19 has had a significant impact on the 1,6-diisocyanate (HDI) market. The demand for HDI has decreased significantly due to the Covid-19 pandemic. The decrease in demand is mainly due to the slowdown in the automotive and construction industries. HDI is used in the production of polyurethane coatings, adhesives, and inks. The slowdown in these industries has resulted in a decrease in demand for HDI.

The Covid-19 pandemic has also led to a decrease in production of HDI. Many HDI plants have been shut down due to the pandemic. This has led to a shortage of HDI supply in the market. The decrease in production and increase in prices of raw materials have also contributed to the increase in price of HDI.

Key developments in the 1,6-diisocyanate (HDI) Market 

In January, BASF announced plans to expand its existing production capacities in Europe. The expansion includes the construction of a new production plant for 1,6-diisocyanate (HDI) at the company’s Ludwigshafen site in Germany.

In April, Covestro announced that it was expanding its prime HDI capacity by approximately 200 kt through a new plant located at its Shanghai site. 

In July, Huntsman Corporation acquired Momentane Performance Materials Inc., which further expands its presence in the 1,6-diisocyanate (HDI) market. 

In December, Evonik Industries AG announced plans to construct a new HDI facility in Singapore and has partnered with ADNOC for its raw material supply. This move is expected to significantly strengthen their presence in Asia Pacific region. 

1,6-diisocyanate (HDI) Market Scope

Key Segments of the 1,6-diisocyanate (HDI) Market

Type Overview, (USD Million)
        • 0.995
        • Others
Application Overview, (USD Million)
        • Polyurethane Coatings
        • Adhesive
        • Inks
        • Others
Regional Overview, (USD Million)
North America
        • U.S
        • Canada
Europe 
        • Germany
        • France
        • UK
        • Rest of Europe
Asia Pacific
        • China
        • India
        • Japan
        • Rest of Asia Pacific
South America
        • Mexico
        • Brazil
        • Rest of South America 
        • Middle East and South Africa