Globally, the blocked isocyanate market is projected to witness a CAGR of 4.8% during the forecast period and reach a market size of USD 1.2 billion by 2032.
Drivers of the market
The growth in this market can be attributed to the increase in demand for water-based blocked isocyanates as they are environmentally friendly products, which are replacing solvent-based blocked isocyanates in many applications, such as coatings, adhesives and others.
Blocked isocyanates are chemicals that find application as cross-linking agents in two-component polyurethane systems. They are used in a wide range of applications such as coatings, adhesives, sealants, and elastomers.
The advantages of Blocked Isocyanate Market are
1) It can be applied to many different things, including coatings, adhesives, sealants, and elastomers and due to its varied usage across different markets, its demand has remained positive over the years.
2) It offers good resistance against UV light, chemicals, and the elements. This is another major advantage as resistance against chemicals and UV lights are very important for effective application and makes it much easier.
3) It is stable at high temperatures and has a lengthy shelf life. This is very important as a longer shelf will mean better longevity and also it provides a stable temperature which too is very crucial for its application.
4) It is offered in a range of formulations to accommodate the requirements of various applications which gives more varied options compared to others.
Market CAGR of Blocked Isocyanate Market
The CAGR of the Blocked Isocyanate Market is expected to be around 5.5% during the forecast period of 2020 to 2032.
The challenges of the Blocked Isocyanate Market are:
1. The volatile nature of the raw materials prices which can spike up anytime and this is concerning as the market loses firmness.
2. The stringent environmental regulations is another drawback of the market as too strict regulations results in losing market share.
3. The increased competition from the Asia-Pacific region may concern some as new market players might not enter as there already exist a lot of competition which may be too much for them.
There are certain problems with the market but due to its features and applicability, the demand is only expected to rise in the near future.
Key Players in the market of Blocked Isocyanate Market
Some of the key Players in the Blocked Isocyanate Market include Aditya Birla Chemicals, Evonik Industries AG, The Dow Chemical Company, BASF SE and Wacker Cherie AG.
Segment Analysis into type, application, end user and region in Blocked Isocyanate Market
The most demanded product in the Blocked Isocyanate Market is the one that can be used for the production of flexible foam. The Blocked Isocyanate Market is expected to grow at a considerable rate during the forecast period owing to the rising demand from end-use industries such as construction and automotive. Moreover, the increase in environmental regulations is projected to fuel the growth of this market.
As a result of the rising demand for water-based blocked isocyanates in this application, the single-component coating segment is anticipated to develop at the greatest CAGR throughout the forecast period. Numerous end-use sectors, including construction, automotive, furniture & fixtures, and electronics, use blocked isocyanates.
Due to its expanding market and requirement, the automobile sector is one of the main consumers of blocked isocyanates, and this trend is anticipated to continue.
The market has been divided into coatings and flexible foam based on application. A significant portion of the Blocked Isocyanate Market is expected to be accounted for by the flexible foam segment over the course of the forecast period because of its exceptional qualities, including high flexibility and abrasion resistance. Additionally, it offers superior comfort and support compared to traditional foams, making it a popular choice for bedding products.
The market has been divided into construction, automobile, furniture, and bedding based on the end user. During the projection period, one of the main users of blocked isocyanates is expected to be the most in construction industry.
Region wise, the demand is expected to be the most in Asia Pacific due to high demand from developing economies such as China and India. North America is also expected to be a key market for blocked isocyanates owing to the presence of major manufacturers in this region.
Impact of Covid-19 on the Blocked Isocyanate Market
Covid-19 has had a significant impact on the blocked isocyanate market. The demand for blocked isocyanates has decreased due to the slowdown in the automotive and construction industries. The production of blocked isocyanates has also been impacted by the lockdown measures implemented in various countries.
The decrease in demand has led to a decrease in prices of blocked isocyanates. However, prices are expected to recover as the global economy starts to rebound.
The impact of Covid-19 on the blocked isocyanate market is expected to be temporary and the market is expected to return to its pre-crisis level within a few years.
Key Developments in the Blocked Isocyanate Market
In January 2019, BASF SE acquired the remaining 50% stake in BASF Isocyanates GmbH from joint venture partner Evonik Industries AG. With this acquisition, BASF now owns 100% of the isocyanate production site in Marl, Germany.
In October 2018, DowDuPont Inc. announced that it would be spinning off its performance materials & coatings business into a new independent company called Corteva. The new company will include the isocyanates business of Dow Chemical Company.
In May 2018, Covestro AG announced the expansion of its polyurethane raw materials manufacturing plant in Baytown, Texas. The expansion is expected to be completed by the end of 2019 and will double the plant’s capacity to produce MDI-based polyurethane raw materials.
Blocked Isocyanate Market Scope
|Revenue forecast in 2032
|USD 1.2 billion
|CAGR of 4.8 % during 2022-2032
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Aditya Birla Chemicals, Evonik Industries AG, The Dow Chemical Company, BASF SE and Wacker Cherie AG.
Key Segments of the Blocked Isocyanate Market
Type Overview, (USD Billion)
• Water-based Blocked Isocyanate
• Solvent-based Blocked Isocyanate
Application Overview, (USD Billion)
• Single-Component Coating,
Regional Overview,(USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
• Middle East and South Africa