Isocyanate Market

The isocyanate market is projected to grow from USD 32.23 billion in 2025 to USD 39.68 billion by 2030, registering a CAGR of 4.2% during the forecast period (2025-2030). Continued growth in the global isocyanate market is expected into the next decade, driven by rising demand for polyurethane across key sectors such as construction, automotive, furniture, coatings, and adhesives. Demand for rigid and flexible polyurethane foams, commonly used for insulation and lightweight components, will remain a key driver of market growth as Asia-Pacific experiences greater urbanization and industrialization, which drive production and consumption growth. In addition, the increasing focus on energy-efficient and sustainable products, driven by regulatory action, has led to greater innovation in bio-based and low-emission isocyanate products. Manufacturers are also expanding production capacity and investing in technology to improve operational efficiency and comply with environmental regulations. These factors reflect stable growth across regions despite raw material price volatility and ongoing regulatory challenges.

BASF (Germany), Covestro AG (Germany), Wanhua (China), Huntsman International LLC (US), Tosoh Corporation (Japan), SABIC (Saudi Arabia), Mitsui Chemicals Inc. (Japan), Hanwha Solutions (South Korea), Cangzhou Dahua Group Co., Ltd. (China), and Dow (US) are key players in the isocyanates market. Companies in the isocyanates market employ a range of strategies to strengthen their positions and broaden their reach. These include increasing investment in research & development through product innovation (creating more sustainable, low-VOC, bio-based, and high-performing isocyanate formulations) to position themselves to meet stringent environmental regulations and expand into other application areas. In addition to product development, companies also expand production capacity and geographic footprint by establishing or expanding facilities and supply chain networks in newly developed regions such as Asia Pacific. Strategic collaborations, joint ventures, mergers, and acquisitions are pursued to increase technological access, diversify product portfolios, and increase market penetration, while partnering with end-use manufacturers to co-develop customized solutions. At the same time, digitalization and enhancements to supply chain management (including improvements in manufacturing processes) are pursued to increase operational competitiveness, responsiveness, and flexibility to changes in demand.

To know about the assumptions considered for the study download the pdf brochure

In August 2025, Covestro AG signed an agreement to acquire two legal entities and production sites formerly owned by Vencorex in Freeport, US, and Rayong, Thailand, that produce HDI (hexamethylene diisocyanate) derivatives. The acquisition expands Covestro’s specialty aliphatic isocyanate portfolio and strengthens its coatings and adhesives solutions within the Solutions & Specialties segment. By integrating these sites into its global network, Covestro enhances capacity and geographic reach in the US and the Asia Pacific region, supporting long-term growth in high-value polyurethane derivatives.

In August 2024, BASF announced a partnership with STOCKMEIER Urethanes USA to supply 100% biomass-balanced Lupranate MDI for polyurethane binder applications, including playground and recreational surfacing. The collaboration combines BASF’s low-carbon isocyanates with STOCKMEIER’s formulation and distribution capabilities, accelerating market adoption of sustainable polyurethane systems. This agreement reflects BASF’s strategy to leverage specialized downstream partners to expand the reach of its sustainable isocyanates into niche and value-added application segments.

BASF

BASF is a Germany-based global chemical company headquartered in Ludwigshafen am Rhein, operating one of the world’s largest and most integrated chemical production networks. The company combines economic performance with environmental and social responsibility as part of its corporate strategy. The company’s business is structured into six core segments, namely Chemicals, Materials, Industrial Solutions, Nutrition & Care, Surface Technologies, and Agricultural Solutions, each tailored to serve distinct industries with chemical products, advanced materials, additives, nutritional and care ingredients, coatings, catalysts, and crop-related solutions. Within this structure, isocyanates are principally provided through the Materials segment, which includes the Performance Materials and Monomers divisions. This segment’s portfolio explicitly encompasses isocyanates (such as MDI and TDI) and polyamide precursors as foundational chemicals for plastics and polyurethane value chains, positioning BASF as a supplier of these bulk intermediates for industries such as automotive, construction, furniture, and consumer goods. The Chemicals segment supports internal and external customers by supplying basic petrochemicals and intermediates that feed into higher-value production within BASF and across downstream industry chains.

Covestro AG

Covestro AG is a leading global supplier of high-tech polymer materials, headquartered in Leverkusen, Germany, and publicly listed on the German stock exchange. It was formerly included in the DAX index. The company is organized into two reportable segments, namely Performance Materials (PM) and Solutions & Specialties (S&S), with central corporate functions providing strategic governance and long-term development support. The Performance Materials segment represents Covestro’s core standard polyurethane and base chemicals business, producing and supplying essential polyurethanes and polycarbonates at competitive scale. This segment includes aromatic isocyanates, specifically diphenylmethane diisocyanate (MDI) and toluene diisocyanate (TDI), alongside long-chain polyols and polycarbonate resins. These intermediate chemicals serve as the backbone for rigid and flexible polyurethane foams used in industries such as construction (insulation), furniture and wood processing, automotive seating and interiors, and appliance applications. Performance Materials is therefore the principal Covestro AG segment through which isocyanates are manufactured and marketed to external customers and internal downstream businesses at scale. The Solutions & Specialties segment comprises six business entities focused on higher-value, innovation-driven products and customer solutions, including coatings & adhesives, tailored urethanes, thermoplastic polyurethanes, specialty films, elastomers, and engineering plastics. Within this segment, Covestro AG also develops specialty MDI derivatives and polyurethane precursors tailored for specific performance requirements, combining chemical products with application technology and service offerings.

MARKET RANKING

The top five companies in the isocyanates market are Wanhua (China), BASF (Germany), Covestro AG (Germany), Huntsman International LLC (US), and Dow (US). The global isocyanates market is dominated by major chemical players with diverse strengths and strategic focuses. BASF leads with an extensive integrated value chain and a broad portfolio of MDI and TDI grades, driving innovation in low-emission and bio-based solutions. Covestro AG focuses on high-performance and specialty isocyanates, supported by sustainability and circular-economy initiatives. Wanhua has rapidly expanded global capacity, especially in the Asia Pacific region, becoming a top MDI producer. Huntsman International LLC offers tailored isocyanate solutions for the automotive and construction sectors, supported by global operations. Dow integrates isocyanates with downstream polyurethane systems and invests in sustainable formulations, collectively strengthening these companies’ leadership and competitive positions.

Related Reports:

Isocyanates Market by Type (MDI, TDI, Aliphatic), Application (Foams, Adhesives & Sealants, Coatings), End-use Industry (Automotive, Building & Construction, Furniture & Bedding, Consumer Goods, Industrial Coatings), and Region - Global Forecast to 2030

Contact:
Mr. Rohan Salgarkar
MarketsandMarkets™ INC.
1615 South Congress Ave.
Suite 103, Delray Beach, FL 33445
USA : 1-888-600-6441
sales@marketsandmarkets.com