Toluene Diisocyanates Market

Global Toluene Diisocyanates Market Overview

Toluene Diisocyanates Market Size was valued at USD 223.31 Billion in 2024. The Toluene Diisocyanates industry is projected to grow from USD 259.62 Billion in 2025 to USD 1007.6 Billion by 2034, exhibiting a compound annual growth rate (CAGR) of 16.26% during the forecast period (2025 - 2034). The increase in demand for flexible foam and the high demand for polyurethane from the automotive industry are the key market drivers incorporating the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Toluene Diisocyanates Market Trends

• Increasing demand for polyurethane foam is driving the market growth

The rising demand for polyurethane foam drives market CAGR for opacifiers. Polyurethane foams, derived from toluene diisocyanates, have widespread applications in the construction, automotive, and furniture industries. The growing demand for energy-efficient buildings, lightweight automotive components, and comfortable furniture has fueled the adoption of polyurethane foams, consequently driving the demand for toluene diisocyanates. Polyurethane foams are extensively used for insulation in the construction industry due to their excellent thermal insulation properties. As environmental concerns and energy efficiency regulations continue to rise, the demand for energy-saving materials like polyurethane foams is expected to grow, thereby boosting the toluene diisocyanates market. Furthermore, the automotive industry has witnessed a surge in demand for lightweight materials to improve fuel efficiency. This trend is anticipated to drive the demand for toluene diisocyanates as manufacturers seek efficient, lightweight solutions.

Environmental regulations and consumer preferences have pushed the market toward developing and adopting low-VOC formulations. Toluene diisocyanates, a precursor for polyurethane products, have been scrutinized due to their potential harmful emissions. To address this concern, manufacturers invest in research and development to develop low-VOC formulations using toluene diisocyanates. This trend involves the development of new catalysts, additives, and alternative raw materials that minimize the emissions of volatile organic compounds during the production and application of polyurethane products.

The electronics and packaging industries are witnessing rapid expansion due to technological advancements, increased consumer spending, and the growth of e-commerce. Toluene diisocyanates are finding new applications in these industries, further contributing to market growth. In the electronics industry, toluene diisocyanates produce encapsulants and adhesives for semiconductors, providing protection and insulation to delicate electronic components. The increasing demand for smartphones, tablets, wearable devices, and automotive electronics drives the need for advanced encapsulation materials, fueling the demand for toluene diisocyanates. The demand for processed food and beverages, pharmaceuticals, and consumer goods has propelled the need for high-performance packaging materials. Toluene diisocyanates offer excellent adhesion, durability, and moisture resistance, making them suitable for various packaging applications.

For instance, the toluene diisocyanates market is witnessing a significant growth driven by the increasing demand for polyurethane foams, the shift towards low VOC formulations, and the emerging applications in the electronics and packaging industries. As the construction, automotive, electronics, and packaging sectors continue to expand, the demand for toluene diisocyanates is expected to rise further. However, manufacturers must address environmental concerns and comply with regulatory requirements to sustain long-term, driving the Toluene Diisocyanates market revenue.

Toluene Diisocyanates Market Segment Insights

Toluene Diisocyanates Application Insights

The Toluene Diisocyanates market segmentation, based on application, includes flexible foam, paints & coatings, elastomers, binders, adhesives, and sealants. The flexible foam category generated the most income. These foams are widely used in the furniture, bedding, and automotive industries for their excellent cushioning properties. The growing demand for comfortable bedding and seating solutions in residential and commercial sectors drives the demand for flexible foams, positively impacting the toluene diisocyanates market.

Toluene Diisocyanates Forms Insights

The Toluene Diisocyanates market segmentation, based on forms, includes 2,4-toluene diisocyanate and 2,6-toluene diisocyanate. The 2,4-toluene diisocyanate segment dominated the market, as it is widely used to produce flexible polyurethane foams. It possesses excellent reactivity, making it suitable for a range of applications. This form of TDI is typically produced by the reaction of toluene diamine with phosgene. It offers favorable processing characteristics and imparts desirable properties to the end products.

Figure 1: Toluene Diisocyanates Market, by Forms, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Toluene Diisocyanates Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Toluene Diisocyanates market area will have significant growth in this market. The demand for TDI in automotive applications, such as seat cushions, interior panels, and insulation, is expected to remain strong. In addition, the growing trend of energy-efficient buildings and sustainable construction practices bolstered the demand for TDI-based insulation materials.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: TOLUENE DIISOCYANATES MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Toluene Diisocyanates market accounts for the second-largest market share due to the stringent regulations regarding energy efficiency and environmental sustainability, leading to the increased adoption of TDI-based polyurethane foams and coatings. Further, the German Toluene Diisocyanates market held the largest market share, and the UK Toluene Diisocyanates market was the rapid-growing market in the European region.

The Asia-Pacific Toluene Diisocyanates Market will dominate the CAGR from 2023 to 2032. It is due to the fast industrialization and urbanization in countries like China and India. The booming construction industry in these countries is creating a massive demand for TDI-based insulation materials, coatings, and adhesives. Moreover, China’s Toluene Diisocyanates market held the largest market share, and the Indian Toluene Diisocyanates market was the rapid-growing market in the Asia-Pacific region.

Toluene Diisocyanates Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Toluene Diisocyanates market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Toluene Diisocyanates industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Toluene Diisocyanates industry to benefit clients and increase the market sector. In recent years, the Toluene Diisocyanates industry has offered some of the most significant medical advantages. Major players in the Toluene Diisocyanates market, including Tosoh Corporation (Japan), BASF SE (Germany), The Dow Chemical Company (US), LANXESS (Germany), Covestro (Germany), Mitsui Chemicals, Inc. (Japan), Wanhua Chemical Group Co. Ltd (China), Cangzhou Dahua Group Co. Ltd (China), China National Bluestar (Group) Co., Ltd (China), Anderson Development (US), and others, are attempting to increase market demand by investing in research and development operations.

BASF SE is a chemical company headquartered in Ludwigshafen, Germany. It is one of the largest chemical producers in the world. The company operates in four business segments: chemicals, performance products, functional materials & solutions, and agricultural solutions. The chemicals segment includes the company's petrochemicals, monomers, and intermediates activities. The performance products segment comprises the company's coatings, construction chemicals, and adhesives activities. The functional materials & solutions segment includes the company's activities in care chemicals, nutrition & health, and performance materials. The agricultural solutions segment comprises the company's activities in the field of crop protection. In April 2020, BASF and its long-time partner Shandong INOV Polyurethane signed a framework agreement designed to serve rising demand from several industries in China and overseas. As part of the accord, the companies will expand the capacities of toluene diisocyanate (TDI), diphenylmethane diisocyanate (MDI), and polytetrahydrofuran (PolyTHF).

Covestro AG, founded in 2015, located in Leverkusen, North Rhine-Westphalia, Germany, is a German company that produces various polyurethane and polycarbonate-based raw materials. Its products include isocyanates and polyols for cellular foams, thermoplastic polyurethane and polycarbonate pellets, and polyurethane-based additives to form coatings and adhesives. In March 2021, a leading manufacturer of polymers, Covestro, developed a process for recycling flexible foams made of Polyurethanes. In January 2022, Recticel reached final agreements with Swiss-listed Conzzeta AG (SIX: CON) to purchase 100% of FoamPartner in cash for a value of CHF 270 million, with CHF 20 million of the purchase price due in January 2022. It equates to an average normalized EBITDA multiple of 8.6x for 2019A-2020F. The action is subject to typical pre-closing conditions, such as antitrust approval.

Key Companies in the Toluene Diisocyanates market include

• Tosoh Corporation (Japan)
• BASF SE (Germany)
• The Dow Chemical Company (US)
• LANXESS (Germany)
• Covestro (Germany)
• Mitsui Chemicals, Inc. (Japan)
• Wanhua Chemical Group Co. Ltd (China)
• Cangzhou Dahua Group Co. Ltd (China)
• China National Bluestar (Group) Co., Ltd (China)
• Anderson Development (US)

Toluene Diisocyanates Industry Developments

January 2022: Recticel has reached final agreements with Swiss-listed Conzzeta AG (SIX: CON) to purchase 100% of FoamPartner in cash for a value of CHF 270 million, with CHF 20 million of the purchase price due in January 2022. It equates to an average normalized EBITDA multiple of 8.6x for 2019A-2020F. The action is subject to typical pre-closing conditions, such as antitrust approval.

May 2022: Hunstman International LLC collaborated with BRUGG pipes in which they have developed a next-generation polyurethane foam system with excellent insulation properties that can be used to create highly flexible, thermally efficient, pre-insulated pipes for connecting ground source heat pumps and local heating units to domestic and commercial buildings.

Toluene Diisocyanates Market Segmentation

Toluene Diisocyanates Form Outlook

• 2,4-toluene diisocyanate
• 2,6-toluene diisocyanate

Toluene Diisocyanates Application Outlook

• Flexible Foam
• Paints & Coatings
• Elastomers
• Binders
• Adhesives
• Sealants

Toluene Diisocyanates Regional Outlook

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific
• Rest of the World
  • Middle East
  • Africa
  • Latin America

Toluene Diisocyanates Forms Outlook (USD Billion, 2018-2032)

• 2,4-Toluene Diisocyanate

• 2,6-Toluene Diisocyanate

Toluene Diisocyanates Application Outlook (USD Billion, 2018-2032)

• Flexible Foam

• Paints & Coatings

• Elastomers

• Binders

• Adhesives

• Sealants

Toluene Diisocyanates Regional Outlook (USD Billion, 2018-2032)

• North America Outlook (USD Billion, 2018-2032)

  • North America Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • North America Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • US Outlook (USD Billion, 2018-2032)

  • US Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • US Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • CANADA Outlook (USD Billion, 2018-2032)

  • CANADA Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • CANADA Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

• Europe Outlook (USD Billion, 2018-2032)

  • Europe Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • Europe Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • Germany Outlook (USD Billion, 2018-2032)

  • Germany Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • Germany Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • France Outlook (USD Billion, 2018-2032)

  • France Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • France Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • UK Outlook (USD Billion, 2018-2032)

  • UK Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • UK Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • ITALY Outlook (USD Billion, 2018-2032)

  • ITALY Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • ITALY Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • SPAIN Outlook (USD Billion, 2018-2032)

  • Spain Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • Spain Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • Rest Of Europe Outlook (USD Billion, 2018-2032)

  • Rest Of Europe Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • REST OF EUROPE Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

• Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Asia-Pacific Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • Asia-Pacific Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • China Outlook (USD Billion, 2018-2032)

  • China Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • China Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • Japan Outlook (USD Billion, 2018-2032)

  • Japan Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • Japan Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • India Outlook (USD Billion, 2018-2032)

  • India Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • India Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • Australia Outlook (USD Billion, 2018-2032)

  • Australia Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • Australia Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Rest of Asia-Pacific Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • Rest of Asia-Pacific Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

• Rest of the World Outlook (USD Billion, 2018-2032)

  • Rest of the World Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • Rest of the World Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • Middle East Outlook (USD Billion, 2018-2032)

  • Middle East Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • Middle East Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • Africa Outlook (USD Billion, 2018-2032)

  • Africa Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • Africa Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants

  • Latin America Outlook (USD Billion, 2018-2032)

  • Latin America Toluene Diisocyanates by Forms

    • 2,4-Toluene Diisocyanate

    • 2,6-Toluene Diisocyanate

  • Latin America Toluene Diisocyanates by Application

    • Flexible Foam

    • Paints & Coatings

    • Elastomers

    • Binders

    • Adhesives

    • Sealants