Phosgene Chemistry Market Analysis
An in-depth examination of the phosgene market is provided below, including details about the market's growth drivers, a summary of how the key players compare to VanDeMark Chemical, a breakdown of the market based on application, region, etc. According to research, the phosgene market was estimated at $3.46 billion in 2015 and is expected to hit $4.672 billion by 2021, growing at a CAGR of about 5.13%.
I). Phosgene Chemistry Market Breakdown by Application ($)
- A report by Market Study Report indicates that in 2015, the global phosgene market size was valued at $3.46 billion and projected to grow to $4.672 billion by 2021, at an estimated CAGR of 5.13%. Using the reverse CAGR calculator available online, the phosgene market size in 2017 based on calculations is estimated at $3.824 billion.
- According to market research reports, the MDI/PMPPI segment of the phosgene chemistry market holds the largest share, and in 2017, it accounted for 57% of the market share. On the other end, the TDI market segment is expected to hold about 27% of the market share by 2022, growing at a CAGR of 5%.
- By applying the formula for calculating the net present value, the TDI segment's market share in 2017 can be determined, since the CAGR and future values are known. On that note, using the present value calculator available at MoneyChimp, the TDI segment in 2017 accounted for around 21.16% of the market, implying that the 'others' segment accounted for 100% less (57% + 21.16%) = 21.84%.
- Based on the values above, in 2017, the MDI/PMPPI segment accounted for 57% of $3.824 billion, which is equivalent to $2.18 billion, while the TDI market segment held 21.16% of $3.824 billion, which is equal to $809,158 million, and the 'others' segment (21.84% of $3.824 billion), which is equivalent to approximately, $835,162 million.
- According to a report by Technavio, the MDI/PMPPI and TDI segments are expected to continue growing from 2018 through 2022; however, the TDI segment is expected to experience the fastest growth than the other segments and will reach 27% market share in 2022.
- In 2018, the MDI/PMPPI segment still accounted for the largest market share, which is attributed to the growing demand for MDI/PMPPI in many applications like adhesives, high-performance elastomers, manufacturing PU foam for bedding applications, reaction injection molding systems, sealants, and spandex fibers.
- Another prevalent trend in the application's segment relates to global manufacturers. They have enhanced the production capacities of MD and TDI to match the growing demand for polyurethane foams due to the increasing world population. The expansion of production capacities by various TDI and MD manufacturers is expected to create new market opportunities for the key players in the phosgene chemistry market.
- Manufacturers have also enhanced the existing properties of polyurethane (PU) foams, leading to an increase in their demand among end-users across industries like "automotive, construction, furniture, etc."
Growth Trends Within the Segments
2.) The Market Breakdown by Region
- The phosgene chemistry market is also segmented based on the global regions, i.e., the Asia Pacific (APAC) region, Europe, North America, and the rest of the world. However, most of the reports examined feature in-depth analyses for North America, Europe, and APAC markets only, as is the case for the analyses below.
- North America's phosgene market encompasses Canada, Mexico, and the United States (U.S.).
- The U.S. market leads the region in terms of market share. It is expected to witness significant growth in the future because of rising product demand in the region's agrochemical industry to aid in the manufacture of synthetic fertilizers and pesticides.
- The U.S. agricultural pesticide market is expected to exceed $3 billion by 2025 and its use in enhancing crop production and quality, which in turn produces high yields, would boost product demand.
- The phosgene chemistry market in Europe is led by the UK, France, Italy, and Germany.
- While the APAC region dominates the global phosgene market, Europe has a more significant market share in the global market than North America, which ranks third.
- The European market size for phosgene is predicted to expand over the forecast period (2020 – 2026) driven primarily by growing product consumption in pharmaceutical, dyes, and specialty chemicals.
- For instance, the Germany pharmaceutical market is expected to exceed $67.5 billion by 2025 due to expanding pharmaceutical plants and increasing research and development (R&D) activities sponsored by the government, which, in turn, would stimulate regional industry growth.
- The APAC phosgene market encompasses the following countries — China, India, and Japan.
- In 2017, APAC led the global phosgene market with a market share of almost 40%, while in 2018, it accounted for 44% of the global market share. The region is expected to continue dominating the market and is forecasted to register the highest growth rate through 2022.
- According to research, the phosgene market in APAC may experience significant growth through the end of the forecast period (2025), driven by the rising demand for its derivatives, i.e., methylene diphenyl diisocyanate and toluene diisocyanate.
- The APAC methylene diphenyl market share was forecasted to exceed $10 billion by 2019 due to growing applications in automobiles, construction, and furniture industries, which would, in turn, boost product demand.
Asia Pacific (APAC)
3.) Growth Drivers of the Phosgene Market
- Increasing demand for bedding and furniture is forecasted to drive the growth of the global phosgene market.
- The demand for bedding and furniture is driven primarily by the rapidly expanding world population that has persisted for the last 20 years. Declining infant mortality rates and increasing life expectancy rates are also aiding the growth of the population.
- Generational factors such as increased relocation rates among millennials also contribute to the growing demand for bedding and furniture, which in turn increases the demand for phosgene.
- Another growth driver for the phosgene market is its extensive use in numerous industries, including the pharmaceutical, agrochemical, chemical, etc.
- Phosgene is widely used in the manufacture of "diethylcarbomoyl chloride, which is used as an intermediate for the production of dyes, pesticides, and pharmaceuticals." Diethylcarbomoyl chloride is also used to "hydrolyze water-insoluble compounds."
- The growing importance of pesticides to improve agricultural yield is driving the pesticide market, which is forecasted to surpass $90 billion by 2025; hence, adding to the increased demand for phosgene, which in turn boosts the market growth.
- Other factors expected to boost the market size of phosgene include its use in polyurethane and polycarbonate manufacturing units and in the metal extraction of niobium, platinum, plutonium, and uranium.
Growing Demand for Bedding and Furniture
Increased Use in Many Industries
4.) Product Applications of Phosgene Chemistry
- The global phosgene market is segmented by application into methylene diphenyl diisocyanate (MDI)/polymeric methylene diphenyl diisocyanate (PMPPI), toluene diisocyanate (TDI).
- MDI is commonly used in non-foam applications like "paint & coating, sealants, and adhesives as well as in reaction injection-molding, high-performance elastomers, and spandex fibers."
- On the other hand, PMPPI is extensively applied in manufacturing polyurethane foams used in building insulations and refrigeration.
- Toluene diisocyanate (TDI) and methylene diphenyl diisocyanate (MDI) are commonly used to manufacture derivatives used in the coating, construction, electronics, and packaging industries, among others.
- It is widely used in many industries, including automotive, construction, electronics, packaging, coating, etc.
5.) How VanDeMark Compares to Top Five Companies
Based on revenue, the five top companies identified in the strategy compare as follows.
- In 2019, BASF had annual revenues of €59.316 billion, while in 2018, its sales revenues reached €60.220 billion.
- The company has about 11,000 employees in research and development (R&D).
- In 2019, Covestro had annual revenues of €12.4 billion, a decline of 15.1% from its earnings in 2018.
- The company has 17,201 employees, indicating an increase of +2.6%.
- In 2019, Huntsman International had annual revenues of $6.797 billion, a decrease from 2018's $7.604 billion.
- The company had approximately 10,000 employees as of December 2019.
- There is no information on revenue figures for Shandong Tianan Chemicals in public; however, some statistics that show the company's size; for instance, its output capacities are provided.
- According to the company's website homepage, it covers over 466,000 square meters of land and has 450 employees, 50 are technicians.
- In 2019, Verus Investment Partners sold VanDeMark Chemical, its portfolio company, for an undisclosed amount.
- Zoominfo estimates that the company has about 93 employees and annual revenues of around $27 million.