Building insulation is the largest consumer of MDI globally. In 2012, global MDI consumption was distributed as follows: 41% for building insulation, 16% for refrigeration, 9% for automotive applications, 9% for TPU elastomers, and 25% for other areas such as pipe insulation. In contrast, household appliances are the main consumer of MDI in China. In 2012, domestic MDI usage was composed of 30% for household appliances, 15% for slurry, 12% for construction insulation, 9% for vehicles, and 34% for other applications, including adhesives. This data indicates that the demand for MDI in China’s building insulation sector has yet to be fully realized, suggesting significant future growth potential.
Currently, China is the world's largest construction market, with over 50 billion square meters of construction area and an annual increase of more than 2 billion square meters. However, most new buildings are still high-energy-consuming structures, contributing to 27% of the country’s total energy consumption. According to statistics, the thermal conductivity of China’s building walls and windows is 3 to 4 times higher than that of developed countries, and energy consumption per unit area is 4 to 5 times greater. This highlights a huge opportunity for energy efficiency improvements in the building sector.
Experience from both domestic and international practices shows that using insulation materials is one of the most effective ways to reduce energy loss in buildings. Polyurethane (PU) materials made from MDI are widely recognized as high-performance insulation solutions that meet safety, environmental, and energy-saving standards. Compared to EPS and XPS, which are known for poor fire resistance, PU insulation materials that achieve B1 or B2 flame retardant ratings—especially PU-inorganic composite materials—are far superior in terms of safety and performance.
Although EPS and XPS are currently cheaper, PU insulation offers better long-term value when considering the entire lifecycle cost. As energy efficiency regulations become stricter and environmental awareness grows, the demand for advanced insulation materials like PU is expected to rise significantly in the Chinese market.
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