CAGR: 7.40%Current Market Size: USD 867.22 MillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
The global dimethyl carbonate market is expected to grow from USD 867.22 million in 2021 to USD 1535.19 million by 2029, at a CAGR of 7.40% during the Projection period 2022-2029. This growth of the dimethyl carbonate market is significantly driven by its rising use of it in the manufacturing of reagents, solvents, additives, etc. which are used in numerous verticals. The increasing demand for end-products in the medical, electronics, agriculture, and construction industries has led to high sales in the past few years. As dimethyl carbonate is considered to be an eco-friendly substance, it is in huge demand from various end-user industries.
The dimethyl carbonate displays efficient characteristics for being a good solvent and thus the scope of its application has been expanded in different industries. Dimethyl carbonate is an inflammable chemical that is odorless. It even has a whitish appearance and has lower reactivity as compared to other chemicals. Dimethyl carbonate was initially produced through the reaction of phosgene and methanol; however, this mixture was quite toxic. Now, it is produced through transesterification and the copper catalysis method. It is used in the manufacturing of solvents for paints, polycarbonates that are transparent, and plastics that has high resistance to heat. The solubility of dimethyl carbonate in water is quite low.
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Market Dynamics:
Drivers:
The increase in industrial manufacturing activities has led to the high use of dimethyl carbonate. The production of resins, fuel additives, reagents, and solvents has increased tremendously in the recent era. Due to the expansion of urbanization and industrialization, the engineered thermoplastics industry is keen on using materials that can help in providing thermal stability and heat resistance. The favorable attributes of dimethyl carbonate including strength, chemical resistance, and transparency make it one of the most used raw materials in consumer products, building, and construction, automotive, etc.
Restraints:
The dimethyl carbonate market's expansion is being hampered by the variable cost of raw materials necessary for product development. The total costs are influenced by the raw material prices connected with the development of dimethyl carbonate. The upstream price of raw materials has an impact on the production's final price. As a result, the shifting cost of raw materials has an impact on the market expansion of dimethyl carbonate companies.
Opportunities:
Several end-user industries are opting for oxygenated fuel additives. Fossil fuels are depleting at an alarming rate. Conventional fuels have been used for a longer period of time in different end-user industries. The rising increase in consumption of oil has led to increasing in pollutants. However, the imposition of stringent regulations has led to the limited use of conventional fuels. Therefore, newer alternatives are used to a large extent which is environmentally friendly. Dimethyl carbonate is used as an oxygenated additive as it consists of all the required attributes including a high concentration of oxygen and non-corrosive nature.
Challenges
The dimethyl carbonate requires extensive research and development processes in order to be launched in the market. The technology used for manufacturing dimethyl carbonate is rigorous and requires the use of high-end equipment. Further, the process is also lengthy and thus this leads to delay in the commercialization of the product. Also, many of the manufacturers still use the conventional manufacturing practice which was found to be toxic and causes harm to the surrounding environment.
Segmentation Analysis:
The global dimethyl carbonate market has been segmented based on product grade, application, end-use, distribution channel, and regions.
By Product Grade
The product grade segment includes battery grade, pharmaceutical grade, and industrial grade. The industry-grade segment led the dimethyl carbonate market with a market share of around 49.87% in 2021. Industry-grade dimethyl carbonate generally has a weight higher than 99%. It is further used in a wide range of industrial applications including solvents, reagents, etc. Polycarbonates are manufactured using industrial-grade dimethyl carbonate. Industrial manufacturing requires the use of high-strength, inflammable, and highly reactive chemicals and thus dimethyl carbonate is an efficient choice.
By Application
The application segment includes battery electrolytes, reagents, solvents, polycarbonate synthesis, fuel additives, and others. The polycarbonate synthesis segment led the dimethyl carbonate market with a market share of around 29.15% in 2021. Polycarbonates are manufactured effectively as a raw material in the manufacturing of products used in end-user industries. Polycarbonate synthesis is important as it increases the superiority quotient and optical transparency and dimethyl carbonate are one of the key compounds used during the synthesis process.
By End-use
The end-user segment includes paints and coatings, plastics, batteries, pharmaceuticals, agriculture, electronics, and others. The plastics segment led the dimethyl carbonate market with a market share of around 36.11% in 2021. Dimethyl carbonate is crucial in the manufacturing of engineered thermoplastics. Plastics are significant in the manufacturing of various end-user products in the electrical, automotive, and semiconductor industry. Plastic goods have been used for a longer period of time and thus there is a high growth rate of dimethyl carbonate in the plastics segment.
By Distribution Channel
The distribution channel segment includes online and offline. The offline segment led the dimethyl carbonate market with a market share of around 71.10% in 2021. Dimethyl Carbonate is majorly used by the end-users of construction, electric, pharmaceutical, and agriculture industries. Thus, the end-users usually buy the product in bulk quantity, as it is used in the manufacturing of various equipment and component. Manufacturers would prefer to check the quality in accordance with their requirements.
Global Dimethyl Carbonate- By Regional Analysis
The regions analyzed for the dimethyl carbonate market include North America, Europe, South America, Asia Pacific, and the Middle East, and Africa. The Asia-Pacific region dominated the Dimethyl Carbonate market and held the 33.82% share of the market revenue in 2021.
Global Dimethyl Carbonate Market- Country Analysis:
China is the largest dimethyl carbonate market across the globe with an estimated market share of 31.10% across the Asia region by 2022. There are many manufacturers in the country and also there are high numbers of dimethyl carbonate raw material suppliers. The high sales of paints and coating indicate a significant market growth opportunity for dimethyl carbonate.
In the North American region, the USA is the largest market shareholder in the Dimethyl Carbonate market with an estimated market share of around 49.02% by the end of 2022. The extensive applications of the additives in industrial manufacturing are anticipated to drive the market growth of dimethyl carbonate in the USA.
Key Industry Players Analysis:
To increase their market position in the global dimethyl carbonate business, top companies are focusing on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, and partnerships, joint ventures, etc.
Latest Development:
Report Attribute
Report Metric |
Information |
Study Period |
2018-2029 |
Base Year |
2021 |
Projection Period |
2022-2029 |
Market Share Unit |
USD Million |
Segments Covered |
Product Grade, Application, End-Use, and Distribution Channel |
Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle-East and Africa |
Major Players |
Shandong Shida Shenghua Chemical Co., Ltd., UBE Industries, KOWA American Corporation, Tokyo Chemical Industry Co., Ltd., Arrow Chemical Group Corp., Merck KGaA, HaiKe Chemical Group Ltd., Tangshan Chaoyang Chemical Co., Ltd., Alfa Aesar and Hefei TNJ Chemical Industry Co., Ltd. among others |
Scope of the Report
Global Dimethyl Carbonate Market by Product Grade:
Global Dimethyl Carbonate Market by Application:
Global Dimethyl Carbonate Market by End-use:
Global Dimethyl Carbonate Market by Distribution Channel:
Global Dimethyl Carbonate Market by Region:
The Market size of Global Dimethyl Carbonate is USD 867.22 million in 2021
Application segment includes battery electrolytes, reagents, solvents, polycarbonate synthesis, fuel additives, and others. The polycarbonate synthesis segment led the dimethyl carbonate market with a market share of around 29.15% in 2021. Polycarbonates are manufactured effectively as a raw material in the manufacturing of products used in end-user industries. Polycarbonate synthesis is important as it increases the superiority quotient and optical transparency and dimethyl carbonate are one of the key compounds used during the synthesis process
Dimethyl carbonate is crucial in the manufacturing of engineered thermoplastics. Plastics are significant in the manufacturing of various end-user products in the electrical, automotive, and semiconductor industry. Plastic goods have been used for a longer period of time and thus there is a high growth rate of dimethyl carbonate in the plastics segment
North America is likely to register substantial growth during the Projection period due to the use of dimethyl carbonate in the aerospace industry. The increasing use of solvents and additives, etc., and the rise in usage of dimethyl carbonate in pharmaceutical products has led to the high demand for dimethyl carbonate. Moreover, USA and Canada are some of the key countries for the dimethyl carbonate market in the North American region
China is the largest dimethyl carbonate market across the globe with an estimated market share of 31.10% across the Asia region by 2022. There are many manufacturers in the country and also there are high numbers of dimethyl carbonate raw material suppliers. The high sales of paints and coating indicate a significant market growth opportunity for dimethyl carbonate.
According to various studies, the production of dimethyl carbonate harms the environment and causes pollution. In addition, the high sales of paints and coating add to the global warming. This may be further responsible for biodiversity loss and deforestation. Hence, the aforementioned environmental concerns triggered by the production of dimethyl carbonate may pose significant challenges to market growth
Political Factors- Conventional fuels have been used for a longer period of time in different end-user industries. The rising increase in consumption of oil has led to increasing in pollutants. However, the imposition of stringent regulations has led to the limited use of conventional fuels. Therefore, newer alternatives are used to a large extent which is environmentally friendly. Dimethyl carbonate is used as an oxygenated additive as it consists of all the required attributes including a high concentration of oxygen and non-corrosive nature.
Economic Factors- The economic factor for any business includes recession, inflation, growth in GDP, growth in population, etc. rise in raw material prices increases the cost of the final product, and to maintain profitability, the organization has to increase its prices. The organization can leverage this trend by expanding its product range and targeting new customers. The dimethyl carbonate market's expansion is being hampered by the variable cost of raw materials necessary for product development. The total costs are influenced by the raw material prices connected with the development of dimethyl carbonate. The upstream price of raw materials has an impact on the production's final price. As a result, the shifting cost of raw materials has an impact on the market expansion of dimethyl carbonate companies.
Social Factor- The increasing production of paints, coatings, plastics, and additives products has led to a rise in demand for dimethyl carbonate. The countries such as China, India, Japan, Malaysia, and Singapore are the major end-users of dimethyl carbonate. The increasing industrialization and urbanization, are providing lucrative opportunities for the market growth of dimethyl carbonate. Further, the presence of multiple manufacturers in the regional countries have increased the supply of product.
Technological Factors- The dimethyl carbonate requires extensive research and development processes in order to be launched in the market. The technology used for manufacturing dimethyl carbonate is rigorous and requires the use of high-end equipment. Further, the process is also lengthy and thus this leads to delay in the commercialization of the product. Also, many of the manufacturers still use the conventional manufacturing practice which was found to be toxic and causes harm to the surrounding environment.
Environmental Factors- According to various studies, the production of dimethyl carbonate harms the environment and causes pollution. In addition, the high sales of paints and coating add to the global warming. This may be further responsible for biodiversity loss and deforestation. Hence, the aforementioned environmental concerns triggered by the production of dimethyl carbonate may pose significant challenges to market growth.
Legal Factors- The multiple legislations and laws prevailing in the region must be followed by manufacturers. In order to set up a business, the manufacturer must require to pass the stringent regulations by regional agencies. Thus, companies should extensively focus on the legal factors of the country. Moreover, the laws related to employment laws, import and export, and labor laws must be taken care of. A lawful and legal organization can effectively survive in the long run. For instance, In April 2021, a well-known player, Merck announced an investment of USD 22.90 million, for the expansion of the research and development facility at the Shizuoka, Japan site.
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