Dimethyl Carbonate Market - Forecast(2023 - 2028)

Dimethyl Carbonate Market Overview

Dimethyl Carbonate market size is forecast to reach US$536.4 million by 2027, after growing at a CAGR of 4.9% during 2022-2027. Diethyl carbonate (DMC) generally classified as carbonate ester is an established solvent and a green reagent which acts as an alternative to conventional solvents and chemicals. The increasing usage of DMC in the manufacturing of transparent and strong plastics such as polycarbonates with high heat resistance is driving the growth of the market. Additionally, due to its low water solubility dimethyl carbonate offers a wide range of possible applications in the paints & coatings, adhesives, and other sectors. Also, increasing R&D initiatives by the players in the dimethyl carbonate market to increase efficacy in green chemistry would create opportunities for the growth of the market. 

COVID – 19 Impact:

COVID-19 has had a negative impact on the worldwide dimethyl carbonate market's growth. According to IEA data, EV sales in China declined by 39% in Q1 2020 due to a decrease in the use of dimethyl carbonate in lithium-ion batteries. The global dimethyl carbonate market's growth has been hampered by increasing delays, growing uncertainty, and limited availability of critical raw materials. The pandemic's early impact resulted in the stoppage of activities in a variety of industries, resulting in a significant drop in the end-user sector. Furthermore, the Indian Paint Association stated that because to the lockdown, paint businesses in India saw no sales in April 2020, impeded the market's growth.

Report Coverage

The report " Dimethyl Carbonate Market Report – Forecast (2022-2027)" by IndustryARC covers an in-depth analysis of the following segments of the dimethyl carbonate industry.

By Grade: Industry Grade, Pharmaceutical Grade, and Battery Grade

By Application: Polycarbonate Synthesis, Lithium-ion Batteries, Solvents (Paint & Coatings, Adhesives, and Cleaning Agents), Fuel Additives, Pesticides, and Others

By End-Use Industry: Building and Construction (Residential Buildings, Commercial Buildings, Industrial Buildings, and Infrastructure), Automotive (Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles), Electronic Devices (Smart Phones, Notebook PCs, and Others), Pharmaceuticals, Agrochemicals, and Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia and New Zealand, Taiwan, Indonesia, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)

Key Takeaways

• The Asia-Pacific region dominated the dimethyl carbonate market due to the rising growth of the automotive industry. For instance, according to the International Trade Administration, the commercial vehicle sales increased by 20% year over year to 5.23 million units in 2021.
• An increase in demand for lithium-ion batteries is one of the primary factors driving the growth of the dimethyl carbonate market. For instance, according to the Australian Trade and Investment Commission the global use of lithium-ion battery energy is predicted to rise from 70 Gigawatt hours (GWh) in 2015 to 535GWh by 2023.
• In the foreseeable future, the rising growth of the construction sector is estimated to raise the growth of the market, as dimethyl carbonate is used as a solvent in the paints and coatings industry which is widely utilized in new buildings. For instance, according to the International Trade Administration, China is the world's largest construction market, with an annual average growth rate of 8.6% projected between 2022 and 2030.
  

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Dimethyl Carbonate Market Segment Analysis – By Application

Polycarbonate Synthesis held the largest share with 28.3% in the dimethyl carbonate market and is expected to continue its dominance over the period 2022-2027. Dimethyl carbonate is a chemical intermediary used in the production of polycarbonates. Polycarbonate is utilized as an engineering plastic material in industries such as automotive and electrical and electronics because it has outstanding physical features such as heat resistance, impact resistance, structural stability, and optical transparency. The increased demand for polycarbonate from the automotive and electrical and electronics industries is propelling the global market for dimethyl carbonate. According to the Gas Authority of India Limited (GAIL), polycarbonate consumption was 148.61 thousand tonnes in 2018 and is expected to grow at a 7 percent annual pace through 2030, reaching 371.03 thousand tonnes. Thus, with the rising production of polycarbonate the demand for dimethyl carbonate is estimated to increase at the fastest rate throughout the projection period.

Dimethyl Carbonate Market Segment Analysis – By End-Use Industry

The automotive sector dominated the dimethyl carbonate market in 2021 and is projected to grow at a CAGR of 5.3% during 2022-2027. Increasing application of polycarbonate, lithium-ion batteries, paints and coatings, and others, in the automotive industry is driving the dimethyl carbonate market growth. Furthermore, with the rapidly rising production of automotive the demand for dimethyl carbonate has also increased in recent years. For instance, as per the International Organization of Motor Vehicle Manufacturers, the global production for vehicles increased from 52,146,292 units in September 2020 to 57,262,777 units in September 2021. In India, the total passenger vehicle production in FY21 was 22,652,108. The entire production volume of passenger vehicles (excluding BMW, Mercedes, Tata Motors, and Volvo Auto), three wheelers, two wheelers, and quadricycles reached 2,214,745 units in October 2021 according to the India Brand Equity Foundation.

Dimethyl Carbonate Market Segment Analysis – By Geography

Asia-Pacific region dominated the dimethyl carbonate market with a share of 45.3% in 2021. The market in the region is witnessing expansion with the rising adoption of lithium-ion batteries in growing electric vehicle production in emerging economies such as China, Japan, and South Korea. According to the Japan Automobile Dealers Association (JADA), the number of new electric vehicles sold in Japan in 2020 was close to 1.4 million. New electric vehicles accounted for 36.2% of total new vehicle sales in 2019, up from 35.2 % and 32.9% in 2017. Additionally, Hybrid Electric Vehicles (HEVs) accounted for 97.8% electric vehicle sales in 2020, with Battery Electric Vehicles (BEVs) accounting for 1.1%. Thus, the rising production and sales for electric vehicles in APAC countries is estimated to boost the market growth over the forecast period.

Dimethyl Carbonate Market Drivers

Increasing demand for dimethyl carbonate across various end-use sectors will drive the market growth.

Polycarbonate is widely used in various industries, including electronics, automotive, consumer goods, building and construction, and many others. Because of features such as strength, heat resistance, transparency, and chemical resistance, rising demand for polycarbonate in the electronics and automotive industries is likely to push the dimethyl carbonate market growth. Furthermore, rise in the automotive sector in countries such as India, China, and Japan has supported dimethyl carbonate market growth. For instance, according to the International Trade Administration, China remains the world's largest automobile market in terms of both yearly sales and manufacturing output, with domestic output estimated to exceed 35 million vehicles by 2025. Also, China's National Development and Reform Commission and the Ministry of Commerce lifted investment restrictions on foreign investment in passenger car manufacturing on January 1, 2022. This action eliminates the necessity for a Chinese joint venture partner, allowing international automakers to own their manufacturing plants in China alone. Furthermore, the growing need for low-cost and cost-effective consumer goods such as laptops, smartphones, smart speakers, smart home devices, power banks, and others have driven the dimethyl carbonate market ahead. According to the India Brand Equity Foundation, the incumbent administration has set out to develop the country into a global manufacturing hub through the broader concept of 'Make in India' and the National Policy on Electronics 2019 (NPE 2019), with electronics manufacturing being one of the main priorities. Because mobile phones are becoming one of the most essential electronic gadgets, there is a policy push to expand mobile phone manufacturing and assembly operations in the country. According to the NPE 2019, a manufacturing target of 1 billion mobile phones by 2025 is expected, including 600 million units for exports. Thus, such initiatives will surge the production for smart phones and would drive the dimethyl carbonate market growth in the upcoming years.

Dimethyl Carbonate Market Challenges

Harmful Effects of Dimethyl Carbonate

One of the major challenges faced by the dimethyl carbonate market are the acute and chronic health effects. Acute (short-term) health consequences from diethyl carbonate may develop immediately or shortly after exposure. Diethyl carbonate can irritate the skin and eyes, and breathing it can irritate the nose and throat. It can also produce headaches, dizziness, nausea and vomiting, weakness, and loss of consciousness. Furthermore, chronic (long-term) health impacts from diethyl carbonate exposure can begin at any time and can endure for months or years. Thus, rising harmful health effects can create hurdles for the overall market expansion.

Dimethyl Carbonate Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the dimethyl carbonate market. Global dimethyl carbonate top 10 companies include:

1. Merck KGaA 
2. Kowa Company Ltd.
3. Ube Industries Ltd.
4. Guangzhou Tinci Materials Technology Co., Ltd.
5. Kishida Chemical Co. Ltd.
6. Arrow Chemical Group Corp.
7. Shandong Shida Shenghua Chemical Group Co., Ltd.
8. Qingdao Aspirit Chemical Co., Ltd.,
9. Haike Chemical Group
10. Panax Etec and others.

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