The dimethyl carbonate market is evaluated at US$1,198.128 million for the year 2019 and is projected to grow at a CAGR of 3.80% to reach US$1,555.212 million in 2026.
Dimethyl Carbonate (acronym - DMC) is an organic compound usually produced by reacting phosgene and methanol. It is a colorless and flammable liquid often recognized as a green reagent. The compound is industrially prepared by a process of transesterification of ethylene carbonate or propylene carbonate and methanol and has observed its application not only as a methylating agent but also in the formation of coatings, adhesives, and cleaning agents.
The ecologically sound compound is likewise utilized as a raw material or a significant input for the synthesis and reaction that involve methylation, carbonylation, and carbomethoxylation.
DMC being a combustible solvent has its minimum ignition temperature of 17 degrees C or 63-degree Fahrenheit that therefore restricts its utilization in consumer and indoor employment. However, from the perspective of combustibility, DMC is much risk-free and impregnable to ply with than acetone, methyl acetate, and methyl ethyl ketone.
The key driver of the Dimethyl Carbonate market is the increasing use of polycarbonate as an input in numerous industries propelling the growth of the market during the forecast period. The favorable properties of the organic compound are likely to increase its utilization further in the coming years. Being environment friendly, losing its status as a Volatile Organic compound has is expected to further increase the demand for Dimethyl Carbonate. Rising demand for lithium-ion batteries by different end-users is also likely to fuel the growth of the Dimethyl Carbonate market.
Increasing adoption by various end-users to drive the market growth
The demand for Dimethyl Carbonate is increasing as a raw material by various industries like electrical & electronics, automotive, fuel additives, solvents, building & construction, pesticides, consumer products, and medical and pharmaceuticals. This is mainly attributed to the favorable properties of the compound having a distinctive molecular structure like versatile use, low toxicity, and quick biodegradability. DMC has been increasingly used to synthesize polycarbonate, polyurethane, medicine, and agricultural chemicals. Due to its environment-friendly characteristic, DMC is now extensively being used by the paint and coating industry owing to the rising demand for eco-friendly paints. This increasing adoption of Dimethyl Carbonate by various end-users as an intermediate good across numerous industries points at the inclining growth of the market.
Rising demand for lithium-ion batteries to increase fuel the growth
The manufacturers of electronic devices like mobile phones, tablets, and laptops have been increasingly demanding Dimethyl Carbonate as an input for the production of lithium-ion batteries to be assembled in these devices. Additionally, the increasing adoption and production of electric vehicles are also driving the growth of the dimethyl carbonate market due to the rising demand for lithium-ion batteries for these vehicles.
Opportunity as a fuel additive
The favorable properties of Dimethyl Carbonate like low flash point, high oxygen content, low carbon to oxygen and high hydrogen to carbon ratio, and non-corrosiveness make it commendatory for Dimethyl Carbonate to be used as a fuel additive. This is a major growth prospect for the market as it has become a necessity to discover and adopt alternatives to non-renewable and exhaustive fossil fuel sources. The governments are also encouraging the practice of the utilization of renewable non-conventional hydrocarbon fuels, oxygenated fuels. This is a door of opportunity for the Dimethyl Carbonate Market.
Production cost fluctuations challenge
There are different ways possible for synthesizing Dimethyl Carbonate. Different materials used have different costs and characteristics. This creates fluctuations in the production price of Dimethyl Carbonate. This disequilibrium in production price can prove to be a hindrance to the growth of the market.
Toxic raw materials to hinder the market growth
Some toxic raw materials are utilized for the synthesis of Dimethyl Carbonate. In the traditional process of production of Dimethyl Carbonate, some harmful by-products such as sodium chloride are generated because of the utilization of some toxic gases like phosgene and carbon monoxide. In the current process of production of Dimethyl Carbonate, the highly toxic and deadly chemical phosphene is used. This utilization of toxic raw materials is a huge obstacle in the growth of the Dimethyl Carbonate market.
Additionally, methanol, ethylene oxide, and CO2 are crude-oil-based derivatives that are used as raw materials for synthesizing Dimethyl Carbonate. However, there has been a lot of instability in oil and gas prices leading to a variation in the availability and prices of these raw materials required for the production of Dimethyl Carbonate. This is another impediment to the Dimethyl Carbonate market.
Impact of COVID-19
Like all other production businesses, COVID-19 has affected the Dimethyl Carbonate market adversely. The lockdown imposed in countries across the globe to contain the spread of the virus affected both the production and distribution process of Dimethyl Carbonate. The production facilities had to shut down due to government regulation affecting the manufacturers of Dimethyl Carbonate. Additionally, the supply chains were disrupted causing a standstill for the market. However, on the flip side, the infrastructural project investments by the government to revive the economy point to the rise in demand in the coming years. So, despite the temporary slowdown, the Dimethyl Carbonate market is expected to grow during the forecast period.
Based on Grade, the Dimethyl Carbonate Market has been segmented into Battery Grade, Industry Grade, and Pharmaceutical Grade.
Based on End-Use Industry, the Dimethyl Carbonate Market is categorized into Agrochemicals, Batteries, Paints & Coatings, Pharmaceuticals, Plastics, and others.
By Application, the Dimethyl Carbonate Market studied across Polycarbonate Synthesis, lithium-ion batteries, Solvents, Reagents, Others.
Geographically, the market is segmented into North America, Europe, Asia-Pacific (APAC), the Middle East and Africa (MEA), and South America. Asia-Pacific region is expected to grow at the fastest pace owing to the increasing demand and utilization of polycarbonates by the various industries across the region and the increased inclining demand for lithium-ion batteries in the region due to the growing electric vehicle market and rising technology adoption.
Frequently Asked Questions (FAQs)
Q1. What will be the dimethyl carbonate market size by 2026?
A1. The global dimethyl carbonate market is projected to reach a market size of US$1,555.212 million by 2026.
Q2. What are the growth prospects for the dimethyl carbonate market?
A2. The dimethyl carbonate market is projected to grow at a CAGR of 3.80% over the forecast period.
Q3. What is the size of global dimethyl carbonate market?
A3. Dimethyl Carbonate Market was valued at US$1,198.128 million in 2019.
Q4. How is the global dimethyl carbonate market segmented?
A4. The global dimethyl carbonate market has been segmented by grade, application, and geography.
Q5. What factors are anticipated to drive the epitaxy deposition market growth?
A5. The key driver of the Dimethyl Carbonate market is the increasing use of polycarbonate as an input in numerous industries propelling the growth of the market.