Rising Growth of Dimethyl Carbonate
The Dimethyl Carbonate Market is predicted to grow at a CAGR of 3.80% to attain a market size of US$1,198.128 billion by the end of 2026. This market was worth US$1,555.212 billion in the year-end of 2019. Dimethyl carbonate (DMC) is an environmentally friendly compound that can help to enhance glycerol, fatty acids, polysaccharides, sugar-derived, and platform molecules. As the electronics industry continues to grow rapidly, batteries to power these devices are in high demand. In recent years, Li-ion batteries have found tremendous traction in smartphones and other small electronic devices. Considering that DMC is an integral part of the production of Li-ion batteries, its market is also expected to grow along with the Li-ion batteries market. Because of the high production of polycarbonate, the dimethyl carbonate market is more in demand globally. No acids or phenols are produced during the production of polycarbonate. The market demand increases with increased polycarbonate demand from the automotive and electronics industries. Production of dimethyl carbonate is growing rapidly as it takes care of the environmentally-friendly production of thermoplastics.
Types and Usage Of Dimethyl Carbonate
The dimethyl Carbonate Market can be categorized into three types based on the type of grade, namely pharmaceutical grade, industrial grade, and battery grade. These grades are all in high demand throughout the world. Polycarbonate, which is a widely used material in the manufacturing of plastics, accounts for the largest share of the market. Additionally, it is used as a solvent in paints and coatings, and as a pesticide reagent. The Asia Pacific building and construction industry is driving significant growth for the global paints and coatings industry. Several projected growth factors for the global industry are attributed to the Middle East and Africa. Dimethyl carbonate demand is then likely to grow over the forecast period due to this.
The growing infrastructure of Asia Pacific countries, particularly India, China, and Indonesia, and the ease with which durable building materials can be found, is expected to increase demand for waterproofing chemicals. During the Indian Union Budget 2021, the government has allocated 32.02 billion dollars to improve the country's transportation infrastructure due to a major push behind the infrastructure sector. The government added 7,400 projects to the National Infrastructure Pipeline (NIP). ~217 projects totaling US$ 15.09 billion were completed by 2020. ' Larsen & Toubro (L&T)'s construction subsidiary, L&T Construction, has won contracts for various projects in India, Dubai, Africa, and Thailand. There are several orders placed by the construction company that is significant, which are valued between $133.5mn and $333.8 million. In the pharmaceutical industry, dimethyl carbonate is often used to manufacture antibiotics. A dimethyl carbonate solution can be used to manufacture either propofloxacin or carbadox. Antibiotics such as Ciprofloxacin are used to prevent certain bacterial infections. Also, it can be used to prevent or treat anthrax. In veterinary medicine, carbadox is used as an antibacterial agent.
Increasing Use For Polycarbonate From Various Industries Driving the Demand of Dimethyl Carbonate
In industries such as electrical & electronics, automobiles, building & construction, consumer products, and medical, polycarbonate (PC) is widely used because of its strength, transparency, thermal stability, chemical & heat resistance, and dimensional stability. Globally, polycarbonate resin production capacity was 5,100 kilotons/year in 2016 (Source: Plastics Insights). During the forecast period, the demand for polycarbonate will likely increase, resulting in increased global production capacity. Market share for dimethyl carbonate is dominated by the polycarbonate synthesis segment. The production of polycarbonates begins with dimethyl carbonate, a precursor to polycarbonate. Among its many uses in engineering plastic materials such as automotive, electrical, and electronics, polycarbonate is well-suited to the requirements of the end-use industries thanks to its superior physical properties like heat resistance, impact resistance, structural stability, and optical transparency.
Globally, the market for dimethyl carbonate is being fueled by the growing demand for polycarbonate in the automotive and electrical & electronics industries. In Asia Pacific, the polycarbonate industry is expected to grow at a rapid rate due to solid growth in the automotive and electronics industries. Due to modernization, like an increasing number of smartphone users and an increase in consumer disposable income, emerging economies in Asia Pacific are expected to be major markets for electronics. The demand for electrical components and its impact on the market growth are expected to increase. Construction and the automotive industry are the primary users of polycarbonate material. In this sector, higher incomes and expenditures on electronic equipment and automobiles lead to increased production of plastic polymers. The German, Japanese, Thai, and South African plastic polymer production industries, as well as government support and demand from packaging, electronics, and medical industries, contribute their share to global production of the polymer.
The Asia Pacific Market Is Estimated to Rise At the Fastest Rate
Dimethyl carbonate's biggest market by region is Asia Pacific. Among the major countries contributing to the boost in demand for dimethyl carbonate in this region are China, India, Japan, and South Korea. As a material, dimethyl carbonate is mainly used in the production of polycarbonates in China, Japan, Korea, Thailand, and Taiwan, and India. Apart from this, it is also used for the manufacturing of medicines, paints, and pesticides. There is a significant increase in the demand for dimethyl carbonate in this region due to its use in the synthesis of polycarbonate in these countries. Asia-Pacific is expected to also drive the lithium-ion battery market, as well as the dimethyl carbonate market, as the electronics and automotive industries will demand more lithium-ion batteries.
Coronavirus Pandemic Insights
All businesses in 2020 have been affected by the ongoing pandemic, including the dimethyl carbonate industry. The key players in this lockdown faced massive losses in their business due to the fact that they were not able to supply their products to all countries. Suppliers of dimethyl carbonate are now developing new strategies to increase customer demand. As a result of customer needs in the COVID-19 period, some modified products have been introduced. In November 2020, PeptiAID Inc. was formed as a joint venture to research peptide-based therapies to balance both the current SARS and CoV-2 viruses. A contribution of USD 82,890 from Merck KGaA to the Eijkman Institute for Molecular Biology, Indonesia, will support vaccine development research and encourage the use of research instruments.
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