Dimethyl Carbonate Market

The dimethyl carbonate market is projected to grow from USD 1.1 billion in 2023 to USD 1.9 billion by 2028, at a CAGR of 12.7% from 2023 to 2028. Dimethyl carbonate is used as a solvent in the liquid electrolyte in lithium-ion batteries, the sales and the production of lithium-ion batteries directly influence the consumption of dimethyl carbonate. Since, an electrolyte is the primary component of a battery, the increased demand for batteries in various applications is ultimately driving the demand for dimethyl carbonate. The growing production of polycarbonate due to increasing demand in the electrical & electronics, medical packaging, automotive, and building & construction industries is expected propel the dimethyl carbonate market. Apart from its application in battery electrolytes and polycarbonate synthesis DMC is also used in different sectors as a solvent and methylation reagent. For instance, it is mainly used for coatings, paints, cleaning products, and other specialized materials.

Dimethyl Carbonate Market Size, Dynamics and Ecosystem

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Dimethyl Carbonate Market Dynamics

Driver: Increasing demand for polycarbonate from various industries

The demand for polycarbonates is growing across industries such as automotive, electronics, construction, and packaging due to their desirable properties like high impact resistance, optical clarity, and heat resistance. However, traditional methods of polycarbonate production often involve the use of hazardous chemicals like phosgene. Dimethyl carbonate offers a greener alternative as it can be used in the synthesis of polycarbonates without the environmental and health risks associated with phosgene. With increasing environmental regulations and consumer demand for sustainable products, manufacturers are shifting towards greener alternatives like DMC, thus driving its demand.

Restraint: Use of highly toxic raw material for dimethyl carbonate synthesis

Dimethyl carbonate can be synthesized using highly toxic raw materials such as phosgene, methanol, and carbon monoxide. Phosgene, in particular, is extremely toxic and poses serious health risks to workers involved in its handling and processing. Exposure to phosgene can result in severe respiratory issues, skin burns, and even fatalities. The use of such hazardous chemicals in DMC synthesis raises concerns about worker safety and health, as well as the potential for accidents and environmental contamination.

Opportunity: Dimethyl carbonate as an oxygenated fuel additive

DMC can serve as an oxygenated additive in gasoline and diesel fuels, enhancing their combustion efficiency and reducing harmful emissions such as carbon monoxide (CO), hydrocarbons (HC), and particulate matter (PM). By promoting more complete combustion, DMC can help vehicles meet increasingly stringent emissions standards imposed by regulatory authorities worldwide. As governments implement stricter regulations to combat air pollution and climate change, the demand for clean-burning fuel additives like DMC is expected to rise.

Challenge: Significant fluctuations in oil & gas prices

The prices of oil and gas directly influence the cost of key raw materials used in DMC production, such as methanol and carbon monoxide. Fluctuations in oil and gas prices can lead to significant volatility in the cost of these raw materials, impacting the overall production costs of DMC. Manufacturers may struggle to predict and manage production costs effectively, leading to uncertainties in pricing and profitability within the DMC market.

Dimethyl Carbonate Market Segmentation & Geographical Spread

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Based on the application, the polycarbonate synthesis segment will hold the most significant share during the forecast period.

Based on application, the polycarbonate synthesis segment held the largest share in 2022. With increasingly stringent regulations on hazardous chemicals, manufacturers are seeking safer alternatives in their production processes. DMC meets regulatory standards for safer chemical usage, reducing regulatory hurdles and compliance costs for polycarbonate producers. This regulatory alignment further drives the adoption of dimethyl carbonate in polycarbonate synthesis.

Based on grade, industrial grade is expected to be the largest dimethyl carbonate market segment during the forecast period.

By grade, in 2022, the industrial grade segment held the most significant portion of the dimethyl carbonate market. With increasing environmental concerns and stringent regulations on harmful chemicals, industries are seeking more sustainable and eco-friendly alternatives. Dimethyl carbonate’s compliance with environmental regulations and its potential to reduce carbon footprint drive its adoption across various sectors, further fueling market growth.

Based on end-use industry, plastic is expected to be the largest segment of the dimethyl carbonate market during the forecast period.

In 2022, the plastic segment held the most significant portion of the dimethyl carbonate market by end use industry. Ongoing advancements in material science and technology are driving innovation in plastic formulations and applications. Dimethyl carbonate's properties, including its low toxicity, high reactivity, and environmental friendliness, make it an attractive ingredient for developing novel plastic formulations. Manufacturers are leveraging DMC to enhance the performance, durability, and recyclability of plastic materials. This factor is forstering dimethyl carbonate market.

Asia Pacific is projected to hold the most significant market share during the forecast period.

Asia Pacific accounted for the most significant global dimethyl carbonate market share in 2022, followed by North America and Europe. China, in particular, has emerged as a worldwide leader in dimethyl carbonate production. The scale of production and the ability to cater to domestic and international markets position the Asia-Pacific region as a central hub for dimethyl carbonate manufacturing.

Key Market Players

UBE Corporation (Japan), Merck KGaA (Germany), Thermo Fisher Scientific Inc. (US), Lotte Chemical (South Korea), Kowa Company Ltd. (Japan), Kishida Chemical Co. Ltd. (Japan), Tokyo Chemical Industry Co., Ltd. (Japan), Shandong Shida Shenghua Chemical Group Co., Ltd. (China), and Guangzhou Tinci Materials Technology Co., Ltd. (China) are one of the major players in the global dimethyl carbonate market. These players have been focusing on expansion, acquisition, and agreement strategies that help them expand their businesses in untapped and potential markets. They have adopted various organic and inorganic growth strategies to enhance their position in the dimethyl carbonate market.

Read More: Dimethyl Carbonate Companies

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Scope of the Report

This research report categorizes the dimethyl carbonate market based on grade, application, end-use industry, and region and forecasts revenues as well as analyzes trends in each of these submarkets.

Based on end-use industry, the dimethyl carbonate market is segmented into:

• Plastics
• Paints & Coating
• Pharmaceutical
• Battery
• Agrochemicals
• Others (Adhesives & Sealants, Ink, Food & Beverages, and Energy)

Based on application, the dimethyl carbonate market is segmented into:

• Polycarbonate Synthesis
• Battery Electrolyte
• Solvents
• Reagents
• Others (Fuel Additives, Electrolyte for Supercapacitors, Electrolyte for Dye-synthesized Solar Cells)

Based on grade, the dimethyl carbonate market is segmented into:

• Industry grade (>99.0 weight %)
• Pharmaceutical grade (>99.5 weight %)
• Battery grade (>99.9 weight %)

Based on the region, the dimethyl carbonate market has been segmented as follows:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Thailand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • GCC Countries
    • UAE
    • Saudi Arabia
    • Rest of GCC
  • Turkey
  • South Africa
  • Israel
  • Rest of Middle East & Africa

Recent Developments

• In February 2024, UBE announced to construct a plant capable of producing 100,000 metric tons of DMC per year and 40,000 metric tons of EMC derived from DMC per year in the US. It also decided to increase capital in UBE C1 Chemicals America, Inc. (UCCA), a DMC/EMC manufacturing and marketing company that is wholly owned by UBE indirectly.
• In June 2023, Merck announced the expansion of its production capacity for highly purified reagents at its China site. This investment is expected for large-scale manufacturing of high-purity reagents for quality control and testing for biopharma customers.
• In February 2022, Lotte Chemical intended to build a new plant to produce high-purity organic solvents, such as dimethyl carbonate, which is used for lithium-ion battery electrolytes.

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