Dimethyl Carbonate Market to Reach USD 1.1 Billion by 2035, Growing at 5.6% CAGR from USD 0.6 Billion in 2024
Dimethyl Carbonate Market to reach US$ 1.1 Bn by 2035, expanding at 5.6% CAGR, fueled by demand in polycarbonates, batteries, and green solvents.
WILMINGTON, DE, UNITED STATES, August 29, 2025 /EINPresswire.com/ -- The global dimethyl carbonate (DMC) market is on a steady growth trajectory, driven by its versatile applications, eco-friendly characteristics, and expanding role in emerging clean technologies. Valued at US$ 0.6 Bn in 2024, the market is projected to reach US$ 1.1 Bn by 2035, growing at a CAGR of 5.6% from 2025 to 2035.DMC has gained prominence as a green solvent and essential chemical intermediate, offering low toxicity, biodegradability, and reduced environmental impact compared to traditional solvents. Its increasing use in polycarbonate production, paints & coatings, pharmaceuticals, and particularly in lithium-ion batteries highlights its strategic importance in both mature and emerging industries.
As industries transition toward sustainable production practices and governments impose stricter environmental regulations, the adoption of dimethyl carbonate is accelerating globally. From reducing VOC emissions in coatings to enabling the production of high-performance polycarbonates and powering electric vehicles through its role in battery electrolytes, DMC has emerged as a cornerstone of sustainable chemistry.
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Analyst’s Viewpoint on Dimethyl Carbonate Market Scenario
Market analysts highlight that the polycarbonate industry’s rapid expansion, coupled with stricter government restrictions on VOC solvents, will remain the dominant drivers for DMC demand over the forecast period. In addition, the rising need for green solvents in industries such as paints, coatings, adhesives, and cleaning agents is expected to fuel long-term market growth.
Another transformative trend is the global electric vehicle revolution, where dimethyl carbonate plays a pivotal role in lithium-ion battery production. Its excellent solvation properties make it ideal for use in battery electrolytes, and with the exponential rise in demand for EVs and energy storage systems, the market for high-purity DMC is expanding significantly.
Key players in the industry are not only expanding their production capacities but also investing in carbon capture and utilization (CCU)-based DMC manufacturing processes, thereby aligning with circular economy principles. This shift underscores DMC’s dual advantage: it is both a functional industrial chemical and a tool for reducing carbon emissions.
Market Introduction
Dimethyl carbonate is a flammable, colorless carbonate ester known for its excellent solubility in organic solvents such as ketones, ethers, and alcohols. Its versatility lies in its dual role as a methylating agent and a green solvent. Unlike conventional methylating agents such as phosgene and dimethyl sulfate, DMC is considered safer, non-toxic, and less harmful to the environment.
Key Properties of Dimethyl Carbonate:
Eco-friendly: Biodegradable and low toxicity compared to conventional solvents.
High Solubility: Easily dissolves in organic solvents, making it suitable for coatings and adhesives.
Low VOC Content: Helps manufacturers comply with global emissions regulations.
Multi-functional: Functions as a solvent, methylating agent, fuel additive, and electrolyte component in batteries.
These properties position DMC as an indispensable material in industries ranging from electronics, construction, and automotive to paints, coatings, and energy storage.
Key Market Drivers
Continuous Expansion of Polycarbonate Industry
Polycarbonates are among the fastest-growing engineering thermoplastics, widely used for their impact resistance, optical clarity, dielectric strength, and heat resistance. Dimethyl carbonate is a key feedstock in polycarbonate production, serving as a substitute for toxic phosgene.
Applications of polycarbonate include electronics casings, automotive headlamps, construction panels, optical lenses, and medical devices.
The increasing demand for lightweight, durable materials in the automotive and construction sectors is fueling polycarbonate production, thereby driving demand for DMC.
As governments and industries emphasize safer manufacturing processes, DMC’s role as a phosgene-free intermediate has become even more critical.
Surge in Government Restrictions on VOC Solvents
The global paints and coatings industry is undergoing a transformation as regulators enforce strict limitations on VOC emissions. VOCs are known contributors to air pollution, smog formation, and public health risks.
Regulations such as the EPA’s Clean Air Act (U.S.), EU VOC Solvent Emissions Directive, and China’s Blue Sky Initiative are reshaping formulations in the coatings industry.
DMC has emerged as a preferred green solvent due to its low VOC profile and strong solvating properties.
By replacing conventional solvents like toluene and acetone, DMC enables manufacturers to comply with environmental regulations while maintaining durability, finish quality, and ease of application in coatings.
Rising Demand from Lithium-Ion Battery Industry
The global shift to electric mobility and renewable energy storage has led to exponential growth in lithium-ion battery production. Dimethyl carbonate is used as a solvent in battery electrolytes, contributing to ionic conductivity and thermal stability.
Countries such as China, South Korea, and Japan are major hubs for battery manufacturing, directly boosting regional demand for DMC.
With EV adoption accelerating in Europe and North America, demand for high-purity battery-grade DMC is expected to rise significantly.
The move toward clean transportation and grid-level energy storage makes DMC an essential enabler of the global energy transition.
Regional Market Insights
Asia Pacific – Leading the Global Market with 35.1% Share
China dominates due to strong EV adoption, government subsidies, and extensive polycarbonate production.
Japan and South Korea are key players in lithium-ion battery manufacturing.
The region also benefits from large-scale industrial production capacities and lower raw material costs.
Europe – 33.1% Share Driven by Sustainability Regulations
Strict EU regulations on VOC emissions and green chemicals fuel DMC adoption.
Growing EV penetration, coupled with advanced automotive and electronics industries, makes Europe a major consumer.
North America – 22.0% Market Share
Strong industrial base and R&D in paints, coatings, and automotive sectors.
Expanding EV infrastructure and domestic battery manufacturing are increasing DMC consumption.
Latin America & Middle East & Africa – Emerging Markets
Gradual growth driven by industrialization and infrastructure development.
Rising awareness of green chemicals is expected to boost future adoption.
Competitive Landscape
The dimethyl carbonate market is moderately consolidated, with key players investing in capacity expansion, technological innovation, and sustainable production methods.
Major Players:
UBE Industries
Shandong Haike Chemical Group Co., Ltd.
KOWA American Corporation
Qingdao Aspirit Chemical Co., Ltd.
Shandong Shida Shenghua Chemical Co., Ltd.
Tokyo Chemical Industry Co., Ltd.
Dongying City Longxing Chemical Co., Ltd.
Hefei TNJ Chemical Industry Co., Ltd.
Strategic Developments:
UBE Corporation (Feb 2024): Invested US$ 500 Mn in a DMC and EMC production facility in Louisiana, U.S., with a capacity of 40,000–100,000 metric tons annually.
Jiangsu Sailboat Petrochemical (Dec 2024): Opened a carbonate facility in China using CO₂-based feedstock technology, highlighting sustainable innovation.
These moves underscore the global race for high-purity, sustainable DMC production, particularly for the EV and battery industries.
Market Segmentation
By Grade
Industrial Grade
Battery Grade
Pharmaceutical Grade
By End-use Industry
Solvents
Paints & Coatings
Adhesives & Cleaning Agents
Alternative Fuel Additives
Polycarbonate Production
Pharmaceuticals & Pesticides
Lithium-ion Batteries
By Region
North America
Latin America
Europe
Asia Pacific
Middle East & Africa
Future Outlook: Dimethyl Carbonate Market Toward 2035
The dimethyl carbonate market is poised for robust growth through 2035, underpinned by three central trends:
Rising Polycarbonate Demand – Driven by construction, automotive, and electronics sectors.
Green Solvent Transition – Adoption in paints, coatings, and adhesives due to VOC restrictions.
Battery Industry Growth – Surging demand for lithium-ion batteries in EVs and renewable energy storage.
By 2035, the industry is projected to nearly double in size, reaching US$ 1.1 Bn, supported by innovations in CO₂-based production methods and increasing EV adoption worldwide.
The dimethyl carbonate market is transitioning from a niche specialty chemical sector to a strategic enabler of sustainable growth across multiple industries. Its eco-friendly properties, coupled with expanding applications in polycarbonates, coatings, and lithium-ion batteries, place it at the center of the global green chemistry movement.
With strong demand from Asia Pacific and regulatory push in Europe and North America, the market is set to experience long-term stability and expansion. Companies that invest in sustainable production technologies, regional capacity expansion, and strategic partnerships will be best positioned to capture the opportunities in this evolving market.
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