by Methylene chloride or dichloromethane is an organic compound widely used as a solvent in paint strippers and adhesive removers. It is colorless, volatile and non-flammable in nature. Methylene chloride finds major applications in paints and coatings industry where it acts as a thinner and removes dry, cured, or baked-on paint and coatings from various surfaces. It helps to easily remove layers without damaging the substrates. The paints and coatings industry has been growing at a steady pace owing to rising construction activities and automotive production globally. Rapid urbanization and infrastructure development projects in emerging economies of Asia Pacific and Latin America have boosted the demand for paints and coatings considerably. This in turn is driving the consumption of methylene chloride.
The global Methylene Chloride Market is estimated to be valued at US$ 1.25 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends observed in the methylene chloride market is shifting preference towards eco-friendly products. Stringent regulations imposed by governments and regulatory bodies across regions regarding VOC emissions have compelled paints and coatings manufacturers to develop sustainable and environment-friendly products. Major companies are investing heavily in research & development activities to introduce bio-based and water-based solvents with low toxicity. For instance, manufacturers are replacing methylene chloride with alternative solvents like dimethyl carbonate, dimethyl sulfoxide, and propylene carbonate which have lower environmental impact. Such initiatives are expected to moderately hamper the demand growth of methylene chloride over the forecast period.
Porter’s Analysis
Threat of new entrants: Low requirement of capital to enter into methylene chloride market makes threat of new entrants high.
Bargaining power of buyers: Large number of established buyers are present in methylene chloride market globally increasing their bargaining power.
Bargaining power of suppliers: Few manufacturers operate methylene chloride market globally increasing bargaining power of suppliers.
Threat of new substitutes: Substitutes like ketones, alcohols and glycol ethers pose moderate threat to methylene chloride.
Competitive rivalry: Large number of manufacturers are present in methylene chloride market globally increasing competitive rivalry.
Key Takeaways
The global Methylene Chloride Market Growth is expected to witness high growth
Regional analysis: Asia Pacific dominates methylene chloride market with China being the largest producer and consumer. Growth in paints & coatings industry is driving demand in the region.
Key players operating in the methylene chloride market are Dow Chemical Company, AkzoNobel N.V., Ineos Group, Solvay S.A., KEM ONE, Shin-Etsu Chemical Co. Ltd., Gujarat Alkalies & Chemicals Ltd., Tokuyama Corporation, Occidental Petroleum Corporation, Ercros S.A. Key players are focusing on capacity expansion initiatives to strengthen their presence in high growth regions.
Regional analysis related content comprises: Asia Pacific dominates methylene chloride market with more than 35% share majorly due to large production and consumption in China. Growth in paints & coatings industry is further driving methylene chloride demand in the region. North America and Europe also hold significant shares in the global methylene chloride market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
