The global market for methylene chloride is expected to register a CAGR of more than 4% during the forecast period. The major factor driving the market studied is increasing demand from the paints and coatings industry.
- Pharmaceutical application is expected to dominate the methylene chloride market over the forecast period.
- The Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period, owing to the increasing consumption from countries, such as China, India, and Japan.
Key Market Trends
Increasing demand from Pharmaceutical Industry
- Methylene chloride, which is also called Dichloromethane (DCM), is used as a solvent in the pharmaceutical application.
- Methylene chloride is mainly used to extract several compounds and is also used in the production of antibiotics and vitamins. It is also used as a tablet-coating agent.
- The market for pharmaceuticals is emerging rapidly, owing to the growing middle-class, aging, rising incomes, and increasing urbanization in countries, such as the United States, China, and India, among others.
- The healthcare sector in the United States is, by far, one of the most advanced sectors in the country. According to the Pharmaceutical Research and Manufacturers Association (PhRMA), US firms conduct over half the world's R&D in pharmaceuticals and hold the intellectual property rights on most new medicines.
- Therefore, the increasing pharmaceutical industry is expected to propel the demand for methylene chloride during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to account for the largest market for methylene chloride during the forecast period.
- The higher demand is expected from the major developing countries, such as China, India, Japan, and ASEAN countries.
- The demand for paints and coatings is increasing in the region. The automotive and construction industry contributes to the major share in the consumption of paints and coatings.
- Asia-Pacific has the largest construction market globally, which is led by India, China, and various Southeast Asian countries. The main driving factors for the growth of the construction activities in these countries are increasing living standards, higher per capita income, industrialization, infrastructural development, etc.
- The pharmaceutical production in countries, such as China and India, has been growing owing to the government initiatives and manufacturers’ investments in the sector. This is expected to boost the consumption of the market studied in pharmaceutical production.
- Additionally, India is one of the largest suppliers of generic medicines across the world with around 20% share. There are currently about 3000 pharma companies in the country with a strong network of over 10,500 manufacturing facilities.
- Hence, with such trends, the demand for methylene chloride in the Asia-Pacific region is expected to grow during the forecast period.
The global methylene chloride market is partially fragmented. The major companies of the market studied include Nouryon, Olin Corporation, Oxy Chemical Corp., Shin-Etsu Chemical Co. Ltd., and Tokuyama Corporation, among others.
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