June 18, 2024

The Growing Construction Industry Is Driving The Methylene Chloride Market

Methylene chloride, also known as dichloromethane, is a volatile organic compound widely used as an adhesive, paint stripper, and cleaning agent in various end-use industries like construction, automotive, and furniture. The demand for methylene chloride stems from its attributes such as high solvency, non-flammability, low toxicity at low concentrations, and low cost. It serves as an excellent solvent for fats, waxes, resins, and oils and finds extensive applications in the manufacturing of pharmaceuticals, adhesives, paints, and varnishes.

The global construction industry is currently thriving, mainly attributed to large-scale infrastructure development projects in developing economies. Methylene chloride finds key usage as an adhesive in woodworking applications in construction. It is mixed with resins to produce contact cement, which is extensively used for binding wood, floor tiles, wall panels, and other construction materials. Rising construction of residential & commercial buildings worldwide is fueling the need for various wood materials like furniture, flooring, and paneling, thereby augmenting the demand for methylene chloride-based contact cement.

The global Methylene Chloride Market is estimated to be valued at Us$ 1.44 Bn in 2024 and is expected to exhibit a CAGR Of 10% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the methylene chloride market is the increasing demand from the automotive industry. Methylene chloride is used as a paint stripping and cleaning agent in the automotive industry. With rapid urbanization and rising disposable incomes, vehicle ownership is increasing steadily worldwide. This is expected to drive the sales of new automobiles. Furthermore, the growing aftermarket for automotive repair and maintenance is augmenting the demand for methylene chloride-based paint strippers and cleaners from auto refinish and service shops. Hence, the steady expansion of the global automotive industry acts as a key growth driver for the methylene chloride market.

Porter’s Analysis

Threat of new entrants: Low, as it requires high initial investments and established distribution channels to enter this market.

Bargaining power of buyers: Moderate, as methylene chloride has applications in a variety of end-use industries.

Bargaining power of suppliers: High, as few manufacturers globally produce methylene chloride.

Threat of new substitutes: Moderate, as other substitutes like glycols are available but methylene chloride still holds an edge in terms of properties and cost.

Competitive rivalry: High, as the market is dominated by global key players.

Key Takeaways

The Global Methylene Chloride Market Demand is expected to witness high growth over the forecast period. The increasing demand from end-use industries like paints & coatings, automotive, construction, pharmaceuticals is driving the market. The global Methylene Chloride Market is estimated to be valued at US$ 1.44 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031.

The Asia Pacific region dominates the global market and is expected to grow at the fastest rate during the forecast period. This is attributed to growing construction activities, automotive production, and expanding pharmaceutical industry in major APAC economies like China and India.

Key players operating in the methylene chloride market are AkzoNobel, Dow Chemicals, Kem One, Occidental Petroleum Corporation, Solvay, Shin-Etsu Chemical Co. Ltd. Key players are focusing on capacity expansion and new product development to cater to the growing demand from end-use industries and strengthen their market position.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it