May 22, 2024

Methylene Chloride Is Expected To Be Flourished By Increasing Demand For Paint Removers

Methylene chloride, also known as dichloromethane, is a volatile organic compound widely used as a solvent. It is colorless, sweet-smelling, and highly volatile. Some key uses of methylene chloride include as a paint stripper, an adhesive remover, a cleaning agent for metal parts, and a process solvent in pharmaceutical manufacturing. It is primarily used to remove painted surfaces in manufacturing facilities and during renovation work. The growing construction and automotive industries have led to higher demand for paint removers containing methylene chloride.

The global Methylene Chloride Market is estimated to be valued at Us$ 1.44 Bn in 2023 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 Dynamics:

Increasing demand for paint removers is a major driver propelling the methylene chloride market forward. As mentioned earlier, the chemical sees widespread usage in formulations of paint strippers and thinners due to its powerful solvent properties. Rising residential and commercial construction activities have augmented the requirements for paint removal globally. Additionally, the automotive industry also creates considerable needs for paint stripping. Regular refinishing work on automobiles fuels the sales of paint strippers containing methylene chloride.

Another pivotal factor augmenting the market growth is the versatility of methylene chloride applications. Besides paint removal, it is utilized as an extractant in pharmaceutical manufacturing. Methylene chloride effectively separates desired final products and intermediates from raw materials. It is also employed as a cleaning agent for metal parts in various industrial sectors such as electronics, machinery manufacturing due to excellent degreasing abilities. The wide application scope of the chemical spanning paints & coatings, pharmaceuticals, chemicals, and metal cleaning industries has significantly propelled its demand worldwide.

Segment Analysis

Methylene Chloride Market is segmented into paint removers, cleaning agents, adhesives and sealants, pharmaceuticals, and others. Among these, the paint removers segment dominated the market in 2024 accounting for around 28% share owing to wide use of methylene chloride for removing paint from surfaces in construction and automotive industries. The cleaning agents segment is expected to witness fastest growth during the forecast period due to surging demand for hard surface cleaners and degreasers containing methylene chloride in industries and households.

PEST Analysis

Political: Stringent regulations have been imposed in developed regions like Europe and North America regarding use of methylene chloride due to health hazards associated with exposure. This is restricting growth in these regions.

Economic: Strong GDP growth in developing nations of Asia Pacific is driving demand from various end-use industries. Growth in construction and automotive sectors in India and China offers significant opportunities.

Social: Concerns over health impacts of methylene chloride like cancer have led to preference for eco-friendly alternatives in cleaning products and paint removers. However, cost factor continues to support demand.

Technological: Efforts are being made to develop substitutes with newer chemical compositions having low toxicity and environmental footprint to replace methylene chloride in various applications.

Key Takeaways

The Global Methylene Chloride Market Demand is expected to witness high growth during the forecast period. The global Methylene Chloride Market is estimated to be valued at US$ 1.44 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031.

Regional analysis:

The Asia Pacific region accounted for around 40% share of the global methylene chloride market in 2024. Abundant availability of raw materials and low manufacturing costs have led to establishment of manufacturing facilities by leading players in India and China. This has augmented market growth. Additionally, rising construction activities and expanding automotive sector are further supporting regional market.

Key players:

Key players operating in the methylene chloride market are Dow Chemical, AkzoNobel, Shinlims, Kem One, SRF, Tokuyama, and Occidental Petroleum. Dow Chemical is the global market leader with around 20% share owing to its integrated production facilities and wide product portfolio. Kem One is among the top three suppliers of methylene chloride in Europe.

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