Dimethyl Carbonate Market Size, Share & Industry Analysis, By Grade (Industrial Grade, Pharmaceutical Grade, and Battery Grade), By Application (Polycarbonate Production, Battery Electrolyte, Solvents, Reagents, and Others), By End-Use Industry (Plastics, Paints & Coatings, Battery, Agrochemicals, and Others), and Regional Forecast, 2026-2034

The global dimethyl carbonate market size was valued at USD 937.7 million in 2025. The market is projected to grow from USD 1003.2 million in 2026 to USD 1726.8 million by 2034 at a CAGR of 7.1% during the  forecast period. Asia Pacific dominated the dimethyl carbonate market with a market share of 60.4% in 2025.

Dimethyl carbonate is an organic compound. It is a clear, flammable liquid used primarily as a solvent and a chemical intermediate in the production of polycarbonate plastics, pharmaceuticals, and lithium-ion battery electrolytes. DMC is also an environmentally friendly alternative to phosgene and methyl halides in methylation and carbonylation reactions. A key market driver for DMC is its rising demand in the manufacturing of lithium-ion batteries for electric vehicles.

The COVID-19 pandemic temporarily disrupted the market due to supply chain interruptions and reduced industrial activities. However, the market has shown a strong recovery, driven by the surge in demand for lithium-ion batteries, particularly in the electric vehicle (EV sector). The push for greener alternatives in chemical processes also supports the post-pandemic growth of the DMC market.

Global Dimethyl Carbonate Market Key Takeaways

Market Size & Forecast:

• 2025 Market Size: USD 937.7 million
• 2026 Market Size: USD 1003.2 million
• 2034 Forecast Market Size: USD 1726.8 million
• CAGR: 7.1% from 2026–2034

Market Share:

• Asia Pacific dominated the dimethyl carbonate market with a 60.4% share in 2025, driven by rapid industrialization, a booming electric vehicle market in China, and expanding electronics and pharmaceutical industries in countries like India, Japan, and South Korea.
• By grade, industrial grade is expected to retain the largest market share in 2026, supported by its extensive use in polycarbonate production and increasing demand for eco-friendly industrial solvents across sectors.

Key Country Highlights:

• United States: Demand is supported by growth in lithium-ion battery production and the shift toward electric vehicles and renewable energy storage, alongside strong pharmaceutical and electronics industries.
• China: The world's largest EV market continues to drive battery-grade DMC demand, supported by integrated raw material supply chains and low-cost production capabilities.
• India: Rising demand from the pharmaceutical, chemical, and battery manufacturing industries is fueling domestic consumption of DMC across industrial and high-purity applications.
• Germany: Expansion of electric vehicle production and stringent environmental policies are increasing adoption of DMC in battery electrolytes and sustainable chemical formulations.
• Brazil: Growing demand for polycarbonate in the construction and automotive sectors, along with increased interest in lithium-ion batteries, is supporting steady growth in the DMC market.

Dimethyl Carbonate Market Trends

Rising Electric Vehicle Demand Drives Growth in DMC Market for Lithium-Ion Batteries

The increasing growth of the Electric Vehicle (EV) sector is driving up demand for lithium-ion batteries, offering huge prospects for the market. DMC is an important component in the creation of lithium-ion battery electrolytes, where it serves as a solvent because of its outstanding electrochemical properties, such as high dielectric constant and low viscosity. These qualities improve the performance and stability of the batteries, making DMC crucial in the battery manufacturing process.

DMC is a key component in the electrolyte solutions used in lithium-ion batteries. These electrolytes facilitate the movement of lithium ions between the anode and cathode during the charging and discharging cycles. DMC is valued for its high ionic conductivity, low viscosity, and ability to improve the battery’s safety and stability.

As the global move toward electric mobility increases, the demand for lithium-ion batteries is expected to rise significantly. This expansion is being driven by stronger environmental restrictions, greater consumer demand for sustainable energy solutions, and more investments in renewable energy storage. As a result, the demand for DMC is likely to increase, creating significant potential for manufacturers. The continuous dominance of lithium-ion batteries ensures that DMC remains significant in the current energy storage landscape.

Download Free sample to learn more about this report.

Dimethyl Carbonate Market Growth Factors

Surging Polycarbonate Demand Propels Dimethyl Carbonate Market Growth

Polycarbonate production is a significant driver of the DMC market. Polycarbonate is a widely used engineering plastic known for its high impact resistance, transparency, and thermal stability. The production of polycarbonate requires DMC as a key raw material, creating a strong interdependence between the for various other markets.

DMC is utilized in the polycarbonate production process as a building block for the synthesis of carbonates, which are essential intermediates in the polycarbonate manufacturing chain. The growing demand in various industries, such as automotive, electronics, construction, and healthcare, has consequently fueled the demand for DMC.

Furthermore, the shift toward sustainable and eco-friendly products has also contributed to the dimethyl carbonate market growth. DMC is considered a greener alternative to traditional solvents and is gaining traction in the production of bio-based polycarbonates, bolstering the demand for this versatile chemical compound. As the polycarbonate industry continues to expand, the Dimethyl Carbonate market is expected to witness significant growth, driven by the strong interference between these two closely linked industries.

RESTRAINING FACTORS

Regulatory Challenges and Limited Production Capacity Restrict Market Growth

Regulatory challenges and limited production capacity are two key factors that are currently restricting the growth of the DMC market.

DMC production and use are subject to strict environmental regulation in various regions around the world. As a flammable and potentially toxic chemical, DMC has led to the implementation of stringent guidelines and safety standards for its manufacture and handling. These regulatory hurdles can pose significant challenges for DMC producers, who must invest heavily in compliance measures and secure the necessary permits and approvals to operate. The complex regulatory landscape surrounding DMC can limit its widespread adoption and hinder the market’s expansion.

Additionally, the global production capacity for DMC is relatively limited, as it is a specialized chemical that requires a complex and capital-intensive manufacturing process. This supply-side constraint can struggle to keep up with the growing demand for DMC, particularly in emerging markets where the demand for applications such as lithium-ion batteries is rapidly increasing. The inability to rapidly scale up production can restrict the market’s growth and create a demand imbalance.

Dimethyl Carbonate Market Segmentation Analysis

By Grade Analysis

Industrial Grade DMC Expansion Driven by Shift to Eco-Friendly Solvents

Based on grade, the market is classified into industrial grade, pharmaceutical grade, and battery grade.

The industrial grade segment held 70.15% of the highest share of the global market in 2026. Industrial grade DMC is experiencing steady growth due to its widespread use in various industrial applications, particularly in polycarbonate production and as a solvent. The demand for industrial grade DMC is expected to continue rising as industries seek more environmentally friendly alternatives to traditional solvents.

Pharmaceutical grade is witnessing moderate growth, driven by its increasing use in drug formulations and as a reagent in pharmaceutical manufacturing processes. The stringent quality requirements in this sector ensure a stable demand for high-purity DMC.

By Application Analysis

Polycarbonate Market Expansion Sustains DMC Consumption Growth

Based on application, the market is classified into polycarbonate production, battery electrolyte, solvents, reagents, and others.

The polycarbonate production segment held the highest share of 45.89% in 2026. The increasing demand for polycarbonate in the automotive, electronics, and construction industries is driving this growth. The trend toward lightweight materials in the automotive and aerospace industries is expected to boost polycarbonate demand further, consequently driving DMC usage. 

Battery electrolyte applications are experiencing rapid growth, directly tied to the expansion of the lithium-ion battery market. This segment is expected to show the highest growth rate among all applications. The global shift toward electric mobility and renewable energy storage is the primary driver for this explosive growth, with DMC playing a crucial role in enhancing battery performance and safety. The segment is expected to record a CAGR of 6.84% during the forecast period.

By End-Use Industry Analysis

To know how our report can help streamline your business, Speak to Analyst

Demand for Polycarbonate from Various Industries to Propel DMC Market Growth

In terms of the end-use industry, the market is segmented into plastics, paints & coatings, battery, agrochemicals, and others.

The plastics segment held the largest dimethyl carbonate market share in 2023. The segment is expected to hold 51.43% of the market share in 2026. This plastic industry, particularly for polycarbonate production, remains the largest end-user for DMC. This segment is showing steady growth, driven by the increasing use of polycarbonate in various applications. The demand for transparent, impact-resistant plastics in consumer electronics, automotive parts, and medical devices continues to fuel this growth.

The paints & coatings industry is experiencing moderate growth in DMC usage as manufacturers seek low-VOC (volatile organic compounds) alternatives for their formulations. DMC’s properties of fast-evaporating and low-toxicity solvent make it increasingly popular in this sector, especially as environmental regulations tighten globally.

• The battery segment is likely to display a strong CAGR of 7.7% during the forecast period.

REGIONAL INSIGHTS

By region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific

To get more information on the regional analysis of this market, Download Free sample

Asia Pacific occupied the dominant share of the global market and was valued at USD 566 million in 2025. The region also held the largest market value of USD 608.9 million in 2026. The rapid industrialization, booming automotive sector, and expanding electronics industry in countries such as China, Japan, and South Korea are major drivers for DMC demand. The region’s burgeoning electric vehicle market, particularly in China, is significantly boosting the consumption of battery-grade DMC. India’s growing chemical and pharmaceutical industries are also contributing to market growth. The availability of raw materials and lower production costs in the region make it an attractive hub for DMC manufacturers. The Japan market is estimated at USD 107.2 million by 2026, the China market is estimated at USD 378 million by 2026, and the India market is estimated at USD 59.2 million by 2026.

To know how our report can help streamline your business, Speak to Analyst

North America

The North American dimethyl carbonate market is experiencing steady growth, driven by the region’s strong automotive and electronics industries. The region is likely to hit USD 149.97 million in 2025 as the third-largest region. The U.S. leads the market with increasing demand for polycarbonates and lithium-ion batteries. The shift toward electric vehicles and renewable energy storage solutions is further boosting DMC consumption. Stringent environmental regulations in the region are also promoting the adoption of DMC as greener solvent alternatives. The pharmaceutical sector in the U.S. and Canada are contributing to the demand for high-purity DMC grades. The U.S. market is estimated at USD 134.3 million by 2026.

Europe

Europe represents a significant market for DMC, with Germany, France, and the U.K. being key contributors. The region is anticipated to be the second-largest market with a value of USD 152.9 million in 2025, exhibiting the second-largest CAGR of 5.88% during the forecast period. The region’s robust automotive industry, particularly the growing electric vehicles sector, is driving demand for DMC in battery electrolytes and polycarbonate production. Europe’s strong focus on sustainability and environmental protection is accelerating the adoption of DMC as an eco-friendly solvent in various industries. The UK market is estimated at USD 28.2 million by 2026, while the Germany market is estimated at USD 62 million by 2026. France is likely to hold USD 28.87 million in 2025.

Latin America

The Latin America Dimethyl Carbonate market is growing steadily, with Brazil and Mexico being the key markets. The region’s expanding automotive industry and increasing adoption of electric vehicles are driving DMC demand. The growing construction sector is boosting the consumption of polycarbonates, indirectly benefiting the Dimethyl Carbonate market.

Middle East & Africa

The DMC market in the Middle East & Africa is showing promising growth. The region is likely to be the fourth-largest market with a value of USD 37.8 million in 2025. Countries such as Saudi Arabia and the UAE are investing in diversifying their economies beyond oil, which is creating opportunities for the chemical industry, including DMC production and consumption. The GCC market size is estimated to be USD 18.96 million in 2025.

KEY INDUSTRY PLAYERS

Key Players to Adopt Organic and Inorganic Business Growth Strategies to Maintain Their Dominance

Key market players in the market are focusing on capacity expansion and technological advancements to strengthen their market positions. They are investing in research and development to improve the production process and develop new applications for DMC. Several market players are offering battery grade (>99.9%) to cater to the increasing lithium-ion battery demand. Additionally, these companies are emphasizing sustainability by developing eco-friendly production methods and promoting DMC as a green solvent.

LIST OF TOP DIMETHYL CARBONATE COMPANIES:

• UBE Corporation (Japan)
• LOTTE CHEMICAL CORP. (South Korea)
• KOWA AMERICAN Corporation (U.S.)
• Kishida Chemical Co., LTD. (Japan)
• Shandong depu chemical industry science&technology co.,ltd (China)
• Merck KGaA (Germany)
• Tokyo Chemical Industry (India) Pvt. Ltd. (India)
• Shandong Haike Holding Co., Ltd (China)
• SANKYO CHEMICAL CO.,LTD. (Japan)
• SMC GLOBAL (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: UBE Corporation announced the construction of ethyl methyl carbonate and dimethyl carbonate plants in the U.S. The plant will be capable of producing 40,000 metric tons of EMC derived from DMC and 100,000 metric tons of DMC per year.  

REPORT COVERAGE

The report provides a detailed analysis of the market. It focuses on key aspects, such as leading companies, Grades, compositions used to produce these products, and end-use industries of the product. Besides this, it offers insights into the market and current industry trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market's growth.

Request for Customization   to gain extensive market insights.

Report Scope & Segmentation