Dimethyl Carbonate Market Outlook:
Dimethyl Carbonate Market size was over USD 1.17 billion in 2025 and is projected to reach USD 2.39 billion by 2035, growing at around 7.4% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of dimethyl carbonate is evaluated at USD 1.25 billion.
The dimethyl carbonate market is experiencing significant growth, largely driven by rising demand from the automotive and electronics industries. DMC is a highly soluble solvent that is widely used to prepare electrolytes for lithium-ion batteries, a key component of EVs. As the global automotive industry undergoes a transition toward electric mobility, the need for efficient and sustainable battery components is boosting the demand for DMC.
Beyond batteries, DMC is a crucial intermediate in the production of polycarbonate, a high-performance plastic valued for its lightweight, durability, impact resistance, and thermal stability. Polycarbonate is extensively used in automotive parts such as dashboards, glazing systems, and lighting components to enhance fuel efficiency and reduce emissions. In the electronics sector, it is used in the manufacturing of semiconductors, printed circuit boards (PCBs), and device casings, where its electrical insulation properties are highly beneficial.
Global policy support, such as the U.S. Inflation Reduction Act and the EU’s Net Zero Industry Act, has catalyzed substantial investment, approaching USD 500 billion between 2022 and 2023, in EV and battery technologies. These initiatives are reinforcing the momentum of DMC’s role in supporting green technologies.
Sustainability concerns are further enhancing DMC’s market appeal, with increased adoption of non-phosgene production methods, offering an eco-friendlier alternative to traditional chemical processes. A notable example is Covestro AG, which in 2023 announced enhancements in its polycarbonate production through advanced recycling technologies, reinforcing the circular economy and improving the environmental footprint of materials derived from DMC.
