Thionyl Chloride Market size was valued at USD 643 million in 2024 and is projected to reach USD 1.13 billion by the end of 2037, rising at a CAGR of 4.5% during the forecast period, i.e., 2025-2037. In 2025, the industry size of thionyl chloride is estimated at USD 671.9 million.
The demand for thionyl chloride has been increasing steadily due to its various applications in agrochemicals, pharmaceuticals, and battery manufacturing. Being an intermediate in the production of numerous compounds, this chemical is quite important in pharmaceutical and specialty chemical industries. Due to its high demand and wide range of applications, the market for thionyl chloride is expected to continue expanding. As industries get more inclined to efficiency and seek sources with the enhancement of their material's ability to produce, a chemical source like thionyl chloride becomes crucial for them.
Thionyl chloride producers have been taking several steps towards making more sustainable and environmentally friendly production systems. For instance, in August 2021, Solvay collaborated with Saudi Basic Industries Corporation (SABIC), aiming to enhance the production of thionyl chloride while keeping its pollution low and using natural resources very efficiently. The growth in the market is due to government initiatives that have promoted domestic chemical production so that the country does not import much. Furthermore, policies that support chemical manufacturing will positively impact thionyl chloride as it supports local production and innovation.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
4.5% |
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Base Year Market Size (2024) |
USD 643 million |
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Forecast Year Market Size (2037) |
USD 1.13 billion |
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Regional Scope |
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Grade (Technical Grade, Pharmaceutical Grade)
By 2037, technical grade segment is expected to capture over 67.5% thionyl chloride market share due to its extensive use in industrial applications where ultra-high purity may not be required. Technical grade thionyl chloride is widely used in the preparation of dyes, pigments, and as a chlorinating agent in various chemical processes. For example, Angene International announced in January 2022 that it expanded into technical-grade chemical specialties targeting niche and emerging end-markets. This reflects the demand in the market to keep pace with cost-advantaged technical-grade chemicals suitable for large-scale industrial use. Such expansions emphasize the growing role of thionyl chloride in regions that continue to expand production in the chemical industry.
Application (Agrochemicals, Pharmaceuticals, Dyes & Pigments, Organic Synthesis, Batteries)
In thionyl chloride market, organic synthesis segment is expected to account for more than 25.2% revenue share by the end of 2037 due to significant applications in synthesizing a variety of organic compounds. Thionyl chloride plays a vital role in the production of carboxylic acids and in the chlorination of alcohols and amines. The chemical and pharmaceutical industries, which demand huge amounts of organic synthesis products, significantly contribute to the importance of this segment. BASF SE announced in March 2022 that it is continuing to modernize its Verbund site in Ludwigshafen, Germany, investing heavily in the low three-digit million euro range on production facilities for chloroformates and acid chlorides. Furthermore, reagents such as thionyl chloride play a huge role in supporting efficient and scalable organic synthesis.
Our in-depth analysis of the thionyl chloride market includes the following segments:
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Grade |
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Application |
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Production Process |
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North America Market Analysis
North America in thionyl chloride market is set to capture over 32.3% revenue share by 2037. The pharmaceutical and agrochemical industries are highly prevalent in this region. Research and development of advanced chemicals is also given much importance in this region, which in turn has enhanced the demand for quality reagents such as thionyl chloride. Innovation in drug development and productivity in agriculture are the key growth drivers that support market growth.
The U.S. is expected to account for the largest share due to vigorous pharmaceutical and chemical manufacturing. The well-developed pharmaceutical infrastructure, along with continued research and development, supports increased use of the intermediate thionyl chloride. This further contributes to the rise in thionyl chloride applications in the U.S., encompassing specialty chemicals and agrochemicals, considering that American companies hold strong innovation commitments and rigorously observe safety protocols.
Canada is also witnessing an increased demand for thionyl chloride supported by strong regulations by the government to ensure chemical safety. For example, the regulatory framework under the Canadian Environmental Protection Act (CEPA) requires chemicals such as thionyl chloride to undergo a rigorous environmental assessment, which points toward the country's concern for producing the chemical safely. The regulatory thrust helps in producing this chemical in the least environmentally damaging method so that thionyl chloride can help maintain
Asia Pacific Market Analysis
In thionyl chloride market, Asia Pacific region is set to observe CAGR of around 5.5% from 2024 to 2037. This growth is driven by rapid industrialization and economic developments in countries like China and India. Expansion in the pharmaceutical, agrochemical, and electronics markets increases the demand for the production of thionyl chloride. Furthermore, the availability of raw materials and low-cost production increase the prospects in this market.
China is among the leading producers and consumers of thionyl chloride worldwide, majorly propelled by its gigantic chemical manufacturing structure. In the agrochemical industry, the country caters to its gigantic agricultural needs, hence boosting the consumption of thionyl chloride in pesticide manufacture. Moreover, the country dominated countries such as the U.S. with massive investments in chemical industry capital. The country’s investments amounted to 46% in the year 2022, surpassing other competitors compared to 10% for the USMCA (United States-Mexico-Canada Agreement). This trend has underlined the significant resource allocation that the country is making towards the production of chemicals, reinforcing its demand for thionyl chloride.
India also witnessed a rise in the demand for thionyl chloride due to pharmaceutical industries encouraged by the Production Linked Incentive (PLI) scheme under the government. The government of India 2024-25 Interim Budget also shows this priority, allocating Rs. 1,000 crore (US$ 120 million) for bulk drug parks, which is a significant increase to strengthen the domestic supply chain. As India continues to expand its pharmaceutical sector and further cements its position as a global production base, thionyl chloride consumption is expected to increase in support of mass-scale drug synthesis.
The market is highly competitive, with companies such as Lanxess AG, CABB Group, and Jiangxi Selon Industrial Co., Ltd., among others, looking into capacity expansion, mergers, and acquisitions, as well as new product development in order to enhance their respective market positions. For example, In February 2022, CABB Group recently expanded the production facility in Pratteln, Switzerland, to manufacture more high-purity thionyl chloride. Such an expansion is expected to cater to the increasing pharmaceutical and agrochemical sectors' demand for high-grade reagents. The move by the company is to keep pace with the increasing competition in the market and to stay ahead of competitors as major players increase their capabilities to capture larger portions of the market and better adapt to global demand trends.
Here are some leading players in the thionyl chloride market:
Author Credits: Rajrani Baghel
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