Thionyl Chloride Market Size

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.