Diethyl Carbonate Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sales Channel (Direct, Indirect), By End Use (Lithium Battery Electrolytes, Resin Production, Pharmaceutical, Others), By Region and Competition, 2020-2030F

Market Overview

Global Diethyl Carbonate Market was valued at USD 595.18 Million in 2024 and is expected to reach USD 984.06 Million by 2030 with a CAGR of 3.32% during the forecast period. The global diethyl carbonate (DEC) market is witnessing steady growth, driven by rising demand across diverse end-use industries such as pharmaceuticals, electronics, automotive, and chemicals. Known for its low toxicity, high solvency, and favorable environmental profile, diethyl carbonate has emerged as a versatile chemical compound with expanding commercial applications.

One of the primary growth drivers is the increasing adoption of DEC as an electrolyte solvent in lithium-ion batteries, which are critical components in electric vehicles (EVs), energy storage systems, and portable electronics. As governments and manufacturers accelerate the transition toward cleaner transportation and renewable energy solutions, the demand for high-performance battery materials—including diethyl carbonate—is expected to surge significantly in the coming years.

However, the market faces certain challenges, including the volatility of raw material prices and the complexity of large-scale production. The synthesis of DEC typically involves phosgene-free routes for safety and environmental compliance, which may require advanced process controls and capital investments. Additionally, compliance with environmental and safety standards—especially in Western markets—can pose regulatory hurdles for manufacturers.

Key Market Drivers

Growth in Pharmaceutical Industry

The robust expansion of the pharmaceutical industry is emerging as a key driver of growth in the global diethyl carbonate market. The global pharmaceutical industry has witnessed substantial expansion over the past two decades, reaching approximately USD 1.6 trillion in revenue by 2023. This level of growth has elevated the industry's economic scale to be on par with the gross domestic product (GDP) of nations such as Spain, Mexico, or Australia. Diethyl carbonate (DEC), a versatile organic compound, is gaining increasing prominence in pharmaceutical manufacturing due to its role as an effective solvent and intermediate in the synthesis of active pharmaceutical ingredients (APIs). Its favorable chemical properties, such as high solvency, low toxicity, and biodegradability, make it an ideal alternative to more hazardous solvents traditionally used in pharmaceutical formulations.

As global healthcare demands rise and pharmaceutical production scales up to meet the growing burden of chronic diseases, aging populations, and the development of new therapies, the demand for safe and efficient processing chemicals like diethyl carbonate is expanding. Chronic diseases—such as cardiovascular conditions, cancer, chronic respiratory illnesses, and diabetes—are responsible for approximately 41 million deaths annually. Effective management involves early detection, regular screening, appropriate treatment, and ensuring access to palliative care for those requiring long-term support. Pharmaceutical manufacturers are continuously seeking high-performance solvents that can ensure product purity while aligning with increasingly stringent regulatory and environmental standards. In this context, DEC’s low environmental impact and superior performance in drug formulation processes are positioning it as a preferred choice in modern pharmaceutical production.

Growth in Automotive Industry

The expanding automotive industry has emerged as a significant catalyst for the growth of the global diethyl carbonate market. In 2021, the global automotive manufacturing market was valued at approximately USD 2.86 trillion. It is anticipated to reach around USD 2.95 trillion in 2022, reflecting a modest recovery that remains below the industry's 2019 levels. By 2030, electric vehicles are expected to account for roughly 26% of global new car sales, while an estimated 58 million new autonomous vehicles are projected to be integrated into the global fleet. As automakers increasingly prioritize lightweight materials, fuel efficiency, and reduced emissions, the demand for high-performance chemicals such as diethyl carbonate (DEC) has seen a notable rise. Diethyl carbonate is widely recognized for its role as a solvent and electrolyte additive in lithium-ion batteries, which are central to the growing electric vehicle (EV) segment.

One of the primary drivers of this trend is the accelerating shift toward electric mobility. With global efforts to curb greenhouse gas emissions and transition to sustainable transportation, EV production is gaining unprecedented momentum. Diethyl carbonate, due to its high electrochemical stability and low toxicity, is an essential component in lithium battery electrolytes, supporting improved battery performance, energy density, and safety. As a result, the rapid growth in EV adoption directly contributes to the increased consumption of DEC in battery manufacturing.

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Key Market Challenges

Volatility in Raw Material Prices

Volatility in raw material prices poses a significant challenge to the stability and profitability of the global diethyl carbonate (DEC) market. As the production of DEC relies heavily on feedstocks such as ethanol, ethylene oxide, and dimethyl carbonate—many of which are derived from petrochemical sources—price fluctuations in these inputs can have a direct and adverse impact on manufacturing costs and market pricing.

One of the primary factors contributing to raw material price volatility is the fluctuation in global crude oil prices, which affects the cost of petrochemical derivatives used in DEC synthesis. Geopolitical tensions, supply chain disruptions, and production cuts by major oil-exporting nations can all lead to sharp increases in input costs. Additionally, seasonal variations in agricultural output can affect the availability and pricing of bio-based ethanol, especially in regions reliant on corn or sugarcane for feedstock.

Key Market Trends

Surging Demand in Lithium-Ion Batteries

The rising global demand for lithium-ion batteries is emerging as a pivotal trend shaping the growth of the diethyl carbonate (DEC) market. Between 2022 and 2030, global demand for lithium-ion batteries is expected to surge nearly sevenfold, reaching approximately 4.7 terawatt-hours by 2030. This substantial growth is largely driven by the increasing adoption of electric vehicles (EVs), which rely heavily on lithium-ion battery technology. In 2024, EVs accounted for more than 80% of total global demand for lithium-ion batteries. As a crucial solvent component in the electrolyte formulation of lithium-ion batteries, diethyl carbonate plays a vital role in enhancing battery performance, stability, and longevity. Its excellent electrochemical properties, low viscosity, and high dielectric constant make it an ideal candidate for facilitating efficient ion transport within battery cells.

The widespread adoption of lithium-ion batteries across electric vehicles (EVs), consumer electronics, and renewable energy storage systems is significantly increasing the need for high-purity diethyl carbonate. The rapid shift toward e-mobility and decarbonization—driven by global climate initiatives and stringent emission regulations—has prompted major investments in battery production, thereby fueling the demand for DEC as a key electrolyte solvent.

Segmental Insights

Sales Channel Insights

Based on Sales Channel, Direct have emerged as the fastest growing segment in the Global Diethyl Carbonate Market in 2024. As demand for high-purity diethyl carbonate rises—especially for use in lithium-ion batteries and pharmaceutical synthesis—buyers are seeking greater consistency and transparency in sourcing. Direct procurement allows for customized product specifications, technical collaboration, and timely feedback, which are critical for industries with stringent quality and regulatory standards. In addition, the growing digitalization of B2B transactions and the expansion of online platforms have made it easier for manufacturers to engage directly with global customers, bypassing traditional intermediaries.

End Use Insights

Based on End Use, Resin Production have emerged as the fastest growing segment in the Global Diethyl Carbonate Market during the forecast period. The automotive and electronics industries—major consumers of advanced resins—are experiencing rapid innovation and material diversification. DEC-derived resins are used in coatings, adhesives, and structural components due to their superior durability, chemical resistance, and lightweight characteristics. The need for lighter, stronger, and more sustainable materials in electric vehicles and high-performance electronics has driven demand for DEC-based resins.

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Regional Insights

Based on Region, Asia Pacific have emerged as the dominating region in the Global Diethyl Carbonate Market in 2024. China, in particular, commands a significant share of the global battery manufacturing supply chain, supported by favorable government policies, incentives for EV adoption, and investments in clean energy infrastructure. This has led to a corresponding surge in the demand for high-purity electrolyte solvents such as diethyl carbonate. Additionally, the region’s well-established chemical and pharmaceutical sectors further contribute to the high consumption of DEC as an intermediate in synthesis and formulation processes.

Recent Development

• In December 2024, Jiangsu Sailboat Petrochemical (Sailboat) commenced commercial operations at its new carbonates facility located in Lianyungang, Jiangsu Province, China. The plant utilizes proprietary technology licensed from Asahi Kasei to manufacture high-purity ethylene carbonate (EC) and diethyl carbonate, leveraging carbon dioxide (CO₂) as a key feedstock. These carbonates serve as essential electrolyte solvents in lithium-ion batteries for electric vehicles. Asahi Kasei initially developed this CO₂-based production technology in the early 2000s, enabling the synthesis of various chemical products. Since then, the company has licensed the technology to chemical manufacturers worldwide, with the first commercial application involving polycarbonate production beginning in 2002.
• In 2024, India Insecticides Limited (IIL) launched TURNER, a patented, next-generation insecticide formulated with the synergistic combination of Thiamethoxam and Imidacloprid. This innovative product offers broad-spectrum protection against wireworms and termites, reinforcing IIL’s commitment to advancing sustainable crop protection. Notably, the formulation of TURNER leverages Diethyl Carbonate (DEC) as a solvent and carrier medium, chosen for its low toxicity, biodegradability, and compatibility with active ingredients. The use of DEC not only enhances the stability and bioavailability of the insecticidal compounds but also supports environmentally responsible pest control practices. This strategic integration of DEC aligns with growing industry trends toward greener agrochemical formulations, contributing to both improved efficacy and sustainability in modern agriculture.
• In January 2025, Lummus Technology, a global leader in process technologies and energy solutions, announced a strategic partnership with Versalis, Eni’s chemical subsidiary, to license the entire suite of technologies in the phenolics value chain. This includes key intermediates such as Cumene and Cyclohexanone Oxime, which are foundational to producing high-performance solvents and specialty chemicals, including Diethyl Carbonate (DEC). As the exclusive licensor, Lummus will oversee the commercialization of these technologies, while both companies will collaborate on engineering, marketing, and licensing, in addition to supplying proprietary catalysts and equipment.
• In March 2024, Dow announced its plans to expand ethylene derivatives capacity along the U.S. Gulf Coast, with a particular focus on producing carbonate solvents—essential materials in the lithium-ion battery supply chain. This strategic investment aims to support the growing domestic markets for electric vehicles (EVs) and energy storage, while reinforcing Dow’s established history of successful growth initiatives, such as its recent global alkoxylation capacity expansions in the U.S. Gulf Coast and Europe, expected to come online within the next two years. Dow is working in collaboration with the U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED) and has been selected to enter award negotiations to develop a world-scale carbonate solvents manufacturing facility. The project is underpinned by agreements with key customers, including major EV original equipment manufacturers and electrolyte producers.

Key Market Players

• Shida Shenghua Chemical Group Co.,ltd
• Dongying Haike Xinyuan Chemical Co., Ltd.
• Shandong Haike Chemical Group Co. LTD
• Liaoning Ganglong Chemical Co., Ltd.
• Fushun Dongke Fine Chemical Co., Ltd.
• Shandong Feiyang Technology Group Co., Ltd.
• Tongling Jintai Chemical Industrial Co., Ltd.
• Liaoyang Best Chemical Co., Ltd.
• Shaanxi Beiyuan Chemical Industry Group Co., Ltd
• Chongqing ChangFeng Chemical Co.,Ltd.

Report Scope

In this report, the Global Diethyl Carbonate Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Diethyl Carbonate Market, By Sales Channel:

o   Direct

o   Indirect

• Diethyl Carbonate Market, By End Use:

o   Lithium Battery Electrolytes

o   Resin Production

o   Pharmaceutical

o   Others

• Diethyl Carbonate Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Diethyl Carbonate Market.

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