Dimethyl Phosphate Market Expected to Reach $3.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Dimethyl Phosphate Market," The dimethyl phosphate market was valued at $2.2 billion in 2021, and is estimated to reach $3.9 billion by 2031, growing at a CAGR of 5.7% from 2022 to 2031.

Dimethyl phosphate is an organophosphorus compound with the formula of having CH3O)2P(O)H. The phosphorus molecule is tetra hedral and it is a colorless liquid. It is a reagent which is used for generating organophosphorus compound. It is synthesized by methanolysis of phosphorus trichloride or by heating diethylphosphite in others. Dimethyl phosphate has a wide range of applications in various end-use industries including agriculture, flame retardant, petroleum additive, and others.    

Rapid growth of population, significant rise in need for various agriculture food, and surge in demand for fertilizer & crop protection products have enhanced the performance of agriculture sector. Dimethyl phosphate-based agrochemicals are widely used as pesticide and insecticide which helps in maintain the crop productivity and enhances the yield efficiency. These factors are driving the growth of the dimethyl phosphate market during forecast period.  

However, habitual exposure of dimethyl phosphate may have adverse effect on human health. For instance, according to an article published by International Labor Organization, exposure of dimethyl phosphate is irritating to the eyes, skin and respiratory tract. The substance may cause effects on the nervous system. This may result in convulsions and respiratory depression. This factor is anticipated to hamper the market growth. 

On the contrary, factors such as developments in industrial sector, and well-established chemical industry in both developed and developing economies have enhanced market demand for dimethyl phosphate. In addition, factors such as growing manufacturing industry, availability of feedstock at reduced prices, and arrival of local players has led manufacturers to offer dimethyl phosphate at low prices. This factor is predicted to create remunerative opportunities for expansion of the dimethyl phosphate market in the future.  

The dimethyl phosphate market is segmented on the basis of purity, application, and region. By type, the market is segregated into 95.0%, and 98%. The 98% segment dominated the global market, in terms of revenue in 2021. Factors such as rise in urbanization, increased focus on the agriculture sector and others are key market trends responsible for the surge in demand for dimethyl phosphate purity, 98.0% in agriculture sector where it acts as good source of fertilizer that helps in increasing the crop yield. This acts as a one of the key drivers responsible for the growth of Purity, 98.0% in the market.     

By application the market is divided into agrochemicals, corrosion inhibitor, petroleum additive, others. The agrochemicals application segment dominated the global market, in terms of revenue in 2021 with 45.7% share in the global market. Factors such as, rise in population, surge in demand for food, and increase in import and export trade activities have surged the demand for pesticide. The dimethyl phosphate-based pesticides are extensively used on cereal production during natural calamity. This factor is expected to act as one of the key drivers responsible for the growth of the dimethyl phosphate market.  

Region wise, the dimethyl phosphate market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific dimethyl phosphate market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major market share in 2021. India witnessed significant growth in the agriculture industry where dimethyl phosphate-based fertilizers such as pesticides, insecticides, and herbicides that are employed on plants for protection purposes.

In addition, the increasing establishments of chemical, manufacturing, biomedical, and other industrial units have led the industrial sector in Indonesia to witness significant growth, wherein dimethyl phosphate with different purity ratio finds application in various industrial processes owing to its use as an intermediate in various chemical synthesis processes.

According to a report published by the Indonesian Investment Coordinating Board (BKPM), the manufacturing industry in Indonesia (including the chemical, pharmaceutical, and traditional medicine industries) is witnessing rapid growth, owing to the increasing utilization of various consumer goods. These factors together escalate the growth of the dimethyl phosphate market in the Asia-Pacific region.    

Key players operating in the global dimethyl phosphate market include Otto Chemie Pvt. Ltd., Merck KGaA, Lanxess, Fisher Scientific, Toronto Research Chemicals, AccuStandard, Inc., Alfa Chemistry, Biosynth, BLDpharm, Clearsynth. 

COVID-19 analysis 

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The dimethyl phosphate market had a moderate impact due to the wake of the COVID-19 pandemic, owing to the disruptions in the supply chain for various chemical and industrial products. The outbreak of COVID-19 resulted in the shutdown of various chemical manufacturing plants for a long period, especially in Europe and Asia-Pacific, owing to which manufacturers have faced shortage in labor units, production losses.

Furthermore, disruption in production units, closure of manufacturing factories, and cutbacks in service sectors lead to disruption in global logistics and supply chain services. In addition, restrictions imposed, due to the lockdown have declined the growth of agriculture, industry, oil & gas, and others.    

However, the consumption of fruits and vegetables is increased during COVID-19 owing to the health benefits associated with them. Dimethyl phosphate is used as an excellent source of fertilizer which helps in maintaining crop productivity during natural calamities. Thus, a rise in demand for fruits and vegetables as well as industrial and chemical sectors is predicted to boost the growth of the dimethyl phosphate market during the forecast period. 

Key findings of the study 

• By type, the 98% segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.9% from 2022 to 2031.  

• By application, the agrochemical segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.7% from 2022 to 2031.  

• By region, Asia-Pacific garnered the highest share of more than 40% in 2021, in terms of revenue, growing at a CAGR of 6.4%.