Phosgene Market Expected to Reach $65.4 Billion by 2031

According to a new report published by Allied Market Research, titled, "Phosgene Market by Derivative and Application: Global Opportunity Analysis and Industry Forecast, 2022–2031,"the global phosgene market size was valued at $39.2 billion in 2021, and is projected to reach $65.4 billion by 2031, growing at a CAGR of 5.3% from 2022 to 2031.

Phosgene is a colorless chemical compound with suffocating odor. It is produced by reacting chlorine and carbon monoxide. In general, a small amount of phosgene is released in nature from volcanoes. It is mainly produced artificially and is extremely toxic and thus, it was even used as a chemical weapon during wars. Phosgene is used for deriving a number of chemical compounds used in various industrial sectors. Diethylcarbamoyl chloride a derivative of phosgene and is used to hydrolyze water insoluble compounds and is extensively used in the pharmaceutical industry. 

Demand for phosgene is expected to be driven by its utilization in pharmaceutical, agrochemical, polycarbonates, and chemical industries. It is widely used to manufacture diethylcarbomoyl chloride which is used to hydrolyze water insoluble compound and is extensively used as an intermediate for the production of pesticides, pharmaceuticals, and dyes. 

In addition, the demand for phosgene is projected to increase from the metal industry owing to its utilization for platinum, plutonium, uranium, and niobium metal extraction. It is also used in chemical industries for production of chemical such as beryllium chloride, aluminum chloride, & boron trichloride. However, high toxicity of phosgene is expected to hamper the growth of the phosgene market during the forecast period. Furthermore, increase in consumption of phosgene in pesticides and insecticides are expected to provide growth opportunities for the phosgene market during the forecast period.

The phosgene market is segmented on the basis of derivative, application, and region

By derivative, the global phosgene market size is studied across isocyanates, chloroformates, and carbamoyl chlorides. The isocyanates segment accounted for the largest market share in 2021, owing to surge in consumption of isocyanates from automotive and building & construction. The isocyanates segment dominated the global phosgene market with more than two-thirds of the total market share in 2021.

By application, the global phosgene market is studied across polycarbonates, pharmaceuticals, polycarbonates, dyes, fine chemicals, and others. The polycarbonates segment accounted for the largest market share in 2021, owing to surge in its demand from the electronics sector across the globe. The polycarbonates segment dominated the global phosgene market with three-eighths of the total market share in 2021.

Region-wise, the phosgene market is studied across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for a major share in 2021, and dominated the global market with more than one-third of the total market share in 2021.

The major players studied and profiled in the global phosgene market are BASF SE, Dow, Covestro A.G., VanDemark Chemical Inc., Vertellus, Synthesia, a.s., Atul Ltd., Paushak Ltd., Hodogaya Chemical Co. Ltd., Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC Ltd), UPL Limited, Shandong Tianan Chemicals Co. Ltd., Altivia, Tokyo Chemical Industry Co. Ltd., Lanxess, Hangzhou Better Technology Co. Ltd., Chuo Kaseihin Co. Inc., PMC Isochem, KPX Life Science Co. Ltd., and Nippon Soda Co. Ltd.

According to the Food and Agriculture Organization (FAO), the global food demand is expected to increase from 50.0% to 90.0% by 2050, owing to the expected increase in the global population by 2,300.0 million people, between 2009 and 2050. The global food production needs are expected to increase by about 70.0% by 2050 to meet the growing food demand due to the increasing population globally. This implies that there must be a significant increase in the production of certain food commodities. For instance, the production of cereals must reach around 3,000.0 million metric tons by 2050, an increase from nearly 2,100.0 million metric tons in 2018. The increased demand for food security has surged the production of several agrochemicals such as pesticides and herbicides where phosgene gas is widely used for pesticide manufacturing. This is anticipated to increase the consumption of phosgene in pesticides manufacturing process; thus, creating lucrative opportunities for the phosgene market. 

However, the outbreak of the COVID-19 pandemic has a negative impact on the global phosgene market.”

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. According to the International Monetary Fund (IMF), owing to the outbreak of novel coronavirus (COVID-19), the global economy shrunk by 3.0% in 2020. Many countries are under strict lockdowns, which have forced several sectors to shut down their operations. This has halted manufacturing activities and reduced the demand and production of phosgene. 

Phosgene is widely used in production of agrochemicals. The crop protection sector is in huge demand in recent years, with its increasing importance on the yield growth of food grains. The components that are used in the production of agrochemicals are sometimes chemicals and sometimes biological species, which ultimately help in controlling the pests from damaging the crops or helps improve soil fertility. This results in healthy crop production with no health issues. With these concerns, farmers have started the usage of various agrochemicals to prevent damage and hence, increase productivity. 

Due to emergence of the COVID-19 pandemic, there has been a supply chain disruption, because of which the agricultural sector had to face problems such as labor unavailability, pharmaceuticals barriers, restriction for market access, and lack of inventories in some regions. Many fertilizer and pesticide manufacturers were facing issues due to lack of raw material availability, which has led to the reduction in manufacturing of various agrochemical products. Owing to this, the demand for phosgene from agrochemical manufacturer across the globe has declined significantly, thereby reducing the growth of the market during the forecast period. Phosgene is widely used as an intermediate compound in manufacturing of polycarbonates. The outbreak of the COVID-19 pandemic has restricted the operating activities of several industries, including the end-user industries of the market studied. 

Construction activities across the globe have been slowed down, due to shortage of labor, and in some cases, activities have been suspended owing to lockdown regulations. The disruption of the global supply chain, due to the lockdown, has been a key factor behind the decline in construction activities and, in turn, downfall in demand for the polycarbonate. Due to decline in consumption of polycarbonate, the demand for phosgene from polycarbonate manufacturers has also been significantly reduced, thereby affecting the growth of the phosgene market negatively.

Key findings of the study

• By derivative, the isocyanates segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.6% from 2022 to 2031.
• By application, the polycarbonates application segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 6.2% from 2022 to 2031.
• By region, Asia-Pacific garnered the highest share of 32.9% in 2021, in terms of revenue, growing at a CAGR of 5.7%.