Phosgene Market Analysis

Global Phosgene Market Overview

Phosgene Market Size was valued at USD 1.68 Billion in 2023. The Phosgene industry is projected to grow from USD 1.76 Billion in 2024 to USD 2.56 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.60% during the forecast period (2024 - 2032). Phosgene is a colourless gas with the chemical formula COCl2, having an unpleasant odour and is primarily found in trace amounts of volcanos. Phosgene can be manufactured synthetically and is highly toxic, owing to which it was used as a chemical weapon during major wars across the globe, and is known to be a significant industrial agent widely used as a building block in the preparation of several organic compounds and medicines. The growing utilization of phosgene in the manufacturing of diethyl carbamoyl chloride, which is then used to hydrolyze water-insoluble compounds that serve as intermediates for the production of medicines, insecticides, and dyes, is driving the expansion of the global phosgene market. 

Phosgene Market Trends Insights 

The ongoing trend of sustainable production along with the increased demand for polyurethanes is aiding the market's growth.

The polyurethane industry has a substantial influence on the global phosgene market since it is a key customer of phosgene derivatives such as MDI and TDI. The usage of polyurethane foam (PU foam) in buildings, insulation, and furnishings is expected to continue to rise, according to the study carried out, which is mostly due to the rapid growth of urbanization and infrastructure throughout the world. Consequently, this leads to an increase in the requirement for phosgene. However, there is a factor that works against it, and that is the growing emphasis on sustainability. In the realm of research and development, efforts are being made to develop methods of manufacturing phosgene that are much less harmful to the environment through organic synthesis. Carbonylation and other alternative methods of producing phosgene are being investigated by businesses worldwide as part of their efforts to lessen their reliance on hazardous chemicals. With this, the overall production of phosgene has boosted the market revenue and taken the said market segment among the top revenue grosses. February 2024According to official papers, traces of the toxic gas phosgene, which was used during World War One, were found in an event that occurred at the headquarters of Sweden's security agency last Friday.According to an earlier statement made by Sapo, the security agency, which said that there was no gas detected either inside or outside the structure, this information contradicts that declaration. The building was evacuated by hundreds of people, and eight of them were sent to the hospital. The majority of fatalities caused by chemicals during World War One were caused by phosphone, which is used in the production of plastics and insecticides. The Swedish daily Svenska Dagbladet was able to get a copy of the report that suggested the presence of the hazardous material on the premises. The report originated from the County Administrative Board of Stockholm.

Phosgene Market Segment Insights 

The global phosgene market is primarily segmented based on derivatives and applications. 

Based on derivatives, the phosgene market is further segmented into isocyanates, chloroformates, and carbamoyl chlorides. Out of which, the isocyanate segmentation dominates the global market share, which is attributed to the immense growth of the global automotive sector and the fast-paced industrialization in major emerging economies like India, China, Japan, Mexico, etc. Apart from this, the increased use of isocyanate derivatives in several crucial applications including the manufacturing of foams, paints and elastomers. 

Based on application, the global phosgene market is further sub-segmented into agrochemicals, pharmaceuticals, polycarbonates, fine chemicals, dyes, and speciality chemicals. Out of which, the speciality chemicals sub-segmentation dominates the market segment and is estimated to witness the highest growth rate during the forecast period. The estimated growth of the said segmentation is primarily due to the increased use of phosgene as a key raw material in the manufacturing of speciality polycarbonates. There is a rising demand for these carbonates in various industries such as construction, automotive, medical, and electronics. Furthermore, the increasing adoption of research and development efforts to enhance the effectiveness, environmental friendliness, and security of phosgene-based procedures is expected to broaden the market potential and stimulate the need for specialized chemicals.

Phosgene Market Regional Insights 

The global phosgene market is primarily studied across four regions, namely, North America, Europe, Asia-Pacific & the Rest of the World. Out of which, the Asia-Pacific region is said to dominate the global market and is estimated to have the highest growth rate during the forecast period. The said growth trajectory is largely attributed to the growing end-use industries such as agriculture, automotive, and pharmaceuticals. Increasing consumption of phosgene in agrochemicals, dyes, and medicines is likely to propel the regional market growth. High demand for phosgene is predicted to surge in various developing countries of Asia-Pacific such as India, China, and Malaysia owing to the wide consumption of phosgene derivatives in bedding and furniture; and agrochemicals applications. Factors such as easy availability of raw materials, low labour and land cost, and increasing R&D innovations to reduce the toxicity of phosgene are further anticipated to boost regional market growth.

The European region is estimated to be the second largest market share holder in the global phosgene market during the forecast period ending in the year 2030. The region's growth is due to the high consumption of phosgene in pharmaceuticals, dyes and speciality chemical applications. Germany is the leading country in the European region in terms of revenue share among European countries, which is followed by Spain, Italy and France, on account of the constant research & development and product innovation. 

Apart from these two regions, the North American market for phosgene accounts for a substantial market share, and is likely to grow at a steady CAGR during the said forecast period owing to the recovery of the industrial sector combined with increasing investments in textile and healthcare sectors. 

Phosgene Market Key Players & Competitive Insights 

The global phosgene market is considered to be fragmented based on several aspects, and it is projected that competition will be present due to the presence of multiple competitors. Major key players in the industry are continually improving their products to maintain a competitive advantage over their rivals. To obtain a competitive advantage over their contemporaries and seize a sizeable portion of the market, these firms place a strong emphasis on partnerships, product advancements, and collaborative efforts.

Phosgene Market Key Companies Insights 

• Bayer AG 


• VanDeMark Chemical Inc. 


• Wanhua Chemical Group Co. Ltd 


• Vertellus Holdings LLC 


• Atul Ltd 


• Paushak Ltd


• UPL 


• ISOCHEM


• H. Products 


• BASF SE 


• Shandong Tianan Chemicals Co. Ltd.


• Dow


• Altivia


• Vertellus


• Synthesia A.S.


• Hodogaya Chemical Co. Ltd., 

Recent Developments 

November 2022 - 

In November 2022, Huntsman Corporation signed an agreement to sell its textile division to Archoma, a portfolio company of SK Capitals. 

October 2022 - 

In October 2022, the Department of Chemical Technology and Bioengineering Technologies announced their allied production of polyurethanes.