Dicyandiamide Market - Forecast(2024 - 2030)

Dicyandiamide Market Overview:

Dicyandiamide Market Size is valued at $1.17 Billion by 2030, and is anticipated to grow at a CAGR of 6.6% during the forecast period 2024 -2030. Dicyandiamide is experiencing increased demand as a curing agent in epoxy resins, driven by growth in the electronics, automotive, and construction sectors. Its use enhances product durability and performance, particularly in lightweight vehicle materials, contributing to sustainability efforts and improved fuel efficiency. 
Additionally, Dicyandiamide is increasingly utilized as a curing agent in medical adhesives, enhancing their strength, biocompatibility, and sterilization resistance. This is crucial for producing durable medical devices such as surgical instruments and implants, driving innovation and growth in the Dicyandiamide market due to rising healthcare demands.

Market Snapshot: 

Dicyandiamide Market - Report Coverage:

The “Dicyandiamide Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Dicyandiamide Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

•    The COVID-19 pandemic significantly disrupted the dicyandiamide market, causing supply chain challenges, raw material shortages, and production slowdowns. With lockdowns and restrictions, industries that relied on dicyandiamide, such as pharmaceuticals, agriculture, and chemicals, experienced decreased demand, which delayed projects and reduced overall consumption. However, as economies began to recover, demand was expected to rebound, especially in sectors focusing on healthcare and agriculture, where dicyandiamide played a role in products like pharmaceuticals and fertilizers, driving gradual market recovery and growth

.•    The Russia-Ukraine war disrupted the dicyandiamide market by exacerbating supply chain issues and driving up energy costs, which impacted production and logistics. Key industries that used dicyandiamide, such as agriculture and pharmaceuticals, faced increased prices due to limited raw material availability and higher transportation expenses. Europe, a significant consumer, particularly felt the impact as energy-intensive manufacturing faced constraints. However, the market showed resilience as industries adapted, seeking alternative suppliers and focusing on local production to stabilize supply and reduce dependency.

Key Takeaways:

•    Growing Demand for Purity Levels Greater Than or Equal to 99%

On the basis of purity level, Greater Than or Equal to 99% held the highest segmental market share of around 74.4% in 2023. Dicyandiamide with ≥99% purity is a premium-grade chemical widely used across industries due to its high quality and versatile applications. Its purity is crucial in sectors like pharmaceuticals, where any impurity could compromise the drug’s efficacy and safety. In the pharmaceutical field, Dicyandiamide serves as a vital intermediate in drug synthesis, essential for producing active pharmaceutical ingredients (APIs) free from contaminants. This high-purity chemical plays an expanding role in medical research and drug discovery, aiding in the development of compounds targeting various diseases. Its exceptional purity level also minimizes adverse reactions, ensuring consistent quality during pharmaceutical production. Additionally, regulatory bodies such as the EU's REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) oversee Dicyandiamide use to ensure safety and compliance with environmental standards. Similar regulations are in place in North America and Asia, enforcing strict chemical safety standards.

•    Powdered Type Dominated the Dicyandiamide Market

On the basis of product type, Powdered held the highest segmental market share of around 56.7% in 2023. Dicyandiamide powder is a highly versatile product valued across electronics, automotive, construction, and coatings industries for its stability, long shelf life, and ease of application. Its powdered form simplifies transportation, storage, and mixing, enabling uniform dispersion crucial for consistent performance in applications like resins, adhesives, and coatings. In epoxy resin production, dicyandiamide acts as a curing agent, widely used in automotive, aerospace, and electronics due to its precise mixability and uniform curing, enhancing material durability, heat resistance, and strength. Additionally, in textiles, it supports fire-retardant fabric synthesis, while in pharmaceuticals, it aids drug production, showcasing its extensive applications. Manufacturers appreciate the powder’s consistent quality and particle size, enabling high-precision end-product formulations without requiring major adjustments to existing production lines. This adaptability makes dicyandiamide powder a preferred choice for large-scale industrial processes and consistent, high-quality results across sectors.

•    Pharmaceutical Grade Leads the Dicyandiamide Market

On the basis of grade, Pharmaceutical Grade held the highest segmental market share of around 37% in 2023. Pharmaceutical-grade dicyandiamide (DCD) is highly refined for use in medicinal and pharmaceutical applications, prioritizing purity and safety. This grade is crucial in producing pharmaceutical intermediates, ensuring compliance with regulatory standards for drug formulations. Its high purity and consistency make it ideal for drug production, as impurities are meticulously removed to meet the rigorous standards essential in medical applications. DCD is widely used in the synthesis of active pharmaceutical ingredients (APIs), where purity directly affects drug efficacy and safety. Companies like Merck KGaA and Teva Pharmaceutical Industries incorporate DCD in their API synthesis. The cost for pharmaceutical-grade DCD generally ranges from $2,500 to $3,000 per ton, varying by supplier and region. Regulatory authorities such as the FDA and EMA impose strict purity and safety requirements, and non-compliance can lead to approval delays or rejections, emphasizing the importance of high-quality DCD in pharmaceutical manufacturing.

•    Agricultural Chemicals Dominates the Dicyandiamide Market

On the basis of application, Agricultural Chemicals held the highest segmental market share of around 40% in 2023. Dicyandiamide (DCD) is a nitrogen-rich compound widely used in agricultural chemicals, especially as a nitrification inhibitor, to slow the conversion of ammonium to nitrate in soil. This function enhances nitrogen retention, improves crop yields, and reduces environmental impacts, supporting sustainable farming practices. Farmers increasingly recognize DCD’s role in reducing nitrogen loss through volatilization and leaching, which can contaminate water sources. This recognition is driving its demand across various farming systems. The rising global population is intensifying the demand for food, encouraging farmers to adopt advanced agricultural practices. DCD’s contribution to nitrogen efficiency supports this demand, allowing for higher yields with lower input costs. With established supply chains and growing production capabilities, the market for DCD is poised to meet this rising demand, positioning it as a crucial component in sustainable agriculture and response to modern environmental and food security challenges.

•    Pharmaceutical Industry Lead the Dicyandiamide Market

On the basis of end-user, Pharmaceutical Industry held the highest segmental market share of around 34.7% in 2023. Dicyandiamide (DCD) is a vital compound in pharmaceuticals, primarily as an intermediate in producing drugs like metformin, a key medication for managing type 2 diabetes. Metformin’s demand has surged with the global increase in diabetes, thus boosting DCD's demand in drug manufacturing. As healthcare systems face rising chronic disease prevalence, DCD’s role in synthesizing metformin becomes essential. Pharmaceutical companies are focusing on efficient metformin synthesis processes, enhancing DCD’s market relevance. Furthermore, DCD contributes to drug stability, extending shelf life and efficacy, crucial in an industry prioritizing quality. The demand for high-quality intermediates like DCD grows as regulatory compliance and quality assurance gain importance. Additionally, the global rise in healthcare spending spurs demand for DCD, as nations invest in innovative treatments and comprehensive disease management. Consequently, DCD’s position as a critical pharmaceutical ingredient strengthens alongside the sector’s expansion.

•    Growing Demand for Dicyandiamide Market Due to Increasing Demand for Epoxy Resins

The expanding electronics, automotive, and construction sectors drive demand for Dicyandiamide (DCD) as a curing agent in epoxy resins, enhancing product durability and performance. This trend fuels growth in the DCD market as industries increasingly adopt high-performance materials. Demand for epoxy resins, especially in adhesives, powder coatings, and composites, is a significant market driver. Notably, DCD is used in the wet winding of hydrogen gas cylinders for hydrogen vehicles, optimizing mechanical properties and reducing production waste, supporting sustainable practices. The automotive industry's expansion further drives DCD demand, as it enhances the performance of lightweight materials that boost fuel efficiency and lower emissions. With rising popularity of electric and hydrogen vehicles, DCD supports sustainable transportation. In October 2024, AlzChem developed a new epoxy resin system for hydrogen storage applications, while in April 2023, Hexcel launched its HexPly Nature Range, bio-based resins for the automotive sector, boosting performance and reducing environmental impact.

•    Negative Impact on the Dicyandiamide Market Due to High Costs

The high cost of Dicyandiamide (DCD)-based products presents a considerable barrier in cost-sensitive industries like construction, automotive, and electronics, which prioritize budget-friendly solutions. DCD offers benefits such as curing efficiency, durability, and enhanced thermal stability; however, its elevated cost often deters adoption. Many businesses in these sectors opt for cheaper alternatives, like anhydrides and amines, priced at $4 to $7 per kilogram compared to DCD’s $8 to $12 per kilogram, provided by companies like Nippon Chemical and RTP Company. This price disparity is especially problematic in emerging economies, where cost remains a major concern, limiting DCD’s market penetration. Large-scale projects in construction and automotive are particularly affected, as any increase in material costs can significantly impact budgets. Despite DCD's advantages in epoxy resin systems, the preference for affordable alternatives with acceptable performance restricts its growth potential in price-sensitive applications.
 
Key Market Players: 

Product launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Dicyandiamide Market. The top 10 companies in this industry are listed below:
1.    AlzChem Group AG
2.    Ningxia Taikang Pharmaceutical Co., Ltd.
3.    Nippon Carbide Industries Co., Inc.
4.    Ningxia Sunnyfield Chemical Co., Ltd.
5.    Avantor Inc. by VWR International, LLC
6.    Ningxia Jiafeng Chemicals Co., Ltd
7.    Spectrum Chemical Mfg. Corp.
8.    Beilite Chemical Co., Ltd.
9.    Ningxia Yinglite Chemicals Co Ltd
10.    Shizuishan Pengsheng Chemical Co.

Scope of the Report: