Dicyandiamide Market – Snapshot
Dicyandiamide (DCD), which is also known as 2-Cyanoguanidine, is a alkaline, hydrophilic white crystalline compound. Dicyandiamide is primarily used as raw material for active pharmaceutical ingredients production for making anti-diabetic drugs. It is also used as a curing agent in epoxy resins and laminates for circuit boards and adhesives. It is also used in production of organic chemicals, which include, water treatment chemicals, slow and controlled nitrogen release fertilizers, dye fixing agents, and pharmaceuticals. Dicyandiamide are of different grades based on purity. The grades include pharmaceutical grade, electronic grade, industrial grade, and others. Currently, pharmaceutical grade dicyandiamide is mainly used compared to other types. The dicyandiamide market is expanding at a significant rate. Asia Pacific is anticipated to dominate the market during the forecast period, followed by North America and Europe.
Rise in Demand for Metformin from the Rising Diabetic Population across the Globe
Diabetes is one of the most common and rapidly increasing diseases across the globe. Diabetes is often referred to by doctors as diabetes mellitus. More than 400 million people across the globe are currently suffering from diabetes mellitus. Approximately 552 million people are anticipated to suffer from diabetes by 2030. Type 2 diabetes is the most common type and accounts for more than 90% of all cases of diabetes. Rise in diabetic population across the globe is ascribed to the rise in urbanization, changing population, increasing prevalence of obesity, and lack of physical activity.
Dicyandiamide is primarily used in the production of active pharmaceutical ingredients (APIs), which are used in production of metformin, a preferred drug for the treatment of type 2 diabetes mellitus. Metformin is also used in the treatment of excess weight and obesity. Metformin improves glucose tolerance in diabetic patients, lowering basal and postprandial plasma glucose.
Asia Pacific is the key metformin producing and exporting region across the globe. Hence, rising demand for dicyandiamide in this region is expected to drive the dicyandiamide market during the next few years.
Availability of Cost Effective and Better Performing Substitutes
Dicyandiamide is used as an intermediate in the production of fertilizers, flame retardants, coatings, adhesives, etc. Melamine can also be produced using raw materials such as dicyandiamide, hydrogen cyanide, and urea. Melamine, in combination with formaldehyde and other agents, is used to produce melamine resins, which are used in high pressure decorative laminates. However, over the years, manufacturing processes for the production of melamine have been commercialized through the usage of dicyandiamide and urea.
Currently, manufacturers of melamine prefer urea as a raw material over dicyandiamide, as the urea process entails lower manufacturing costs. Furthermore, urea is more readily and easily available compared to dicyandiamide across the globe. Production of dicyandiamide is concentrated primarily in Asia Pacific and some countries in Europe such as Germany. Therefore, manufacturers have started replacing their melamine manufacturing process from dicyandiamide to urea since the last few years. Currently, all the melamine production facilities across the globe are based on urea. Thus, availability of cost-effective and better performing substitutes such as urea is anticipated to hamper the dicyandiamide market in the next few years.
Development of Non-toxic Ultra-micronized Dicyandiamide with Improved Performance
Ultra-micronized dicyandiamide grade is primarily used for epoxy powder coatings, film adhesives, electronic potting, etc. The ultra-fine particles have the storage stability of more than six months, which helps prevent settling and promotes uniform curing. Epoxy systems cured with ultra-micronized dicyandiamide offer superior adhesion, making it a preferred option for adhesive formulations. Furthermore, ultra-micronized dicyandiamide is compatible with all epoxy resins such as bisphenol A, novolac, etc. along with a varied range of pigments and fillers. Moreover, ultra-micronized dicyandiamide is non-toxic. These characteristics give the material an edge over its counterparts. Therefore, the development of ultra-micronized dicyandiamide, especially for epoxy coatings and manufacturing of adhesives and sealants, is expected to provide lucrative opportunities for the dicyandiamide market during the next few years.
Pharmaceutical Grade and Pharmaceutical Application Anticipated to be the Dominant Segments during the Forecast Period
In terms of grade, pharmaceutical has been a dominant segment for the past few years, and the trend is likely to continue during the forecast period. Dicyandiamide is used in the production of metformin, which is used in the treatment of type 2 diabetes. Rising diabetic patient population across the globe has created a need for the development of anti-diabetic drugs, which, in turn, is likely to drive demand for pharmaceutical grade dicyandiamide during the forecast period. In terms of grade, the pharmaceutical grade segment is anticipated to expand at a significant CAGR during the forecast period.
Asia Pacific Held a Major Share in 2017
Regions such as Asia Pacific are experiencing major development in the pharmaceutical sector, especially in countries such as China and India. Thus, the market for dicyandiamide is anticipated to expand at a steady pace in Asia Pacific. Asia Pacific accounted for a major portion of the dicyandiamide market in 2017, followed by North America and Europe. The region is anticipated to continue its dominance during the forecast period.
Consolidated Market for Dicyandiamide with Integrated Operations Primarily in China and Highly Import-based Market
The global dicyandiamide market is a highly organized market with a majority of the production taking place in China. AlzChem AG is the only company that has a manufacturing facility outside Asia. End-user industries import dicyandiamide based on their requirements. Major players in the dicyandiamide market are Ningxia Darong Industry Group Co., Ltd., Ningxia Yinglite Chemical Co., Ltd., Ningxia Blue-White-Black Activated Carbon Co. Ltd., AlzChemGroup AG, Ningxia Sunnyfield Chemical Co. Ltd., Shizuishan Pengsheng Chemical Co., Ltd., Ningxia Jiafeng Chemicals Ltd., and many others located in China.
Dicyandiamide Market – Overview
Dicyandiamide is extremely reactive, odorless, white powder that is used as an intermediate for production of active pharmaceutical ingredients and a diverse range of guanidine salts. Pharmaceutical grade is a prominently used dicyandiamide grade. The other types of dicyandiamide grades include electronic grade, industrial grade, and others. Other grades primarily consist of ultra-micronized grade and other standard grades. The pharmaceutical grade segment dominated the dicyandiamide market in 2017 and is anticipated to continue its dominance during the forecast period. Asia Pacific dominated the dicyandiamide market in terms of volume and revenue, and is likely to remain the dominant region during the period of forecast.
Increasing use of dicyandiamide for pharmaceutical and epoxy laminates application is one of the factors for the anticipated increase in demand for dicyandiamide. Also, the rising diabetic population across the globe has created a need for anti-diabetic drugs, which is anticipated to drive demand for dicyandiamide during the forecast period.
This report analyzes and forecasts the market for dicyandiamide at the global and regional level. The market has been forecast based on volume (in tons) and revenue (US$ Mn) from 2018 to 2026, considering 2017 as the base year. The study includes drivers and restraints of the global dicyandiamide market. It also covers impact of these drivers and restraints on demand for dicyandiamide during the forecast period. The report also highlights opportunities in the dicyandiamide market at the global and regional level.
The report includes detailed value chain analysis, which provides a comprehensive view of the global dicyandiamide market. Porter’s Five Forces model for the dicyandiamide market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein grades and application are benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the global dicyandiamide market by segmenting it in terms of grade and application. In terms of grade, the dicyandiamide market can be classified into electronic, industrial, pharmaceutical, and others. In terms of application, the market can be segmented into pharmaceuticals, epoxy laminates, slow-release fertilizers, flame retardants, dye fixing, water treatment, and others. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for dicyandiamide in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
The report provides the actual market size of dicyandiamide for 2017 and estimated market size for 2018 with forecast for the next eight years. The global dicyandiamide market has been provided in terms volume and revenue. Market volume has been defined in tons and revenue in US$ Mn. Market numbers have been estimated based on grade and application of dicyandiamide. Market volume and size have been provided in terms of global, regional, and country level markets.
The report comprises profiles of major companies operating in the global dicyandiamide market. Key players in the Dicyandiamide market are AlzChem Group AG, Ningxia Darong Industry Group Co., Ltd., Ningxia Jiafeng Chemicals Co., Ltd., Ningxia Yinglite Chemical Co., Ltd., Ningxia Blue-White-Black Activated Carbon Co. Ltd., Ningxia Sunnyfield Chemical Co. Ltd., and Shizuishan Pengsheng Chemical Co., Ltd. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.
The global dicyandiamide market has been segmented as follows:
Dicyandiamide Market: by grade type
- Electronic Grade
- Industrial Grade
- Pharmaceutical Grade
Dicyandiamide Market: by application
- Epoxy Laminates
- Slow-release Fertilizers
- Flame Retardants
- Dye Fixing
- Water Treatment
- Others (gun powder, air bags, paper sizing, etc.)
Dicyandiamide Market: Regional Analysis
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- South Africa
- Rest of Middle East & Africa
- China is the largest manufacturing and exporting country for dicyandiamide
- Only one manufacturer has a dicyandiamide manufacturing facility outside Asia
- Pharmaceutical is the major application segment for dicyandiamide
- Pharmaceutical and industrial are the key types of grades for dicyandiamide during the forecast period
- Asia Pacific is anticipated to dominate the market during the forecast period
- The market in India is expected to expand at a rapid pace during the forecast period