Vinyl Chloride Monomer Market Forecast to Reach a Value of 28.0 Billion Dollars by 2034
The Vinyl Chloride Monomer (VCM) market is poised for growth, with key players enhancing their production technology to minimize environmental impact and develop low-carbon PVC solutions. Companies such as BASF and AGC Chemicals are investing in sustainable VCM production, reducing emissions, and improving energy efficiency.
The European market shows steady consumption of PVC in the construction and automotive industries, though growth is moderated by stringent chemical regulations. In contrast, the Middle East & Africa and Latin America play smaller roles in the VCM market, with gradual growth in construction.
The North American market, which held a 47.9% share in 2024 and generated a market value of USD 7.7 billion, is a significant player. Companies like INEOS Group and Evonik Industries are modernizing their VCM facilities and exploring new PVC applications in the medical and water infrastructure sectors.
The Building and Construction Sector drives demand for VCM due to its use in construction materials. Increasing urbanization, infrastructure development, and strict energy efficiency regulations that mandate better insulation are pushing demand for PVC-based materials. The polyols and polyurethane market, which parallels PVC use in insulation and construction, is forecast to grow at a 4.6% CAGR to USD 72 billion by 2034.
The Asia-Pacific region exhibits strong growth potential, fueled by rapid urbanization and industrial expansion in emerging economies. Environmental regulations and standards fostering sustainable construction materials are also influencing the sector, encouraging the use of polymers like PVC for efficient, long-lasting building components.
While specific numeric projections for VCM alone from 2025 to 2034 are not available, the projected moderate growth in the PVC resin market, and stronger growth in the calcium carbide market, an essential precursor for acetylene used in VCM production, indicate steady growth. The Vinyl Chloride Monomer (VCM) market's Compound Annual Growth Rate (CAGR) is expected to be 5.7% from 2025 to 2034.
The Global Vinyl Chloride Monomer (VCM) Market is projected to reach USD 28.0 billion by 2034. PVC, the primary raw material for polyvinyl chloride (PVC) in the Vinyl Chloride Monomer (VCM) market, accounts for a significant 79.7% usage rate. The Oxychlorination process for VCM production is prized for its efficiency and cost-effectiveness, leading the VCM market with a 57.4% share in 2024.
Formosa Plastics Group is expanding its VCM production capacity in Asia and North America to meet growing PVC demand. Evonik Industries is focusing on energy-efficient processes to reduce carbon footprints in VCM manufacturing and investing in advanced VCM purification technologies to improve product quality and safety, and working on circular economy models for PVC recycling.
In conclusion, the VCM market growth is indirectly supported by the projected moderate growth in the PVC resin and stronger growth in the calcium carbide markets. The building and construction sector is a crucial growth driver due to rising urbanization, infrastructure needs, and increasing adoption of polymer-based materials for insulation and construction. Regulatory factors promoting cleaner production methods and sustainable building standards also shape this demand.
The finance sector plays a significant role in supporting the growth of the Vinyl Chloride Monomer (VCM) market, as companies invest in sustainable VCM production and explore new applications for PVC, such as in the medical and water infrastructure sectors. Notably, companies like INEOS Group and Evonik Industries are securing funds for modernizing their VCM facilities and researching circular economy models for PVC recycling. The industry, in turn, contributes to the finance sector by presenting new investment opportunities as the VCM market is projected to reach USD 28.0 billion by 2034.
