Polycarbonate Market Overview
The Polycarbonate market size is
estimated to reach US$13.3 billion by 2027, after growing at a CAGR of 6.1%
during the forecast period 2022-2027. Polycarbonates are a type of transparent
amorphous polymer and thermoplastic polymers that is easy to produce and can be
molded or thermoformed. Polycarbonate includes engineering plastics, bisphenol and carbonyl chloride. Polycarbonate is used in a wide range of products
requiring strong impact resistance, high-temperature resistance and optical
transparency. The increasing use of polycarbonates in automotive applications
is projected to boost the market during the forecast period. The superior
physical and chemical qualities of polycarbonate sheets are a key factor
driving the market's rising demand from end-use industries. The
covid-19 pandemic majorly impacted the polycarbonate market due to restricted
production, supply chain disruption, logistics restrictions and a fall in
demand. However, with robust growth and flourishing applications across major
industries such as automotive, electrical & electronics and others, the polycarbonate
size is anticipated to grow rapidly during the forecast period.
Polycarbonate Report Coverage
The “Polycarbonate Report –
Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis
of the following segments in the polycarbonate industry.
- Asia-Pacific dominates the Polycarbonate market size and the increase in demand from end-user sectors, such as automotive, building& construction and others, is the main factor driving the region's growth.
- Regulations encouraging the use of plastics and reducing vehicle weight have led to a huge increase in demand from automotive manufacturers for the sector, which is promoting the market expansion of polycarbonate.
- Furthermore, the increased production and commercialization of bio-based Polycarbonates has resulted in market expansion.
- However, fluctuation in raw material prices such as crude oil could hamper the Polycarbonate market size.
Polycarbonate Market Segment Analysis – by Type
The Sheets held a significant
share in the Polycarbonate market share in 2021 and is projected to grow at a
CAGR of 5.9% during the forecast period 2022-2027, owing to the increasing demand from various end-use industries. Due to its exceptional flexibility,
polycarbonate sheet is becoming more and more used in a variety of industries,
including building construction, electrical & electronics, automotive and
aerospace. Polycarbonate sheet is extensively used for
panel roofing due to its high optical clarity, flammability resistance and heat
resistance. As a result, rising demand for residential construction is driving
up demand for polycarbonate sheets. According to the "India Brand Equity Foundation (IBEF)," 1.12
crore dwellings have been sanctioned in India under the Pradhan Mantri Aawas
Yojana (Urban), boosting demand for sheets. Thus, rising demand for transparent
sheets and corrugated multiwall sheets from the construction, transportation
and automotive industries would propel the polycarbonate industry forward.
Polycarbonate Market Segment Analysis – by End-use Industry
Electrical & Electronics held
a significant share in the Polycarbonate market share in 2021 and is projected to grow at a CAGR of 6.4% during the forecast period 2022-2027.
Polycarbonates are thermoplastic polymers which is widely utilized in the
electrical and electronics industries to manufacture a wide range of
corresponding equipment. Switching relays, sensor parts, LCD sections,
connectors, cell phones and computers are some of the most frequent parts due
to their lightweight and great impact strength. Hollow polycarbonates are
excellent thermal insulators, making them a popular choice for wire insulation
in the electrical and electronics industries. According to the Japan Electronics
and Information Technology Industries Association, computer and information
terminal manufacturing in Japan was worth 1,041,122 million yen in 2017 which
was increased to 1,251,283 million yen in 2019. With the increasing electrical &
electronics production, the demand for polycarbonate will also likely increase,
as a result of which the polycarbonate market will be flourished over the
Polycarbonate Market Segment Analysis – by Geography
The Asia-Pacific held a significant share in the Polycarbonate market share in 2021 up to 45%. The flourishing growth of polycarbonate is influenced by its major applications across major industries, along with growing development in electronics production and developed the base for polycarbonate in APAC. According to the People’s Republic of China, in 2021, the electronics industry grew by 15.7 percent, an increase of 8 percentage points year over year. According to the India Brand Equity Foundation, by 2025, India's electronics manufacturing industry is expected to be worth US$520 billion, Electronics consumption will increase to US$400 billion by 2025, up from US$33 billion in FY20. By 2025, India is predicted to be the world's fifth-largest consumer electronics and appliances market. With the increasing electrical & electronics production, the demand for polycarbonate will also likely increase, as a result of which the polycarbonate market share will be flourished over the forecast period.
Polycarbonate Market Drivers
Bolstering Growth of the Building & Construction:
widely used in the building & construction industry. Architectural designers prefer polycarbonate as building materials over other
alternatives because they save construction time, lower overall construction
costs and allow for the execution of creative structural ideas. The
building and construction sector is flourishing due to increasing investment
and urbanization, the development of architectural sites and residential
housing plans. For instance, according to the U.S Census Bureau, the seasonally
adjusted annual rate of construction in the United States increased from
US$1,553,547 in April 2021 to US$1,744,801 in April 2022. According to Oxford
Economics, the global construction output in 2020 was US$10.7 trillion 2020 and
is expected to grow by 42% or US$4.5 trillion between 2020 and 2030 to reach
US$15.2 trillion. With the rise in building and
construction projects across the globe, the demand for polycarbonate is
anticipated to rise for various applications in film, sheets and others,
which is projected to boost the market growth in the building and construction
industry during the forecast period.
Growing Automotive Production:
extensively employed in the automobile industry due to its remarkable physical
and chemical qualities as it mixes with bisphenol a and carbonyl chloride. The automotive sector is rapidly growing due
to factors such as the high demand for passenger vehicles among the middle
class, urbanization and flourishing growth in fuel-efficient vehicle
technologies. For illustration, according to the report from India Energy
Storage Alliance, the EV market in India is expected to increase at a CAGR of
36% until 2026. Furthermore, the National Automobile Dealers Association (NADA)
anticipates that the new light-vehicle sales in 2022 will show an increase of
3.4% compared to 2020. According to the International Organization of Motor
Vehicle Manufacturers (OICA), the global production of passenger cars rose from
55834456 units in 2020 to 57054295 units in 2021. With the increase in
automotive vehicle production and growth prospects, the demand for
polycarbonate is rising for various products such as films, sheets and others.
Thus, with flourishing demand in automotive, polycarbonate is driving and
Polycarbonate Market Challenge
Fluctuating Raw Material Prices:
in raw materials used to make polycarbonate are a significant concern for the
global polycarbonate market. One of the primary raw materials used in the
production of polycarbonate is crude oil. In recent years, unpredictable crude
oil prices have influenced polycarbonate prices and the ongoing conflict
between Russia and Ukraine has exacerbated the situation. Polycarbonate sheet
suppliers are affected by price-sensitive clients and import threats. These
variables present a significant challenge to polycarbonate sheet makers.
According to the BP Statistical Review of World Energy 2021 report, crude oil
prices have fluctuated in recent years. For instance, the Brent crude oil price
decreased from US$52.39/bbl in 2015 to US$43.73/bbl in 2016, then increased
from US$54.19/bbl in 2017 to US$71.31/bbl in 2018 and then decreased to
US$41.84/bbl in 2020. Moreover, bisphenol and carbonyl chloride is harmful
to the environment. This results in a considerable increase in prices, which drives
up manufacturing costs and reduces manufacturers' profit margins, thereby
limiting the polycarbonate market growth.
Polycarbonate Industry Outlook
Technology launches, acquisitions
and R&D activities are key strategies adopted by players in the Polycarbonate
market. The top 10 companies in the Polycarbonate market are:
- SABIC Innovative Plastics
- Teijin Limited
- Chi Mei Corporation
- Idemitsu Kosan Co. Ltd.
- Mitsubishi Engineering-Plastics Corporation
- Trinseo (Styron)
- Centroplast Engineering Plastics GmbH
- Bayer MaterialScience AG
- Royal DSM
- Asahi Kasei Chemical Corporation
- In August 2021, Sabic launched certified circular polycarbonate, touting it as an industry first based on enhanced recycling. When compared to incumbent polycarbonate, the company claims a possible reduction of up to 23% in greenhouse gas footprint.
- In July 2021, SABIC introduced ISCC-certified polycarbonate film and sheets made from sustainable feedstock.
- In January 2020, Covestro introduced three new medical-grade polycarbonates that suit demanding low-friction requirements: Makrolon® M204 LF, Makrolon® M402 LF and Makrolon® M404 LF.
Report Code: CMR 1117
Report Code: CMR 54860
Report Code: CMR 72970
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