April 14, 2024

Polycarbonate Market to Grow at Highest Pace owing to Rising Applications in Automotive Industry

Polycarbonate’s properties such as optical clarity, strength, heat resistance and dimensional stability account for its use in various applications from automotive components to eyeglass lenses and water bottles. Properties such as lightweight, unbreakability and heat resistance makes polycarbonate an ideal material for producing windows, automotive head/tail lights, instrument panel screens and other components in cars. The rising demand for polycarbonate from automotive industry is driven by stringent fuel efficiency and emission norms which require lightweight materials for vehicles.

The Global Polycarbonate Market is estimated to be valued at US$ 186.71 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the polycarbonate market are Acadian Seaplants Limited, Biostadt India Limited, Omex Agrifluids Ltd., Italpollina Spa, Koppert B.V., Bio Atlantis Ltd., Platform Specialty Products Corporation, BASF SE, Novozymes A/S, Agrinos A/S. Growing demand for polycarbonate from automotive and electronics industries is one of the major factors driving the growth of global polycarbonate market. The rising penetration of smartphones and tablets coupled with increasing demand for electric vehicles is anticipated to boost the demand for polycarbonate over the forecast period. Technological advancements in polycarbonate manufacturing such as development of bio-based polycarbonate materials is expected to provide new growth opportunities in the coming years.

Market Trends

The rising demand for bio-based and recycled polycarbonate materials owing to stringent environmental regulations related to plastic waste is a key trend in the market. Major players are investing in R&D to develop more sustainable solutions through use of renewables in the production process. Another major trend is the shift towards high-performance engineering plastics like polycarbonate which offer more functionality at lower weight compared to traditional materials. Properties such as heat resistance, durability and dimensional stability enable wider use of polycarbonate in more demanding applications.

Market Opportunities

Growing demand for electric vehicles worldwide presents a major opportunity for polycarbonate market. Polycarbonate finds widespread application in EVs for components like battery enclosure, connectors and power distribution units due to its strength, impact resistance and insulation properties. Secondly, development of anti-bacterial and self-cleaning polycarbonate surfaces through nanotechnology can open new opportunities in the healthcare and consumer durables sectors.

Impact of COVID-19 on Polycarbonate Market Growth

The outbreak of COVID-19 has severely impacted the growth of the Polycarbonate Market Size globally. During the initial lockdown phases in 2020, the production and supply chain activities came to halt. This negatively affected the demand and supply of polycarbonate materials across various end-use industries like automotive, electrical & electronics, medical devices and construction. The travel restrictions and lockdowns resulted in declining automotive sales and disruption in electronics manufacturing units. This led to weaker demand for engineering plastics like polycarbonate from these key application sectors.

However, with easing of lockdowns and resumption of operations, the market has started recovering gradually. The demand from medical devices witnessed growth during the pandemic owing to higher production of medical equipment and other related devices. The use of polycarbonate in face shields, testing kits and other protective coverings aided the market prospects. Furthermore, the construction activity is picking up pace in 2021, which will boost polycarbonate consumption in the building & construction applications going forward.

The key players are focusing on capacity expansion, new product launches and partnership strategies to cater growing demand from emerging sectors. The increasing R&D investments for development of bio-based and recyclable polycarbonate grades will help gain traction from eco-friendly applications. Rising adoption of polycarbonate as a substitute for glass and other materials owing to its durable and lightweight properties is estimated to drive the market post-COVID.

Geographical Regions with Highest Polycarbonate Market Concentration

The Asia Pacific region holds the largest share of the global polycarbonate market in terms of value. This is majorly attributed to strong presence of polycarbonate processing companies and end-use industries in China, India, Japan and South Korea. The availability of raw materials, cheap labor and growth of automotive and electronics manufacturing bases boost the market growth in the region. The countries like China and India are projected to remain the major consumers of polycarbonate during the forecast period.

North America is the second largest and one of the fastest growing regional markets for polycarbonate. The demand is concentrated in United States owing to rapid expansion of construction, medical devices and automotive manufacturing industries. The stringent environmental regulations regarding use of sustainable polymers have accelerated polycarbonate consumption for various applications across the region.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it