Polycarbonate Market Overview
The global polycarbonate market was valued at USD 16.9 billion in 2022 and is poised to reach USD 31 billion by 2032 growing at a CAGR 6.3% from 2023-2032. The Asia-Pacific region dominates global polycarbonate production and consumption. This surge in demand within Asia Pacific can be attributed to its robust automotive sector and its dominant position in the electronics and electrical manufacturing industry, driving polycarbonate consumption at a rate exceeding 6.9% within the region.
Introduction to Polycarbonate Resins
Polycarbonate resins are a class of polymers characterized by the presence of a carbonate group in their main chain. These chains can consist of either aliphatic or aromatic groups. Commercially, aromatic polycarbonates have found broader applications compared to their aliphatic counterparts.
Polycarbonate (PC) resins are known for their amorphous nature and transparent, clear appearance, which grants them excellent light transmission properties akin to glass. Moreover, they boast exceptional impact strength, durability, and are significantly lighter than glass. As a result, PC resins have been steadily replacing glass in numerous traditional applications, including windows and bottles.
Global Polycarbonate Demand Supply 2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Polycarbonate Demand Supply Overview
The global Polycarbonate market is forecast to cross USD 31 Billion by 2032, registering a CAGR of 6.3% between 2023 and 2032. This market study delves into the polycarbonate market, focusing on major countries and their demand across various applications. Polycarbonate serves as a versatile raw material with applications spanning diverse industries. More than 45% of polycarbonate is utilized in its natural form, while the remaining portion undergoes compounding or blending processes.
In 2022, the
global polycarbonate production capacity exceeded 7110 kilo tons, with a production of over 5000 kilo tons. Despite a 70% operating rate in 2022, primarily due to lower rates in China, the long-term forecast anticipates the addition of approximately 600 kilo tons/year of polycarbonate capacity, primarily in the Asia-Pacific region. Between 2016 and 2020, the global polycarbonate market exhibited modest growth, driven by robust demand from end-user industries in the Asia-Pacific region, including automotive, electrical & electronics, and construction. However, the COVID-19 pandemic led to a decline in polycarbonate demand in 2020. Fortunately, the industry rebounded in 2021, thanks to a strong recovery in sectors such as automotive and construction.
Global Polycarbonate Demand, By Application (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Polycarbonate Demand: Application Overview
When it comes to applications, Electrical & Electronics emerges as the largest consumer, accounting for over 35% of the total global polycarbonate market. Polycarbonate is extensively used in Consumer & Home appliances, Smartphones, Lighting, and other electrical & electronics products. In 2022, the construction application represented roughly 25% of the global polycarbonate market, equivalent to around 1250 kilo tons. Polycarbonate demand in construction has surged due to its durability, transparency, and impact resistance. The long-term forecast projects a 5% CAGR, taking the demand to 2000 kilo tons by 2032.
Powering the Automotive Industry
The automotive sector ranks as the third-largest consumer of polycarbonate resins, comprising over 16% of the total demand. Polycarbonate is favored in various automotive applications, including headlamps, instrument panels, interior trim, and automotive glazing. PC and ABS blends are the most common, followed by glass fiber-filled polycarbonates. The consumption of polycarbonate in the automotive sector is projected to grow at an annual average of 6.2%. Window applications are expected to witness faster growth than non-window applications. Polycarbonate s lightweight, strength, and impact resistance make it ideal for automotive windows, reducing the risk of shattering or cracking.
Polycarbonate in Electric Vehicles (EVs)
Polycarbonate's versatility extends to the electric vehicle (EV) sector, where its attributes shine. It can be used in battery casings, body panels, and battery cooling systems due to its high strength, heat resistance, and lightweight properties. As the EV market continues to expand, the demand for polycarbonate is set to soar. Electric vehicles have gained prominence in the automotive industry, with key players like Toyota, Tesla, BMW, and others investing in hybrid and electric models. Advancements in battery technology and cost reduction efforts are driving this transformation.
Global Polycarbonate Demand, By Region (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Polycarbonate Demand and Future Market Trends
The global polycarbonate market is marked by moderate growth rates, fueled by increasing demand across different industries and regions, particularly in Asia-Pacific. Mature economies like North America and Western Europe have historically witnessed below-average growth rates, ceding market share to Asia-Pacific. In terms of regional demand, Asia Pacific leads the global polycarbonate market, driven by strong demand from industries such as automotive, electronics, and construction.
North America follows at 14%, with Western Europe behind. The dynamics in these regions have a significant impact on the global polycarbonate market. China stands as a dominant force, accounting for approximately 60% of the global polycarbonate demand and over 70% in Asia-Pacific. The country s total installed capacity is set to nearly double from 2320 kilo tons in 2021 to around 4450 kilo tons by 2032, reducing its import dependency. In terms of volume, China s polycarbonate demand is expected to register a CAGR of 4.4% between 2023-2032, driven by sectors like Electrical & Electronics (over 40%), Construction, and Automotive. Smaller applications, including medical devices, packaging, and optical media, contribute 3% to 7%.
The USA, the Middle East, and China each have their advantages, whether it s low-cost feedstock or a move toward reducing import reliance. China, especially, is expected to witness significant capacity additions. Polycarbonate s expanding range of applications, including medical, electrical & electronics, and automotive, positions it for continued growth. Collaborations and developments, such as those by
Covestro, open doors to new opportunities and drive the polycarbonate market s evolution.
Recent Developments
The European Polycarbonate resin supply is currently experiencing deterioration due to uncompetitive cost positions. In October 2023, SABIC announced the definitive closure of its second polycarbonate line at the Cartagena site in Spain. This decision was prompted by the unsustainability of operations in light of changing global market prospects, with the line having been inoperative for a year.
In December 2022, global materials supplier Trinseo disclosed its intentions to close one of its two polycarbonate lines in Stade, Germany, aiming to lower costs and minimizing exposure to the cyclical merchant polycarbonate market. Recently, the company also announced that it is mulling the potential closure of its remaining line at Stade as well during the year, citing softening demand, and plummeting prices due to the onslaught of imports in the EMEA region from oversupplied Asian markets. This move will effectively mark Trinseo’s exit from polycarbonate resin production. Consequently, any polycarbonate volumes required for its downstream businesses will be entirely procured from external sources.
Companies Covered:
- Covestro
- SABIC
- Mitsubishi Gas Chemicals
- Lotte Chemicals
- Teijin
- LG Chemicals
- Samyang
- Chi Mei Corporation
- Thai Polycarbonates
- Khuzestan Petrochemical Company
- Kazanorgsintez
- Trinseo
- Policarbonatos do Brasil S.A.
- Other Manufacturers
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