May 23, 2024

The Global Polycarbonate Market Growth is driven by Growing Usage in Automotive Industry

Polycarbonates are extensively used in automotive panes, LED optical lenses, contact lenses, medical instruments and consumer electronics. The thermal and impact-resistant properties of polycarbonate make it an ideal material for automotive exterior and interior parts. Polycarbonates are a safer alternative to traditional glass due to their lightweight, shatter-resistant and impact-absorbent properties that offer enhanced occupant protection and reduced vehicular damage during accidents.

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.

The growing demand for lightweight and fuel-efficient vehicles has propelled the usage of polycarbonate in various automotive parts manufacturing. Polycarbonate offers approximately 20% to 30% weight savings compared to traditional materials like glass and metals. With stringent regulations regarding carbon emissions, OEMs are focused on reducing the overall weight of vehicles.

The polycarbonate market is expanding globally due to the increasing penetration of automotive and construction industries across developing regions of Asia Pacific, Latin America, and Middle East & Africa. Countries like China, India, Brazil, South Africa, and GCC countries are expected to drive high growth in demand for polycarbonate due to rapid industrialization and infrastructure development activities.

Market drivers
A key driver for the Polycarbonate Market Size is the stringent regulations regarding fuel efficiency and emission norms imposed by governing bodies worldwide. Polycarbonate is increasingly replacing conventional glass and metals in automotive applications due to its weight reduction property which enhances the fuel economy of vehicles. The growing adoption of lightweight materials by OEMs is expected to continue driving the demand for polycarbonate over the forecast period.

Impact of geopolitical situation on market growth

The polycarbonate market is facing some challenges due to the current geopolitical instability across various regions. The ongoing Russia-Ukraine conflict and rising tensions between major economies have disrupted global supply chains and trade routes. This has negatively impacted the availability of key polycarbonate raw materials like BPA and increased their prices in the international markets. The transportation of finished polycarbonate products has also become costlier and uncertain. The market players need to diversify their sourcing strategies and identify new supplier networks in different geographic locations to minimize risks. Some companies may consider shifting their manufacturing facilities to more politically stable nations. However, such strategic changes require huge capital investments and planning. The governments should focus on restoring trade relations and resolving conflicts to provide a favorable environment for the long term growth of the polycarbonate industry.

Geographical regions of concentrated market value

The polycarbonate market in terms of value is highly concentrated in few developed economies across North America and Europe. United States and Germany represent the largest national markets for polycarbonates currently. This is due to strong industrial base, high demand from end-use sectors like automotive, optical media, electrical and electronics in these countries. The United States accounted for over 30% of the global polycarbonate demand in 2020 led by presence of leading automakers and electronics manufacturers. Germany has well establishedPC production units of major companies and sees significant usage in automotive and electrical components industry. Other major value markets include France, United Kingdom, Italy and Canada due to advanced manufacturing sectors. Asia Pacific is also emerging as an important consumption center driven by China, Japan and South Korea.

Fastest Growing Region For The Polycarbonate Market

The Asia Pacific region is expected to witness the fastest growth in the polycarbonate market during the forecast period. This can be attributed to expanding middle-class population, rapid industrialization and infrastructure development activities in the developing economies of China and India. These countries offer huge business opportunities due to low labor costs and favorable government policies to attract foreign investments. Additionally, growing electronics and automotive industries in the ASEAN countries including Thailand, Indonesia, Malaysia and Vietnam are driving the demand for high-performance, lightweight plastics like polycarbonates. Japan has advanced technology base and remains a key player. The per capita PC consumption is also gradually increasing in the Asia Pacific region compared to global average, indicating further market potential.

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