Polycarbonate Market

Rising demand from building & construction industry to propel the market growth

The building and construction industry makes extensive use of polycarbonate. In comparison to other building materials, architects choose polycarbonate because it speeds up construction, lowers overall construction costs, and enables the implementation of inventive structural ideas. The development of architectural sites and residential housing plans, rising investment and urbanization, and urbanization overall have all contributed to the booming building and construction industry. For instance, the U.S. Census Bureau reports that from April 2021 to April 2022, the seasonally adjusted annual rate of construction in the United States increased from US$1,553,547 to US$1,744,801.

The demand is expected to increase due to the increase in building and construction projects around the world, which is expected to spur market expansion in the building and construction sector over the course of the forecast period. Thus, this factor is driving the market CAGR.

Furthermore, due to its exceptional physical and chemical properties when combined with bisphenol A and carbonyl chloride, polycarbonate is widely used in the automotive sector. Due to reasons including the middle class's high demand for passenger cars, urbanization, and the booming development of fuel-efficient vehicle technology, the automobile industry is expanding quickly. For instance, the report from the India Energy Storage Alliance estimates that the country's EV industry will grow at a CAGR of 36% through the year 2026.

In addition, the National Automobile Dealers Association (NADA) predicts that sales of new light vehicles would rise by 3.4% in 2022 compared to 2020. The demand is growing for a variety of products including films, sheets, and other items due to the rise in automotive vehicle manufacturing and growth possibilities. Polycarbonate is therefore advancing and expanding quickly because to the booming demand in the automobile industry.

However, environmental concerns are expected to increase demand for bio-based polycarbonate, creating profitable opportunities in the near future. For instance, Covestro introduced its first polycarbonate film made partially from biomaterials in January 2020. The new film material has a lower carbon footprint than traditional polycarbonate made from petroleum since more than half of its carbon comes from starch, a readily accessible plant feedstock. Thus, it is anticipated that this aspect will accelerate the polycarbonate market revenue.

X2F announced today, 2022, that it has entered into a special partnership with Covestro, one of the top producers of premium polymer materials worldwide, to use X2F's transformative controlled viscosity molding technology to develop an automotive heat-sink that is thermally conductive and incorporates electronics within the mold. The new Makrolon® polycarbonate (PC) heat-sink mold weighs about half as much as an aluminum part.

It is a component of an in-mold assembly that can be used to incorporate LED modules straight into the headlamp housing, saving weight and effort by doing away with the need to install brackets, screws, adhesives, and thermal pastes.

For biomass-derived bisphenol A (BPA) polycarbonate (PC) resin products made in Japan, Teijin Limited announced in 2023 that it has obtained an ISCC PLUS sustainable-product certification from the International Sustainability and Carbon Certification (ISCC) system. For its PC resin products, Teijin is the first Japanese manufacturer to receive ISCC PLUS accreditation. The recently certified biomass PC resin products can be used in commercial applications like electrical components and car headlamps since they have the same physical properties as resins manufactured with traditional petroleum-derived BPA.

Makrolon 3638 polycarbonate, a Covestro AG brand name that was brought into the market in February 2023, is used in healthcare and life scientific fields like drug delivery devices, wellness, and wearable devices, and also single-use containers for biopharmaceutical manufacture.

Covestro AG announced in August 2022 that it was erecting its first line specifically for mechanical recycling (MCR) of polycarbonates towards sustainable solutions in Shanghai, China, mainly targeting electrical-electronics, automotive, and consumer goods industries.

The Global Polycarbonate Market Industry is poised for substantial growth, with projections indicating a market value of 22.1 USD Billion in 2024 and an anticipated increase to 40.3 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 5.63% from 2025 to 2035. Various factors contribute to this upward trend, including rising demand from key sectors such as automotive, electronics, and construction. As industries continue to recognize the advantages of polycarbonate, the market is likely to expand, driven by innovations in manufacturing processes and increasing applications across diverse fields.

The Global Polycarbonate Market Industry is experiencing a surge in demand from the automotive sector, driven by the need for lightweight and durable materials. Polycarbonate is increasingly utilized in vehicle components such as headlamps, windows, and interior parts, contributing to enhanced fuel efficiency and safety. In 2024, the market is projected to reach 22.1 USD Billion, reflecting the automotive industry's shift towards advanced materials. As manufacturers seek to reduce vehicle weight while maintaining structural integrity, polycarbonate's properties make it an attractive choice. This trend is expected to continue, with the market potentially expanding as automotive production increases globally.

The Global Polycarbonate Market Industry benefits from advancements in manufacturing technologies that enhance production efficiency and product quality. Innovations such as extrusion and injection molding techniques allow for the creation of complex shapes and designs, catering to diverse applications across various industries. These technological improvements not only reduce production costs but also enable manufacturers to meet the growing demand for customized polycarbonate products. As a result, the market is likely to experience sustained growth, with an anticipated compound annual growth rate of 5.63% from 2025 to 2035. This evolution in manufacturing processes is pivotal in shaping the future of the polycarbonate market.

The Global Polycarbonate Market Industry is significantly influenced by the electronics and electrical applications sector. Polycarbonate's excellent electrical insulation properties and impact resistance make it ideal for producing components such as housings, connectors, and circuit boards. As the demand for consumer electronics rises, manufacturers are increasingly turning to polycarbonate to meet performance and safety standards. This trend is likely to drive market growth, with projections indicating a compound annual growth rate of 5.63% from 2025 to 2035. The ongoing innovation in electronic devices further supports the expansion of polycarbonate usage in this sector, enhancing the overall market landscape.

The Global Polycarbonate Market Industry is witnessing a notable increase in the use of polycarbonate in construction and building materials. Its lightweight nature, combined with high impact resistance and thermal insulation properties, makes it a preferred choice for roofing, glazing, and wall systems. As urbanization accelerates globally, the demand for sustainable and energy-efficient building materials is rising. Polycarbonate's ability to provide natural light while offering protection against UV rays positions it favorably in the construction sector. This trend is expected to bolster market growth, contributing to the projected increase in market value to 40.3 USD Billion by 2035.

The Global Polycarbonate Market Industry is increasingly influenced by environmental regulations and sustainability initiatives. Governments worldwide are implementing stricter regulations aimed at reducing plastic waste and promoting the use of recyclable materials. Polycarbonate, being a durable and recyclable material, aligns well with these initiatives, making it a favorable choice for manufacturers seeking to comply with environmental standards. This growing emphasis on sustainability is likely to drive demand for polycarbonate products across various sectors, including automotive, construction, and consumer goods. As industries adapt to these regulations, the market is expected to expand, reflecting a shift towards more sustainable material choices.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America polycarbonate market accounted for USD 8.2 billion in 2021 and is expected to exhibit a 43.50% CAGR during the study period as a result of a rise in the usage of polycarbonate sheets as a replacement for glass due to their perfect transparency and durability, as well as the phenomenal growth of the automobile sector.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  POLYCARBONATE MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Asia Pacific polycarbonate market is expected to grow at a significant CAGR from 2022 to 2030 due to the plentiful supply of raw materials and affordable labour, which is luring businesses from various industries to locate their production facilities in the Asia Pacific area in order to reap more benefits, the high share can be attributed to these factors. Further, the China polycarbonate market held the largest market share, and the India polycarbonate market was the fastest-growing market in the region.

Europe polycarbonate market accounts for the second-fastest growing market share due to the government's supportive FDI (foreign direct investment) policy in the manufacturing sector. Additionally, during the forecast period, government initiatives for investments in energy and residential and commercial development projects are anticipated to fuel demand for polycarbonate. Moreover, UK polycarbonate market held the largest market share, and the Germany polycarbonate market was the fastest-growing market in this region.

Major market players are spending a lot on R&D to increase their product lines, which will help the polycarbonate industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

One of the primary business strategies manufacturers adopt in the polycarbonate industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, the polycarbonate industry has provided medicine with some of the most significant benefits. The polycarbonate market major player such as Covestro AG (Germany), SABIC (Saudi Arabia), Teijin Limited (Japan), Mitsubishi Engineering Plastics Corp. (Japan), LG Chem (South Korea), Trinseo (US), Formosa Chemicals & Fibre Corp (Taiwan), LOTTE Chemical CORPORATION (South Korea), Chi Mei Corporation (Taiwan), Idemitsu Kosan Co.

Ltd. (Japan), Bayer Material Science AG, Centroplast Engineering Plastics GmbH, Royal DSM and Asahi Kasei Chemical Corporation.

A variety of basic materials based on polyurethane and polycarbonate are produced by the German business Covestro AG. Products range from thermoplastic polyurethane and polycarbonate pellets through isocyanates and polyols for cellular foams, as well as polyurethane-based additives used in the creation of coatings and adhesives. In January 2020, with Serafin Group, Covestro AG has agreed to sell its European polycarbonate sheets business. It includes central management operations, sales assistance in Europe, and production facilities in Belgium and Italy.

Also, chemical manufacturer Lotte Chemical Corporation is based in Seoul, South Korea. According to revenue, Lotte Chemical is one of the biggest chemical firms in the world. Synthetic resins and other chemical products are produced by Lotte Chemical and utilised to make a variety of industrial materials. In January 2019, around KRW 800 billion will be invested by Lotte Chemical and GS Energy in a sizable petrochemical company. The agreement was made to assure a consistent supply of its components and to advance the C4 oil industry.