Market Trends of Bisphenol A (BPA) Industry
Increasing Demand for Polycarbonate Resins
- Polycarbonate is commonly formed with the reaction of bisphenol A with carbonyl chloride in an interfacial process. Among all other applications, polycarbonate resins application provides the major market demand for bisphenol A (BPA).
- Bisphenol A is a structural component in polycarbonate-based beverage bottles and containers. Polycarbonates are also widely used in building and construction applications. Polycarbonate sheets are used as a substitute for glass in a variety of skylight and window applications. They are also used as opaque cladding panels, barrel vaults, canopies, translucent walls, facades and signage, sports stadium roofs, louvers, and roof domes.
- Among all other applications, polycarbonate resins provide the major market demand for BPA, with more than 70% of the global share.
- Polycarbonates are a high-performing thermoplastic widely used in building and construction applications. Polycarbonate sheets are used as a substitute for glass in a variety of skylight and window applications. They are also used as opaque cladding panels, barrel vaults, canopies, translucent walls, facades and signage, sports stadium roofs, louvers, and roof domes.
- According to Covestro, the demand for polycarbonates grew to 4.5 million tonnes in 2021 from 4.2 million tonnes in 2020.
- Recently, the application of polycarbonate materials highly increased in greenhouses. European countries, such as Germany, the Netherlands, Spain, and France, have larger areas for greenhouse cultivation.
- Polycarbonate with its properties including more durability than glass, greater light diffusion, insulation, more design options, and a variety of colors replaces glass materials in a variety of commercial and industrial uses.
- Some of the major companies in the polycarbonate market include Covestro AG, SABIC, Mitsubishi Engineering-Plastics Corporation, LOTTE Chemical CORPORATION, TEIJIN LIMITED, and others. The companies are investing heavily in mergers, acquisitions, and expansion, which are expected to boost the demand for bisphenol in polycarbonates, for instance,
- In May 2022, Saudi Basic Industries Corporation (SABIC) announced the startup of pre-commissioning activities at a polycarbonate production complex in Tianjin, China, with an annual capacity of 260,000 metric tons per year.
- In March 2022, Covestro AG started two polycarbonate compounding production lines at its Greater Noida plant near New Delhi in India to meet the growing demand for compounded plastics, particularly for the automotive and electrical, and electronics industries.
- Therefore, such factors are expected to affect the demand for bisphenol A in polycarbonate applications over the forecast period.
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Asia-Pacific is Expected to Dominate the Market
- The Asia-Pacific region is the largest producer and consumer of bisphenol-A in various end-user industries. Thus, it is expected to dominate the market.
- China is the largest base for electronics production in the world. Electrical and Electronic products, such as smartphones, TVs, wires, cables, portable computing devices, gaming systems, and other personal electronic devices recorded the highest growth in the consumer electronics segment.
- China's revenue in the consumer electronics segment is projected to be USD 251.40 billion in 2022. The revenue is expected to show an annual growth rate of 2.04%, resulting in a projected market volume of USD 266.06 billion by 2025.
- China is the largest consumer of electric vehicles in 2022 Thus, increased electric vehicle sales in China are estimated to drive the polycarbonate market in China. Thus, increased electric vehicle sales in China are estimated to drive the polycarbonate market in China.
- According to OICA, in 2021 china produced 26082.22 billion vehicles, an increase of 3% compared to the same period last year.
- The demand for polycarbonate in India is likely to increase as the country may witness an investment of around USD 1.3 trillion in housing over the next seven years for the construction of 60 million new homes. In FY21, infrastructure activities accounted for a 13% share of the total FDI inflows of USD 81.72 billion.
- Electronic components and devices accounted for about YEN 7.25 trillion(USD 0.53 trillion) of the total production value of the electronics industry in Japan in 2021.
- Such factors are significantly impacting the market. However, the consumption of BPA in the region is expected to increase in various end-user industries during the forecast period.
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