Polycarbonate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is segmented by Product Type (Sheets and Films, Blends, and Other Product Types), End-user Application (Automotive and Transportation, Electrical and Electronics, Construction, Medical, and Other End-user Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East & Africa). The report offers market size and forecasts for polycarbonate in volume (kilo tons) and value (USD Million) for all the above segments.

Market Snapshot

Polycarbonate Market Size
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: <3 %
Polycarbonate Market Major Players

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Market Overview

The polycarbonate market was valued at more than 4,100 kiltons in 2021, and the market is projected to register a CAGR of over 2% in terms of revenue during the forecast period (2022-2027).

The outbreak of the COVID-19 pandemic has restricted the operating activities of several industries, including the end-user industries of the market studied. Construction activities across the world have been slowed down due to the shortage of labor, and in some cases, activities have been suspended owing to the lockdown regulations. The disruption of the global supply chain, due to the lockdown, has been a key factor behind the decline in construction activities and, in turn, the polycarbonate market. With disruption of the global supply chain of raw materials production of polyurethane slowing down and the COVID-19 pandemic, the market for polycarbonate is expected to be affected, at least for short- to medium-term periods.

  • Over the short term, the factors driving the growth of the market studied are the growing demand from the medical industry and the increasing popularity of polycarbonate against conventional materials, such as glass and acrylic. With the COVID-19 pandemic, manufacturers of medical devices globally are focusing more on technologies like polycarbonate. The alarming shortages of medical supplies for doctors and nurses fighting the COVID-19 pandemic have augmented the need for more medical-grade polycarbonate.
  • On the flip side, apart from the impact of the COVID-19 pandemic on various end-user industries' growth and supply chain disruptions, the declining automotive industry is also likely to hinder the market's growth.
  • Product innovations for applications in the medical sector and the increasing commercialization of the bio-polycarbonate market are likely to act as opportunities in the future.
  • Asia-Pacific dominated the market across the globe due to the increasing demand from construction activities.

Scope of the Report

Polycarbonate is commonly formed with the reaction of bisphenol A (produced through the condensation of phenol with acetone under acidic conditions) with carbonyl chloride in an interfacial process. Polycarbonates are strong, stiff, hard, tough, transparent engineering thermoplastics that can maintain rigidity up to 140°C and toughness down to -20°C or special grades even lower. The polycarbonate market is segmented by Product Type, End-user Application, and Geography. By Product Type, the market is segmented into Sheets and Films, Blends, and Other Product Types. By End-user Application, the market is segmented into Automotive and Transportation, Electrical and Electronics, Construction, Medical, and Other End-user Applications. The report also covers the market size and forecasts for the polycarbonate market in 20 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilo tons) and value (USD Million).

Product Type
Sheets and Films
Blends
Other Product Types (Tubes, Profiles, etc.)
End-user Application
Automotive and Transportation
Electrical and Electronics
Construction
Medical
Other End-user Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Russia
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa

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Key Market Trends

The Electrical and Electronics Segment to Dominate the Market

  • In the electrical and electronics industry, polycarbonates are used to make numerous corresponding equipment. Some of the most common parts include the switching relays, sensor parts, LCD sections, connectors, cell phones, and computers, owing to their lightweight and high impact strength. Hollow polycarbonates are perfect thermal insulators, making them a preferred choice in most wire insulation applications in the electrical and electronics industry.
  • According to JEITA ( Japan Electronics and Information Technology Industries Association), the total global production by the electronics and IT industries is expected to rise 11% year on year in 2021 to reach USD 3,360.2 billion. The spread of telework and stay-at-home demand drove up electronic equipment. Solution services grew as more investment in digitalization promoted more sophisticated data use.It is excepted to increease demand for polycarbonates used in electronics segment.
  • The Asia-Pacific electronic industry grew rapidly in the recent past owing to the high demand from countries like India and China. China is a strong, favorable market for electronics producers, owing to the country’s low labor cost and flexible policies.
  • Global production by Japanese electronics and IT companies has continued to decrease since the $479.8 billion recorded in 2011, with the $343.6 billion figure for 2021 representing only around 70% of the 2011 level. However, strong export performance of electronic components and devices and the growth in telecommunications infrastructure equipment may drive electrical and electronics segment in Japan.
  • In North America, especially in the United States, the electronics industry is expected to grow at a moderate rate. An increase in demand for new technological products is expected to help the market expansion in the future.
  • However, the COVID-19 outbreak has impacted the electrical and electronics industry by disrupting the electronics components manufacturing and supply parts unit. However, recovery in manufacturing activities is expected in the latter half of the forecast period, which is likely to restore the growth trajectory, benefiting the market studied.
Polycarbonate Market Trends

China to Dominate the Asia-Pacific Market

  • In China, the economic and industrial manufacturing activities have been affected significantly by the onset of COVID-19. On the bright side, as of March 2020, China lifted the lockdown in the country, and it has resumed various industrial operations. 
  • The construction industry is one of the largest industries in the country. The sector has witnessed significant growth even in the middle of an economic crisis. This is due to the country’s belief that infrastructure investment can boost economic growth during the slowdown. Similar investments are expected in the construction industry to push the economic growth back to recovery post-COVID-19. 
  • The construction activity in the country resumed from April, after the implementation of lockdown when almost all industries were shut down in January.
  • According to the National Development and Reform Commission, China, the growing demand for housing is likely to drive the residential construction in the country, both in the public and private sectors. The new hotel projects in the country increased by about 15% in 2020; the increase in construction of tall buildings and hotels is driving the market studied.
  • China is the largest consumer of electric vehicles, and in 2021 China's electric vehicles had increased more than 50 % after the modest 2020.Thus increased electric vehilce sales in china will drive Polycarbonate market in China.
  • China is one of the largest manufacturers of aircraft and one of the largest markets for domestic air passengers. According to the International Air Transport Association, IATA, the domestic air passengers in China in 2020 were 600 million, which is expected to cross 720 million by 2021. The high demand for aviation has led to the government's decision to introduce an airport building program, which includes huge investments in terminals and runways. 
  • China’s medical device market has grown tremendously over the last five years. While many foreign companies have grown their business in China.The medical device market was estimated to cross over USD 100 billion by the end of 2021. The number of private hospitals in the country is relatively small, and the healthcare product procurement is majorly driven by large public hospitals, which has led to the increasing usage of medical devices in public hospitals, in turn stimulating the demand for polycarbonate in the sector.
  • Hence, from the above-mentioned factors, the demand for polycarbonate in China is likely to remain affected in the short run; however, the market for polycarbonate is expected to recover in 2022.
Polycarbonate Market Outlook

Competitive Landscape

The global polycarbonate market is consolidated with top players. The top five players accounted for an estimated share of over 70% of the global market in terms of production capacities. The major companies include (not in any particular order) Covestro AG, SABIC, Mitsubishi Engineering-Plastics Corporation, LOTTE Chemical CORPORATION, and TEIJIN LIMITED.

Major Players

  1. Covestro AG

  2. SABIC

  3. TEIJIN LIMITED

  4. Mitsubishi Engineering-Plastics Corporation

  5. LOTTE Chemical CORPORATION

Covestro AG, SABIC, TEIJIN LIMITED, Mitsubishi Engineering-Plastics Corporation, LOTTE Chemical CORPORATION

Recent Developments

  • In January 2020, Covestro AG signed a deal with Serafin Group for the sale of its European polycarbonate sheets business. It includes manufacturing units in Belgium and Italy, central management operations, and sales support in Europe.
  • In July 2019, Lotte Chemical and GS Energy agreed to invest around KRW 800 billion in a large-sized petrochemical business. The deal was to ensure a stable supply of polycarbonate materials and for the growth of the C4 oil business.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Demand From the Electric vehicle Industry

      2. 4.1.2 Growing Demand from the Medical Industry

    2. 4.2 Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Manufacturing Process for Polycarbonate

    6. 4.6 Price Trends

    7. 4.7 Technological Snapshot

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Sheets and Films

      2. 5.1.2 Blends

      3. 5.1.3 Other Product Types (Tubes, Profiles, etc.)

    2. 5.2 End-user Application

      1. 5.2.1 Automotive and Transportation

      2. 5.2.2 Electrical and Electronics

      3. 5.2.3 Construction

      4. 5.2.4 Medical

      5. 5.2.5 Other End-user Applications

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Russia

        6. 5.3.3.6 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis**

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Chi Mei Corporation

      2. 6.4.2 Covestro AG

      3. 6.4.3 EXOLON GROUP GmbH

      4. 6.4.4 Formosa Chemicals & Fibre Corp.

      5. 6.4.5 LG Chem

      6. 6.4.6 LOTTE Chemical CORPORATION

      7. 6.4.7 Mitsubishi Engineering Plastics Corporation

      8. 6.4.8 Ningbo Zhetie Daphoon Chemical Co. Ltd

      9. 6.4.9 SABIC

      10. 6.4.10 SAMYANG CORPORATION

      11. 6.4.11 TEIJIN LIMITED

      12. 6.4.12 Trinseo SA

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Product Innovations for Application in the Medical Sector

    2. 7.2 Increasing Commercialization of the Bio-polycarbonate Market

**Subject to Availability
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Frequently Asked Questions

The Polycarbonate Market market is studied from 2017 - 2027.

The Polycarbonate Market is growing at a CAGR of <3% over the next 5 years.

The Polycarbonate Market is valued at 8693 Million USD in 2017.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Covestro AG, SABIC, TEIJIN LIMITED, Mitsubishi Engineering-Plastics Corporation, LOTTE Chemical CORPORATION are the major companies operating in Polycarbonate Market.

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