Global Polycarbonate Market: by Application; Country Overview; Value Chain Analysis; Production Process; Trade Analysis; Cost Structure; Market Dynamics: Drivers & Constraints, Industry Events, Innovations & Trends, SWOT Analysis, Porter’s Five Forces; Industry Best Practices: Sourcing Strategy, Procurement Model, Contract Structure, Negotiation Levers, Pricing Model; Key Supplier Analysis, 2024-2032

Polycarbonate Market by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Polycarbonate market reached a value of about USD 15.61 billion in 2021. The industry is projected to grow at a CAGR of around 3.4% in the forecast period of 2022-2027 to reach a value of about USD 18.82 billion by 2027.

The global Polycarbonate market gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The industry is being propelled by the Polycarbonate material's application in the automotive sector. In the industry report, the key demand indicator is the highest category spender by region—Asia Pacific.

Industry Definition and Segmentation

Polycarbonate is polyester composed of phenyl, carbonate, and two methyl groups generated through an interfacial reaction between carbonyl chloride and bisphenol-A. They are solid and resistant materials used in engineering, and specific grades are optically transparent. They're simple to work with, mould, and thermoform.

Polycarbonates have a wide range of uses because of their characteristics. Shatter-resistant windows, lightweight eyeglass lenses, packaging, interior cladding, outdoor glazing, roofing designs, automotive, electrical, and electronics, and personal security applications all employ this transparent plastic. It comes in a variety of grades, depending on the application.

The Polycarbonate industry report comprises segments by application (Electrical and Electronics, Automotive, Construction, Optical Media, Packaging, Consumer, Medical) and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

Asia Pacific Region is Driving the Growth of the Industry

The Asia Pacific region holds the largest share in the market due to China's industrial and construction activities. The electronics industry in the area provided a significant thrust to the market. Furthermore, the industry is expanding due to the lack of alternatives of the material available in the region.

The industry is being driven by the growing trend of material employed in the automotive sector. The product is used to create various products in the electrical and electronics industries. Regulatory rules are pushing automakers to adopt plastics to decrease vehicle weight and boost fuel economy, which is helping to drive growth. Other factors such as the widespread use of polycarbonate in the agriculture industry for UV-resistant roof panels and sheets in agricultural outbuildings and extensive research and development (R & R&D) activities to develop high-performance plastics are expected to fuel the market even further. In the future, product improvements for medical applications and the growing commercialisation of the bio-polycarbonate industry are projected to create opportunities for manufacturers.

However, the material's adverse effects on the environment are likely to act as a market restraint.

Best Procurement Practices

The global Polycarbonate market by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Polycarbonate regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Bisphenol A (BPA) and phosgene COCl2 are used to make the principal polycarbonate substance. The initial step in the synthesis is the treatment of bisphenol A with sodium hydroxide, which deprotonates the hydroxyl groups of bisphenol A. A chloroformate is formed when diphenoxide combines with phosgene, which is then attacked by another phenoxide. Approximately one billion kg of polycarbonate is generated each year in this manner.

Bisphenol A has been replaced with a variety of different diols. The comonomer cyclohexane is employed to prevent the BPA-derived product from crystallising. Tetrabromobisphenol A is a fire-resistant compound. As a substitute for BPA, tetramethylcyclobutanediol has been developed. Transesterification of BPA and diphenyl carbonate is an alternate route to polycarbonates.

Technological Breakthroughs, Further Augmenting the Procurement of Polycarbonate

The market is propelled by the wide range of industries the product finds application in, including Its use as an alternative for PVC in medical devices. Its slight weight and excellent impact strength are also employed in switching relays, sensor components, LCD sections, connections, mobile phones, and computers. Because hollow polycarbonates are excellent thermal insulators, they are commonly used in wire insulation applications in the electrical and electronics industries.

In the manufacture of optical discs such as CDs, DVDs, and Blu-ray Discs, polycarbonate sheet is the most used material. Various technical breakthroughs, such as the development of augmented reality (AR) and virtual reality (VR)-based products, sensors, and drones made of polycarbonates, also contribute to the industry's growth.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Polycarbonate Market

• Covestro AG
• SABIC
• TRINSEO
• Teijin Limited
• Mitsubishi Engineering-Plastics Corporation

Market Landscape

The worldwide polycarbonate market is highly concentrated, with just a few significant companies remaining. The top five firms controlled almost 70% of the worldwide market in terms of manufacturing capacity.

Key Initiatives by Companies

• Nuisance Investment, a wholly-owned subsidiary of SABIC that acts as an independent investment business, had a ceremony in Riyadh in January 2021 to open its new office building and debut a new corporate identity. This expansion was intended to increase the company's local presence to meet market demand.
• Covestro introduced Makrolon Rx3440 polycarbonate in February 2018 for medical-grade polycarbonate applications. This introduction aided the corporation is expanding its polycarbonate sheet product line.