Polycarbonates are polymers that have a carbonate group in the main chain. The chain can be constituted of the aliphatic or aromatic group. Commercially, aromatic Polycarbonates find wider applications compared to their aliphatic counterparts. PC resins are amorphous in nature and have a transparent and clear appearance, giving them excellent light transmission properties similar to that of glass. Moreover, they have excellent impact strength, more durable, and weigh considerably less than glass. Thus, PC resins have been replacing glass in many conventional glass applications like windows and bottles. This market study describes the global Polycarbonate market, with focus on major countries and their subsequent demand for different applications. Polycarbonate is a versatile raw material used in various industries and for diverse applications. More than 45% of the Polycarbonate is sold and used in it’s in the natural form. The remaining PC is either compounded or blended.

The global Polycarbonate production capacity in 2021 was estimated to be more than 6700 kilo tons, with global demand / production of around 4900 kilo tons. The Polycarbonate operating rate in 2021 was around 70%, largely on account of low operating rates in China. In the long term forecast period, on an average 600 kilo tons/year of Polycarbonate capacity is expected to come online mostly in Asia Pacific. The global Polycarbonate market has grown at an average of 2% from 2016 to 2020 mainly due to strong demand from PC end-user industries like Automotive, Electrical & Electronics, and Construction in the Asia-Pacific region. The global Polycarbonate market was impacted by the COVID-19 Pandemic. The Polycarbonate demand declined in 2020, with an estimated decline of around 3.4% owing to COVID-19 pandemic. The demand bounced back in 2021 on the back of strong recovery in automotive, construction and other end use industries of polycarbonate.

In terms of Polycarbonate demand by applications, Electrical & Electronics is the biggest consumer of Polycarbonate accounting for more than 30% of the total global Polycarbonate market. In electrical & electronics segment, polycarbonate is used in production of Consumer & Home appliances, Smartphones, Lighting and Others electrical & electronics products. In electrical & electronics segment, Consumer & Home appliances dominates the global Polycarbonate electrical & electronics market followed by smartphones, lighting, and other applications. With an increase in demand for laptops, mobile devices and television, Electrical & electronics will remain to be a key sector and it is expected witness strong growth during the forecast period.

In 2021, construction application accounted for around 25% of global polycarbonate market, translating to around 1250 kilo tons. Owing to properties such as durability, transparency and impact resistance, the demand for polycarbonate in construction has witnessed strong growth in the historical period. In the long term forecast, the polycarbonate demand in construction application is projected to register a CAGR of 5% to reach 2000 kilo tons by 2032 from the current demand of 1250 kilo tons. Energy Efficiency, Lightweight, Durability and Design Flexibility are the key driving factors for polycarbonate in construction industry.

Automotive is the third largest end-use sector for Polycarbonate resins accounting for over 16% of the total Polycarbonate demand. It is preferred for a wide variety of automotive applications such as in headlamps, instrument panels and interior trim owing to its low weight, transparency, and impact resistance. It is also used for automotive glazing. PC and ABS blends accounts for the largest type followed by glass fibre filled polycarbonates. The PC/ ABS blend is mostly used for dashboards, door, and panel interiors. Most of the headlight diffuser screen use polycarbonate. PP and ABS compete in injection moulded applications like dashboard and seat handles. More than 50% of the polycarbonate film production is used in automotive applications like clock face, covers, illuminated switches etc.

Overall polycarbonate consumption in the automotive sector is expected to grow at an annual average of 6.2%. The window applications have been estimated to witness faster growth in comparison to non-window applications. Polycarbonate is used for the side and rear windows of automotive because it is lighter in weight and stronger than glass. Polycarbonate is impact-resistant and can withstand the stresses of daily driving, reducing the risk of shattering or cracking. One of the major advantages of polycarbonate is its high impact resistance properties, which makes it an ideal material for use in automotive applications where durability is important. The demand for polycarbonate in automotive application is poised to register a CAGR of 6.2% between 2022-2032 on the back of strong growth of polycarbonate from windows and non-windows application. Growth in Electric and Hybrid Vehicles market is anticipated to drive polycarbonate demand in the forecast period.

Polycarbonate is also a highly versatile material that can be easily molded and shaped into complex parts. This flexibility makes it an attractive choice of material for electric vehicles designers who are looking to create unique and aesthetically pleasing vehicle designs. In Electric Vehicles, Polycarbonate cab be used in battery casings owing to its high strength and resistance to heat. Polycarbonate can also be used as a material for body panels in battery vehicles owing to lighter and more durable properties than traditional metal panels. Polycarbonate offer high thermal conductivity and resistance to heat, that make it a good choice for battery cooling systems in electric vehicles. Safety, Cost-effectiveness and Sustainable are some of the key factors have contributed to the growing popularity of polycarbonate in the automotive industry and are expected to continue driving demand in the forecast period.

Electric vehicles have been a major area of development in the automotive industry since the last decade. EVs and HEV’s have been gaining importance and increasing their market share at a decent pace, with the high cost of batteries being the only key restraining factor. The key companies present in the automotive industry include Toyota, Tesla, BMW, Volkswagen, and Mercedes, Volvo, Ford, Mitsubishi, General Motors, and Renault-Nissan, all of whom have been successful in developing and optimizing their own hybrid and electric models for improved performance and efficiency.

In terms of Polycarbonate demand by region, Asia Pacific dominates the global Polycarbonate Market on the back of strong demand of Polycarbonate from Automotive, Electronics and Construction industry. North America is the second biggest consumer of Polycarbonate at 14% followed by Western Europe.

The global polycarbonate demand is dominated by the polycarbonate sheets production to serve the construction sector. The dynamics in the electrical & electronics, automotive and construction industries have a major impact on the global polycarbonate market. The downturn observed in the automotive industry owing to the COVID-19 pandemic and slowdown in major economies had a severe impact on the Polycarbonate market in 2020.

The global polycarbonate market has shown moderate growth rates largely driven by rising demand from different end-use industries and from countries like in China, India, and other Asia-Pacific countries. Historically, the economically mature regions like North America and Western Europe have witnessed below average growth rates and will continue to lose their demand market share to Asia-Pacific. The USA and the Middle East has the advantage of low-cost feedstock while in China it is the move towards minimizing the import dependency. Historically, USA has seen a growth in the petrochemicals industry due to shale gas reserves.

China accounts for around 60% of the global polycarbonate demand and more than 70% of Asia-Pacific demand. The total installed capacity in China is expected to nearly double from 2320 kilo tons in 2021 to around 4450 kilo tons by 2032 to decrease its import in the long-term forecast. According to Prismane Consulting s Polycarbonate Capacity Database, more than 1500 kilo tons of Polycarbonate capacity additions is expected in China alone. SABIC-SINOPEC has started pre-commissioning activities at their Tianjin Binhai industrial complex to produce polycarbonate. The complex is a equally owned JV between SABIC and Saudi Basic Industries Corporation (SABIC) and China Petroleum and Chemical Corporation (Sinopec) with total polycarbonate production capacity of around 260 kilo tons.  Zhangzhou Chimei Chemical Co Ltd, Lutianhua Group, Wanhua, Zhongsha (Tianjin) Petrochemical and several other Chinese producers are planning to start polycarbonate production with capacity between 100-250 kilo tons in the short term forecast period.

China is the world’s largest market for polycarbonate consumption. The total Polycarbonate demand in the country in was estimated to be around 2370 kilo tons in 2021. China’s polycarbonate demand is further poised to register a CAGR of 5.1% between 2022-2032 to cross 3700 kilo tons by 2032. Electrical & electronics is the biggest application in the country accounting for almost 40% of the total demand followed by Construction sector at 25%. Automotive application is third biggest consumer of Polycarbonate in China accounting for around 11% of the total Polycarbonate market in 2021. All other smaller applications like medical devices, packaging, optical media each of these account for 3% to 7%. 

China is the largest automotive market globally and is expected to increase the production of electric and hybrid vehicles. Volvo and Tesla Mottos recently announced to set up an electric vehicle manufacturing facility in China. India has set a goal to replace all gasoline vehicles by 2030. The Government is looking at providing incentives like lower taxes and interest rate on loans for consumers buying electric vehicles are opposed to that of conventional vehicles. According to the China Association of Automobile Manufacturers, China has sold more than 3.3 million passenger EVs in 2021, consisting of around 2.7 million battery electric vehicles (BEVs) and plug-in hybrid electric vehicles of around 0.6 million. BYD Auto Co., Ltd, Tesla, SAIC Motor, Great Wall Motor, and GAC Group are some of the major EVs manufacturers in China. In 2019, Tesla opened one of its largest Gigafactory in Shanghai China with total production capacity of 700,00 vehicles/year. The company is further planning to increase the production capacity to 2 million in the future.

Widening range of application particularly in medical, electrical & electronics and automotive applications can drive global polycarbonate demand. Various developments have been made by companies like Covestro to cover all applications and discover new ones in collaboration with institutes and start-ups. With the development of newer grades for high-end applications, the opportunities in the polycarbonate market are expected to grow at a faster rate.