Polycarbonate Market Size, Share & Trends Analysis Report By Type Sheets & Films (Plates, Blends, Fibers), By End-User (Construction, Packaging, Automotive, Medical Devices, Electrical & Electronics), By Grade (General Purpose Grade, High Performance Grade, Optical Grade, Flame Retardant Grade, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global Polycarbonate market, valued at USD 23.6 billion in 2023, is forecasted to reach USD 38.5 billion in 2032, with an average annual growth rate (CAGR) of 5.4% during the forecast period (2024-2032). 

Polycarbonates are a group of thermoplastic polymers that contain carbonate groups in their chemical structures. They are widely used for sturdy material and optically transparent grades across several business verticals. The naturally transparent amorphous thermoplastics are used for the manufacturing of impact-resistant 'glass-like' surfaces. Increased demand for thin-section flexibility and toughness, spike temperature resistance, medical devices, electric vehicles, and the advancement of bio-based polymers are all contributing factors to the growth of the polycarbonate market. To make automotive components, polycarbonate resins are thoroughly blended with other polymers like ABS and polyester. The ability to process PC resins more easily through foam molding, injection molding, extrusion, and vacuum forming has given end-users more options for the resin's application. Future demand is likely to increase for specialized application fields like industrial machinery and safety equipment.

Market Dynamics

What are the primary factors driving the Polycarbonate Market?

Rising Demand for Healthcare Devices

Polycarbonate properties are extensively used for the manufacturing of IV connectors, cardiac surgery, renal dialysis, and surgical instruments. They are also used in blood oxygenators, blood reservoirs, and blood filters in cardiac procedures. In the U.S., cardiovascular disease (CVD) is one of the leading causes of death, responsible for about 697,000 deaths in 2020. The annual cost of cardiovascular disease in the U.S. was anticipated to be nearly USD 229 billion during 2017–2018. In the last few years, the demand for medical devices has been witnessing a significant surge on account of the growing number of CVD patients, driving the polycarbonate market. As per the Observatory of Economic Complexity, medical instruments are among the 21st most traded products across the globe. The top exporters of medical instruments are the U.S., Germany, China, and Japan. The U.S. accounted for a net value of USD 19.3 billion, followed by Germany with USD 13.9 billion.

Usage of Polycarbonate in Food and Beverages Packaging

Polycarbonate plastic is suitable for baby bottles and other beverage containers. International research and government agencies continue to investigate the possibility of Bisphenol-A (BPA) migration from polycarbonate products to beverages and foods. The findings suggest that human interaction with BPA from polycarbonate products poses no known health risks. Several regulatory organizations around the world, such as the U.S. Food and Drug Administration, the U.K. Food Standards Agency, and the Science Committee on Food of the European Union, recognized Polycarbonate's safety for food contact applications.

What are the main factors that will slow down the Polycarbonate Market?

Increasing Replacement of Polycarbonate Roofs with Gleaming Glass

The majority of polycarbonate conservatory roofs can be replaced with gleaming glass ones. Modern glass conservatory roofs are a much better investment with the obvious aesthetic benefit. In some cases, they can increase property value by up to 10%. They are also quieter due to glass' superior acoustic insulation qualities, which make it much more durable, scratch-resistant, and lasting than Polycarbonate. Increasing the application of gleaming glass for roofs can slow down the polycarbonate market.

What are the future opportunities for Polycarbonate Market?

Expanding Automotive Industry

The automobile industry is the backbone of Europe's industrial sector, heavily contributing to the region's GDP. As per the data provided by the European Commission, the automobile industry employs around 13.9 million people, and the turnover generated by the industry contributes around 7% to the total GDP. Polycarbonate plays a significant role in the automobile sector as it is extensively used for making car bumpers, headlight lenses, interiors, doors, car tire cords, airbags, seat belts, filters, and hoses, among others. Polycarbonate is used for manufacturing components that are able to withstand mechanical and dynamic loads and lighter-weight components. Lightweight components help in improving fuel economy, insulation, and sound absorption, further driving the market growth.

Regional Analysis

North America Dominates the Global Market

The global polycarbonate market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America region is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. The packaging industry in North America has been gaining traction in the last few years. As per the Flexible Packaging Association, the U.S. packaging industry was valued at USD 34.8 billion in 2020 and contributed about 20% to the total packaging industry value of USD 184.65 billion. The food & beverage segment accounted for around 59% of the total packaging industry. The food & beverage industry extensively employs polycarbonate material packaging for its various advantages such as good clarity, high scratch resistance, and high-temperature range, among others, further driving the regional market growth.

Europe is expected to witness dynamic growth in the polycarbonate market during the forecast period. The automotive industry plays a crucial role in Europe's polycarbonate market as it generates about 13 million jobs across the region. As per the European Automobile Manufacturers Association, commercial vehicle production increased by 4.9% in 2021, along with increasing exports that had a value of USD 125 billion, up by 3.6% in 2021. The automotive industry uses Polycarbonate to manufacture components with high resistance to temperatures, good abrasion resistance, high strength, and chemical resistance. Food & beverage is another leading industry in Europe, with an annual turnover of USD 1.1 trillion in 2021. As per FoodDrinkEurope, the total external trade accounted for about USD 145 billion, of which Europe held about 18%. The food & beverage industries use Polycarbonate for packaging as it is transparent, semi-rigid, and light-weighted.

Asia-Pacific is expected to witness significant growth in the polycarbonate market during the forecast period. The abundance of raw materials and the accessibility of inexpensive labor are propelling the growth, which is luring manufacturers from a variety of industries to locate their manufacturing plants in the Asia Pacific region in order to reap increased benefits. By 2024, it is anticipated that China's polycarbonate market for construction will be worth USD 1.93 billion. The country's central bank's non-aggressive monetary policy is likely to ease up liquidity, favoring new investments in housing projects.

The LAMEA region is expected to witness moderate growth in the global polycarbonate market during the forecast period. Because of the emergence of new technologies, the Middle East, Africa, and South America region's economies are particularly undergoing a radical transformation. This is due to the development of sustainability policies, as well as shifting consumer ownership preferences. The automotive industry has experienced a similar revolution brought on by new business models, greater automation, and digitization as almost every other sector. As a result of these factors, the automotive industry has seen the emergence of a few disruptive technology-driven trends, including connectivity, electrification, diverse mobility, and autonomous driving. 

Segmental Analysis

The global polycarbonate market is segmented by type and end-user.

Based on type, the global polycarbonate market is bifurcated into sheets & films, plates, blends, and fibers.

The sheets & films segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. In many applications, polycarbonate sheets have taken the place of glass and acrylic. These sheets are available in a variety of grades and thicknesses. They are much stronger, lighter, and less likely to break and crack. It is used for a variety of residential construction purposes because it is so inexpensive. 

The plate segment is expected to witness a higher CAGR. Since Polycarbonate is one of the most durable plastics, it can be used for glazing greenhouses, protecting tables in bars and hair salons, porch windows, and greenhouse roofs, as well as serving as separating plates or screens. These polycarbonate panels are the perfect addition to use in locations where it is necessary to separate and protect customers and employees of a public or private establishment. Due to its light weight, it is used in many areas where glass is intended to be replaced, including helmet visors, face protection visors, protection walls, and many other applications. The ease of cleaning and maintenance of polycarbonate plates is a benefit that will increase the demand for polycarbonates throughout the forecast period. 

Based on the end-user, the global polycarbonate market is bifurcated into electrical & electronics, construction, packaging, automotive, and medical devices.

The electrical & electronics segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. When polycarbonate resins are combined with other polymers like PBT and ABS, the final compound's performance at high temperatures and resistance to impacts is improved. Automotive OEMs further process these substances to use them in the production of lighting systems, headlamp lenses, exterior parts, and interior components.

The packaging segment is expected to grow at a significant rate. Polycarbonate is extensively used for manufacturing bottled water globally, and the total bottled water volume grew from 15 billion gallons in 2020 to 15.3 billion gallons in 2021, an increase of 2%. As per the data provided by the Committee for Economic Development, the food sector accounts for about 5% of the global GDP, which is around USD 1.4 trillion, whereas the beverage industry alone generates USD 16

Impact of covid-19

The COVID-19 pandemic has resulted in delays in regulatory approvals for life sciences products due to delay in regulatory communication and meetings. The work from home imposed by the governments has compelled the players to perform teleconferences, which are expected to delay timelines shared with the clients. The client protocol prohibits the transfer of work to the employees due to data security concerns, further hampering the market growth.

Recent Developments

• October 2022, Trinseo, one of the biggest producers of polystyrene in Europe, has announced the commercialization of its STYRON X-TECHTM 4660 Polystyrene Resins for Extruded Polystyrene.
• February 2022, RTP Company has expanded into Poland with a new manufacturing facility to support custom compounded thermoplastics in Europe.