Polycarbonate Market

Market Overview

Polycarbonate Market will Grow at a CAGR of 6.9% During Forecast Period

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.

Market Dynamics

Rising Demand for Medical Devices to Drive the Polycarbonate Market

The 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 840,768 deaths (635,260 cardiac) in 2016. The annual cost of cardiovascular disease in the U.S. was anticipated to be nearly USD 351.2 billion during 2014–2015, whereas USD 213.8 billion was direct expenditure consisting of 46% for inpatient care.

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 21^st 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.

Automotive Sector to be the Leading Contributor to the Market Growth

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 hose, 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.

Segmental Analysis

Packaging Industry Segment to Grow at the Fastest Rate in the Polycarbonate Market

The packaging industry segment is projected to grow at the fastest rate during the forecast period. Increasing per capita income and rising globalization has driven the demand for fast-moving consumer goods across the globe. Polycarbonate is extensively used for manufacturing bottled water globally, and the total bottled water volume grew from 12.9 billion gallons in 2016 to 13.7 billion gallons in 2017, an increase of 7%.

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 164 billion. This highlights the immense potential of food and beverages using high-quality polycarbonate packaging to preserve perishable foods and improve their shelf life. 

Rising Spending Power to Drive the Residential Segment Growth

The residential segment is predicted to emerge as a remunerative segment for the polycarbonate market during the forecast period. Cascading interest in household appliances such as refrigerators, air conditioners, cleaners, dryers, television, and computers drive the polycarbonate market. As per the data given by OEC, the global trade of refrigerators was around USD 43 billion in 2017 due to shifting preference towards consuming fresh and cooked food. As per the data provided by the World Bank, per capita income increased from USD 15,802 in 2015 to USD 17,900 in 2018.

Polycarbonate is used for making components of home appliances for its high strength and stiffness, low gas permeability, and a broad range of operating temperatures. As per the statistics of Global Construction Perspectives and Oxford Economics, the global construction sector is projected to grow by 85% to reach about USD 15.5 trillion worldwide by 2030. China and India are likely to be at the forefront of growth in the construction sector.  

Regional Analysis

Rapid Growth in Packaging Industry to Drive North America’s Polycarbonate Market

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 31 billion in 2018 and contributed about 19% to the total packaging industry value of USD 170 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: Home to the Largest Automotive Sector

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, total investments in Europe’s automotive sector was about USD 60 billion dollars in 2017, while the total vehicles produced in 2018 was about 17.2 million units, representing around 18% of the global figure. The automotive industry uses polycarbonate to manufacture components with high resistance to temperatures, good abrasion resistance, high strength, and chemical resistance.

The food & beverage is another leading industry in Europe, with an annual turnover of USD 1.23 trillion in 2017. As per FoodDrinkEurope, the total external trade accounted for about USD 121 billion, of which Europe held about 18%. The food & beverage industries use polycarbonate for packaging as it is transparent, semi-rigid, and light-weighted.

Recent Developments

By Type

• Sheets & Films
• Fibres
• Blends

By End-User

• Automotive
• Electrical & electronics
• Construction
• Packaging
• Medical devices

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• Germany
• France
• Italy
• The U.K.
• Spain
• Russia
• Poland
• The Rest of Europe

Asia-Pacific

• China
• India
• Japan
• South Korea
• Australia
• Vietnam
• Indonesia
• Malaysia
• Singapore
• The Rest of APAC

Central and South America and the Caribbean

• Brazil
• Argentina
• Colombia
• The Rest of Central and South America and the Caribbean

The Middle East and Africa

• Saudi Arabia
• The UAE
• Iran
• Kuwait
• Tanzania
• South Africa
• The Rest of MEA