Polycarbonate Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Polycarbonate Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

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.

• 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 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.

• 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.

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.

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