Polyphenylene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Polyphenylene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global polyphenylene market is likely to grow with a CAGR of over 5%, during the forecast period.

The market was negatively impacted by COVID-19 in 2020. However, the market has recovered significantly in 2021, owing to rising consumption from various end-user industries such as electrical and electronics, transportation, and others.

Key Highlights

• Over the short term, the factors driving the growth of the studied market include growing usage in the electrical and electronics industry and increasing demand for hybrid electric vehicles.
• On the flip side, the availability of substitute and the high cost associated with polyphenylene over other conventional materials are key factors limiting the growth of the market studied.
• Nevertheless, emerging applications of polyphenylene in 5G circuit board is a key factor expected to act as a lucrative opportunity for the studied market.
• Asia-Pacific is expected to dominate the market, with the largest consumption from China, Japan, South Korea, and India.

Key Market TrendsIncreasing Demand from Automotive and Transportation Segment

• Polyphenylene is processed into its derivatives, like polyphenylene sulfide (PPS), polyphenylene oxide (PPO), and polyphenylene ether (PPE). Polyphenylene derivatives are preferred in electric auto parts that require higher temperature stability.
• In recent years, PPS successfully replaced metal, aromatic nylons, phenolic polymers, and bulk molding compounds in a wide variety of engineered vehicle components.
• Polyphenylene derivatives become the ideal choice for automotive parts that are exposed to high temperatures. These can provide high strength while being light in weight. These are used in vehicle components, like electrical connectors, ignition systems, lighting systems, fuel systems, hybrid vehicle inverter components, and piston
• According to the Organisation Internationaledes Constructeurs d'Automobiles(OICA), in 2021, around 80.15 million vehicles were produced across the globe, witnessing a growth rate of 3% compared to ~77.71 million vehicles in 2020, thereby, enhancing the demand for polyphenylene derivatives, which are employed for various automotive parts.
• In Asia-Pacific, China, and India are the major producers of vehicles. According to OICA, China has the largest automotive production base in the world, with a total vehicle production of 26.08 million units in 2021, registering an increase of 3% compared to 25.23 million units produced last year.
• Further, in Europe, in 2021, France produced 13,51,308 vehicles, which increased by 3%, compared to 13,16,371 vehicles produced in 2020, thereby, increasing the demand for the studied market. Moreover, in 2021, Italy’s automotive production increased by 2% over 2020 and reached 7,95,856 vehicles.
• In addition to this, in North America, the United States also has one of the largest automotive industries globally. According to OICA, the automotive production in 2021 accounted for 91,67,214 units, an increase of 4% in comparison to the production in 2020, which was reported to be 88,22,399 units.
• Moreover, in Brazil, according to the AssociaçãoNacional dos Fabricantes de Veículos Automotores, electric and hybrid motor vehicle registrations accounted for 34,990 units in 2021, compared to 19,745 units in 2020.
• All aforementioned factors are likely to significantly enhance the demand for polyphenylene in the automotive and transportation segment, and thus will propel the growth of the market studied.

Asia-Pacific to Dominate the Market

• Asia-Pacific represents the largest market for polyphenylene. In countries, like China, Japan, South Korea, and India, the demand for polyphenylene has been increasing due to the established industrial base in the region.
• Asia-Pacific is also expected to be the fastest-growing market during the forecast period, with increasing demand from industries, like automotive and transportation, and electrical and electronics.
• In the Asia-Pacific region, the governments have adopted favorable policies toward the adoption of electric vehicles and the expansion of manufacturing infrastructure for electric vehicles. This, in turn, is anticipated to provide a huge impetus to the electric vehicle market in the region, during the forecast period.
• Increasing standards of living in Asian countries have also led to increased awareness among the people of the use of electric and hybrid vehicles. Also, the growing automotive industry in the region is likely to enhance the demand for polyphenylene in the countries of the region. For instance,
• In China, the electric vehicle (battery electric vehicle (BEVs) and plug-in hybrid electric vehicle(PHEVs) sales in 2021 accounted for 3,396 thousand units, witnessing a growth of 155% compared to 1,331 thousand units, in 2020.
• In India, in 2021, according to OICA, automotive production in the country stood at 4.4 million units, registering an increase of 30% compared to 3.38 million units produced in the same period last year. The government’s reforms, such as “Aatma Nirbhar Bharat” and “Make in India” programs are likely to boost the automotive industry in the coming years.
• The Asia-Pacific region is also the dominant producer of electrical and electronics across the world, with countries, such as China, Japan, South Korea, and Malaysia, contributing toward it. India is also emerging as a manufacturing hub for electronic products in Asia. This established industry is expected to attract demand for polyphenylene and its derivatives from the region. For instance,
• The electrical and electronics industry in Japan is one of the world’s leading industries. According to the Japan Electronics and Information Technology Industries Association (JEITA) – December 2021 release, the production by the global electronics and IT industry was estimated at USD 3,360.2 billion in 2021, registering a growth rate of 11% year on year, compared to USD 3,033.7 billion in 2020. Moreover, the industry is expected to reach USD 3,536.6 billion, with a growth rate of 5% year on year, by 2022.
• According to India Brand Equity Foundation, the Indian electronics manufacturing industry is expected to reach USD 520 billion by 2025. Additionally, India is expected to become the fifth-largest consumer electronics and appliances industry in the world by 2025. Moreover, in India, technology transitions, such as the Internet of Things ( IoT), are driving the adoption of electronics products. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have raised the demand for IoT in the country.
• Some of the major companies operating in the Asia-Pacific region are DIC Corporation and Kureha Corporation.
• Thus, rising demand from the aforementioned end-user industries is expected to drive growth in the Asia-Pacific region.

Competitive Landscape

The polyphenylene market is partially consolidated with the presence of both international and domestic players. The major companies (not in particular order) include Ensinger, Solvay SA, SABIC, Celanese Corporation, and DIC Corporation.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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