Propylene carbonate (PC) is a hydrophilic organic compound derived from carbon dioxide and propylene oxide. It finds wide application as a solvent in lithium-ion batteries, lubricants, paints, coatings and others. PC provides advantages like high polarity, low toxicity, non-volatility and good solvency towards various materials. The global demand for lithium-ion batteries from consumer electronics and EVs has increased the consumption of PC as it is used as an electrolyte solvent and additive in battery formulations.
The propylene carbonate market is estimated to be valued at USD 423.78 Bn in 2024 and is expected to reach USD 621.5 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.62% from 2024 to 2031.
Key Takeaways
Key players operating in the Propylene Carbonate market are BASF SE, Huntsman Corporation, LyondellBasell Industries N.V., Shida Shenghua Chemical Co., Daze Group and Shandong Depu Chemical Industry Science and Technology Co.
The global demand for lithium-ion batteries from consumer electronics and electric vehicles is rising exponentially, driving the consumption of propylene carbonate as a key component in battery electrolytes. Between 2020-2030, the electric car stock is estimated to grow by over 60% according to the International Energy Agency.
Geographically, the Asia Pacific region dominated the global market in 2019 and is expected to continue its dominance over the Propylene Carbonate Market Forecast period. This is mainly attributed to the increasing production of lithium-ion batteries in China, South Korea and Japan to cater to the rising demand from various end-use applications.
Market Key Trends
Sustainability is one of the key trends gaining traction in the propylene carbonate market. Manufacturers are investing in developing bio-based and recyclable variants of PC using renewable raw materials like vegetable oils and recycled propylene oxide. This helps address concerns around fossil fuel-based processes and reduces carbon footprint. For instance, BASF has developed a more sustainable PC from biomass instead of propylene.
Porter's Analysis
Threat of new entrants: Low barrier for new entrants to enter the market as propylene carbonate manufacturing technology is easily available. However, established companies have economies of scale.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products. However, different end-use segments have specific requirement of propylene carbonate properties.
Bargaining power of suppliers: suppliers have moderate bargaining power due to availability of raw materials from diverse sources however petrochemical industry consolidation has increased bargaining power of few large suppliers.
Threat of new substitutes: Threat of substitutes is moderate as propylene carbonate has different properties than alternative solvents however new green solvents can pose threat.
Competitive rivalry: Market has high competitive rivalry due to large number of manufacturers. Manufacturers compete on pricing, product differentiation, product quality and customer service.
Geographical regions: Currently, North America accounts for the largest share in the global propylene carbonate market. Growth in electronics and automotive industries is propelling the demand.
Fastest growing region: Asia Pacific is expected to be the fastest growing market for propylene carbonate during the forecast period. Increasing industrial and manufacturing sectors along with rising electronics industry in countries like China and India is expected to drive the demand.
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Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
