The China polycarbonate market is estimated to be 2,073 kilotons in 2018 and is likely to reach 3,063.61 kilotons by 2023 at an estimated CAGR of 6.7% during the forecast period. The market is majorly driven by the increasing demand from electrical & electronics and automotive industry.
Polycarbonate resins are tough thermoplastics produced by the reaction between bisphenol A (BPA) and phosgene gas. Polycarbonate is an amorphous, ductile, and transparent plastic with a high tolerance for extreme temperatures. Its UV and chemical resistances makes it suitable for a variety of applications. The aforementioned characteristics along with its transparency and light-weight features result in its usage in various industrial and commercial sectors for tail, back-up, and fog lights, as well as aesthetically appealing components in the automotive & transportation sector.
Lightweight plastics are in high demand in the automotive industry due to their competitive pricing, high performance, style, reliability, strength, and safety. Plastic components weigh almost 50% lesser than similar components made from other materials, thus providing 25%-35% improvement in fuel efficiency, which is a key factor in the automotive and transportation industry. Every 10% reduction in vehicle weight is estimated to result in a 5% to 7% reduction in fuel usage. In the automotive industry, polycarbonates allows for energy absorption, weight reduction, shock absorption for bumpers, restriction of explosion risks in fuel tanks, seat belts, airbags, door & seat assemblies, subsystems, bumpers, under-bonnet components, exterior trim, and various other applications.
Currently, to manufacture a typical 4 wheel vehicle, 10 kg of polycarbonate is used in various forms. Polycarbonates are used in manufacturing of sunroofs, window panes, entryway handles, inner lenses, door handles, headlight bezels, internal focal points, and radiator flame broils.
China has the world's largest automotive market in terms of production. The country manufactures almost 30% of the automotive vehicles of the total vehicles in the world.
According to the OICA, automotive production in China grew by 3.19% y-o-y in the year 2017 over 2016, reaching a total of 29,015,434 vehicles. In 2017, the government of China is planning to introduce more than 1 million electric vehicles by 2020, which is further expected to drive the market for polycarbonate in the country.
China is the largest consumer of polycarbonate, with approximately half of the demand coming from the electrical & electronics sector in the country. Electrical & electronics’ producers are gradually moving from high-cost to low-cost manufacturing locations. China is a strong, favorable market for electronics producers owing to low labor cost and flexible policies in the country.
The electrical & electronics industry is the largest consumer of polycarbonate. Electronic products such as smartphones, OLED TVs, tablets and so on, have the highest growth in the market in the consumer electronics segment. The China’s electronics industry registered double-digit growth last year and in first-quarter of 2018. In the first quarter of 2018, around 40 billion chips were manufactured, which is 15.2% year-on-year growth. Moreover, approximately 420 million mobile phones were produced in 2018, up 0.5% from a first-quarter of 2017. With the increase in the disposable income of middle-class population, the demand for electronic products is projected to grow in the near future, thereby driving the polycarbonate market.
Major Players: Chi Mei Corporation, Covestro, Idemitsu Kosan, Teijin Limited, Mitsubishi Engineering Plastics Corporation, and Lotte Chemical Corporation, among others.
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1.1 Scope of the Report
1.2 Market Definition
1.3 Study Assumptions
1.4 Study Deliverables
1.5 Research Phases
2. Executive Summary
3. Market Insights
3.1 Industry Value Chain Analysis
3.2 Industry Attractiveness- Porters Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Consumers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products and Services
3.2.5 Degree of Competition
3.3 Patent Analysis
4. Market Dynamics
4.1.1 Growing demand in Automotive Industry
4.1.2 Increasing Popularity of Polycarbonate against Conventional Materials
4.2.1 Volatility in Raw Material Prices
4.2.2 Other Restraints
4.3.1 Emerging Applications in Medical Sector as an alternative to PPSU & PSU Sheets
4.3.2 Growing Opportunity for Optical Fibers in Communication Media
5. Market Segmentation and Analysis (Market Size, Growth and Forecast)
5.1 By End-User Industry
5.1.1 Automotive & Transportation
5.1.2 Electrical & Electronics
6. Future of the Market
7. Competitive Landscape
7.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
7.2 Market Share Analysis**
7.3 Strategies Adopted by Leading Players
8. Company Profiles (Overview, Financials**, Products & Services, and Recent Developments)
8.1 Chi Mei Corp.
8.3 Formosa Plastics
8.4 Idemitsu Kosan
8.5 LG Chem
8.6 Lotte Chemical Corporation
8.7 Mitsubishi Engineering Plastics Corporation (Mitsubishi Chemical Corporation)
8.10 Teijin Limited
8.12 Zhetie Daphoon (Ningbo Oceanking)
8.13 LUXI Group Co. Ltd
8.14 Wanhua Chemical Group Co.,Ltd.
*List not exhaustive
** Subject to availability on public Domain