What is the Size of the Polycarbonate Diol Market?
The polycarbonate diol market size is forecast to increase by USD 84.8 million and is estimated to grow at a CAGR of 5.7% between 2023 and 2028. The market is witnessing significant growth, driven by its extensive applications in various industries such as synthetic leather, fashion, paints and coatings, and others. The demand for PCD is increasing due to its superior properties, including stain resistance, flexibility, UV resistance, chemical resistance, and hydrolysis resistance. In the synthetic leather industry, PCD is a key ingredient due to its ability to enhance the durability and performance of leather alternatives. In the fashion industry, PCD is used to produce high-quality textiles with excellent resistance to wear and tear. Moreover, PCD's versatility makes it an ideal choice for use in paints and coatings, providing superior protection against environmental factors. However, the market growth is not without challenges. Fluctuating raw material prices and the development of bio-based alternatives pose significant challenges to the market. Despite these challenges, the increasing opportunities in the Asia Pacific region, particularly in China and India, offer significant growth potential for market participants. In conclusion, the market is poised for growth, driven by its applications in various industries and its superior properties. Despite challenges, the market's potential is significant, particularly in the Asia Pacific region.
Market Segment
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
- Type
- Conventional polycarbonate diol
- Bio-based polycarbonate diol
- End-user
- Automotive
- Construction
- Electronics
- Others
- Geography
- APAC
- China
- India
- Japan
- North America
- US
- Europe
- Germany
- South America
- Middle East and Africa
- APAC
Which is the Largest Segment Driving Market Growth?
The conventional polycarbonate diol segment is estimated to witness significant growth during the forecast period. Polycarbonate diols, a type of polyols, are essential building blocks in the synthesis of water-based polyurethanes. Unlike traditional polycarbonate diols derived from petrochemical sources, eco-friendly alternatives are gaining popularity due to their hydrolysis resistance and reduced Volatile Organic Compounds (VOCs).
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The conventional polycarbonate diol segment was the largest segment and valued at USD 180.20 million in 2018. These eco-friendly polycarbonate diols are extensively used in various industries for producing high-performance polyurethane products. Their superior properties, including high tensile strength, flexibility, and resistance to abrasion and chemicals, make them an ideal choice for demanding applications. In the automotive sector, synthetic leather, coatings, and adhesives are manufactured using polycarbonate diol-based polyurethanes. Hence, such factors are fuelling the growth of this segment during the forecast period.
Which Region is Leading the Market?
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APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Polycarbonate Diol (PCD) market in the Asia Pacific (APAC) region is witnessing substantial growth, fueled by the construction sector's expansion and the rising demand for lightweight materials with emission reduction properties. The APAC construction industry, notably in countries like India, is undergoing significant growth, contributing to the region's economic development. In Q3 2023, India's construction sector grew by 13.3% compared to the same period in 2022 and 7.9% compared to the previous quarter. This growth has been a significant contributor to India's GDP, signifying increasing investments in infrastructure and real estate.
How do Technavio's company ranking index and market positioning come to your aid?
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Asahi Kasei Corp: The company offers DURANOL polycarbonatediol.
Technavio provides the ranking index for the top 20 companies along with insights on the market positioning of:
- Covestro AG
- DAICEL ChemTech Inc.
- Mitsubishi Chemical Corp.
- Perstorp Holding AB
- Tosoh Corp.
- Ube Corp.
- Yuanli Chemical Group Co. Ltd.
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What is the Market Structure and Year-over-Year growth of the Market?
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Market structure |
Concentrated |
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YoY growth 2023-2024 |
4.9 |
Market Dynamic
Polycarbonate diols, a type of polyols, have gained significant attention in the realm of material science and engineering technologies due to their exceptional properties. These versatile chemicals play a crucial role in the production of water-based polyurethanes, offering superior hydrolysis resistance and eco-friendliness. Polycarbonate diols are essential raw materials in the synthesis of various high-performance polyurethane products. These include polyurethane dispersions, which are widely used in the manufacturing of coatings, adhesives, and sealants. The adoption of these materials is on the rise in various industries such as construction, infrastructure projects, and interior components, due to their excellent abrasion resistance and emission reduction capabilities.
Water-based polyurethanes, derived from polycarbonate diols, are a preferred choice over their solvent-borne counterparts due to their lower Volatile Organic Compounds (VOCs) content. VOCs are known to contribute to environmental pollution and health issues. Thus, the shift towards eco-friendly chemicals in various applications is a significant trend driving the growth of the polycarbonate diols market. The molecular weight of solid polycarbonate diols can be tailored to meet the specific requirements of various applications. For instance, in the production of synthetic leather, high molecular weight polycarbonate diols are employed to ensure the desired level of durability and flexibility. In the realm of paints and coatings, low molecular weight polycarbonate diols are preferred for their ease of application and rapid curing properties. Moreover, the use of catalytic green reaction systems in the production of polycarbonate diols has led to a significant reduction in energy consumption and waste generation. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
What are the Primary Factors Driving the Market Growth?
Increasing opportunities in APAC is notably driving market growth. The Polycarbonate Diols Market is experiencing substantial growth in the Asia-Pacific region due to increasing research and development efforts.
This expansion aims to enhance the production of durable PU coatings, including those with superior abrasion resistance and water resistance, which are essential in humid conditions. The increased production capacity will significantly contribute to the growth of the Polycarbonate Diols Market in the APAC region. Thus, such factors are driving the growth of the market during the forecast period.
What are the Significant Trends being Witnessed in the Market?
Development of bio-based products is the key trend in the market. The global market is experiencing notable progress, with a focus on the production of eco-friendly alternatives. These enhanced properties include increased flexibility, transparency, and a unique texture, making polyurethane resins derived from BENEBiOL an excellent choice for various applications.
The chemical stability of these resins ensures their durability and resistance to weather conditions, making them ideal for outdoor applications. In summary, the introduction of bio-based polycarbonate diol, such as BENEBiOL, represents a significant advancement in the polyurethane resins market. These eco-friendly alternatives offer superior properties and cater to diverse applications, including flooring, outdoor furniture, sealants, TPUs, and TPEs. Thus, such trends will shape the growth of the market during the forecast period.
What are the Major Market Challenges?
Fluctuation in raw material prices is the major challenge that affects the growth of the market. Economic instability in raw material markets directly impacts the prices of essential inputs for PCD production. Key feedstocks like bisphenol A and crude oil are particularly sensitive to price volatility caused by geopolitical tensions, supply chain disruptions, and alterations in global demand. Despite these challenges, PCD continues to be a popular choice in various industries due to its unique properties.
In the realm of Synthetic Leather, PCD's flexibility, UV resistance, and chemical resistance make it a preferred option for Fashion applications. In the field of Paints and Coatings, PCD's hydrolysis resistance adds value, ensuring durability and longevity. As market players navigate the volatile raw material landscape, they must remain agile and adapt to price fluctuations to maintain profitability and competitiveness. Hence, the above factors will impede the growth of the market during the forecast period.
Exclusive Customer Landscape
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Market Analyst Overview
High-Performance Polyols for Sustainable Applications in Material Science Polycarbonate diols, a type of polyols, have gained significant attention in the industry due to their exceptional properties and eco-friendly characteristics. These diols are essential raw materials for producing water-based polyurethanes, which are increasingly preferred over solvent-borne polyurethanes due to their reduced Volatile Organic Compounds (VOCs). The hydrolysis resistance of polycarbonate diols makes them suitable for various applications, including adhesives and sealants, elastomers, and high-performance polyurethane dispersions. In the realm of construction, these diols contribute to durable coatings for infrastructure projects and interior components. Polycarbonate diols find extensive use in the production of synthetic leather, providing flexibility, abrasion resistance, and stain resistance. They are also crucial in the manufacturing of paints and coatings, offering excellent water resistance, humid conditions resistance, and UV resistance. Moreover, these diols are essential in the medical field, automotive OEMs, packaging applications, and consumer goods, thanks to their chemical stability and versatility. With advancements in material science and engineering technologies, catalytic green reaction systems have been developed for the solid form production of polycarbonate diols, contributing to emission reduction.
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Market Scope |
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Report Coverage |
Details |
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Page number |
191 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.7% |
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Market growth 2024-2028 |
USD 84.8 million |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 40% |
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Key countries |
China, US, Germany, Japan, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Asahi Kasei Corp., Covestro AG, DAICEL ChemTech Inc., Mitsubishi Chemical Corp., Perstorp Holding AB, Tosoh Corp., Ube Corp., and Yuanli Chemical Group Co. Ltd. |
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Market dynamics |
Parent market analysis, market research and growth , market report , market forecast , market growth inducers and obstacles, fast-growing and slow-growing segment analysis, AI impact on market trends, COVID -19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Market Research Report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
- Precise estimation of the size of the market and its contribution of the market in focus to the parent market
- Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
- Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
- Thorough analysis of the market's competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of market companies