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The propylene carbonate market is experiencing notable trends that are shaping its growth trajectory across various industries. Propylene carbonate, a versatile solvent and chemical intermediate, finds wide-ranging applications in sectors such as cosmetics, electronics, pharmaceuticals, and automotive. One significant trend in the market is the increasing demand for eco-friendly solvents and chemicals driven by growing environmental concerns and regulatory pressures. Propylene carbonate is favored for its low toxicity, biodegradability, and non-VOC (volatile organic compound) nature, making it a preferred choice for manufacturers seeking sustainable alternatives to conventional solvents.
Moreover, the expanding lithium-ion battery industry is driving significant growth in the propylene carbonate market. Propylene carbonate serves as a key electrolyte solvent in lithium-ion batteries, where it enhances ion conductivity and improves battery performance. With the rising adoption of electric vehicles (EVs), portable electronic devices, and energy storage systems, there is a surging demand for high-quality electrolytes, thereby driving the consumption of propylene carbonate. This trend is expected to continue as the global transition towards clean energy and electrification accelerates, creating lucrative opportunities for market players.
Furthermore, technological advancements and innovations are reshaping the landscape of the propylene carbonate market. Manufacturers are investing in research and development activities to improve the production process, enhance product quality, and explore new applications. This includes the development of advanced purification techniques to ensure the highest purity levels of propylene carbonate, catering to the stringent requirements of end-users in industries such as electronics and pharmaceuticals. Additionally, ongoing research is focused on exploring the potential of propylene carbonate-based formulations in areas such as green chemistry, lubricants, and chemical synthesis.
Additionally, the cosmetics and personal care industry is emerging as a significant consumer of propylene carbonate, driven by the growing demand for skincare and haircare products. Propylene carbonate is valued for its solubilizing properties, which enable the formulation of stable emulsions, creams, and lotions in cosmetic formulations. Moreover, its mild nature and low potential for skin irritation make it suitable for use in sensitive skin products, further fueling its adoption by cosmetic manufacturers. With the rising consumer consciousness towards clean beauty and natural ingredients, propylene carbonate's reputation as a safe and effective ingredient positions it favorably in the cosmetics market.
However, the propylene carbonate market faces challenges such as volatility in raw material prices and regulatory constraints impacting market dynamics. The prices of key raw materials used in propylene carbonate production, such as propylene oxide and carbon dioxide, are subject to fluctuations due to factors like supply-demand dynamics and geopolitical tensions. These price variations can impact the profitability of manufacturers and influence pricing strategies in the market. Moreover, regulatory restrictions on certain applications of propylene carbonate, such as its use as a solvent in food contact materials, can limit its market potential in specific regions.
Propylene Carbonate Market Highlights:
Global Propylene Carbonate Market Overview
The Propylene Carbonate Market Size was valued at USD 0.42 Billion in 2022. The Propylene Carbonate industry is projected to grow from USD 0.45 Billion in 2023 to USD 0.62 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.05% during the forecast period (2023 - 2030). Propylene carbonate is an organic compound obtained from propylene. It is used as a polar, aprotic solvent in paints & coatings and cosmetic & personal care products. Propylene carbonate is also used to remove carbon dioxide from natural gas and volatile organic compound (VOC) from paints & coatings.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Propylene Carbonate Market Trends
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Rising demand for lithium-ion batteries will boost the growth of the Market
Propylene carbonate is used as a key solvent in the production of electrolytes for lithium-ion batteries. These batteries are widely used in various applications, including electric vehicles, portable electronics, and renewable energy systems. As the demand for these applications continues to grow, the demand for propylene carbonate is also expected to increase. Furthermore, the increasing focus on renewable energy and energy storage solutions is also expected to drive the demand for lithium-ion batteries, which in turn will fuel the demand for propylene carbonate. Manufacturers are also exploring new applications for lithium-ion batteries, such as grid-scale energy storage, which is expected to further boost the demand for propylene carbonate.
BASF SE, a German-based organization, has done something groundbreaking toward environmentally friendly behavior in 2023. They have introduced their clients who use plastic additives to a premium service called Product Carbon Footprints (PCFs). Among these are antioxidants and light stabilizers that emphasize BASF SE’s mitigation of environmental impacts through its product range.
BASF SE will deliver product carbon footprints (PCFS) for its customers consuming plastic additives from September 2022 onwards. For instance, this includes PCFs among various anti-oxidants and light stabilizers, which form part of VALERAS’ premium services. To apply for product carbon footprints on this consumer portal, you can go online.
Propylene Carbonate Market Segment Insights
Propylene Carbonate Form Insights
The market segmentation, based on Form, includes Pellet, Aqueous, Film, and Others. The Film segment holds the majority share in 2022, contributing to the global Propylene Carbonate revenue. propylene carbonate is commonly used as a solvent for film-forming resins in various applications, including coatings, adhesives, and plastics. Propylene carbonate improves the solubility, stability, and adhesion properties of film-forming resins, making it an important component in the production of films for various industrial and commercial applications.
Propylene Carbonate Application Insights
Based on Application, the market segmentation includes Solvents, Binders and adhesives, Coatings, Lithium-ion batteries, Textile dyeing, and Others. The Lithium-ion batteries segment is the largest segment of the market. The growth of the segment is attributed to the increase in investment in electric vehicles and consumers' inclination towards electronic products, which is expected to drive the demand for lithium-ion batteries.
Figure 2: Propylene Carbonate Market, by Application, 2022 & 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Propylene Carbonate Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific accounted for the largest share of the Market in recent years. The region is home to some of the largest and fastest-growing economies in the world, such as China, India, and Japan, which have witnessed significant growth in various end-use industries, including automotive, electronics, and renewable energy. The rising demand for lithium-ion batteries and other energy storage solutions, coupled with the growth of the automotive and electronics industries, has led to a significant increase in the demand for propylene carbonate in the region. In addition, the increasing focus on environmental sustainability and the adoption of new regulations aimed at reducing greenhouse gas emissions have also contributed to the growth of the market in Asia-Pacific.
Figure 3: PROPYLENE CARBONATE MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Propylene Carbonate Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Propylene Carbonate industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Propylene Carbonate industry to benefit customers and expand the market sector. Major market players, including BASF, Shida Shenghua Chemical, Daze Group, Huntsman Corporation, and others, are attempting to increase market demand by funding R&D initiatives.
Shida Shenghua Chemical Co., Ltd. (SDSH) is a chemical manufacturing company based in China. SDSH specializes in the production and sale of organic chemical products, including chlorinated paraffin, chlorinated polyethylene, and muriatic acid. The company's products are widely used in the production of plastic, rubber, coatings, paints, and other chemical products. The company has a production capacity of 100,000 tons of chlorinated paraffin, 50,000 tons of chlorinated polyethylene, and 30,000 tons of muriatic acid per year. The company's products are sold both domestically and internationally, with major markets including Europe, America, and Southeast Asia.
Huntsman Company is a producer of unique organic chemical products. It works in four segments: polyurethanes, performance products, advanced materials, and textile effects. The firm provides polyurethane chemicals, performance goods such as amines and maleic anhydride, advanced materials such as epoxy, acrylic, and polyurethane-based polymer products, as well as textile chemicals, dyes, and inks. Its products are used in a variety of applications, including adhesives, aerospace, automotive, construction products, personal care, and hygiene, durable and non-durable consumer products, digital inks, electronics, insulation, medical, packaging, coatings and construction, power generation, refining, synthetic fiber, textile chemicals, and dye industries.
Key Companies in the Propylene Carbonate market include
- LyondellBasell Industries
- Shandong Depu Chemical
- BASF
- Empower Materials
- Shida Shenghua Chemical
- Daze Group
- Huntsman Corporation
- AVX Corporation
- MegaChem Ltd
- Hi-Tech Spring Chemical
Propylene Carbonate Industry Developments
In 2023, Tesla announced a significant partnership, which was headquartered in the United States. The company signed a multi-year agreement with Eastman Chemical to support its commitment to environmental sustainability in transportation.
In September 2022, Rare Beauty made headlines when it announced that it would be launching a new collection of blushes. One of these liquid blush products contains propylene carbonate.
In March 2022, Tedia Company LLC joined hands with Newbold Enterprises Fairfield. The cooperation is built upon capital provision and Industry know how so as to increase the capacity along with capability requirements of Tedia – an OEM manufacturer high-purity solvents business.
Propylene Carbonate Market Segmentation
Propylene Carbonate Form Outlook
- Pellet
- Aqueous
- Film
- Others
Propylene Carbonate Application Outlook
- Solvent
- Binders and adhesives
- Coatings
- Lithium-ion batteries
- Textile dyeing
- Others
Propylene Carbonate Regional Outlook
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North America
- US
- Canada
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Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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