US Propylene Carbonate Market Overview
The US Propylene Carbonate Market Size was estimated at 67.5 (USD Million) in 2023. The US Propylene Carbonate Industry is expected to grow from 72(USD Million) in 2024 to 130 (USD Million) by 2035. The US Propylene Carbonate Market CAGR (growth rate) is expected to be around 5.518% during the forecast period (2025 - 2035).
Key US Propylene Carbonate Market Trends Highlighted
The US Propylene Carbonate Market is experiencing significant growth, driven largely by the rising demand for eco-friendly solvents and chemicals across various industries. As consumers and companies increasingly emphasize sustainability, propylene carbonate is preferred due to its biodegradability and low toxicity. This shift reflects a growing trend towards the adoption of greener alternatives in sectors like electronics, automotive, and pharmaceuticals. Additionally, advancements in battery technology, particularly for electric vehicles, are creating new applications for propylene carbonate as a solvent in the production of electrolytes. These developments are fueling the market's expansion in the US.Opportunities in the US market lie in enhancing production processes and exploring new applications, especially in clean energy technologies. The US government’s initiatives to support clean energy and carbon-neutral projects present a chance for manufacturers to innovate in propylene carbonate usage. By aligning with environmental regulations and policies that incentivize cleaner manufacturing practices, the market can capitalize on growing investment in sustainable materials. Furthermore, recent trends indicate a shift towards domestic sourcing of propylene carbonate due to supply chain disruptions experienced during global events. US manufacturers are focusing on strengthening local production capabilities to ensure stability and reliability in supply.The collaboration between industry stakeholders and government bodies is likely to foster innovation and investment in propylene carbonate, enhancing its application in diverse sectors. This indicates a proactive market environment where the focus on sustainability and domestic manufacturing can lead to a more robust propylene carbonate industry in the US.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Propylene Carbonate Market Drivers
Growing Demand in the Automotive Sector
The automotive industry in the United States is increasingly adopting propylene carbonate as a solvent due to its effective properties for battery electrolytes in electric vehicles (EVs). According to the United States Department of Energy, sales of electric vehicles are projected to reach over 3 million units by 2030, a dramatic increase from around 500,000 in 2021. This shift towards cleaner and more efficient alternatives is pushing manufacturers to explore eco-friendly solvents like propylene carbonate.The US Propylene Carbonate Market Industry is set to benefit from this transition, as automotive companies begin prioritizing sustainable materials. The growth of the EV market, along with increased investments from established companies such as General Motors and Ford, aims to significantly reduce carbon emissions, thus directly impacting the demand for propylene carbonate.
Rising Use in Consumer Products
Propylene carbonate is gaining traction in the production of various consumer goods, including personal care products and cleaning agents. The American Cleaning Institute states that the cleaning product sector has seen a steady growth of approximately 3% annually. This translates to a growing demand for safe and effective solvents such as propylene carbonate. As consumers become more environmentally conscious, companies are shifting towards using biodegradable and less toxic chemicals.Major brands like Procter & Gamble and Unilever are re-evaluating their product compositions to align with consumer preferences. The United States Environmental Protection Agency encourages the use of green chemistry principles, which will further advance the US Propylene Carbonate Market Industry as it is recognized for its lower toxicity and environmental impact.
Increasing Regulations Favoring Eco-friendly Chemicals
The regulatory landscape in the United States is increasingly favoring the adoption of sustainable and eco-friendly chemicals. The United States Environmental Protection Agency has implemented several initiatives aimed at reducing volatile organic compounds (VOCs) in industrial applications. As regulations become stricter, industries are compelled to source alternatives that comply with sustainability goals. With a growing number of guidelines limiting the use of harmful solvents, propylene carbonate presents itself as a compliant alternative, thereby fueling growth in the US Propylene Carbonate Market Industry.According to the EPA, there has been a 20% decrease in VOC emissions from the chemical manufacturing sector since the implementation of these regulations. Companies like BASF have taken the lead in developing compliant formulations, ensuring they meet current environmental regulations.
US Propylene Carbonate Market Segment Insights
Propylene Carbonate Market Form Insights
The Form segment of the US Propylene Carbonate Market encompasses various types including Pellet, Aqueous, Film, and Others, each contributing uniquely to the overall landscape of the industry. Propylene carbonate is a versatile solvent with applications ranging from paint and coatings to batteries and personal care products. The increasing demand for environmentally friendly solvents has propelled the growth of the aqueous form, as industries seek to comply with stricter regulations concerning volatile organic compounds (VOCs). Meanwhile, the pellet form is favored for its ease of handling and precise dosing in manufacturing processes, making it a popular choice among producers focusing on efficiency and sustainability.Film forms are notably significant in the production of membranes and coatings, catering to industries that require advanced material properties. The presence of advanced technology in manufacturing processes enables enhanced performance attributes in all the forms, thus driving growth and innovation within the segment. As consumer preferences shift towards sustainable and high-performance products, the diverse forms of propylene carbonate are poised to cater to a broad range of applications, demonstrating the segment's resilience and adaptability in response to market demands.The US market also benefits from a well-established supply chain, making it easier for manufacturers to meet customer needs efficiently. As trends continue to evolve, the interplay between innovation and environmental responsibility will further define the growth trajectories of these forms, positioning them as vital contributors to the expanding US Propylene Carbonate Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Propylene Carbonate Market Application Insights
The US Propylene Carbonate Market is characterized by a diverse range of applications that are driving its growth and development. The solvent application plays a critical role, particularly renowned for its ability to dissolve various materials effectively, making it important in industries such as chemicals and pharmaceuticals. Binders and adhesives represent another vital application, offering significant bonding capabilities which are crucial for construction and manufacturing sectors. Additionally, the coatings segment utilizes propylene carbonate for its superior solvent properties, enabling high-performance paints and surface finishes.The rise of electric vehicles has fostered growth in lithium-ion batteries, where propylene carbonate is preferred for its electrochemical stability and safety. In textile dyeing, this compound facilitates enhanced color penetration and vibrancy, contributing to better product quality. The remaining applications encompass various lesser-known uses that cumulatively contribute to market evolution, reflecting a trend towards more sustainable and versatile chemical solutions. As the US market continues to expand, these applications signify evolving consumer demands and technological advancements, indicating robust growth potential across the board in coming years.
US Propylene Carbonate Market Key Players and Competitive Insights
The US Propylene Carbonate Market exhibits a dynamic competitive landscape characterized by a mix of established players and emerging companies. This sector is influenced by various factors including technological advancements, regulatory environment, and shifts in consumer preferences. Companies operating in this market are focusing on innovation, operational efficiency, and strategic partnerships to strengthen their position. The market dynamics are shaped by demand from diverse end-use sectors such as paints, coatings, and chemical intermediates, each necessitating high-performance solutions. With the growing emphasis on sustainability, companies are exploring eco-friendly production methods and investing in the development of bio-based alternatives to meet market needs.Dow Chemical stands as a significant player in the US Propylene Carbonate Market, leveraging its extensive experience and technological expertise to advance its product offerings. The company boasts a strong market presence due to its well-established distribution networks and a solid reputation for quality and reliability. Dow Chemical's strengths lie in its robust research and development capabilities, which enhance its ability to innovate and respond to customer needs efficiently. As an established entity in the chemicals sector, the company also benefits from considerable economies of scale, allowing it to maintain competitive pricing while ensuring high production standards. Dow's commitment to sustainability further bolsters its position in the market, aligning its operations with growing environmental concerns and regulatory mandates.Shandong Kexin Chemical Co has been progressively expanding its footprint in the US Propylene Carbonate Market, aiming to capitalize on the growing demand for this solvent. The company offers a range of chemical products, with propylene carbonate being a key focus area among its offerings. Shandong Kexin Chemical Co is recognized for its competitive pricing strategies and a commitment to high-quality standards that meet industry specifications. Although primarily based in Asia, Shandong Kexin Chemical Co's efforts to enter the US market include strategic alliances and localization initiatives that enhance its accessibility to American customers. With ongoing investments in expanding production capabilities and exploring potential mergers and acquisitions, the company seeks to solidify its market share and address the increasing demand from various applications in the region.
Key Companies in the US Propylene Carbonate Market Include
- Dow Chemical
- Shandong Kexin Chemical Co
- BASF
- Mitsubishi Chemical
- Gujarat Alkalies and Chemicals
- LyondellBasell Industries
- SABIC
- Eastman Chemical
- Solvay
- Cargill
- Tianjin Zhongjin Lingnan Chemical
- Stepan Company
- MGC Advanced Chemical
- Huntsman Corporation
US Propylene Carbonate Market Industry Developments
Recent developments in the US Propylene Carbonate Market have indicated a growing demand for eco-friendly solvents, with companies like Dow Chemical expanding their production capacities to meet this trend. As of October 2023, BASF and Mitsubishi Chemical also focused on enhancing their sustainability efforts, thus increasing the utilization of propylene carbonate in battery electrolyte applications, especially for electric vehicles. Despite a challenging economic backdrop, growth in market valuation has been marked, reflecting shifts towards greener alternatives. Over the past few years, mergers and acquisitions have also influenced the market dynamics. Notably, in June 2022, LyondellBasell Industries announced the acquisition of a chemical plant that specializes in propylene derivatives, enhancing their portfolio. Meanwhile, companies like SABIC and Eastman Chemical are continuously investing in Research and Development to innovate new applications for propylene carbonate in consumer products and pharmaceuticals. The increasing interest in renewable resources has further solidified the position of leading players like Solvay and Huntsman Corporation in the US market, underlining a shift towards sustainable industrial practices. Overall, the US Propylene Carbonate Market reflects significant transformations driven by demand for environmentally friendly solutions and advancements in chemical manufacturing technology.
US Propylene Carbonate Market Segmentation Insights
Propylene Carbonate Market Form Outlook
- Pellet
- Aqueous
- Film
- Others
Propylene Carbonate Market Application Outlook
- Solvent
- Binders and adhesives
- Coatings
- Lithium-ion batteries
- Textile dyeing
- Others
Report Attribute/Metric Source: |
Details |
MARKET SIZE 2018 |
67.5(USD Million) |
MARKET SIZE 2024 |
72.0(USD Million) |
MARKET SIZE 2035 |
130.0(USD Million) |
COMPOUND ANNUAL GROWTH RATE (CAGR) |
5.518% (2025 - 2035) |
REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
BASE YEAR |
2024 |
MARKET FORECAST PERIOD |
2025 - 2035 |
HISTORICAL DATA |
2019 - 2024 |
MARKET FORECAST UNITS |
USD Million |
KEY COMPANIES PROFILED |
Dow Chemical, Shandong Kexin Chemical Co, BASF, Mitsubishi Chemical, Gujarat Alkalies and Chemicals, LyondellBasell Industries, SABIC, Eastman Chemical, Solvay, Cargill, Tianjin Zhongjin Lingnan Chemical, Stepan Company, MGC Advanced Chemical, Huntsman Corporation |
SEGMENTS COVERED |
Form, Application |
KEY MARKET OPPORTUNITIES |
Growing demand in green solvents, Expansion in battery electrolytes, Increased use in pharmaceuticals, Rising applications in electronics, Advancements in sustainable packaging |
KEY MARKET DYNAMICS |
growing demand in solvents, increasing applications in batteries, strict environmental regulations, innovation in production processes, rising focus on sustainable alternatives |
COUNTRIES COVERED |
US |
Frequently Asked Questions (FAQ) :
The US Propylene Carbonate Market is expected to be valued at 72.0 million USD in 2024.
By 2035, the US Propylene Carbonate Market is projected to reach a value of 130.0 million USD.
The expected CAGR for the US Propylene Carbonate Market from 2025 to 2035 is 5.518%.
Key players in the US Propylene Carbonate Market include Dow Chemical, BASF, Mitsubishi Chemical, and LyondellBasell Industries.
The market value for the Pellet form of Propylene Carbonate is expected to be 20.0 million USD in 2024.
In 2035, the Aqueous form of Propylene Carbonate is expected to be valued at 45.0 million USD.
The Film form of Propylene Carbonate is projected to reach 27.0 million USD by 2035.
The US Propylene Carbonate Market currently faces challenges such as fluctuating raw material prices and environmental regulations.
Key applications driving growth in the US Propylene Carbonate Market include solvents, electrochemical applications, and specialty chemicals.
The Aqueous form of Propylene Carbonate is expected to see the highest growth rate from 2025 to 2035.