Polycarbonate Diols Market size is anticipated to reach USD 503 million by the end of 2035, growing at a CAGR of 6% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of polycarbonate diols was over USD 250 million. The growth of the market can be attributed to the increasing utilization of polycarbonate diols to fulfill the massively surging demand and production of synthetic leather and synthetic leather products throughout the world. For instance, Taiwan's polyurethane synthetic leather (PU leather) production output has surpassed roughly 17 million meters in 2020. Moreover, the rising shifts towards water-borne paints and coatings is another major factor anticipated to spike the growth of the global polycarbonate diols market during the forecast period.
In addition to these, factors that are believed to fuel the market growth of polycarbonate diols include their excellent hydrolytic stability which makes them an excellent product to be used in wide applications. For instance, owing to low moisture absorption and the ability to hydrolyze without creating an acidic molecule, polycarbonate diols have the highest hydrolytic stability among polyester polyols. Acid molecules autocatalyze additional hydrolysis in the soft block of the polyurethane. Additionally, radical expansion in environmental consciousness among people, along with the surge in the strict regulatory policies to conserve the environment is also estimated to spur market growth during the projected time frame.
Growth Drivers
Expanding Demand and Production of Sealants and Adhesives – Polycarbonate diols are being used in the production of high-performance sealants and adhesives. It provides higher durability and extreme performance to sealants and coatings. These sealants and adhesives are being used in various sectors, hence, such increased use of these sealants is expanding the demand for these sealants. As a result, this factor is anticipated to fuel market growth in the coming years. For instance, in 2022, worldwide demand for adhesives and sealants was expected to reach approximately 375 thousand tonnes.
Rising Production of Automotive – As of the rising urbanization and surge in worldwide population the demand for vehicles has increased to a significant extent. Surging demand for vehicles is liable for the growing production of various kinds of automobiles comprising, including commercial vehicles, passenger cars, and so on. There is a wider use of synthetic leather in the production of car interiors including car seats, headliners, and so on. Therefore, the rising production of automobiles is projected to accelerate the growth of the market in the coming years. For instance, in 2021, approximately 80 million automotive vehicles were manufactured worldwide, that denotes around a 1.6% increase over 2020.
An Upsurge in the Demand for Elastomers - Elastomers are any rubbery material made of long chainlike molecules or polymers that can restore their original shape after being stretched to enormous lengths. Elastomer’s great durability allows a wide range of uses in the automotive industry, including wire and cable fabrication, puncture-resistant seals, and durability in vehicle interiors. Consequently, the unique features of elastomers are increasing their demand in a wide range of industries, which is estimated to proliferate the market growth. For instance, India's elastomer total production was expanded to roughly 370 thousand metric tons in the financial year 2021.
Rise in Government’s Stringent VOC Regulations - VOCs are used in the manufacturing of countless goods, including dry cleaning fluids, petroleum-based fuels, paints, adhesives, sealants, and so on. These VOCs pose a wide range of environmental issues. Several authorities have put these substances under rigorous regulations as a result of their hazardous impact on the ecosystem. Low water solubility and high vapor pressure of volatile organic compounds enable their emission as gases into the atmosphere. Hence, the government’s stringent rules for VOC regulation are estimated to drive market growth in the coming years. For instance, in the United States, the EPA's emphasis on VOC regulation arises from its capability to generate photochemical smog when reacting with nitrogen oxides and sunlight. The National Volatile Organic Compound Emission Standards for Consumer and Commercial Goods, 40 CFR 59, outlines the standards for VOC levels and control. This rule segregates the standards for consumer items, architectural coatings, car refinish coatings, aerosol coatings, and fuel containers into different sections. Within each category, legal standards detail how manufacturers must maintain records, labeling, and reports on the VOCs in their products.
Significant Expansion in Chemical Industry – For instance, the worldwide revenue of the chemical industry spiked to its highest level in 15 years in 2021, making the total roughly USD 5.10 trillion.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 250 Million |
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Forecast Year Market Size (2035) |
~ USD 503 Million |
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Regional Scope |
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Application (Adhesives & Sealants, Synthetic Leathers, Elastomers, Paints & Coatings)
The global polycarbonate diols market is segmented and analyzed for demand and supply by application into adhesives & sealants, synthetic leathers, elastomers, paints & coatings, and others. Out of these segments, the synthetic leathers segment is estimated to gain the largest market share of about ~39% in the year 2035. The growth of the segment can be attributed to the increasing environmental concern, and rise in animal protection. Therefore, a major shift of consumers from conventional leather to synthetic leather has been growing, which is driving more demand for synthetic leather based-products including bags, wallets, footwear, synthetic leather apparel, and so on is significantly expanding, which is projected to fuel the segment growth in coming years. For instance, in Poland, the revenue from synthetic leather jackets was expected to reach around USD 8.79 million in 2020.
Form (Solid, Liquid)
The global polycarbonate diols market is also segmented and analyzed for demand and supply by form into solid, and liquid. Amongst these two segments, the solid form segment is projected to grab a significant share of around ~70% in the year 2035. The growth in the segment can be attributed to the rising demand for high-performance synthetic leathers, along with the growing demand for waterborne coatings and paints for use in furniture, automotive, and textile industries among others. Solid polycarbonate diols possess high resistance to stain, oxidation, hydrolysis, and wear in polyurethane products. Moreover, solid polycarbonate diols offer optimum strength, performance, excellent mechanical properties, and high thermal stability at low temperatures. This, as a result, is estimated to generate more opportunities to propel the growth of the segment during the projected time frame.
Our in-depth analysis of the global market includes the following segments:
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By Form |
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By Molecular Weight |
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By Application |
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APAC Market Statistics
The Asia Pacific polycarbonate diols market, amongst the market in all the other regions, is projected to hold the largest market share of about ~47% by the end of 2035. The growth of the market can be attributed majorly to the prominent presence of several end-users who use polycarbonate diols for the manufacturing of different end-use products. Moreover, the presence of nations, such as China and India, who are also the largest consumers of polycarbonate diols in the region, is also anticipated to drive the growth of the market in the Asia Pacific region. Korea, on the other hand, accounted for the largest exporter of polycarbonates globally. According to the trade statistics of the International Trade Centre, China accounted for the largest share of 34.42% globally for the imports of polycarbonates in the year 2019, whereas the Republic of Korea recorded a share of 14.15% globally for the exports of polycarbonates the same year. Such factors are anticipated to drive the growth of the polycarbonate diols market in the region throughout the forecast period.
North American Market Forecast
The North American polycarbonate diols market, amongst the market in all the other regions, is projected to hold the second largest share of about ~22% during the forecast period. The growth of the market can be attributed majorly to the rise in the high adoption of sophisticated technologies, as well as the existence of significant players, which are projected to provide ample prospects for market growth in the region. In addition to this, the surge in construction activities where the utilization of waterborne coatings has been increasing is also estimated to push the market growth further throughout the projected time frame in the region.
Europe Market Forecast
Further, the market in the European region, amongst the market in all the other regions, is projected to hold a considerable share of about ~15% by the end of 2035. The growth of the market can be credited to the significant expanding investment in the chemical industry, along with the remarkably growing demand for vehicle interiors as of the surge in automobile production in the region. Moreover, the rising production of automotive elastomers is also projected to further drive the market growth of polycarbonate diols during the forecast period as these elastomers are highly utilized in the manufacturing of tires, automotive seals, and gaskets.
Mitsubishi Chemical Corporation's biomass-based polycarbonate diol (PCD) BENEBiOL has been certified as a bio-based product under the BioPreferred Program of the United States Department of Agriculture (USDA). This program is aimed to magnify the market horizon for bio-based products.
UBE Corporation has begun the third expansion of its polycarbonate diol (PCD) production facilities at one of its Thailand-located subsidiaries. The facility is estimated to commence operations in August 2023, and it is intended to increase the manufacturing capacity from 8,000 tons to 12,000 tons annually.
Author Credits: Smruti Ranjan, Rajrani Baghel
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