Polymer Dispersed Liquid Crystal (PDLC) Market Trends

Growth Drivers

• Surging adoption in smart buildings and energy-efficient infrastructure: The growing concern towards green buildings and energy saving in buildings is seen as the reason behind the uptake of PDLC technology in smart windows and light control films. As people become more urbanized and energy costs continue to rise, there is a need for smart glazing solutions that control natural light, privacy, and insulation. In September 2023, Toppan released a new PDLC-based light control film, which addresses the need for energy efficiency in commercial and residential buildings. This complies with the sustainability requirements to minimize the usage of artificial light and air conditioning, hence making PDLC an important part of smart infrastructure solutions.
• Increasing use of PDLC in automotive applications: The automotive industry is increasingly adopting PDLC technology for luxury cars and electric vehicles (EVs), in sunroof, side window, and rear glass applications. These functions are useful for privacy, control of glare, and improving the comfort of the driver and the passenger. In September 2023, AGC released Digital Curtain light control glass, where PDLC was used by Toyota on its Century model, thus enhancing PDLC’s position in the luxury automobile market. The PDLC-based smart glass is used by automakers in an attempt to improve the appearance of the vehicle interiors while at the same time providing passengers with a comfortable and relaxing environment. To meet the automotive energy efficiency standards, these factors are likely to fuel the polymer dispersed liquid crystals (PDLC) market growth.
• Rising demand for PDLC-based consumer electronics: In the consumer electronics segment, the uses of PDLC in interactive displays, smart mirrors and foldable devices are on the rise. With the shift towards smart and efficient devices, PDLC technology is seen as an ideal solution for the next generation of display solutions. According to the press release by Gauzy Ltd. in July 2024, the company registered growth in revenues due to the growing demand for PDLC in commercial and consumer electronics. High-quality PDLC films, which are characterized by faster response times, increased durability, and improved light diffusion, are expected to ensure long-term continued use in smart consumer devices.

Challenges

• Regulatory challenges and environmental restrictions: Authorities are putting pressure on the use of chemical compounds in the manufacturing of PDLC films, especially toxic ones. As the world shifts towards sustainability, the demand for lead-free and environmentally friendly PDLCs is very pressing. In November 2023, the European Chemicals Agency made amendments to the restriction on the use of lead in some of the electronic parts affecting the composition of PDLC materials. This has resulted in increased costs and time taken to bring new products to polymer dispersed liquid crystals market for manufacturers who are in the process of finding sustainable PDLC substitutes.
• Supply chain disruptions impacting production: The PDLC industry relies on a number of specific materials, such as liquid crystals, polymer films, and conductive coatings. Disruptions of the supply chain due to geopolitics, trade barriers, and scarcity of materials are increasing the cost of manufacturing and lengthening lead times for delivery. While manufacturers are keen on expanding their supplier base to hedge risks, they find that polymer dispersed liquid crystals market volatility affects prices and supply consistently. Fluctuating raw material supply remains a major issue that affects the ability of firms to expand the production of PDLC for automotive, architectural, and consumer markets.