Propylene Carbonate Market Size, Share and Trends 2024 to 2034

Propylene Carbonate Market Size and Forecast 2024 to 2034

The global propylene carbonate market size is anticipated to reach around USD 732.15 million by 2034 from USD 423.78 million in 2024, at a CAGR of 5.62% from 2024 to 2034. Increasing demand for portable electronic devices and expanding electric vehicle (EV) market is expected to boost the propylene carbonate market.

Propylene Carbonate Market Key Takeaways

• Asia Pacific dominated the global propylene carbonate market with the largest market share of 36% in 2023.
• North America is expected to grow at a significant rate in the market over the projected period.
• By application, the solvent segment contributed more than 38% of market share in 2023.
• By end use, the paints & coatings segment generated the highest market share of 29% in 2023.
• By end use, the pharmaceutical segment is expected to grow at the fastest rate in the market over the forecast period.

Asia Pacific Propylene Carbonate Market Size and Growth 2024 to 2034

The Asia Pacific propylene carbonate market size was exhibited at USD 144.44 million in 2023 and is projected to be worth around USD 267.23 million by 2034, poised to grow at a CAGR of 5.75% from 2024 to 2034.

Asia Pacific dominated the global propylene carbonate market in 2023. The growth of the market in the region can be linked to the increasing demand for propylene carbonate driven by technological advancements and rapid industrialization in countries like China, Japan, and South Korea. China is witnessing robust growth due to the growth in methyl ethyl carbonate production and EV battery manufacturing.

• In September 2022, Rare Beauty, a cosmetics and personal care brand founded by Selena Gomez, announced the launch of a new collection of blush products. The liquid blush products launched in this range contain propylene carbonate.

North America is expected to grow at a significant rate in the propylene carbonate market over the projected period. This growth is supported by strict environmental regulations and a rising preference for sustainable chemical solutions. Moreover, The U.S. is experiencing notable growth driven by increasing demand for propylene carbonate in the cosmetics, automotive fluids, and pharmaceuticals industries.

Top 10 CO2-emitting countries in the world (Total CO2 in Mt)

Market Overview

Propylene carbonate is a colorless organic liquid compound created by the reaction of propylene oxide. and carbon dioxide. It has a molecular weight of 102.089 g/mol and molecular formula C4H6O3. Its boiling point ranges from 235°C to 245 0 °C, and its IUPAC name is 4-methyl-1,3-dioxolan-2-one. It contains characteristics such as low decomposition temperature, non-corrosiveness, and superior adhesion. It also serves as an oxygen barrier and high flash point. By using the process called transesterification, propylene carbonate can be transformed into carbonate esters.

Role of AI in the Propylene Carbonate Market

Artificial intelligence (AI) can play a crucial role in enhancing the current propylene carbonate market by opening the doors for new conversion opportunities along with optimizing efficiency and site performance based on changing norms. Furthermore, AI can quickly process and analyze large databases, react to real-time feedback, and manage interconnected systems' efficeilty. AI can also stimulate the vast potential of many catalyst chemistries.

• In October 2023, a new satellite known as MethaneSAT beamed its first megabyte of data to Earth, where scientists stand ready with advanced modeling and machine learning artificial intelligence to pinpoint and measure emissions from leaking oil and gas production sites worldwide. Additionally, Carbon Mapper's data will be used to inform actions to reduce these potent greenhouse gases as well as support initiatives like Climate TRACE.

Propylene Carbonate Market Growth Factors

• The increase in demand for paints & coatings is expected to drive the growth of the propylene carbonate market.
• The rising use of propylene carbonate in industrial processes.
• Growing demand for green energy in response to environmental concerns.
• The key factor driving market growth is the growing demand for lithium-ion battery products.

Market Scope

Market Dynamics

Driver

Rising demand from the pharmaceutical industry

The global pharma industry is thriving, and the propylene carbonate market plays an assisting role in those advancements. Propylene carbonate is a great solvent with excellent solubility properties for active pharmaceutical ingredients (API) in different drug delivery systems. Additionally, the requirement for propylene carbonate is expected to rise in sync with the increasing demand for innovative medicines by major pharmaceutical companies.

• In September 2022, Balaji Amines received the environmental clearance & MPCB permission in the form of consent to operate for the newly set up plant in MIDC, Chincholi, Solapur. The company has started commercial production of dimethyl carbonate (DMC) / propylene carbonate (PC) and propylene glycol (PG) from this plant with an effective installation capacity of 15,000 MTPA for each product.

Restraint

The requirement for high initial investment

The high costs involved in the primary stage of production are anticipated to create a challenge in the propylene carbonate market as it becomes harder for the population with middle-revenue startups to include pressure-sensitive adhesives in the utilization of varied processes.

Opportunity

Diversification of applications

The propylene carbonate market is increasing beyond lithium-ion batteries and solvents in terms of end-user application. Propylene carbonate is utilized in numerous industries because of its key qualities, such as its ability to produce miscibility with a wide range of chemicals and its strong solvency power. Furthermore, due to its nonirritating properties and gentle nature, it can also be used in the cosmetic industry and as a cleaning agent in the electronics industry.

• In January 2023, Braskem, the largest polyolefins producer in the Americas, announced a project to evaluate an investment in producing carbon-negative bio-based polypropylene (PP) in the U.S. The project will utilize Braskem's proven, proprietary technology to convert bioethanol into physically segregated bio-based polypropylene. Braskem is exploring partnership opportunities for this project with several clients, brand owners, and suppliers.

Application Insights

The solvent segment led the propylene carbonate market in 2023 and is expected to grow at the fastest rate over the forecast period. The growth and dominance of the segment can be attributed to the increasing use of propylene carbonate as a solvent in many products, such as paints, coatings, adhesives, and degreasers. Moreover, the product is extensively utilized as a solvent in coatings and paints due to its low volatility, high solvency power, and capability to dissolve a wide range of resins and pigments.

The utilization of this product as a solvent in sealant formulations and adhesives helps enhance the flexibility, adhesion strength, and moisture resistance of adhesives, which makes it suitable for construction, automotive, and electronics applications.

• In August 2023, Tesla signed an agreement with Eastman Chemical to provide propylene carbonate for use in electric vehicles. The agreement spans multiple years.

End-use Insights

The paints & coatings segment dominated the propylene carbonate market in 2023. The growth of the segment can be linked to the rising utilization of solvents in adhesive promoters and formulations in this industry. Propylene carbonate is widely used as a solvent in coatings and paint formulations, particularly in high-performance and waterborne coatings. Also, as an adhesive promoter, it helps in improving flexibility, adhesion properties, and coating integrity, especially in aerospace and automotive applications.

The pharmaceutical segment is expected to grow at the fastest rate in the propylene carbonate market over the forecast period. This is due to the growing use of propylene carbonate in pharmaceutical formulations due to its low toxicity and solvency. Additionally, increasing aging populations and growing healthcare spending are expected to fuel the demand for this product in the pharmaceutical industry.

Recent Developments

• In August 2023, headed in the United States, Tesla initiated a significant partnership. The company signed a multi-year agreement with Eastman Chemical, marking a milestone in its commitment to sustainable transportation. This collaboration aims to leverage Eastman Chemical's expertise in providing propylene carbonate for use in electric vehicles, further solidifying Tesla's position in the electric vehicle industry.
• In November 2022, LyondellBasell announced that it will build a new propylene oxide plant in Houston, Texas. The plant is expected to be completed in 2025 and will have a capacity of 1.5 million tons per year.
• In March 2022, Merck KGaA announced the launch of a new grade of ethylene carbonate, known as ‘Luminata EC-HV,’ which is specifically designed for high-voltage lithium-ion batteries. The product offers improved performance and safety characteristics, catering to the increasing demand for advanced battery technologies in electric vehicles and energy storage systems.
• In January 2022, BASF SE announced the expansion of its production capacity for ethylene carbonate at its Ludwigshafen site in Germany. The expansion aims to meet the growing demand for high-quality ethylene carbonate in various industries, including electronics, automotive, and energy storage.

Propylene Carbonate Market Companies

• Yondell Basell Industries
• Shandong Depu Chemical
• BASF SE
• Empower Materials
• Huntsman International LLC.
• Dhalop Chemicals
• Tokyo Chemical Industry Co., Ltd. (TCI)
• Linyi Evergreen Chemical Co., Ltd.
• Central Drug House
• Carl Roth

Segments Covered in the Report

By Application

• Solvent
• Electrolyte
• Catalyst
• Additives
• Cleaners
• Other Applications

By End-use

• Paints & Coatings
• Pharmaceuticals
• Cosmetics & Personal Care
• Textile
• Energy & Power
• Mining
• Other End Uses

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa