Polycarbonate Diols Market Trends

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

• Presence of Bisphenol (BPA) in Polycarbonate Diols – Polycarbonate diols have a presence of bisphenol (BPA), which is an ecologically harmful compound that causes health effects on the brain and prostate gland of infants, fetuses, and children. Moreover, BPA is known to disrupt normal hormone levels in human beings and is also known to cause cancer. Such factors are therefore anticipated to hamper the market growth during the forecast period.

• Expensive Than Conventional Polyols

• Lack of Unified Ordinances Regarding the Applications of Polycarbonate Diols