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Base Year: 2024
Companies covered: 11
Tables & Figures: 240
Countries covered: 18
Pages: 310
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Propylene Carbonate Market
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Propylene Carbonate Market Size
The global propylene carbonate market was valued at USD 415.4 million in 2024 and is estimated to grow at a CAGR of over 5.7% from 2025 to 2034.
With great volatility and superior solvency power, propylene carbonate is an organic solvent with high biodegradability. This makes it used in a variety of industries. Additionally, it is highly valued because of its chemical stability and eco-friendly properties.
The market's increasing demand of proplylene carbonate to be used as a solvent in lithium-ion batteries for mobile electric vehicle (EVs) is one of the leading factors of market growth. There is more and more global adoption of EV because of green energy. Propylene carbonate is used in battery electrolytes to ensure effective ion conductivity as well as thermal stability of the battery which improves its performance and lifespan.
This coincides with the market’s need for reliable and efficient energy storage solutions. In the cosmetic industry, there is an increasing use of propylene carbonate due to the movement towards make up that is more sustainable and eco-friendlier. As a solvent and viscosity regulator, it helps develop non-toxic, high-performance cosmetic products. The growing consumer preference for environmentally conscious personal care items is driving demand.
Propylene Carbonate Market Trends
The changing industrial and environmental applications of propylene carbonate have significantly impacted the global propylene carbonate industry. The transition to green chemistry has increased the demand for propylene carbonate since it is a biodegradable and nontoxic solvent ideal for coatings and adhesives. This further enhances environmental compliance. It is also increasingly being used for formulating industrial cleaning agents.
Another emerging trend is the adoption of principles of circular economy which has made it necessary for manufacturers to produce propylene carbonate in an environmentally friendly manner. The electronics industry is also rapidly increasing their use of propylene carbonate in thermal management systems and capacitors because of its superb dielectric strength. At the same time, the regional markets in Asia-Pacific, and more importantly China and India, are rapidly industrializing and growing in automotive, construction and consumer goods. This is creating strong demand in the area.
Propylene Carbonate Market Analysis
Issues with fluctuating raw material costs which impact manufacturing profit margins and production expenses pose notable threats to the global propylene carbonate industry on the whole. The pricing of propylene carbonate is like propylene oxide and is influenced by factors such as the supply chain on a global scale and crude oil price changes. The costs suppressive nature ultimately leads to strain being placed across the market.
Moreover, other solvents like Dimethyl carbonate and Ethylene carbonate are able to capture the marketplace as they tend to be more economical and pose competition as well. Because of these substitutes, innovation alongside advancement propositions are being put into large amounts of mitigatory pressure for the coatings and lithium-ion battery markets, among other wide scales industries where these solutions are relevant. Additionally, the chemical’s emission and usage regulations observed in developed regions tend to be harsh and consequently result in stunted market growth, and investment on compliance does become a necessity.
Based on purity, the propylene carbonate market is segmented into less than 98%, 98% to 99% and more than 99%. In 2024, the "more than 99%" purity segment led the market, generating USD 201.1 million in revenue. Such high purity segments are requisitioned for lithium-ion battery electrolytes, advanced grade pharmaceutical formulations, and high-performance coatings. Strict industry quality standards call for chemical compliance and performance, hence the need for superior chemical stability to be safeguarded by those high pure level standards.
Increased energy storage systems along with a boost in demand for electric vehicles further enhance the high purity propylene carbonate industry. The development of purification technologies leads to enhanced productivity and satisfaction of growing market needs. The ‘More than 99 Percent’ purity collection is projected to maintain its leading market share with increasing investment in premium applications.
Based on application, the market is segmented into solvent, cleaners, binder, electrolyte, plasticizer and others. In 2024, the solvent application segment led the market with a 39.1% share. This dominance is due to its widespread use in industries like electronics, coatings, and pharmaceuticals. The low volatility and environmental friendliness of propylene carbonate as a traditional solvent alternative make it an outstanding contender for eco-conscious options. Additionally, it enhances product performance and sustainability in the adhesives and coatings industry.
The market is divided further according to end use industry into paints and coatings, cosmetics, textiles, energy and power, mining and other. In 2024, the paints and coatings industry generated USD 124.5 million. Propylene carbonate's bye products such as the solvent and viscosity regulator in paints and coatings applications increases performance and application’s stability. It’s eco-friendly and low predictive ability makes it suitable for high-performance water-based coatings. In construction, automotive, and industrial sectors, propylene carbonate is heavily in demand due to its ultra durability and sustainable attributes.
In 2024, the U.S. propylene carbonate market achieved a revenue of USD 89.1 million, largely due to its extensive use in solvents, lithium-ion batteries, and coatings. This development stems from an increasing shift towards sustainable solvents in the paints and coatings industry and evolving technologies in batteries. The US has a huge advantage in this market due to the significant investment in research and development as well as the strong position in the energy storage and automobile industries which enhances the supply of high purity propylene carbonate.
With the expanding utilization of propylene carbonate in more US segments, the market in North America, which, at large, is directed by the United States, is expected to grow. Eco-friendly and green technology solutions, which in the recent past were strong restraining factors to investment in electric vehicles and their infrastructure, are now driving the investment in the region.
Propylene Carbonate Market Share
Some of the players in the propylene carbonate business are BASF SE and Huntsman Corporation which compete on product price and product quality and range. BASF adds to its collection new products such as high purity propylene carbonate for use in coatings and batteries. Huntsman Corporation, dealing in numerous types of chemicals, is a player with a big focus on research and altering prices to expand its small market base. All of them, however, are expanding their distribution networks to become more international and meet regulations by providing sustainable and green solutions. As the market for new advanced energy storage and green technology solutions widens, the focus from all these companies will widen.
Propylene Carbonate Market Companies
Major players operating in the propylene carbonate industry are:
Propylene Carbonate Industry News
The propylene carbonate market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) & volume (Kilo Tons) from 2021 to 2034, for the following segments:
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Market, By Purity
Market, By Application
Market, By End Use Industry
The above information is provided for the following regions and countries: