Propylene Carbonate Market Size – By Purity, Application, End Use Industry Analysis, Share, Growth Forecast, 2025- 2034

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. Propylene carbonate is a biodegradable organic solvent with excellent solvency power and low volatility, widely used in industrial applications. Its chemical stability and eco-friendly profile make it valuable in various sectors.
 

The rising demand for propylene carbonate as a solvent in lithium-ion batteries for electric vehicles (EVs) is a major driver of market growth. EV adoption is increasing globally due to the shift towards greener transportation. Propylene carbonate, used in battery electrolytes, ensures effective ion conductivity and thermal stability, enhancing battery performance and lifespan. This aligns with the market's push for reliable and efficient energy storage solutions. In the cosmetics industry, the move towards sustainable and eco-friendly formulations has increased the use of propylene carbonate. 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.
 

Similarly, the oil and gas sector benefits from propylene carbonate's use in removing CO? and sulphur compounds from natural gas. Its effectiveness in gas treatment aligns with growing environmental regulations requiring cleaner fuel processing. These applications highlight the solvent's adaptability across industries, driving the market forward.
 

Propylene Carbonate Market Trends

The global market is experiencing significant trends due to advancements in industrial and environmental applications. The move toward green chemistry has increased the use of propylene carbonate as a biodegradable and non-toxic solvent in coatings and adhesives, meeting strict environmental regulations. Its role in improving industrial cleaning agents is also growing because of its excellent solvency and compatibility with various formulations.
 

Another important trend is the focus on circular economy practices, leading manufacturers to create bio-based and sustainable versions of propylene carbonate for eco-friendly industries. The electronics sector is increasingly using propylene carbonate in thermal management systems and capacitors due to its great dielectric properties. Additionally, regional markets in Asia-Pacific, especially China and India, are experiencing strong demand, driven by rapid industrialization and growth in sectors like automotive, construction, and consumer goods.
 

The global propylene carbonate market faces significant challenges due to fluctuations in raw material prices, which directly impact production costs and profit margins for manufacturers. Propylene carbonate comes from propylene oxide, a petrochemical product whose pricing is influenced by crude oil volatility and global supply chain dynamics. This unpredictability creates cost pressures across the market.
 

Additionally, competition from alternative solvents, such as ethylene carbonate and dimethyl carbonate, which are often more cost-effective, threatens market share. These substitutes are gaining traction in applications like coatings and lithium-ion batteries, adding pressure on propylene carbonate manufacturers to innovate and offer value-added solutions. Furthermore, stringent regulations on chemical usage and emissions in developed regions may restrict market expansion, necessitating compliance-related investments.
 

Propylene Carbonate Market Analysis

Based on purity, the 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. This segment is in high demand for applications that require high purity, such as lithium-ion battery electrolytes, high-performance coatings, and advanced pharmaceutical formulations. The high purity level ensures better chemical stability and performance, making it ideal for industries with strict quality standards.
 

The growing demand for electric vehicles and energy storage systems also boosts the use of high-purity propylene carbonate. Additionally, advancements in purification technologies improve production efficiency and meet rising market expectations. With increasing investments in premium applications, the "More than 99%" purity segment is expected to maintain its leading position in the market.
 

Based on application, the propylene carbonate 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. Propylene carbonate's excellent solvency, low volatility, and eco-friendly nature make it a preferred alternative to traditional solvents, especially in environmentally conscious applications. In the coatings and adhesives industry, it improves product performance and sustainability.
 

Additionally, its role in lithium-ion battery electrolytes significantly contributes to the segment's growth, aligning with the global shift toward renewable energy and electric vehicles. With increasing regulatory emphasis on greener chemical solutions, the solvent segment is expected to maintain its leadership in the propylene carbonate market.
 

Based on end use industry, the market is segmented into paints and coatings, cosmetics, textiles, energy & power, mining and others. In 2024, paints and coatings industry generated USD 124.5 million. Propylene carbonate acts as a solvent and viscosity regulator in paints and coatings, improving application performance and stability. Its eco-friendly nature and low volatility make it ideal for water-based and high-performance coatings. The growing demand for durable and sustainable coatings in construction, automotive, and industrial sectors further boosts its use.
 

As regulations on volatile organic compounds (VOCs) tighten, propylene carbonate becomes a preferred greener alternative. Additionally, advancements in coating technologies and a booming global infrastructure sector strengthen this segment's dominance.
 

In 2023, the U.S. market achieved a revenue of USD 89.1 million, largely due to its extensive use in solvents, lithium-ion batteries, and coatings. This growth is driven by the rising preference for sustainable solvents in the paints and coatings sector and innovations in battery technologies. The U.S. market benefits from robust R&D investments and a strong foothold in the energy storage and automotive industries, increasing the demand for high-purity propylene carbonate.
 

North America's propylene carbonate market, predominantly driven by the U.S., is growing due to its expanding applications across various sectors. A regulatory push for eco-friendly solutions, paired with surging investments in electric vehicle infrastructure and green technologies, amplifies demand in the region.
 

Propylene Carbonate Market Share

In the global market, key players like BASF SE and Huntsman Corporation compete on product quality, pricing, and differentiation. BASF, a leader in chemical production, enhances its portfolio with high-purity propylene carbonate for coatings and batteries. Huntsman Corporation, known for its diverse chemical products, focuses on innovation and strategic pricing to gain market share. Both companies also improve their distribution networks to expand globally, emphasizing sustainable and eco-friendly solutions to meet regulatory standards. As demand grows for advanced applications in energy storage and green technologies, competition among these companies intensifies.
 

Propylene Carbonate Market Companies

Major players operating in the propylene carbonate industry are:

• 3N composites
• BASF SE
• CDH Fine Chemical
• Dhalop Chemicals
• Empower Materials
• Huntsman Corporation
• LyondellBasell
• Merck
• Shandong Depu Chemical
• SMC-Global
• Tokyo Chemical Industry      
   

Propylene Carbonate Industry News

• In October 2024, Skoltech scientists revealed why ethylene carbonate interacts differently with graphite anodes in lithium-ion batteries compared to propylene carbonate. This discovery addresses early corrosion issues and is expected to advance innovations in energy storage, as published in the Journal of Materials Chemistry.
   
• In November 2022, LyondellBasell evaluated an expansion of its propylene production capacity at the Channelview Complex near Houston, TX. The expansion aimed to build a new facility using existing technology to convert ethylene into propylene for various product applications.
   

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

• Less than 98%
• 98% to 99%
• More than 99%

Market, By Application

• Solvent
• Cleaners
• Binder
• Electrolyte
• Plasticizer
• Others

Market, By End Use Industry

• Paints and coatings
• Cosmetic
• Textiles
• Energy & power
• Mining
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa