The market for polyphenylene is expected to register a CAGR of about 5% during the forecast period. Major factors driving the market studied are the increasing demand for hybrid electric vehicles and its growing usage in the electrical and electronics industry. On the flip side, a slowdown in the global conventional automotive production and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- Applications in 5G circuit boards are expected to offer various opportunities for the growth of the market.
- The automotive and transportation segment is likely to dominate the market, owing to the growing demand for hybrid vehicles.
- Asia-Pacific is expected to dominate the market, with the largest consumption from China, Japan, South Korea, and India.
Key Market Trends
Increasing Demand from Automotive and Transportation Segment
- Polyphenylene is processed into its derivatives, like polyphenylene sulfide (PPS), polyphenylene oxide (PPO), and polyphenylene ether (PPE). Polyphenylene derivatives are preferred in electric auto parts that require higher temperature stability.
- In recent years, PPS successfully replaced metal, aromatic nylons, phenolic polymers, and bulk molding compounds in a wide variety of engineered vehicle components.
- Polyphenylene derivatives become the ideal choice for automotive parts that are exposed to high temperatures. These can provide high strength while being light in weight. These are used in vehicle components, like electrical connector, ignition system, lighting system, fuel system, hybrid vehicle inverter components, and piston.
- Growing demand for hybrid vehicles in the automotive sector may also ensure the demand for polyphenylene.
- The growing aerospace industry is also expected to increase the demand for polyphenylene and its derivatives.
Asia-Pacific to Dominate the Market
- Asia-Pacific represents the largest market for polyphenylene. In countries, like China, Japan, South Korea, and India, the demand for polyphenylene has been increasing due to the established industrial base in the region.
- Asia-Pacific is also expected to be the fastest-growing market during the forecast period, with increasing demand from industries, like automotive and transportation, and electrical and electronics. Even though the Chinese automotive market declined in 2019, the electric vehicle segment witnessed huge growth.
- In the Asia-Pacific region, the governments have adopted favorable policies toward the adoption of electric vehicles and the expansion of manufacturing infrastructure pertaining to electric vehicles. This, in turn, is anticipated to provide a huge impetus to the electric vehicle market in the region, during the forecast period. Increasing standards of living in Asian countries have also led to increased awareness among the people for electric and hybrid vehicles.
- The Asia-Pacific region is also the dominant producer of electrical and electronics across the world, with countries, such as China, Japan, South Korea, and Malaysia, contributing toward it. India is also emerging as a manufacturing hub for electronic products in Asia . This established industry is expected to attract demand for polyphenylene and its derivatives from the region.
- Polyphenylene derivatives, like polyphenylene sulfide (PPS), are used as electrical and electronics components in connectors, coil formers, bobbins, terminal blocks, relay components, moulded bulb sockets for electrical power station control panels, brush holders, motor housings, and thermostat parts and switch components.
- Some of the major companies operating in the Asia-Pacific region are DIC Corporation and Kureha Corporation.
- Thus, rising demand from the aforementioned end-user industries is expected to drive the growth in the Asia-Pacific region.
The polyphenylene market is partially consolidated with the presence of both international and domestic players. The major companies include Ensinger, Solvay SA, SABIC, Celanese Corporation, and DIC Corporation.
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