Propylene Carbonate Market Size & Analysis for North America, Europe, APAC, South America, Middle East and Africa - US, UK, France, Germany, China – 2025-2029

Propylene Carbonate Market Size 2025-2029

The global propylene carbonate market is expected to grow by USD 50-150 million at a CAGR of 4%-7% during the forecast period. Exact values for this market can be accessed upon purchasing the report. This market growth is primarily driven by the increasing demand for propylene carbonate, particularly due to its use in lithium-ion batteries, which are widely employed in electric vehicles (EVs) and portable electronic devices. The product’s adoption across industries like paints, coatings, pharmaceuticals, and cosmetics, as well as its eco-friendly properties, is significantly contributing to the overall propylene carbonate consumption. The expanding propylene carbonate applications are further supported by its versatility in other sectors, such as energy storage systems and renewable energy technologies. As more industries turn to sustainable solutions, the uses of propylene carbonate continue to grow. However, challenges such as raw material price volatility and competition from alternative solvents could impact propylene carbonate pricing and, by extension, its market demand.

On the production side, propylene carbonate production is benefiting from technological advancements in manufacturing methods, which enable the production of more cost-effective and sustainable solutions. Propylene carbonate technology has seen improvements that enhance its overall performance and lower production costs, offering opportunities for suppliers to remain competitive. The landscape of the propylene carbonate industry is also evolving, with suppliers focusing on meeting the increasing demand in high-growth sectors. As new propylene carbonate suppliers enter the market, innovation and strategic investments in propylene carbonate opportunities are expected to shape the future growth of the market. Despite challenges, these opportunities provide a pathway for expansion in the global propylene carbonate market.

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How is this Market Segmented?

The market report provides insights into several key segments, with detailed forecasts and historical data for the following areas:

Application

• Solvent
• Electrolyte
• Catalyst
• Additives
• Cleaners
• Others

End-Use

• Paints & Coatings
• Pharmaceuticals
• Cosmetics & Personal Care
• Textile
• Energy & Power
• Mining
• Others

Geography

• North America
  • U.S.
  • Canada
  • Mexico
• APAC
  • China
  • India
  • Japan
  • South Korea
• Europe
  • Germany
  • UK
  • France
• South America
  • Brazil
• Middle East and Africa

Application Insights

In 2024, solvents dominated the propylene carbonate market. This segment is expected to grow at the fastest rate from 2025 to 2029, driven by the widespread use of propylene carbonate in paints, coatings, adhesives, and sealants. It is particularly favored in high-performance formulations due to its excellent solvency power and low volatility. Additionally, the electrolyte application is experiencing growth, particularly in lithium-ion batteries and supercapacitors.

End-Use Insights

The paints and coatings segment accounted for the largest revenue share in 2024. The increasing use of propylene carbonate in waterborne coatings, automotive, aerospace, and industrial applications is driving demand. The pharmaceutical segment is also growing at a strong pace, with propylene carbonate serving as a safe solvent in formulations.

Regional Analysis

North America is expected to grow at a significant pace due to stringent environmental regulations and increasing demand in industries such as automotive and pharmaceuticals.

Asia Pacific led the market in 2024, primarily due to rapid industrialization and government initiatives for clean energy solutions, especially in China, Japan, and South Korea.

Europe is witnessing rising demand for propylene carbonate, driven by eco-friendly policies and its widespread use in electric vehicle batteries and industrial applications.

Market Dynamics

What are the Key Market Drivers?

• Rising Demand for Lithium-Ion Batteries – The increasing adoption of electric vehicles and portable electronic devices is one of the key drivers for propylene carbonate in battery applications.
• Environmental Regulations – The shift toward more sustainable chemicals in industries such as automotive and pharmaceuticals is fueling market growth.
• Growth of Renewable Energy Technologies – Increasing investments in renewable energy storage systems present new opportunities for propylene carbonate in energy storage applications.

What are the Market Trends Shaping the Propylene Carbonate Market?

• Adoption in Green Applications – There is an increasing demand for eco-friendly chemicals, as industries such as paints and cosmetics seek safer alternatives to traditional solvents.
• Technological Advancements – Improved production techniques and the development of cost-effective processes are expected to drive down prices and enhance market competitiveness.

What Challenges Does the Propylene Carbonate Market Face?

• Raw Material Price Volatility – Fluctuating prices of propylene and other raw materials pose challenges for manufacturers.
• Competition from Alternative Solvents – Propylene carbonate faces competition from other solvents with comparable performance, which could hinder market expansion.

Key Companies & Market Insights

Key players in the propylene carbonate market include:

• LyondellBasell 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
• Balaji Amines
• Clariant AG
• ExxonMobil Chemical
• Solvay S.A.
• Mitsubishi Chemical Corporation

These companies are implementing strategies such as strategic alliances, mergers and acquisitions, and geographic expansion to enhance their market presence. Additionally, companies are focusing on R&D to develop more sustainable production processes and meet the growing demand for environmentally friendly products.

Market Scope

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