Propylene Carbonate Market Overview

The global propylene carbonate market was valued at USD 393.1 million in 2023 and is projected to reach USD 610.9 million by 2030, growing at a CAGR of 5.6% from 2024 to 2030. This growth is primarily driven by the increasing demand for lithium-ion battery products.

Propylene carbonate serves as an electrolyte solvent in lithium-ion batteries due to its high boiling point, chemical stability, and low toxicity. The rapid expansion of the electric vehicle (EV) industry, along with the growing demand for portable electronic devices, is expected to further accelerate market growth in battery applications.

In addition, industries such as paints, coatings, and pharmaceuticals are increasingly adopting propylene carbonate owing to its environmentally friendly properties. It is considered less hazardous than many conventional solvents, which makes it attractive in sectors facing stringent environmental regulations.

The compound is also used as a solvent and carrier in cosmetics and personal care products, enhancing product stability and solubility. As disposable incomes rise and consumer interest in premium personal care products grows, the demand for propylene carbonate is expected to increase correspondingly.

Moreover, the development of eco-friendly production methods and the sustainable sourcing of raw materials are contributing to the product’s adoption among environmentally conscious industries and consumers. However, fluctuations in raw material prices may affect production costs and profit margins, posing a challenge for manufacturers to maintain consistent pricing and profitability.

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The market also faces competition from alternative solvents and materials that may offer similar or superior performance. Competitive pricing and technological advancements in substitute products could limit market expansion in specific applications.

Nonetheless, growing investments in renewable energy infrastructure present new opportunities for propylene carbonate, particularly in energy storage systems for renewable energy technologies such as solar and wind power. Additionally, innovations leading to more efficient and cost-effective production methods could enhance product quality, reduce costs, and stimulate overall market growth.

Key Market Trends & Insights

  • Asia Pacific dominated the market with a 34.6% revenue share in 2023.
  • The U.S. market is projected to grow at a CAGR of 5.7% during the forecast period.
  • Based on application, the solvent segment led the market with a 37.5% revenue share in 2023.
  • Based on end use, the paints & coatings segment accounted for the largest share of 27.2% in 2023.

Market Size & Forecast

  • 2023 Market Size: USD 393.1 Million
  • 2030 Projected Market Size: USD 610.9 Million
  • CAGR (2024–2030): 5.6%
  • Largest Regional Market (2023): Asia Pacific

Key Company Insights

BASF SE and Huntsman International LLC are among the leading players in the global propylene carbonate market.

  • BASF SE, headquartered in Germany, operates across six business segments: chemicals, surface technologies, materials, nutrition & care, industrial solutions, and agricultural solutions. The company manufactures a broad range of products, including those derived from mineral and natural oils, specialty emulsions, organosilicon-based solutions, and silicone-free and star-polymer defoamers.
  • Huntsman International LLC, a multinational chemical company, produces polyurethanes, performance products, and advanced materials. It has operations in more than 100 countries, with production facilities in 69 of them.

Emerging market participants include Central Drug House and Tokyo Chemical Industry Co., Ltd. (TCI).

  • Tokyo Chemical Industry Co., Ltd. (TCI) manufactures specialty chemicals used in pharmaceuticals, cosmetics, and laboratory research. The company operates across Europe, Asia Pacific, and North America, offering a diverse product portfolio including organic reagents, materials science products, and chromatography columns.
  • Central Drug House specializes in dehydrated culture media and laboratory fine chemicals, with a global distribution network supported by numerous dealers and stockists.

Leading Propylene Carbonate Companies

  • 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

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Conclusion

The propylene carbonate market is on a steady growth trajectory, driven by the increasing use of lithium-ion batteries, expanding EV production, and rising demand from the personal care and coatings industries. Its environmentally friendly profile and versatility across multiple applications make it a preferred solvent in sectors subject to strict regulatory standards.

Although challenges such as raw material price volatility and competition from alternative solvents persist, innovations in sustainable production and growing renewable energy investments are expected to create significant opportunities. By 2030, the market’s expansion to USD 610.9 million underscores its promising future in the evolving global chemical landscape.