Polycarbonate Diols Market

Polycarbonate Diols: An Overview

Polycarbonate diols are a class of diols that are characterized by their high thermal stability, excellent mechanical properties, and superior chemical resistance. They are commonly used as building blocks for polyurethane (PU) coatings, adhesives, and elastomers, among other applications.

Polycarbonate diols are typically synthesized by the reaction of a diol with a carbonate precursor, such as phosgene or dimethyl carbonate, in the presence of a catalyst. The resulting polymer has a linear structure with alternating carbonate and diol units, giving it a unique combination of properties.

One of the main advantages of polycarbonate diols is their high thermal stability, which makes them suitable for use in high-temperature applications. They also exhibit excellent mechanical properties, including high tensile strength and good impact resistance. In addition, polycarbonate diols are highly resistant to chemical degradation, making them ideal for use in harsh chemical environments.

Polycarbonate diols are commonly used in the production of PU coatings, which are widely used in the automotive, construction, and furniture industries. PU coatings based on polycarbonate diols offer excellent weather resistance, good adhesion, and superior chemical resistance, making them ideal for use in outdoor applications.

In addition to coatings, polycarbonate diols are also used in the production of adhesives and elastomers. PU adhesives based on polycarbonate diols offer excellent adhesion to a wide range of substrates, including metals, plastics, and composites. PU elastomers based on polycarbonate diols exhibit high tensile strength, good elongation, and excellent fatigue resistance.

Market Dynamics of Polycarbonate Diols

Drivers in Polycarbonate Diols Market

One of the major driving factors of the polycarbonate diols market is the growth in demand for water-based polyurethane systems. This is due to the rising consumer awareness of the harmful effects of hazardous air pollutants (HAPs). Nowadays, polyurethane dispersions with very low or zero volatile organic compounds (VOCs) are available in a wide range of hardness and solid content. Additionally, several industries prefer water-based over solvent-based polyurethane systems due to their versatility and superior properties. Governments in developed and developing economies have developed stringent regulations pertaining to the use of solvent-based polyurethane systems, which is expected to drive the solvent-free polyurethane dispersions market. Countries such as the US, China, and European countries are keeping VOCs below 350 g/l to promote environmental consciousness.

Restraints in Polycarbonate Diols Market

On the other hand, the cost of polycarbonate diols is higher than conventional polyether and polyester polyols. This is mainly due to the higher costs of production of polycarbonate diols. While polycarbonate diols are used to impart several properties in polyurethane, such as high hydrolysis resistance, heat resistance, and wear resistance, among others, the high cost is a significant restraining factor for the polycarbonate diols market. Unless there is a demand for high-performance PU products, polyurethane manufacturers are not using these polyols. Therefore, the high cost of polycarbonate diols is a major challenge in the growth of the market.

Opportunity for Polycarbonate Diols Market: Government Regulation for Eco-Friendly Chemicals

Governments are taking steps to regulate the use of eco-friendly chemicals in the specialty chemical industry. China's Ministry of Ecology and Environment has recently imposed stringent regulations similar to REACH, which has resulted in a significant increase in the demand for eco-friendly chemicals in China. In addition, European and North American countries have banned the consumption of solvent-based polyurethane systems and encouraged the use of water-based polyurethane systems. The REACH and Environmental Protection Agency (EPA) are continuously assessing the amount of volatile organic compounds (VOCs) released from various industries, including paints & coatings, leather, and textiles. Major manufacturers present in North America and Europe strictly follow VOC regulations. These regulations provide new opportunities for the growth of eco-friendly chemicals and expand the market spectrum, making it a great opportunity for players in the polycarbonate diols market.

Manufacturers in the polycarbonate diols market are finding opportunities in formulating polyurethane coatings that can resist extreme environmental conditions while ensuring durable high performance. SpecialChem, a provider of chemical materials and related market products, has developed a strong portfolio in polycarbonate diols for durable polyurethane coatings, such as ETERNACOLL® polycarbonate diols, which provide extreme durability to the final polymer.

End-users are also showing a preference for customizable possibilities with polycarbonate diols. Manufacturers are developing compounds that can deploy better gloss retention, abrasion resistance, and water resistance, among others. Polycarbonate diols and polycarbonate-based polyurethane prepolymers are being advertised for achieving excellent water resistance through polyurethane coatings. Manufacturers are increasing their efforts to develop polyurethane coatings with polycarbonate diols that have the potential to withstand extreme humid conditions. These efforts will help the polycarbonate diols market to grow in the future.

Challenges in Polycarbonate Diols Market

One of the significant challenges faced by polyurethane manufacturers is to offer high-performance polyurethane at affordable prices to end-users in a competitive environment. The cost of polycarbonate diols is much higher than conventional polyols, which results in the final product's higher value. To overcome this cost constraint, several polyurethane manufacturers are blending polycarbonate diols with polyester polyols to create tailor-made polyurethane for specific applications.

Among all the applications in the polycarbonate diols market, synthetic leather is expected to dominate the highest revenue share. Polycarbonate diols are used to make leather soft and tough, and the growing fashion and apparel industry has increased the demand for leather jackets, shoes, and other accessories. However, manufacturers often face the challenge of balancing stain resistance to creams and beverages while maintaining the supple feel and flexibility of the leather material. These findings have resulted in revenue opportunities for manufacturers in the polycarbonate diols market.

Polycarbonate diols are used in various applications, such as the manufacture of synthetic leather, paints and coatings, adhesives and sealants, and elastomers. They provide high strength and resistance against water, fire, temperature, and corrosion. However, they contain bisphenol, which is an ecologically harmful compound that can cause severe health effects on the prostate glands and brain of infants. Additionally, bisphenol disrupts normal hormone levels in human beings and can also cause cancer.

Polycarbonate diols provide softness and flexibility to leather finishes and artificial leather coatings. Moreover, they make polyurethane coatings highly resistant to UV rays, heat, chemicals, and water, making the leather material more durable. The major challenge in the polycarbonate diols market is to control the prices of the final products to ensure affordability while maintaining high-performance standards.

Ecosystem of Polycarbonate Diols Market

The polycarbonate diols market's ecosystem is composed of different factors affecting its growth and development. One such factor is the form in which polycarbonate diols are used. According to projections, solid polycarbonate diols will be the fastest-growing segment during the forecast period. This is because solid polycarbonate diols offer high resistance to hydrolysis, oxidation, stain, and wear in polyurethane products compared to other forms like polyether and polyester polyols. The increasing demand for high-performance synthetic leathers is driving the growth of the solid polycarbonate diols market segment.

Another significant factor affecting the polycarbonate diols market is its application. The biggest and fastest-growing application in the polycarbonate diols market is synthetic leather. The shift in the market from natural to synthetic leather is driven by factors such as the supply of raw materials, growing environmental concerns, animal protection, and changes in consumer demand. This has led to a growing demand for high-quality, functional polyurethane from artificial leather manufacturers across the globe.

The Asia Pacific region is estimated to account for the biggest market share in the polycarbonate diols market during the forecast period. The shift of manufacturing bases from developed economies to developing regions, like the APAC, post the global recession in 2008, has resulted in healthy growth in terms of production for the APAC industrial sector. This growth is driving the demand for the polyurethane market, which, in turn, supports the growth of the polycarbonate diols market.

Polycarbonate diols have become increasingly popular in the market for their exceptional hydrolysis resistance, high gloss, and abrasion resistance, making them a preferred choice for metal coatings. Paints & coatings are projected to be the second highest revenue generating application in the polycarbonate diols market due to their ability to offer efficient stain resistance and enhanced performance in wood and leather coatings for flooring, outdoor furniture, and pavement coatings. To this end, polyurethanes produced with polycarbonate diols offer superior properties compared to those made from polyether diol and polyester diol. These include flexibility, high chemical resistance, softness, and high mechanical properties in coatings. Furthermore, polyurethane resins derived from polycarbonate diols exhibit excellent hydrolysis resistance, chemical resistance, abrasion resistance, and heat resistance, among others. Such high-performance polyurethane resins are highly desirable in the production of synthetic or natural leather as they help enhance durability and stain resistance. Therefore, the demand for synthetic leather is expected to drive the polycarbonate diols market during the forecast period. Synthetic leather is water-resistant, soft, fire-resistant, stain-resistant, and highly resistant to abrasions and cuts, making it more durable and a preferred choice for various products.

Dominating Companies in Polycarbonate Diols Market

• UBE INDUSTRIES, LTD.
• MITSUBISHI CHEMICAL CORPORATION
• ASAHI KASEI CORPORATION
• COVESTRO AG
• TOSOH CORPORATION
• DAICEL CORPORATION
• PERSTORP GROUP
• SAUDI ARABIAN OIL COMPANY
• GRR FINE CHEM PVT. LTD.
• CHEMWILL ASIA CO. LTD.
• CAFFARO INDUSTRIE SPA
• CROMOGENIA UNITS S. A.
• GUANGDONG DAZHI ENVIRONMENTAL PROTECTION TECHNOLOGY INCORPORATED COMPANY
• HUBEI JUSHENG TECHNOLOGY CO., LTD.
• KURARAY CO., LTD.
• JIANGSU CHEMICAL INDUSTRY RESEARCH INSTITUTES CO. LTD.
• SUMITOMO BAKELITE CO., LTD.
• QINGDAO HUAYUAN POLYMER CO., LTD.
• ERCA ADVANCED POLYMER SOLUTIONS SRL
• MERCK KGAA

Recent Developments in Polycarbonate Diols Market

In 2020, UBE Industries Ltd., a leading chemical company based in Japan, acquired the polycarbonate diols business of DOMO Chemicals. This acquisition aimed to expand UBE's product offerings and strengthen its position in the global polycarbonate diols market.

In 2019, Covestro, a leading producer of high-performance polymers, acquired the Resins & Functional Materials business of DSM, including its polycarbonate diols portfolio. This acquisition allowed Covestro to expand its product range and strengthen its position in the coatings, adhesives, and specialty chemicals markets.

In 2018, Asahi Kasei Corporation, a leading chemical company based in Japan, formed a strategic partnership with Sinopec, a Chinese petrochemical company, to produce and market polycarbonate diols in China. This partnership aimed to leverage the strengths of both companies and capitalize on the growing demand for high-performance polymers in China.

Also in 2018, Perstorp Holding AB, a specialty chemicals company based in Sweden, acquired Polialcoli Srl, an Italian producer of specialty polyols, including polycarbonate diols. This acquisition aimed to strengthen Perstorp's position in the polyurethane market and expand its product offerings to customers.

In 2021, UBE Industries, a Japanese chemical company, announced a partnership with Thailand's PTT Global Chemical Public Company to expand the production of polycarbonate diols in Asia. The partnership aims to meet the increasing demand for high-performance polyurethane products in the automotive and electronics industries.

In 2020, Covestro, a German-based materials manufacturer, acquired DSM's Resins & Functional Materials business. The acquisition included DSM's polycarbonate diol product line, which complemented Covestro's existing portfolio of polyurethane materials.

In 2019, Asahi Kasei Corporation, a Japanese chemical company, acquired Sage Automotive Interiors, a global supplier of automotive interior materials. The acquisition included Sage's polycarbonate diol product line, which helped to strengthen Asahi Kasei's position in the automotive market.

In 2018, Royal DSM, a Dutch-based materials manufacturer, announced a partnership with Ascend Performance Materials, a US-based chemicals company, to develop and produce high-performance materials for the automotive and electronics industries. The partnership focused on the development of new polycarbonate diols and other high-performance materials.

In conclusion, polycarbonate diols are a versatile class of diols that offer a unique combination of properties, including high thermal stability, excellent mechanical properties, and superior chemical resistance. They are widely used in the production of PU coatings, adhesives, and elastomers, among other applications, and are an important building block for a wide range of high-performance materials.