The liquid crystal polymer (LCP) market stood at around 7,750 tons in 2021, and it is expected to witness a CAGR of over 5.7% during the forecast period (2022-2027).
COVID-19 negatively affected the demand for LCP in 2020 due to the lockdown in various countries and the shutdown of manufacturing plants. However, the market has now been estimated to have reached pre-pandemic levels.
- Over the medium term, the major factor driving the growth of the market studied is the strong demand for smaller and thinner electrical components that must withstand higher temperatures and wear.
- By application, the electrical and electronics segment accounted for the largest share and is also expected to witness the highest CAGR.
- The increasing potential in the fields of medical and home appliances is expected to offer vast opportunities for the growth of the market.
- Asia-Pacific accounted for the largest share, with about 75% of the total volume of the market studied.
Liquid Crystal Polymer Market Trends
Electronics Segment to Witness Fast Market
- Liquid crystal polymer (LCP) is a super engineering plastic with a combination of high strength, modulus and impact properties, flame retardance, resistance to a wide range of aggressive chemicals, very low and tailor-able coefficients of thermal expansion (CTE), excellent dimensional stability, thin-wall flow-ability, and unique processability.
- With the miniaturization trend of many electronic products, manufacturers are streamlining devices to pack more features into smaller packages. For instance, the pitch (spacing) between contacts in electrical connectors is narrower than ever before and as small as 0.2 mm, when compared to older-style power connectors, with pitches exceeding 12.0 mm.
- For the same reasons, LCPs are also injection molded into integrated circuit (IC) sockets, high-frequency (HF) network switches, power modules for wind and solar inverters and converters, custom high-power electrical connectors, and many other precision devices.
- Daily use of electronic equipment, like cell phones, laptops, or tablet PCs, is increasing at a rapid pace. At the same time, these devices are becoming more powerful and inexpensive from generation to generation while decreasing in size and weight. LCP is delivering the properties that permit the successful development of the miniaturization of electrical equipment.
- The revenue in the Consumer Electronics market is estimated to reach around USD 1,056,693 million in 2022. The market is expected to observe a CAGR of 1.82% between 2022 and 2027.
- Hence, electronics is expected to dominate the market.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the global market. It is also expected to witness the fastest growth owing to the growing demand from various end-user industries in the countries such as China, India, Japan, and South Korea.
- China is the world's largest electronics production base and offers tough competition to the existing upstream producers, such as South Korea, Singapore, and Taiwan.
- Electronic products, such as smartphones, OLED TVs, and tablets, among others, have the highest growth rates in the consumer electronics segment of the market in terms of demand.
- The 3D printing sector in China is expected to witness tremendous growth, and it is projected to witness a CAGR of more than 20% during the forecast period. LCPs have the potential to stand out as suitable alternatives to feedstocks in the field of 3D printing.
- Based on the recent reports by the Telecom Ministry, the 5G spectrum auctions are likely to commence in early 2022 in India. According to the GSM Association (GSMA), by 2025, 5G connections in India may reach 1.1 billion, estimated to be around 12% of the total mobile connections.
- Players such as Airtel and Jio have been focusing on investing in indigenous 5G infrastructure to cater to the potential user base in India.
- Consumer electronics account for a third of Japan's economic output. There has been a constant increase in the demand for Japanese consumer electronics over the years due to their durability and quality.
- Thus, the Asia-Pacific region is expected to dominate the global market.
Liquid Crystal Polymer Market Competitor Analysis
The global liquid crystalline polymers market is partially consolidated, with the top five companies accounting for over 80% of the global production. Key players in the global LCP market (in no particular order) include Polyplastics Co. Ltd, Celanese Corporation, Sumitomo Chemical Company, Kuraray, and UENO FINE CHEMICALS INDUSTRY LTD.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support