Liquid Crystal Polymers (LCP) Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2029)

The Global Liquid Crystal Polymer (Lcp) Market size is expected to grow from 65.52 kilo metric tons in 2023 to 83.74 kilo metric tons by 2028, at a CAGR of 5.03% during the forecast period.

Key Highlights

• Electrical and Electronics is the Largest End User Industry. Composites of LCP are majorly used in the electronics industry due to rapid innovation, their dielectric properties, and their chemical resistance. Thus, the industry occupied the highest share.
• Aerospace is the Fastest-growing End User Industry. LCP is adopted in microelectronics in the aerospace industry. Thus, the segment is anticipated to witness the fastest growth in the market.
• Asia-Pacific is the Largest Region. Asia-Pacific is majorly driven by emerging economies such as China, India, Japan, and South Korea. Its electronics industry is expected to witness a CAGR of 6.63%, making Asia-Pacific the largest region in the market.
• Middle East is the Fastest-growing Region. With electronics production expected to register a faster CAGR of around 8.7% during the forecast period, the Middle East is projected to be the fastest-growing region.

Liquid Crystal Polymers (LCP) Market Trends

RAPID PACE OF TECHNOLOGICAL INNOVATIONS IN THE ELECTRONICS INDUSTRY TO BOOST MARKET DEMAND

• Liquid crystal polymers (LCP) exhibit versatile properties like resistance to creep, chemicals, impact, and abrasion. LCPs also have high dielectric and mechanical strength, due to which they are used widely in the electronics, aerospace, and industrial machinery industries. The LCP market accounted for 0.65% of the revenue of global engineering plastics in 2022.
• The electrical and electronics industry was the largest consumer of LCP resins in 2022. The rising trend of using high-strength and lightweight materials in consumer electronics is expected to drive the demand for LCP resin. Revenue of the global consumer electronics industry is projected to reach USD 1.10 trillion by the end of 2023 and grow annually by 2.17% till 2027.
• The industrial machinery industry was the second-largest consumer of LCP resin globally in 2022. The growing trends of rapid urbanization and restoration of offshore exports for machine tools and structural equipment post-pandemic boosted the production of industrial machinery in 2022, resulting in a surge in the consumption of LCP resins. The industrial machinery segment of the global LCP market witnessed a growth of 19.20% by value in 2022 compared to the previous year.
• The aerospace industry is the fastest-growing end-user segment in terms of revenue. It is expected to witness a CAGR of 9.11% by value during the forecast period, which can be attributed to the increased production of aircraft components to cater to the growing demand for lighter and more fuel-efficient aircraft that will increase the consumption of LCP in the future. Aerospace production revenue is expected to reach USD 723 billion by 2029 compared to USD 466 billion in 2022.

ASIA-PACIFIC REGION TO DOMINATE THE GLOBAL LCP MARKET OVER THE COMING YEARS

• Liquid crystal polymers are extensively used for various applications, such as in thin-walled high-precision parts exposed to high heat, in regions such as Asia-Pacific, North America, and South America. Some of LCP's key applications are in the automotive, electrical and electronic, and industrial machinery end-user industries. Liquid crystal polymers accounted for a 0.65% share of the global engineering plastics market in 2022 by revenue.
• Asia-Pacific witnessed a 3.70% growth in value in 2022 over the previous year. This could be attributed to the electrical and electronics and automotive industries, which accounted for value shares of 75.96% and 69.59%, respectively, of the global demand for LCP from these end-user industries. With an increase in the demand for technology, gaming consoles, and electronic devices due to companies adopting work-from-home models and people setting up home offices, the global LCP market is likely to increase.
• In 2022, North America was the second-largest regional consumer of LCP, with a share of 14.27% by revenue. The region holds a predominant share in the global consumption of LCP as it accounts for the highest number of end-user applications in industry segments such as automotive and electronics. For example, the region accounted for a 10.09% share of global vehicle production and a 9.92% share of global electronic component production in 2022.
• Africa is the second fastest-growing region, and it is expected to grow by 9.82% by value in 2023 compared to 2022, led by the electrical and electronics industry. The major South Korean electrical and electronics brands have a strong foothold in Africa, with Samsung accounting for 35% of the smartphone market. Samsung is the leading investor in the manufacturing and assembly of electronic machinery goods in Ethiopia and Sudan.

Liquid Crystal Polymers (LCP) Industry Overview

The Liquid Crystal Polymers (LCP) Market is fairly consolidated, with the top five companies occupying 80.34%. The major players in this market are Celanese Corporation, Daicel Corporation, Shenzhen WOTE Advanced Materials Co.,Ltd., Solvay and Sumitomo Chemical Co., Ltd. (sorted alphabetically).

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