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Bisphenol A (BPA) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The Global Bisphenol A (BPA) Market was accounted for 5,953. 07 kilo tons in 2020 and is expected to grow with a CAGR of ~6. 01%, during the forecast period (2021-2026). COVID-19 pandemic has affected the sales of paints and coatings, plastic products, and other bisphenol A-based products, as the construction activities were halted.
New York, June 15, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Bisphenol A (BPA) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06195678/?utm_source=GNW
India’s second-largest paint company, Berger Paints, reported approximately a 6.5 percent fall in its consolidated net profit to INR 1,032 million for the fourth quarter ended March 31st, 2020. Moreover, global automotive production also declined significantly in 2020 due to COVID-19, registering a decline of -15.8% by the end of 2020. The top 20 OEMs in the global auto sector registered declined profits by approximately USD 100 billion in 2020. With automotive production slowing down and the COVID-19 pandemic further worsening the situation for the industry, the market for bisphenol-derived polycarbonate automotive components is expected to be affected. Owing to all these factors, the bisphenol A market was negatively impacted by COVID-19 in 2020.
Key Highlights
In the medium term, strong demand for polycarbonate and rising demand for epoxy resins from various end-user industries, such as paints and coatings, adhesives, electrical and electronics, packaging, and other end-user industries, are likely to drive the market’s growth.
On the flip side, regulations on usage of BPA, environmental concerns of BPA, and impact of COVID-19 outbreak are expected to be the major restraints, thus, hindering the market growth.
The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.
Key Market Trends
Increasing Demand for Polycarbonate Resins
Among all other applications, polycarbonate resins application provides the major market demand for BPA, with more than 70% of the global share.
Polycarbonates are high-performing thermoplastic that is widely used in building and construction applications. Polycarbonate sheets are used as a substitute for glass in a variety of skylight and window applications. They are also used as opaque cladding panels, barrel vaults, canopies, translucent walls, facades and signage, sports stadium roofs, louvers, and roof domes.
The application of polycarbonate materials has highly increased in greenhouses in recent years. In Europe, countries such as Germany, the Netherlands, Spain, and France, have larger areas for greenhouse cultivation.
Due to their advantages over other conventional materials (which include glass and other plastics), the increasing popularity of polycarbonates is set to drive the polycarbonate market during the forecast period.
Additionally, in the automotive industry, polycarbonates allow for energy absorption, weight reduction, shock absorption for bumpers, restriction of explosion risks in fuel tanks, seat belts, airbags, door and seat assemblies, subsystems, bumpers, under-bonnet components, exterior trim, and various other applications. Currently, to manufacture a typical four-wheel vehicle, 10 kg of polycarbonate is used in various forms.
Some of the major companies in the polycarbonate market include, Covestro AG, SABIC, Mitsubishi Engineering-Plastics Corporation, LOTTE Chemical CORPORATION, and TEIJIN LIMITED, and others. The companies are investing heavily in merger, acquisitions, expansion, which are expected to boost the demand for bisphenol in polycarbonates, for instance,
In August 2021, SABIC has launched certified circular polycarbonate (PC) resin and blends made from the upcycling of post-consumer mixed plastic. Moreover, the certified circular polycarbonate can reduce carbon footprint up to 23%, compared to its incumbent.?
In April 2021, Covestro AG has launched the world’s first climate-neutral polycarbonate resin, made from mass-balanced bio-waste and residues-based raw materials, at CHINAPLAS 2021.
However, there are some regulations on the bisphenol A-based polycarbonate used in baby feeding bottles and sippy cups, which are expected to negatively affect the market for bisphenol. The US Food and Drug Administration (FDA) has ended its authorization of the use of BPA in baby bottles and sippy cups. The European Union and Canada have also banned bisphenol A use in baby bottles. The Bureau of Indian Standards (BIS) also phased out BPA use in baby feeding bottles.
Therefore, all the aforementioned factors are expected to affect the demand for bisphenol A from polycarbonate application, over the forecast period.
Asia-Pacific Region to Dominate the Market
The Asia-Pacific region is expected to dominate the market and is also likely to register the highest CAGR during the forecast period.
China accounts for more than one-fourth of the global coatings market presently. According to the China National Coatings Industry Association, the industry has been registering a growth of 7% through recent years. It was estimated that from 2019, the construction of at least ten large coatings investment projects in China had been reported publicly. Nippon has been tapping into this market situation by upgrading its coatings production process in its new plants in China. ?
In the adhesive sector, DuPont has decided to invest approximately USD 30 million in building a new manufacturing facility in Zhangjiagang, Jiangsu Province in East China. The company’s new facility will produce adhesives to serve customers in the transportation industry, primarily supporting two mega-industry trends: vehicle electrification applications and light-weighting. The facility is expected to be operational by early 2023.?
The COVID-19 has significantly affected the automotive industry in the country. According to the (OICA), around 25.23 million vehicles were produced in China during 2020, compared to 25.75 million vehicles that were produced in 2019, witnessing a decreasing growth rate of about 2%. ?
However, in the 9 months of 2021, the production of vehicles in the country reached 18,242,588 units, registering a growth rate of 10%, compared to the same period in 2020 and on the same level as of same period of 2019. This sets a positive outlook for the market of study.
Furthermore, in India, the construction industry is the second-largest industry with a GDP contribution of about 9%. It is predicted that India’s construction industry is set to emerge as the third-largest market in the world, with a value of almost USD 1 trillion by the end of forecast period. ?
In the residential segment, the government is planning huge projects in the next few years. The government’s Housing for All initiative aims to build more than 20 million affordable homes for the urban poor by 2022.
Moreover, the Indian automobile industry witnessed a rapid decline in 2019 and 2020, after a continuous growth for a period of 10 years. According to the OICA, India’s automobile industry registered a negative growth of more than 25% in 2020. Automobile production declined from ~4.52 million units produced in 2019 to ~3.39 millions in 2020. ?
?According to the OICA, 2020, total industrial production was about 3,394,446 vehicles, including passenger, commercial, three-wheeler, two-wheeler, and quadricycles, which declined by about 25% compared to 4,524,366 vehicles produced over the same period of previous year.
Such factors are significantly impacting the studied market and the consumption of BPA in the region is expected to grow from various end user industries during the forecast period.
Competitive Landscape
The global bisphenol A (BPA) market is consolidated in nature, with the top 10 players occupying over 70% of the overall market share in 2020. Some of the key players in the market include Covestro AG, SABIC, Chang Chun Group, NAN YA PLASTICS CORPORATION, and KUMHO P&B CHEMICALS.,INC., among others.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06195678/?utm_source=GNW
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