Liquid Crystal Polymer (LCP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

During the next five years, the liquid crystal polymer (LCP) market is expected to grow at a CAGR of over 5.5%.

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.

Key Highlights

• Over the next five to ten years, the strong demand for smaller and thinner electrical parts that can withstand higher temperatures and wear is the main thing that will drive the growth of the market that was looked at.
• High production costs for liquid crystal polymers are expected to hinder the industry's growth.
• The expanding potential in the fields of medicine and home appliances is likely to aid in the market's expansion.
• About 75% of the total volume of the market that was looked at was in the Asia-Pacific region.

Liquid Crystal Polymer Market Trends

Electronics Segment to Witness Fast Market

• Liquid crystal polymer (LCP) is a super engineering plastic that has high strength, modulus, and impact properties, is flame retardant, is resistant to a wide range of aggressive chemicals, has a very low coefficient of thermal expansion (CTE) that can be adjusted, keeps its shape well, flows well through thin walls, and can be made in unique ways.
• With the miniaturization trend of many electronic products, manufacturers are streamlining devices to pack more features into smaller packages. For example, the distance between contacts in electrical connectors is now as small as 0.2 mm, which is much smaller than the distance between contacts in older power connectors, which was more than 12.0 mm.
• LCPs are also injection molded into IC sockets, HF network switches, power modules for wind and solar inverters and converters, custom high-power electrical connectors, and many other precision devices for the same reasons.
• The daily use of electronic equipment, like cell phones, laptops, and 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 make it possible for electrical equipment to be made smaller and still work well.
• The global consumer electronics industry will account for around USD 1,057 billion in 2022. The upsurge in demand for smart TVs, refrigerators, and wearable smart devices is projected to boost the consumer electronics industry's growth. In the second quarter of 2022, India’s smart TV market grew by 74% YoY, with Xiaomi being the leader with a 13% market share, followed by Samsung at 12%.
• Furthermore, in November 2022, retail sales of household appliances and consumer electronics in China amounted to about CNY 94 billion (USD 14.6 billion). China's per capita spending on private households' purchases of consumer goods and appliances has surged, from about CNY 110 (USD 17.14) in 1990 to CNY 1,820 (USD 283.5) in 2021.
• So, the demand for liquid crystal polymers in the electronics sector is likely to be driven by the rising demand for electronic products in many different industries.

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 countries such as China, India, Japan, and South Korea.
• China is the biggest place in the world where electronics are made, and it gives countries like South Korea, Singapore, and Taiwan a lot of competition.
• In terms of demand, the consumer electronics segment of the market has the highest growth rates for things like smartphones, OLED TVs, and tablets, among other things.
• 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. In the field of 3D printing, LCPs have the chance to stand out as good alternatives to feedstocks.
• Additionally, China reached a total of 2.22 million 5G base stations across the country in September 2022. The figure represents a net increase of 795,000 5G base stations by the end of 2021.
• Based on recent reports by the Telecom Ministry, the 5G spectrum auctions completed the spectrum 'harmonization' process in August 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. Moreover, Reliance Jio and Airtel are major operators that are offering 5G services in India. Both Jio and Airtel are planning to launch 5G in India by 2024.
• 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 polymer market is partially consolidated. Key players in the global LCP market include Polyplastics Co. Ltd., Celanese Corporation, Sumitomo Chemical Company, Kuraray Co., Ltd., and UENO FINE CHEMICALS INDUSTRY LTD., among others (not in any particular order).

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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