Propylene Carbonate Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sales Channel (Direct, Indirect), By End Use (Electrolytic Solvent, Cosmetics & Personal Care, Plastics & Polymers, Reagents, Fuel Additives, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 447.89 Million
CAGR (2026-2031)	3.37%
Fastest Growing Segment	Reagents
Largest Market	Asia Pacific
Market Size (2031)	USD 546.43 Million

Market Overview

The Global Propylene Carbonate Market is projected to grow from USD 447.89 Million in 2025 to USD 546.43 Million by 2031 at a 3.37% CAGR. Propylene Carbonate is a polar, aprotic solvent synthesized from propylene oxide and carbon dioxide, characterized by a high dielectric constant and low toxicity. The primary drivers supporting market growth include the expanding production of lithium-ion batteries for electric vehicles and the increasing regulatory pressure to replace hazardous volatile organic compounds in paints and coatings with biodegradable alternatives. These factors fundamentally underpin the rising industrial consumption of this carbonate ester across the automotive and chemical sectors.

One significant challenge that could impede market expansion is the volatility of raw material prices, specifically propylene oxide, which creates cost uncertainty for manufacturers and complicates long-term supply agreements. This fluctuation can strain profit margins despite the strong demand from downstream applications. Illustrating the scale of the automotive sector driving this consumption, according to the China Association of Automobile Manufacturers, in 2024, the sales of new energy vehicles reached 12.87 million units, marking a substantial increase that directly correlates to the rising need for high-performance electrolyte solvents.

Key Market Drivers

Surging demand for high-performance lithium-ion battery electrolytes serves as a primary catalyst for the Global Propylene Carbonate Market. As the automotive industry pivots toward electrification, propylene carbonate is increasingly utilized as a high-permittivity solvent in electrolyte solutions, essential for ensuring the stability and safety of high-voltage battery systems. This application is critical for enhancing the ionic conductivity required by modern electric vehicles (EVs), creating a direct dependency between vehicle production rates and solvent consumption. The scale of this sector's expansion is evident; according to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global electric car sales were projected to reach approximately 17 million units, reflecting a vigorous trajectory that substantially amplifies the industrial need for carbonate-based electrolyte solvents.

Simultaneously, the robust growth in the global paints and coatings industry, coupled with stringent environmental regulations, significantly propels market expansion. Manufacturers are actively shifting toward low-toxicity, biodegradable solvents like propylene carbonate to comply with volatile organic compound (VOC) emission standards while maintaining formulation performance. This transition is underpinned by the immense magnitude of the end-use market; according to the World Paint & Coatings Industry Association, January 2025, in the 'World's Top Ten Paints Companies 2024 Annual Report', the global paints and coatings market reached a sales value of USD 188.8 billion. Furthermore, signaling sustained demand in key regional markets, according to the American Coatings Association, in 2024, the volume of architectural coatings in the United States was forecast to increase by 2.8%, underscoring the continuous need for regulatory-compliant solvents in construction applications.

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Key Market Challenges

The volatility of raw material prices, specifically propylene oxide, stands as a critical impediment to the stability and expansion of the Global Propylene Carbonate Market. As propylene oxide functions as the essential feedstock for synthesizing this carbonate ester, its erratic cost structure creates significant financial uncertainty for manufacturers. This fluctuation disrupts the supply chain by making it difficult for producers to forecast production costs accurately or commit to fixed-price long-term contracts with downstream clients in the automotive and industrial sectors. Consequently, manufacturers are often forced to absorb rapid price spikes to maintain market share, which severely strains profit margins and deters the capital investment required for capacity expansions.

This feedstock instability creates a precarious operational environment that ripples through the broader chemical derivatives sector. According to the American Chemistry Council, in February 2025, data indicated that the U.S. production of major plastic resins—a key downstream segment relying on propylene oxide intermediates—experienced a month-over-month decline of 1.4 percent in December 2024, highlighting the persistent supply-side fluctuations affecting the industry. Such unpredictability in the availability and output of related chemical commodities exacerbates the risk profile for propylene carbonate producers, hampering their ability to align supply consistently with the growing industrial demand.

Key Market Trends

Localization of battery-grade supply chains in North America and Europe is fundamentally reshaping the market landscape as manufacturers seek to mitigate geopolitical risks and reduce reliance on Asian imports. To ensure a stable, regionalized availability of high-purity solvents for electric vehicle production, industry players are increasingly establishing domestic manufacturing hubs closer to end-users. This strategic realignment is evidenced by substantial capital allocations toward integrated chemical facilities within these key regions. According to Capchem, May 2024, the company announced a USD 350 million investment to construct a new facility in Louisiana, United States, designed to produce 200,000 tons of carbonate solvents annually, directly addressing the critical demand for a resilient, locally sourced electrolyte supply network.

Simultaneously, the integration of Carbon Capture and Utilization (CCU) in production technologies is emerging as a pivotal trend, transforming carbon dioxide from a waste product into a valuable feedstock for carbonate synthesis. This innovation aligns with the circular economy, allowing producers to lower the carbon footprint of propylene carbonate by utilizing emissions captured from industrial processes. The viability of this green manufacturing route is supported by the rapid expansion of global infrastructure capable of securing the necessary carbon feedstocks. According to the Global CCS Institute, October 2024, in the 'Global Status of CCS 2024' report, the global CO2 capture capacity was on track to double to over 100 million tonnes per annum, creating a robust foundation for scaling these sustainable chemical production methodologies.

Segmental Insights

According to recent market analysis, the Reagents segment is emerging as the fastest-growing category within the Global Propylene Carbonate Market, driven by the intensifying global shift toward green chemistry. This growth is primarily fueled by the increasing adoption of propylene carbonate as a non-toxic, biodegradable reagent in organic synthesis, where it serves as a sustainable alternative to hazardous chemicals like phosgene. Chemical manufacturers and research institutions are prioritizing high-purity propylene carbonate to synthesize vital intermediates for pharmaceuticals and polymers. This surge aligns with stringent environmental mandates from regulatory bodies, forcing industries to integrate safer, eco-friendly reagents into their production processes.

Regional Insights

Asia Pacific commands the Global Propylene Carbonate Market, sustained by its status as the world’s largest manufacturing hub for lithium-ion batteries. Countries such as China, Japan, and South Korea drive this demand, capitalizing on the heavy production of electric vehicles which rely on propylene carbonate as a vital electrolyte solvent. The International Energy Agency indicates that the global transition to clean energy is significantly amplifying battery output in these nations. Furthermore, the region’s expansive construction sector utilizes this chemical as a low-toxicity solvent in paints and coatings, aligning with regulatory shifts favoring sustainable industrial formulations.

Recent Developments

• In November 2025, Dongying Hi-tech Spring Chemical Industry Co., Ltd. entered into a strategic cooperation and raw material supply agreement with Xianghe Kunlun New Energy Material Co., Ltd. Under the terms of this arrangement, the partner company is projected to purchase approximately 596,200 tonnes of electrolyte solvents, a category that includes propylene carbonate, from Hi-tech Spring between January 2026 and December 2028. This long-term collaboration aims to secure a stable supply of essential solvents for battery manufacturing while fostering joint development of new products and applications in the electrolyte sector.
• In July 2025, scientists from Ningde Amperex Technology Limited (ATL) and partner institutions released findings on a newly engineered weakly-solvating propylene carbonate electrolyte designed for high-voltage lithium-ion batteries. The research detailed a formulation incorporating difluoroethylene carbonate to modify the solvation shell of lithium ions, effectively suppressing the co-intercalation of propylene carbonate into graphite anodes. This innovation enabled the formation of a robust solid electrolyte interphase, allowing the batteries to operate stably at high voltages and perform effectively in low-temperature environments, overcoming traditional limitations of carbonate-based electrolytes.
• In March 2025, Lotte Chemical participated in InterBattery 2025, an industry exhibition held in Seoul, where the company showcased its comprehensive portfolio of battery material solutions. The display featured the company’s range of electrolyte organic solvents, including propylene carbonate, which are critical components for lithium-ion batteries. The company highlighted its integrated supply chain capabilities and advanced production technologies for these high-purity solvents, aiming to support the growing efficiency and stability demands of the global electric vehicle battery market through its specialized material offerings.
• In January 2024, researchers from LI-FUN Technology Corporation Limited, in collaboration with academic institutions, published a study regarding the rejuvenation of propylene carbonate-based electrolytes for potassium-ion batteries. The team developed a method to regulate the ion-solvent-coordinated structure, which reduced solvent-separated ion pairs and enabled a stable, inorganic-rich interface. This breakthrough addressed the issue of graphite exfoliation typically associated with propylene carbonate, allowing the graphite anodes to deliver high reversible capacity and stable cycling performance across a wide temperature range, thereby enhancing the viability of this solvent in low-cost energy storage systems.

Key Market Players

• Balaji Amines Limited
• Unilong Industry Co., Ltd
• Jinan finer chemical Co., Ltd
• Qingdao Aspirit Chemical Co., Ltd
• Chemichase Chemical Co.,Ltd
• Shandong Longze Chemical Co.,Ltd
• Lihua Yiweiyuan Chemical Co., Ltd.
• TIANJIN ZHONGXIN CHEMTECH CO.,LTD
• Shandong Shida Shenghua Chemical Group
• Shandong Depu Chemical Industry Science and Technology Co.,Ltd

By Sales Channel	By End Use	By Region
Direct Indirect	Electrolytic Solvent Cosmetics & Personal Care Plastics & Polymers Reagents Fuel Additives Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Propylene Carbonate Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Propylene Carbonate Market, By Sales Channel:

• Direct
• Indirect

• Propylene Carbonate Market, By End Use:

• Electrolytic Solvent
• Cosmetics & Personal Care
• Plastics & Polymers
• Reagents
• Fuel Additives
• Others

• Propylene Carbonate Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE