Liquid Crystal Polymer Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Liquid Crystal Polymer Market Size

Liquid Crystal Polymer Market Trends & Drivers

Growth in Automobile Sector Drives the Market

The growth in demand for liquid crystal polymers is driven by the adoption of these polymers in the growing automotive industry. There has been tremendous growth in the production of automobiles as well as sales in markets like Japan, India, China, and the U.S. The global trend in the industry is to develop vehicles to comply with the increasingly stringent fuel economy mandates. One of the key solutions to this conundrum is to develop lightweight vehicles. For instance, typically, a 10% reduction in vehicle weight can summon an 8.0% improvement in fuel economy.

LCP has been used in automobile parts like combustion systems, insulation components, and electronic components. It can replace materials such as ceramics, metals, and composites, and has resistance to chemicals, weathering, and radiation. Thus, the adoption of these compounds in the automotive industry to overhaul bulky components in vehicle design with lightweight materials increases fuel efficiency and reduces carbon emissions.

Various companies like Celanese Corporation and Toray Industries Inc. are producing high-performance engineering polymers and laminates that find use in automotive and aerospace parts. Hence, the rising number of automobiles is expected to give a major boost to the sales of LCPs used in electronic components of automobiles.

Improvement in MRI Technology Is a Key Trends

In the medical sector, MRI has been used in medical diagnosis and treatment regarding soft tissue visualization. However, procedures that require catheterization in MRI use X-ray to guide the catheter due to metal catheter components, which are incompatible with MRI. These X-ray procedures expose patients and clinicians to ionizing radiation. To reduce the radiation effect, properties of LCPs like autoclaving and high tensile strength are effective and will be able to replace catheter metal components.

It also eliminates the need for radio-opaque materials and expensive platinum bands that are typically used in X-ray procedures. Hence, the trend of improvement in MRI technology is witnessed by using liquid crystal polymers. These have been widely used as substrate and insulating materials not only in microwave integrated circuits but also in implantable devices, owing to their low moisture absorption rate and biocompatibility as compared to other polymers, including polyimide, silicon elastomer, and parylene. In addition, the LCP-based neural probe does not need a guiding post to slice the dura, a rigid sheath casing the brain, during brain insertion, due to its flexible and strong mechanical properties.

Liquid Crystal Polymer Market Analysis

Thermotropic Type Holds Maximum Share

Thermotropic type held the largest revenue share, of around 80%, in 2022. This is because it has excellent thermal properties, exhibits superior elastic behavior, and has a low viscosity. It also has applications in different electronic products such as laptops, tablets, and televisions.

Thermotropic liquid crystal polymers (LCPs) are processed from anisotropic phases to form liquid-crystal phases (or mesophases). This affects the orientation and structure of these molecules. Furthermore, this polymer has fiber content that gives rise to high mechanical properties as a consequence of self-reinforcing properties derived from macromolecular orientation in the mesophase.

Semiconductor & Electronics Category To Witness Fastest Growth

The semiconductor & electronics category is expected to witness the fastest growth in the coming years, advancing at a CAGR of 8.2%. This can be ascribed to the miniaturization of electronic products, and various features of LCPs such as exceptional chemical resistance, inherent flame retardance, and outstanding strength at extreme temperatures. These superior-quality properties enable the use of LCPs in different electronic product components and parts, including chip carriers, antenna substrates and housings, and flexible printed circuits.

The number of electronic applications of LCPs is increasing, due to the rising need for electronic products globally, and this is projected to drive the growth of the market in the forecast period. For instance, according to the India Brand Equity Foundation, in 2022, the installed base of handsets with 5G capabilities surpassed 50 million in India. This is projected to stimulate the higher use of LCPs, which, in turn, will drive the demand for LCPs.

In China, around 60% of the total population is using smartphones, which is propelling the growth of the market. The factors contributing to this are the cost-effective ecosystem of components and the high adoption of advanced technologies in the country.

Moreover, applications of LCPs in the semiconductor and electronics industry are favored due to their properties such as low dielectric constants, low power dissipation factors, and significant strength in mesophase. In addition, the rapid industrialization and the surge in purchasing power of individuals are expected to boost the demand for consumer appliances and electronic accessories, which, in turn, will increase the applications of LCPs in semiconductor and electronic components.

Geographical Analysis

Asia-Pacific Is the Market Leader

APAC leads the market, with a share of 62% in 2022, and it is expected to maintain the same trend in the coming years as well. This is attributed to the rapid expansion of the electronics industry, affordable manufacturing capabilities, a huge population base, and technological advancements in the region. This is also expected to be driven by the surging demand for semiconductor and electronic components in consumer devices and appliances, such as watches, calculators, flat panel TVs, appliances, smartphones, personal desktops, laptops, and tablets.

Products such as smartwatches and smartphones are likely to witness significant demand, owing to their customer appeal and high rate of adoption across local demographics. Moreover, other factors such as in-house technological advancements by regional players (such as Titan), entry of large global players, growth in the usage of utility watches, and increasing demand for high-end wearable devices are expected to drive the APAC liquid crystal polymer market in the near future.

China is dominating the regional market and is driven by state-led investment policies, availability of cheap labor, and technological progress of manufacturing facilities. These have helped the nation to develop an indigenous semiconductor industry. Additionally, near-term growth in demand for high-end information and communications technology (ICT) goods and services is likely to augment the demand for LCPs. The domestic consumption of semiconductors is mainly driven by data processing and communication applications, and consumer electronics also being a significant contributor to the overall industry growth.

North America is the second-largest market for liquid crystal polymers. This is attributed to the presence of a large number of local manufacturers in the region, coupled with the availability of a wide array of differentiated products and product appreciation by customers. Moreover, the regional market is driven by a high degree of product differentiation, increased adoption of LCPs across several industries, and significant capital allocation toward R&D of novel polymers by industry players.

Market Breakdown

This fully customizable report gives a detailed analysis of the liquid crystal polymer industry from 2019 to 2030, based on all the relevant segments and geographies.

Based on Type

• Thermotropic
• Lyotropic

Based on Industry

• Semiconductor and Electronics
• Automotive
• Medical
• Consumer Goods

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Liquid Crystal Polymer Companies