Polyphenylene Ether (PPE) Market Size, Share Report, Analysis, Trends, Growth, 2030

Polyphenylene Ether (PPE) Industry Prospective:

The global polyphenylene ether market size was worth around USD 1648 million in 2022 and is predicted to grow to around USD 2986 million by 2030 with a compound annual growth rate (CAGR) of roughly 7.77% between 2023 and 2030.

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Polyphenylene Ether Market: Overview

Polyphenylene ether (PPE) is a polymer and is sometimes also referred to as polyphenylene oxide PPO. It offers qualities such as excellent mechanical properties, dimensional stability, and heat resistance making it a highly sought-after chemical in several end-user verticals. Owing to its superior hydrolysis resistance and absorption of low moisture, it can also be used as a flame retardant. Some of the most common applications of PPE include electrical devices like circuit breakers and connectors or components of copiers and printers, water softeners, and vending machines.

However, the product is difficult to process as a standalone unit and is typically processed along with nylon or polystyrene (PS). Certain specific considerations that impact the growth trend in PPE demand include shifts in color when exposed to ultraviolet radiation and high viscosity. The industry for PPE deals with the production and distribution of PPE and products derived from it.

Key Insights:

• As per the analysis shared by our research analyst, the global polyphenylene ether market is estimated to grow annually at a CAGR of around 7.77% over the forecast period (2023-2030)
• In terms of revenue, the global polyphenylene ether market size was valued at around USD 1648 million in 2022 and is predicted to grow to around USD 2986 million, by 2030.
• The polyphenylene ether market is projected to grow at a significant rate due to the rising application in housing units
• Based on application segmentation, electricals & electronics was predicted to show maximum market share in the year 2022
• Based on type segmentation, PPE/PS was the leading type in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Polyphenylene Ether Market: Growth Drivers

Rising application in housing units to drive market growth

The global polyphenylene ether (PPE) market is expected to grow at a significant rate due to the growing application of thermoplastic in housing units where it is used for manufacturing essential components such as sockets, connectors, circuits, and insulators. PPE is known to have excellent resistance to high temperatures and electrical insulation properties. These attributes have resulted in greater demand from housing or commercial space constructors. The rising population and growing demand for safe housing along with a surge in the number of commercial and industrial spaces is expected to fuel the consumption of PPE during the forecast period.

PPE performance efficiency in automotive parts to trigger further demand

PPE is a versatile material. It has found a significant number of consumers in one of the fastest-growing industries which is the automotive sector where PPE is used to produce several vehicle parts. This includes units such as electrical switches, pump housings, and connectors. In December 2021, Saudi Arabia’s Basic Industries Corporation (SABIC), a Saudi-based chemical manufacturing company, announced the addition of two grades of NORYL™ resin.

This family or resin consists of SABIC’s PPE select additives and fillers that are blended with high-performance polystyrene (HIPS), polyamide (PA), polypropylene (PP), and thermoplastic elastomer (TPE). With the launch of the two new grades, the company is trying to meet the rising demand for housings and crash-resistant battery modules that are thinner and lighter. The resins are termed NORYL™ NHP6011 and NHP6012 and will support some of the key requirements of the thriving electric vehicle (EV) industry such as improved power, range, and safety.

The rising number of players in the EV sector along with excellent response from the consumer groups for hybrid and electric vehicles and excellent initiatives undertaken by the regional governments to promote the adoption of EVs for public and private transport is expected to drive the demand for high-performance PPE.

Polyphenylene Ether Market: Restraints

Development of new high-performance alternatives to restrict market growth

The global polyphenylene ether market players operating in the chemical and materials industry are seeking ways to innovate and develop new copolymers that not only meet the current and competitive demand from the end-users but also target future growth. This has resulted in the development of novel high-performance substitutes for PPE which is generally processed as a copolymer. For instance, in November 2022, SABIC announced the launch of polycarbonate (PC)-based copolymer resin.

The new product was termed a breakthrough innovation because of its excellent compatibility with photovoltaic (PV) connector bodies. It also meets stringent regulatory requirements and performance expectations established in the emerging 1.5Kv solar systems. The new line is called LNP EXL9334P and claims to surpass other competing materials including PPE and glass-reinforced nylon. Such developments lead to a division in the market causing loss of revenue.

Polyphenylene Ether Market: Opportunities

Growing innovation in the field of PPE to create higher growth possibilities

The global polyphenylene ether industry size may achieve higher growth momentum due to the ongoing research and development (R&D) in the PPE field undertaken by existing and new players. There are several ongoing projects aiming to improve the performance efficiency of PPE and make it more suitable for end applications. In July 2023, SABIC added a new grade of PPE called the Noryl polyphenylene ether (PPE) resin.

It is made of 25% or higher post-consumer recycled (PCR) content and is an addition to the existing portfolio of PCT content. One of the key features of this range is its positive impact on the global environment as it helps to reduce global warming potential (GWP) by almost 10% when compared to fossil-based grades. Growing focus on environmental sustainability in the chemical industry is likely to trigger higher consumption of new and improved variants.

Polyphenylene Ether Market: Challenges

Environmental concerns and the presence of strict regulations could challenge further expansion

Polyphenylene ether is a part of a larger problem that is caused by extensive consumption of various forms of plastic. In recent times, several initiatives have been undertaken to improve consumer awareness around plastic and its derivatives leading to higher pressure on the producers to seek sustainable alternatives. Unless every PPE-producing company can find better ways to deal with PPE-led environmental pollution, they may find future survival more difficult. Additionally, the high level of regulatory laws around the use of PPE can create further operational challenges.

Polyphenylene Ether Market: Segmentation

The global polyphenylene ether market is segmented based on application, type, and region.

Based on application, the global market segments are healthcare, automotive, aerospace, electricals & electronics, and others. The highest growth rates were observed in the automotive and electricals & electronics categories due to the high electrical insulation capabilities of PPE. Increased focus on vehicular safety and a growing number of sales in the automotive industry were the leading segmental growth propellers.

On the other hand, the consumer electronics and electricals segment witnessed a high growth rate due to an increased number of consumer electronics with the rise of the middle-income population and a number of players offering affordable electronics targeting emerging markets. The report indicates the sale of nearly 286.5 million personal computers in 2022.

Based on type, the polyphenylene ether industry segments are PPE/PP, PPE/PA, and PPE/PS. The most common blend used in the commercial industry is the polyphenylene ether (PPE) and polystyrene (PS) blend due to higher applications in end-user verticals. For instance, HIPS is one of the highest-ranking blends since it is easy to fabricate and machine. It offers advantages such as low cost, ease of painting, excellent insulator, sturdiness, & durability, and is approved by the Food and Drugs Administration (FDA) authority. HIPS is used in printed graphics, fixtures, kiosks, and thermoformed machine parts and housings. The electrical conductivity of HIPS is around 1014 Ω*cm.

Polyphenylene Ether (PPE) Market: Report Scope

Polyphenylene Ether Market: Regional Analysis

Asia-Pacific to witness the highest growth rate during the forecast period

The global polyphenylene ether market is expected to witness the highest growth rate in Asia-Pacific due to the presence of an extensive chemicals and manufacturing sector in Asian countries such as India, Thailand, and China to name a few. The leading nation with the highest chemical export is China since it is home to several key players with an extensive manufacturing network. Moreover, the domestic consumption of PPE in China has grown over the years with the rapid increase in population, rising disposable income, and the general surging trend of consumerism.

The automobile manufacturers in China have been quick in terms of rolling out new passenger cars to meet the changing demands of its urban population. As of December 2022, China’s total number of registered vehicles was close to 310 million cars. It also has a growing base of electric vehicles. It is currently valued at USD 259 million but has the potential to reach over 600 billion by 2030. The Middle East is one of the largest producers of PPE with Saudi Arabia taking the lead. SABIC produced large amounts of PPE and other polymers. It is also investing rapidly in higher research and preparing for future demands. This has resulted in higher revenue for the company.

Polyphenylene Ether Market: Competitive Analysis

The global polyphenylene ether market is led by players like:

• Asahi Kasei Corporation
• SABIC
• Mitsubishi Engineering-Plastics Corporation
• RTP Company
• Sumitomo Chemical
• LyondellBasell Industries
• Polyplastics Co. Ltd.
• Celanese Corporation
• Ensinger GmbH
• Saudi Basic Industries Corporation (SABIC)
• Kingfa Sci. & Tech. Co. Ltd.
• PolyOne Corporation
• 3M Company
• Trinseo S.A.
• IDEXX Laboratories Inc.

The global polyphenylene ether market is segmented as follows:

By Application

• Healthcare
• Automotive
• Aerospace
• Electricals & Electronics
• Others

By Type

• PPE/PP
• PPE/PA
• PPE/PS

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa