The global liquid crystal polymer films and laminates market is expected to showcase healthy growth over the next five years. The market is expected to witness significant growth year–on–year due to increasing demand for LCP films and laminates in different end–use industries such as electrical and electronics, automotive, transport, and packaging. The global liquid crystal polymer films and laminates market is highly fragmented, with large presence of tier–1 players.
Some of the key players operating in the global liquid crystal polymer films and laminates market are Solvay SA (Belgium), Polyplastics Co., Ltd (Japan), Celanese Corporation (US), Rogers Corporation (US), Asia International Enterprise (HK) Limited (China), RTP Company (US), Kuraray Co Ltd (Japan), Sumitomo Chemical Company (Japan), Shanghai PRET Composites Co., Ltd. (China), and PolyOne Corporation (US). These players are focusing on adopting growth strategies on a global level to strengthen their foothold, which is likely to increase the competition in the global market.
Celanese Corporation (US), Sumitomo Chemical Company (Japan), and Polyplastics Co., Ltd (Japan) are collectively expected to hold largest share of the global liquid crystal polymer films and laminates market. There is intense competition among these players to gain maximum revenue share in the market.
The degree of competition is high in the global market, with new players entering each year. Most of the tier–1 participants operating in the global market have acquired substantial market share by offering a broad spectrum of products. Their primary focus is on expansion of production capacities to reach the desired organizational growth.
The players operating in the global liquid crystal polymer films and laminates market are adopting various strategies such as product launches, acquisitions, and expansion to increase their global presence. Expansion and product launches were the most widely employed growth strategies by the participants in 2017 to capture larger market share.
In January 2015, Solvay introduced the Xydar MG–850 LCP, a new specially designed grade that meets the rigorous performance and processing demands of new high–speed USB 3.0 surface mount connectors.
In May 2012, Ticona, the engineering polymers business of Celanese, developed two new Vectra LCP grades to address the latest trends in E/E requirements, to fill the thin walls of miniature and complex moulded components found in tablets, smartphones, ultrabooks, and other communication devices.
In September 2012, Polyplastic acquired 100% ownership of LCP Leuna Carboxylation Plant GmbH (LCPG). The company believes that this acquisition will help strengthen the technical advantage of its LCP business through research and development process to the production process.
Threat of New Entrants
New entrants are players willing to enter the global liquid crystal polymer films and laminates market. New entrants bring new capacity, willingness to gain market share, and often substantial resources. The threat of new entrants to the existing LCP films and laminates players is expected to be low to moderate. The increasing demand for LCP films and laminates in various end–use industries, and the limited supply are expected to create lucrative growth opportunities for the new entrants. However, the capital requirement for manufacturing films and laminates using technologies such as injection molding, extrusion, co–extrusion, and thermoforming is relatively high, which may restrict entrants.
Threat of Rivalry
The global liquid crystal polymer films and laminates market is expected to witness a low threat of rivalry due to the limited presence of manufacturers as compared to the growing demand. The existing market players are mainly focusing on increasing their current production capacity and strategic initiatives to capture larger market shares. The scope for growth for the new entrants and existing players is high due to the increasing demand for LCP films and laminates globally.
Threat of Substitutes
The threat of substitutes in the global liquid crystal polymer films and laminates market is observed to be high. This is mainly due to the presence of alternatives such as polyimide films and laminates, which are available at lower costs. Due to the high cost of LCP films and laminates and low weld properties, polyimide films and laminates are widely used in different applications, which is expected to impact the growth of the global liquid crystal polymer films and laminates market during the forecast period.
Bargaining Power of Suppliers
The bargaining power of suppliers is estimated to be low to moderate. The availability of substitutes in the market at lower costs is creating a hindrance for the existing LCP films and laminates manufacturers and, thus, lowering their bargaining power even though there are a limited number of efficient suppliers. However, during the forecast period, the bargaining power of suppliers is expected to increase due to the rising demand for LCP films and laminates, particularly in the electrical and electronics industry, owing to the superior performance characteristics of LCP.
Bargaining Power of Buyers
The bargaining power of buyers is estimated to be moderate to high due to the choice of low–cost substitutes available to buyers. However, during the forecast period, the bargaining power of buyers may decline due to the increasing research and development on LCP films and laminates, which is likely to eliminate the limitations of LCP such as low weld properties and lead to the rising application of LCP films and laminates.
