Paragraph- Propylene oxide is a colorless gas which find wide applications as intermediate in production of polyurethane foam, polyether polyols and other chemicals. It is used in various industries like construction, automotive, furniture etc. for production of insulation materials.
The global Propylene Oxide Market is estimated to be valued at US$ 16,852.2 Mn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing construction sector across the globe especially in developing regions of Asia Pacific and Middle East & Africa is driving the demand for propylene oxide. Propylene oxide based polyurethane foams are extensively used in construction industry for insulation in doors, windows, roofs etc. According to data, the global construction industry is expected to grow at 4% annually during 2023-2030 period. This robust growth in construction sector will augment the consumption of propylene oxide for production of various insulation materials and coatings required in construction industry.
- Strength: Propylene oxide has wide range of applications in various industries like automotive, construction, furniture which drives its demand. It is used to produce polyether polyols which is majorly used to produce polyurethane flexible and rigid foam which has applications in insulating and packaging industry.
- Weakness: Production of propylene oxide requires use of chlorohydrin process which produces hazardous byproducts. Stringent regulations around the globe regarding production and use of hazardous chemicals poses threat. Shift towards more environment friendly production technologies increases production cost.
- Opportunity: Growing construction industry especially in Asia Pacific region increases the demand for polyurethane which acts as a driver for propylene oxide market. Development of bio-based propylene technology provides opportunities for sustainable production.
- Threats: Volatile raw material prices affects the production cost. Substitute products like polyethylene and natural fibers poses competition threat in end use industries. Trade policies and geo-political issues impact the supply chain.
The global propylene oxide market is expected to witness high growth over the forecast period of 2023 to 2030. The global Propylene Oxide Market is estimated to be valued at US$ 16,852.2 Mn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominates the market and is expected to remain the fastest growing region over the forecast period. Factors such as growing population, rising disposable incomes and rapid urbanization are driving the growth of end use industries like construction, automotive and furniture manufacturing in the region.
China accounts for over half of the global demand for propylene oxide due to presence of a large manufacturing base in the country. Other major markets in the region include India, Japan, South Korea and Southeast Asian countries. The demand is supported by increasing domestic consumption as well as exports from the region.
Key players operating in the propylene oxide market are Lyondellbasell Industries, Shell plc, BASF SE, Evonik Industries, Dow Chemical Company, Huntsman Corporation, Repsol S.A., Asahi Glass Co. Ltd., Sumitomo Chemical Company and INEOS Group. The market is consolidated in nature with top players accounting for more than half of the global production capacity. Companies are focusing on capacity expansion as well as development of bio-based production technologies to strengthen market position and meet sustainability goals.