by Propylene oxide is one of the most versatile and widely used industrial chemical intermediates. It is primarily used in the production of polyurethanes, propylene glycols, and other compounds. Polyurethanes made from propylene oxide find applications in furniture and bedding, automotive and construction industries due to their high durability, flexibility and insulating properties. The growth in these end-use industries has been a key driver for increasing polyurethane demand which in turn is augmenting the propylene oxide market. Propylene oxide is also used to produce propylene glycols which are used as antifreeze agents, solvents for coatings and for the production of unsaturated polyester resins. The market for these products has also witnessed steady growth lending support to propylene oxide consumption. Furthermore, ongoing research and development for new applications in specialty chemical and pharmaceutical industries is broadening the scope of propylene oxide further fuelling market expansion.
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:
Shift towards bio-based propylene oxide derived from bio-propylene: Producers are investing in R&D to develop technologies to produce bio-propylene from renewable feedstocks such as vegetable oils, algae, and agricultural residues. This will help reduce dependency on petroleum-based sources and provide a more sustainable option with lower carbon footprint. Ongoing commercial demonstration projects for bio-based propylene production are expected to translate into increased availability of affordable bio-propylene oxide in the coming years.
Porter’s Analysis
- Threat of new entrants: The propylene oxide market requires high capital investments, technical expertise and resources which pose a barrier for new entrants.
- Bargaining power of buyers: Large buyers in industries like construction and automotive can negotiate lower prices due to bulk purchases. However, customized solutions and specialized production limit switching to alternate suppliers.
- Bargaining power of suppliers: A few large suppliers control the global production capacity of propylene. Supply constraints and negotiations impact prices of propylene oxide.
- Threat of new substitutes: Alternate offerings like glycols are evolving but propylene oxide maintains an edge due to performance advantages and entrenched applications in various end-use industries.
- Competitive rivalry: Major players compete on manufacturing technologies, vertical integration, capacity expansions and strategic collaborations. Intense competition pressures margins in the commodity chemicals space.
Key Takeaways
The global propylene oxide market is expected to witness high growth over the forecast period of 2023 to 2030. The Asia Pacific region currently dominates the market owing to rapid infrastructure growth and robust manufacturing activity in countries like China and India.Regional analysis:
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 accounts for over half of the global consumption with China being the major consumer as well as producer. Countries like India, Indonesia, Malaysia and Vietnam are also emerging as high growth spots propelled by expanding end-use industries. Europe and North America are relatively mature markets while regions like Central and South America and the Middle East are projected to develop over the coming years.
Key players: Key players operating in the propylene oxide market are Lyondellbasell Industries (Netherlands), Shell plc (United Kingdom), BASF SE (Germany), Evonik Industries (Germany), Dow Chemical Company (United States), Huntsman Corporation (United States), Repsol S.A. (Spain), Asahi Glass Co. Ltd. (Japan), Sumitomo Chemical Company (United Kingdom), INEOS Group (Japan), and Balchem Corporation (United States). The major players are focusing on capacity additions, strategic partnerships and product innovations to strengthen their positions in the market.
