Propylene Oxide Market Size

Propylene Oxide Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Propylene Oxide Market - The global propylene oxide market is expected to grow significantly in the near future. By 2024, the market size is expected to reach $18 billion, and by 2035, it is expected to reach $ 30 billion. CAGR is 4.71%. This growth shows that the demand for propylene oxide is high in various fields, especially in the field of polyurethane foams, coatings and glues. In the field of polyurethane foams, the demand for lightweight and energy-saving building materials and automobiles has become a major driving force for the development of the propylene oxide market. Also, the development of bio-propylene is expected to drive the development of the market. Propylene oxide is a chemical intermediate, and the development trend is similar to that of other chemical intermediates. , the main market is BASF, the next market is The Dow Chemical, and the third is Huntsman. The market is expected to be competitive in the future, and the expansion of production capacity and the development of new products and new markets will also help the development of the market.

Regional Market Size

Regional Deep Dive

The Propylene Oxide market is characterized by different dynamics in different regions, driven by different industrial applications, regulatory frameworks, and economic conditions. North America, for example, is characterized by a strong chemical industry and increasing demand from the construction and automobile industries. Europe, meanwhile, is witnessing a shift towards more sustainable production methods, influenced by stricter regulations. Asia-Pacific, especially China and India, are experiencing high growth rates, driven by rapid industrialization and urbanization. Middle East and Africa (MEA) are characterized by their petrochemical industries. Latin America, meanwhile, is gradually increasing its production capacities, influenced by increasing local demand and investment in infrastructure.

North America

• The American government has recently imposed regulations requiring companies to reduce emissions from chemical production.
• CHEMICAL COMPANIES such as BASF and Dow are expanding their production in the region. They are focusing on the development of new products, such as propylene oxide from renewable sources.
• The development of the electric car in the automobile industry is creating a demand for propylene oxid, mainly for the production of light composite materials and insulating materials.

Europe

• The European Union’s Green Deal aims at reducing carbon emissions, which is why there is an increasing investment in bio-based propylene-oxide production.
• CO2 is being used as a feedstock to produce propylene.
• The market for cosmetics is influenced by the regulations relating to the safety of chemicals and to the evaluation of their effects on the environment. These regulations are causing manufacturers to adopt more sustainable practices.

Asia-Pacific

• The emphasis of the 14th Plan is on the development of high-tech industries. The demand for propylene in various applications, such as in the automobile and the electrical appliances industry, is expected to rise.
• Reliance Industries, a leading Indian manufacturer, has been steadily increasing its production of propylene to meet the growing domestic and international demand.
• The research and development in the field of ethyl oleate has been carried out in the region both by the state and by private companies.

MEA

• Gulf Cooperation Council (GCC) countries are diversifying their economies away from oil, and this has led to a great increase in investment in the petrochemical sector, and thus in propylene production.
• SABIC is exploring ways to work with international companies to develop its capacity to produce propylene oleate in a sustainable manner.
• The regulations in the region are changing. They are more and more concerned with the environment, and it is anticipated that they will lead to the development of new production methods.

Latin America

• Brazil is investing in the development of bio-based chemicals, with the goal of producing propylene from natural resources, in line with the global trend of sustainable development.
• The post-pandemic recovery of the region has led to increased demand for propylene oxide in the construction and automobile industries, particularly in Mexico and Argentina.
• Local companies are forming strategic alliances to increase their production capacity and meet the growing demand for propylene derivatives in various applications.

Did You Know?

“Propylene is one of the most useful chemicals, not only used in the manufacture of plastics and foams, but also in the manufacture of antifreeze and solvents.” — American Chemistry Council

Segmental Market Size

The market for propylene oxide is characterized by a steady growth, primarily driven by the rising demand for polyurethane products in the various industries, including automobiles, construction, and consumer goods. The key driving forces of the market are the growing demand for lightweight materials to increase the fuel efficiency of cars, and the government's efforts to make these products more sustainable. Further driving the market are the technological advancements, such as the use of hydrogen peroxide and propylene oxide (HPPO) process.

During the period of its existence, propylene oxide has been adopted by the chemical industry, and the leading companies such as BASF and Dow have built large-scale production plants in North America and Asia-Pacific. The main use is to produce flexible and rigid foams, coatings, and adhesives, which are indispensable in the construction and automobile industries. The trend of sustainable development and the trend of reducing carbon emissions are driving the development of this industry. In the future, bio-propylene production technology will play an important role in shaping this industry.

Future Outlook

The propylene-oxide market is projected to experience a substantial growth from 2024 to 2035, with a CAGR of 4.76%. The increase in the demand for propylene-oxide in various applications is due to the rising demand for polyurethane foams, which are increasingly used in the automotive, construction, and consumer goods industries. The use of lightweight and energy-saving materials in various industries has increased the demand for propylene-oxide. By 2035, the propylene-oxide market in the polyurethane industry is expected to account for more than 60% of total consumption.

The propylene market is expected to be driven by key technological developments and policy drivers. The introduction of more sustainable and efficient production processes such as the hydrogen peroxide process is expected to boost the market’s growth potential. Also, stricter regulations on carbon emissions are expected to accelerate the uptake of such greener production methods. Furthermore, the increasing focus on circular economy practices and the demand for bio-based propylene are expected to have a major influence on the market’s future dynamics.