Propylene Oxide Market Outlook:
Propylene Oxide Market size was over USD 25.06 billion in 2025 and is poised to exceed USD 42.81 billion by 2035, growing at over 5.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of propylene oxide is evaluated at USD 26.3 billion.
The market growth can be ascribed to higher demand for propylene oxide to manufacture various types of furniture such as bedding, carpets, and others. Higher demand for seat cushioning in automobiles is also anticipated to hike the demand for propylene oxide. For instance, in 2022, nearly 65 million cars were noticed to be sold out across the globe.
Rising demand for propylene oxide for the production of chemical intermediates, especially for the polyurethane and the solvents industry will propel the market growth. Propylene oxide is primarily used for the production of polyether polyols, a crucial precursor for the production of polyurethane. Polyurethane, in turn, is used in a wide array of applications, namely furniture upholstery, thermal insulation, automobile components, coatings materials, and sporting goods. Besides, it also acts as an essential chemical intermediate for the production of propylene glycol, which is extensively used in the chemical, food & beverage, pharmaceutical, and cosmetics industries.
Key Propylene Oxide Market Insights Summary:
Regional Highlights:
- Asia Pacific propylene oxide market will dominate over 49.5% share by 2035, driven by rising demand from automotive and construction industries.
- Europe market projects a substantial CAGR during 2026-2035, driven by increasing use in construction and packaging sectors.
Segment Insights:
- The building & construction segment in the propylene oxide market is forecasted to secure a significant share by 2035, driven by high demand in construction chemicals and FRP-based applications.
- The chlorohydrin segment in the propylene oxide market is forecasted to secure the largest share by 2035, driven by its widespread use in making dye intermediates, pesticides, and plasticizers.
Key Growth Trends:
- Growing Demand for Propylene Oxide in Construction Industry
- Rising Utilization of Propylene Oxide in the Making of Cement
Major Challenges:
- Potential Carcinogenicity and Environmental Liability Associated with Propylene Oxide Production
- Possibility of Side Effects such as Skin and Eye Irritation
Key Players: Dow Chemical Company, BASF SE, Ashland Inc., Thermo Fisher Scientific Inc., Sumitomo Chemical Co., Ltd., Huntsman International LLC, LyondellBasell Industries Holdings B.V., Eastman Chemical Company, Tokuyama Corporation, Repsol S.A.
Global Propylene Oxide Market Forecast and Regional Outlook:
Market Size & Growth Projections:
- 2025 Market Size: USD 25.06 billion
- 2026 Market Size: USD 26.3 billion
- Projected Market Size: USD 42.81 billion by 2035
- Growth Forecasts: 5.5% CAGR (2026-2035)
Key Regional Dynamics:
- Largest Region: Asia Pacific (49.5% Share by 2035)
- Fastest Growing Region: Asia Pacific
- Dominating Countries: China, United States, Germany, South Korea, Japan
- Emerging Countries: China, India, Brazil, Mexico, Thailand
Last updated on : 8 September, 2025
Propylene Oxide Market Growth Drivers and Challenges:
Growth Drivers
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Growing Demand for Propylene Oxide in Construction Industry – propylene oxide is highly used in the construction industry in waterproofing materials and adhesives. For instance, it was estimated nearly 1 million new housing units are planned every year in the United States. Additionally, a need for approximately 12,000 buildings can be observed across the globe since around 7 billion people is expected to move to urban areas by 2050.
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Rising Utilization of Propylene Oxide in the Making of Cement – propylene oxide is used in cement to evaluate its properties by examining burnt clay brick and crushed stone. For instance, in 2022, cement production amounted to approximately 4 billion tons which is further estimated to hike exponentially over the forecast period.
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Increasing Demand for Propylene Oxide in Water Treatment – propylene oxide is highly required in the treatment of water. For instance, approximately 45% of household water is required to be treated safely worldwide.
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Growing Production of Paper across the Globe - propylene oxide is significantly required in paper production therefore a surge in paper production is expected to boost market growth over the forecast period. For instance, in 2021, the total production volume of paper was estimated to be around 96 million metric tons worldwide.
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Rising Demand for Polypropylene – polypropylene, a plastic resin is highly used to make outdoor furniture, apparel, plastic bottles, and other products and it is derived from propylene oxide. For instance, it was estimated around 1 million plastic bottles are used by humans per minute globally.
Challenges
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Potential Carcinogenicity and Environmental Liability Associated with Propylene Oxide Production
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Potential carcinogenicity associated with the application of propylene oxide coupled with the environmental liability associated with the chlorohydrin process for the production of propylene oxide is among the major limiting factors expected to restrain the market growth.
- Possibility of Side Effects such as Skin and Eye Irritation
- Higher Potential to Cause Cancer
Propylene Oxide Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2025 |
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Forecast Period |
2026-2035 |
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CAGR |
5.5% |
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Base Year Market Size (2025) |
USD 25.06 billion |
|
Forecast Year Market Size (2035) |
USD 42.81 billion |
|
Regional Scope |
|
Propylene Oxide Market Segmentation:
Production Process Segment Analysis
The chlorohydrin segment is estimated to gain largest market share by 2035. Chlorohydrin is a multi-step process wherein chlorohydrin intermediate is formed, which is subsequently dehydrochlorination to the epoxide. The process has a few drawbacks including its impact on the environment on account of high waste processing and it also requires enormous capital investment. Chlorohydrin is highly used to make dye intermediates, pesticides, plasticizers, and others. For instance, around 2 million metric tons of pesticides were consumed across the globe in 2020.
End-user Segment Analysis
The building & construction segment is set to garner significant share by 2035. Propylene oxide is used for numerous applications in the building & construction sector. It is estimated that the total spending on the construction industry reached around USD 10 trillion in 2022. It is deployed as a construction chemical for use in paints, adhesives, grouts, coatings, and waterproofing materials in the construction industry. Moreover, An unsaturated polyester resin derived from propylene glycol, the second-largest consumer of propylene oxide, is used for fiberglass reinforcement to create fiber-reinforced plastics. (FRPs). These FRPs are extensively used in residential and commercial construction to make building panels, fixtures, bathroom components, pipes, corrosion-resistant tanks, and ducts.
Our in-depth analysis of the global market includes the following segments:
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By Production Process |
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By End User |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Propylene Oxide Market Regional Analysis:
APAC Market Insights
Asia Pacific region is anticipated to hold over 49.5% market share by 2035. Some of the major contributing nations in this region include China, India, Japan, Australia, and Southeast Asian countries. Its large end-use industries such as automotive, construction, food & beverage, and others are among the key end-use sectors driving the demand for propylene oxide in the region. For instance, as of 2021, 35 million passenger cars were sold out in the Asia Pacific region. Additionally, the increase in commercial construction in countries such as China, India, Vietnam, the Philippines, and Indonesia will create a surge in demand for propylene oxide.
Europe Market Insights
The European propylene oxide market is predicted to observe substantial CAGR during the forecast period. Propylene oxide has gained prevalence in the European market on account of its increasing adoption in end-use industries such as building & construction, automobiles, consumer electronics, and packaging. Some of the major contributing countries in the region include Germany, France, Spain, and the UK. The construction sector in Europe is among the significant consumer of propylene oxide. The growing adoption of Fibre Reinforced Polymers (FRP) in the residential and commercial construction sector in the region, has also strengthened the market growth.
Propylene Oxide Market Players:
- Dow Chemical Company
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- BASF SE
- Ashland Inc.
- Thermo Fisher Scientific Inc.
- Sumitomo Chemical Co., Ltd.
- Huntsman International LLC
- LyondellBasell Industries Holdings B.V.
- Eastman Chemical Company
- Tokuyama Corporation
- Repsol S.A.
Recent Developments
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BASF SE started the production of bio-based polyol marketed, Sovermol based in Mangalore, India. This product is highly in demand to make eco-friendly products for New Energy Vehicles (NEV).
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Sumitomo Chemical Co., Limited has signed an agreement with Bharat Petroleum Corporation Limited (BPCL) of India to license its production technology for propylene oxide in connection with the BPCL petrochemical plant. With a gross production capacity of approximately 840,000 barrels a day of crude oil from its four refinery complexes in India, BPCL is one of the largest government-owned oil companies in India.
- Report ID: 2804
- Published Date: Sep 08, 2025
- Report Format: PDF, PPT
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