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CHEMICALS AND ADVANCED MATERIALS

Propylene Oxide Market Segmentation By Production Process (Chlorohydrin, Styrene Monomer, Hydrogen Peroxide, TBA Co-Product and Cumene-based Process) and By End User (Automotive, Building & Construction, Textile & Furnishing, Chemical & Petrochemical, Packaging, Electronics and Others) – Global Demand Analysis & Opportunity Outlook 2025

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Inflation And Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.

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Purchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.                                                         Request Insights

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IN THE NEWS

  • Aug 2019: 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.

Market Overview

Propylene oxide (PO) is a highly reactive organic chemical, which is useful in the form of a chemical intermediate in the production of several commercial materials. It is a bulk chemical, which can be produced via multiple technologies. Propylene oxide is a crucial raw material used for the production of propylene glycol. In recent years, the production of propylene glycol has witnessed a significant increase on account of its increasing number of applications in a wide array of end-use industries such as food & beverage, pharmaceuticals, chemical, and others. Propylene glycol is used as a chemical feedstock for the production of unsaturated polyester resins, vaporizers for the delivery of personal care and pharmaceutical agents, humectants in hand-sanitizers, de-icing fluid in aircraft, and solvents for many substances. Therefore, the growing number of applications of propylene glycol, which is derived from propylene oxide is another crucial factor responsible for the growth of global propylene oxide market. In 2019, the global propylene oxide market accounted for a market value of USD 13875.7 million and is expected to grow at a CAGR of 4% over the forecast period of 2021-2025.

Regional Growth Highlights during 2015-2025

The global propylene oxide market is segmented on the basis of region into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. The market in Asia Pacific is the fastest growing region for the propylene oxide market. Some of the major contributing nations 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. Additionally, the increase in commercial construction in countries such as China, India, Vietnam, Philippines and Indonesia are further anticipated to create a surge in demand for propylene oxide in the region.

The global propylene oxide market in Europe is anticipated to account for a value of USD 4199.5 by 2025, growing at a CAGR of 2.8% over 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.

North America accounted for a market value of USD 3,121.4 million in the year 2019 and is expected to grow at a CAGR of 3.1% over the forecast period. The region’s propylene oxide market is significantly growing on account of the rising demand for propylene oxide in construction projects. In addition, usage of propylene oxide has been increasing rapidly in applications such as automotive, textile and furnishing, packaging, and others. This factor is anticipated to drive the growth of propylene oxide market in this region.

Propylene Oxide Market Graph

The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa). CLICK TO DOWNLOAD SAMPLE REPORT

Market Segmentation Synopsis

By Production Process

Based on production process, the global propylene oxide market is segmented into chlorohydrin process, styrene monomer process, hydrogen peroxide process, TBA co-product process, and cumene-based process, out of which, chlorohydrin process (CPHO), is estimated to account for a market value of around USD 4920.6 million by 2020. CHPO is the oldest method used for the production of propylene oxide and held the largest market share in the year 2019. It is a multi-step process wherein chlorohydrin intermediate is formed, which is subsequently dehydrochlorinated to the epoxide. The process has few drawbacks including impact on the environment on account of high waste processing and it also requires enormous capital investment.

Propylene Oxide Market Share Image

By End User

Based on end user, the global propylene oxide market is segmented into automotive, building & construction, textile & furnishing, chemical & petrochemical, packaging, electronics, and others, out of these, building & construction accounted to be the largest end-use segment in 2019. Propylene oxide is used for numerous applications in building & construction sector. 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 obtained from propylene glycol, the second-largest consumer of propylene oxide, is used for the reinforcement of fibreglass to form fibre-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.

Market Drivers & Challenges

Growth Indicators

Rapidly Increasing Application of Propylene Oxide as a Chemical Intermediate

Rising demand for propylene oxide for the production of chemical intermediates, especially for the polyurethane and the solvents industry is a crucial factor expected to propel the market growth over the forecast period. 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 chemical, food & beverage, pharmaceutical, and cosmetics industries. Therefore, this factor is also projected to drive the market growth over the forecast period.

Restraints

Potential Carcinogenicity and Environmental Liability Associated With Propylene Oxide Production

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 are among the major limiting factors expected to restrain the market growth.

Competitive Landscape

Some of the prominent industry leaders in the global propylene oxide market are Dow, Balchem Inc, BASF SE, Ashland, Alfa Aesar (Thermo Fisher Scientific), Sumitomo Chemical Co, Ltd., Huntsman International LLC, Lyondellbasell Industries Holdings B.V., Eastman Chemical Company and others.

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