Propylene Oxide Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Propylene Oxide Market in 2025 is assessed at USD 23.18 billion. The global market size was over USD 22.24 billion in 2024 and is forecast to experience a CAGR of over 5.3%, reaching USD 43.52 billion by 2037. Asia Pacific is projected to lead, attributed to demand from large end-use industries like automotive, construction, and food & beverage.
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.
Propylene Oxide Sector: 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: Key Insights
| Report Attribute | Details |
|---|---|
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.3% |
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Base Year Market Size (2024) |
USD 22.24 billion |
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Forecast Year Market Size (2037) |
USD 43.52 billion |
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Regional Scope |
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Propylene Oxide Segmentation
Production Process (Chlorohydrin, Styrene Monomer, Hydrogen Peroxide, TBA Co-Product, Cumene-based Process)
The chlorohydrin segment is estimated to gain largest market share by 2037. 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 (Automotive, Building & Construction, Textile & Furnishing, Chemical & Petrochemical, Packaging, Electronics)
The building & construction segment is set to garner significant share by 2037. 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 Industry - Regional Synopsis
APAC Market Statistics
The Asia Pacific propylene oxide market is predicted to account for majority share by the end of 2037. 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 Forecast
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.
Companies Dominating the Propylene Oxide Landscape
- 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: Apr 18, 2025
- Report Format: PDF, PPT
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