Propylene Oxide Market size is estimated to surpass USD 40 billion by the end of 2035, growing at a CAGR of 5% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of propylene oxide was over USD 20 billion. The growth of the market can primarily be attributed to the 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 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 the chemical, food & beverage, pharmaceutical, and cosmetics industries. Therefore, this factor is also projected to drive market growth over the forecast period.
Growth Drivers
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.
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.
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.
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.
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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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~5% |
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Base Year Market Size (2022) |
~ USD 20 Billion |
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Forecast Year Market Size (2035) |
~ USD 40 Billion |
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Regional Scope |
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Production Process (Chlorohydrin, Styrene Monomer, Hydrogen Peroxide, TBA Co-Product, Cumene-based Process)
The global propylene oxide market is segmented and analyzed for demand and supply by production process into chlorohydrin, styrene monomer, hydrogen peroxide, TBA co-product, and cumene-based process. Out of these types of production processes, the chlorohydrin segment is estimated to gain the largest market share in the year 2035. Chlorohydrin 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 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 global propylene oxide market is also segmented and analyzed for demand and supply by end user into automotive, building & construction, textile & furnishing, chemical & petrochemical, packaging, electronics, and others. Amongst these segments, the building & construction segment is expected to garner a significant share in the year 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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APAC Market Statistics
The Asia Pacific propylene oxide market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 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 is further anticipated to create a surge in demand for propylene oxide in the region.
Europe Market Forecast
The European propylene oxide market, amongst the market in all the other regions, is projected to hold the second largest share 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.
The European propylene oxide market, amongst the market in all the other regions, is anticipated to hold the second largest share during 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, the 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 the propylene oxide market in this region.
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).
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.
Author Credits: Smruti Ranjan, Rajrani Baghel
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