Propylene Oxide Market Outlook:
Propylene Oxide Market size was USD 27 billion in 2025 and is estimated to reach USD 47 billion by the end of 2035, expanding at a CAGR of 5.7% during the forecast period, i.e., 2026-2035. In 2026, the industry size of propylene oxides is evaluated at USD 28.5 billion.
The aggressive construction and infrastructure development activities are projected to fuel the demand for propylene oxides (PO). The polyurethane foams derived from PO are extensively used in insulation materials for residential, commercial, and industrial buildings. The World Smart Cities Outlook 2024 by UN-Habitat discloses that nearly 54% of all countries have issued a nationwide smart city plan. The stricter building codes and regulations emphasizing energy efficiency are likely to increase the use of specialized materials, including propylene oxides, also known as methyloxirane. The modern construction projects are further estimated to boost the application of propylene oxide-derived products for flooring purposes.
Percentage Of Municipalities and Countries with Strategic Documents for Smart City Development

Source: UN-Habitat