Propylene Oxide Market by Application (Polyether Polyols, Propylene Glycol, Fumigation, Adhesives & Sealants, Oil Demulsifier) by End Use Industry (Construction, Paints & Coatings, Oil & Gas, Food, Transportation) and by Region– Forecast till 2030

Propylene Oxide Market Overview

 

Propylene oxide is a chemical compound that is generally obtained as a colorless liquid and soluble in ether and alcohol. The propylene oxides are generally utilized in the food industry to retain freshness and to eliminate bacterial attacks. It is also utilized in producing commercial materials that are used in rigid foams, injection moldings, adhesives, coatings, and significant others. The significant end-user industries such as automotive industries and furniture industries are propelling the overall growth of the propylene oxide industry. The potential characteristics of polyurethanes like stiffness, density, and hardness are also impacting the overall growth of the propylene oxide industry.

 

On the other hand, the stringent regulations regarding the usage of propylene oxide because of the toxicity are expected to restrict the overall growth of the propylene oxide industry. Whereas the demand for eco-friendly products is produced using bio-based polyurethane are considered as the major driver of propylene oxide market growth. 

 

COVID 19 Analysis:

 

The Propylene oxide market demand is highly influenced by the end-user industries such as automotive, construction, and furniture manufacturing industries. Due to the widespread COVID -19, the demand for these end-user industries has dropped significantly. Moreover, the manufacturing facilities have reduced their production rate in recent times. Such factors have significantly affected the overall growth of the propylene oxide industry. Also, the availability of the raw materials required for the production of propylene oxide has reduced due to the prolonged lockdown. 

 

The propylene derivatives are increasingly produced in European countries, which are highly reliant on China for raw materials. Since China was immensely affected by COVID-19, the operation rates have also reduced.

 

Market dynamics:

 

Market drivers:

 

The utilization of propylene across several end-user industries such as construction, automotive and significant others have increased in recent years. Moreover, the construction activities and the demand for energy-efficient buildings across developing countries have also increased. Such increasing demand is one of the major drivers of propylene oxide market growth.

 

The increasing demand for the food industry in terms of preservation is considered as the major driver of propylene oxide. The propylene oxide is used in pasteurizing raw almonds and in protecting the other nuts such as pistachios from the growth of salmonella.

 

Market opportunities:

 

The increasing utilization of polyurethane in medical equipment is expected to boost the overall growth of the propylene oxide industry. The increasing demand for medical devices across the globe accompanied by the increasing investment in the health care sector is expected to stimulate the overall growth of the propylene oxide industry during the forecast period. For instance, polyurethane is utilized in pacemakers, medical garments, hospital bedding, and short-term implants. Such a wide range of applications is expected to impact the propylene oxide market growth.

 

Propylene oxide is intensively used in energy-efficient building materials. The necessity for energy optimization has been increasing in recent years. Additionally, several countries are increasingly investing to upgrade their infrastructure. Such factors are expected to increase the overall growth of the propylene oxide industry during the forecast period.

Market restraints:

 

The toxicity of propylene oxide is considered as the major restraint for the propylene oxide market growth. Some of the commonly known side effects on humans while exposed to acute propylene oxide are considered as the major restraints of propylene oxide market growth. The environmental protection agency has categorized propylene oxide as Group B2/ human carcinogen. 

 

The changes in the availability of raw materials and the prices of raw materials are also considered as the major restraints of propylene oxide market growth. The low-priced substitutes in the market are also hampering the overall growth of the propylene oxide industry.

 

Market challenges:

 

The restrictions imposed by the government because of the associated environmental concerns and petroleum feedstocks are considered as the major source for deriving polyurethane foams. The increasing scarcity of petroleum in the future is hindering the overall growth of the propylene oxide industry.  

 

The production of polyurethane foams includes several vegetable oils such as soybean oil, rapeseed oils, palm oil, and castor oil. However, the bio-based feedstock development in polyurethanes manufacturing is an extreme challenge for the propylene oxide industry.

 

Cumulative growth analysis:

 

The market value of propylene oxide was at USD 14.4 Billion in the year 2020, and it is expected to surpass a revised size of USD 18.8 Billion by 2027, growing at a CAGR of 3.9%. The market value is highly influenced by the increasing utilization of polyurethane foam products in everyday activities. Additionally, the demand for the end-user industries such as automotive, construction, textile and furnishing, and significant others are considered as the major drivers of the propylene oxide industry. The manufacturing of the car seats, hand rests, over liners, interior and exterior of the automobiles are intensive utilizing the propylene oxide such factors are impacting the overall growth of the propylene oxide industry. 

 

Value chain analysis:

 

Some of the developed cities across the Asia-pacific region are inclined towards the development and the investments to develop the metro cities and the energy-efficient buildings are increasingly gaining momentum in recent years. Such factors are impacting the overall growth of the propylene oxide industry. Similarly, the automotive industry is considered the major end-user of propylene oxide. The hydraulic fluid in the braking systems in automobiles uses propylene oxide, the car seats, hand rest, and other forms are manufactured using propylene oxide. They are also used as the de-icing agent in airplanes. Additionally, the increasing investment in the automotive industries across the globe is presenting lucrative opportunities for the overall growth of the propylene oxide industry. 

 

Segment overview:

 

Based on application:

 

• Polyether Polyols


• Propylene Glycol


• Glycol Ethers


• Others

 

Based on the process:

 

• Chlorohydrin Process


• Styrene Monomer Process


• Hydrogen Peroxide Process


• TBA Co-Product Process


• Cumene-based Process

 

Based on the end-use industry:

 

• Automotive


• Building & Construction


• Textile & Furnishing


• Chemical & Pharmaceutical


• Packaging


• Electronics


• Others

Market overview:

Propylene oxide is a chemical compound that is generally obtained as a colorless liquid and soluble in ether and alcohol. The propylene oxides are generally utilized in the food industry to retain freshness and to eliminate bacterial attacks. It is also utilized in producing commercial materials that are used in rigid foams, injection moldings, adhesives, coatings, and significant others. The significant end-user industries such as automotive industries and furniture industries are propelling the overall growth of the propylene oxide industry. The potential characteristics of polyurethanes like stiffness, density, and hardness are also impacting the overall growth of the propylene oxide industry.

On the other hand, the stringent regulations regarding the usage of propylene oxide because of the toxicity are expected to restrict the overall growth of the propylene oxide industry. Whereas the demand for eco-friendly products is produced using bio-based polyurethane are considered as the major driver of propylene oxide market growth. 
 

COVID 19 Analysis:

The Propylene oxide market demand is highly influenced by the end-user industries such as automotive, construction, and furniture manufacturing industries. Due to the widespread COVID -19, the demand for these end-user industries has dropped significantly. Moreover, the manufacturing facilities have reduced their production rate in recent times. Such factors have significantly affected the overall growth of the propylene oxide industry. Also, the availability of the raw materials required for the production of propylene oxide has reduced due to the prolonged lockdown. 

The propylene derivatives are increasingly produced in European countries, which are highly reliant on China for raw materials. Since China was immensely affected by COVID-19, the operation rates have also reduced.

Market dynamics:

Market drivers:

The utilization of propylene across several end-user industries such as construction, automotive and significant others have increased in recent years. Moreover, the construction activities and the demand for energy-efficient buildings across developing countries have also increased. Such increasing demand is one of the major drivers of propylene oxide market growth.
 
The increasing demand for the food industry in terms of preservation is considered as the major driver of propylene oxide. The propylene oxide is used in pasteurizing raw almonds and in protecting the other nuts such as pistachios from the growth of salmonella.

Market opportunities:

The increasing utilization of polyurethane in medical equipment is expected to boost the overall growth of the propylene oxide industry. The increasing demand for medical devices across the globe accompanied by the increasing investment in the health care sector is expected to stimulate the overall growth of the propylene oxide industry during the forecast period. For instance, polyurethane is utilized in pacemakers, medical garments, hospital bedding, and short-term implants. Such a wide range of applications is expected to impact the propylene oxide market growth.

Propylene oxide is intensively used in energy-efficient building materials. The necessity for energy optimization has been increasing in recent years. Additionally, several countries are increasingly investing to upgrade their infrastructure. Such factors are expected to increase the overall growth of the propylene oxide industry during the forecast period.

Market restraints:

The toxicity of propylene oxide is considered as the major restraint for the propylene oxide market growth. Some of the commonly known side effects on humans while exposed to acute propylene oxide are considered as the major restraints of propylene oxide market growth. The environmental protection agency has categorized propylene oxide as Group B2/ human carcinogen. 

The changes in the availability of raw materials and the prices of raw materials are also considered as the major restraints of propylene oxide market growth. The low-priced substitutes in the market are also hampering the overall growth of the propylene oxide industry.

Market challenges:
 
The restrictions imposed by the government because of the associated environmental concerns and petroleum feedstocks are considered as the major source for deriving polyurethane foams. The increasing scarcity of petroleum in the future is hindering the overall growth of the propylene oxide industry.  
 
The production of polyurethane foams includes several vegetable oils such as soybean oil, rapeseed oils, palm oil, and castor oil. However, the bio-based feedstock development in polyurethanes manufacturing is an extreme challenge for the propylene oxide industry.

Cumulative growth analysis:

The market value of propylene oxide was at USD 14.4 Billion in the year 2020, and it is expected to surpass a revised size of USD 18.8 Billion by 2027, growing at a CAGR of 3.9%. The market value is highly influenced by the increasing utilization of polyurethane foam products in everyday activities. Additionally, the demand for the end-user industries such as automotive, construction, textile and furnishing, and significant others are considered as the major drivers of the propylene oxide industry. The manufacturing of the car seats, hand rests, over liners, interior and exterior of the automobiles are intensive utilizing the propylene oxide such factors are impacting the overall growth of the propylene oxide industry. 

Value chain analysis:

Some of the developed cities across the Asia-pacific region are inclined towards the development and the investments to develop the metro cities and the energy-efficient buildings are increasingly gaining momentum in recent years. Such factors are impacting the overall growth of the propylene oxide industry. Similarly, the automotive industry is considered the major end-user of propylene oxide. The hydraulic fluid in the braking systems in automobiles uses propylene oxide, the car seats, hand rest, and other forms are manufactured using propylene oxide. They are also used as the de-icing agent in airplanes. Additionally, the increasing investment in the automotive industries across the globe is presenting lucrative opportunities for the overall growth of the propylene oxide industry. 

Segment overview:

Based on application:

• Polyether Polyols


• Propylene Glycol


• Glycol Ethers


• Others

Based on the process:

• Chlorohydrin Process


• Styrene Monomer Process


• Hydrogen Peroxide Process


• TBA Co-Product Process


• Cumene-based Process

Based on the end-use industry:

• Automotive


• Building & Construction


• Textile & Furnishing


• Chemical & Pharmaceutical


• Packaging


• Electronics


• Others

Global Propylene Oxide Market Share, by Applications 2016 (%):

Regional analysis:

 

Among other regions, the Asia-pacific region is expected to hold the largest market share during the forecast period. As the demand for the construction and housing industry has been increasing across the Asia-pacific region. The burgeoning population and the continuous demand for the improvement in infrastructure across the Asia-pacific region are considered as the major factors that increase the propylene oxide market demand.  

 

On the other hand, North America is also utilizing propylene oxide intensively due to the increased demand in the automotive industry. The aerospace vehicles and the demand for the de-icing agent in airplanes are some of the key uses of propylene oxide. However some of the developed countries such as Europe, due to the toxicity nature of propylene oxide have restricted the usage with its regulations. 

 

Competitive landscape:

 

• Dow Chemical Company (U.S.)


• LyondellBasell Industries N.V. (the Netherlands)


• Royal Dutch Shell plc (the Netherlands)


• Huntsman Corporation (U.S.)


• BASF SE (Germany)


• Repsol S.A. (Spain)


• Asahi Glass Co., Ltd. (Japan)


• INEOS Private Limited Company (U.K.)


• Sumitomo Group (Japan)


• Chevron Phillips Chemical (U.S.)

 

Recent developments:

 

Jan 2022 - Increased ethylene sector maintenance planned for the first half of this year is projected to restrain supplies, according to LyondellBasell Industries NV, while tight markets for acetyls and propylene oxide are predicted to persist. Higher energy and feedstock costs squeezed profits in the fourth quarter, notably Europe. However, better margins were driven by improving transportation fuel demand, allowing our Refining segment to produce its second consecutive quarter of positive earnings.

Jan 2022 - Carbon dioxide from smokestacks can be trapped and used to manufacture economically viable molecules thanks to a breakthrough substance developed by a scientific collaboration led by an Oregon State University researcher. According to the findings, a new metal-organic framework loaded with propylene oxide, a common industrial chemical, can promote the synthesis of cyclic carbonates while also eliminating CO2 from flue emissions from industry. The discoveries are good news for green-economy projects because they indicate that useful items like battery electrolytes and pharmaceutical precursors may be created using the same technique used to remove factory emissions.

In the year 2021, scientists of Hokkaido University have worked to produce an efficient catalyst for the production of propylene. The technique used in the production of catalysts in oxidative dehydrogenation is a chemical reaction, where carbon dioxide is used to convert the propane gas into propylene. The researchers have utilized three key metals such as platinum, cobalt, and indium for their specific properties. The research has tested the capability of the catalyst under 550’c and the results were compared with the existing catalysts. This test has proved that the catalyst has shown long-term stability compared to others and the reusability is also higher.

 

Report overview:

 

This report has covered:

• Market overview


• COVID 19 Analysis


• Market dynamics


• Cumulative growth analysis


• Value chain analysis


• Segment overview


• Regional analysis


• Competitive landscape


• Recent developments

 

Segmentation Table:

 

Based on application:

 

• Polyether Polyols


• Propylene Glycol


• Glycol Ethers


• Others

 

Based on the process:

 

• Chlorohydrin Process


• Styrene Monomer Process


• Hydrogen Peroxide Process


• TBA Co-Product Process


• Cumene-based Process

 

Based on the end-use industry:

 

• Automotive


• Building & Construction


• Textile & Furnishing


• Chemical & Pharmaceutical


• Packaging


• Electronics


• Others

Report Scope:

Report Attribute/Metric	Details
Market Size	2030: Significant value
CAGR	2022–2030: 5.50% CAGR
Base Year	2021
Forecast Period	2022 to 2030
Historical Data	2019 & 2020
Forecast Units	Value (USD Million)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	Application, End-Use Industry and Region
Geographies Covered	North America, Europe, Asia-Pacific, and Rest of the World (RoW)
Key Vendors	The Dow Chemical Company (U.S.), LyondellBasell Industries N.V. (the Netherlands), Royal Dutch Shell plc (the Netherlands), Huntsman Corporation (U.S.), BASF SE (Germany), Repsol S.A. (Spain), Asahi Glass Co., Ltd. (Japan), INEOS Private Limited Company (U.K.), Sumitomo Group (Japan), Chevron Phillips Chemical (U.S.).
Key Market Opportunities	It is anticipated that the usage of Propylene Oxide and its market will be growing as the oil and gas should meet the global energy requirements.
Key Market Drivers	Polyols and Propylene Glycol is used as coatings in the field of construction and housing has dramatically increased

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