by The global Propylene Market is estimated to be valued at Us$ 4.37 Bn in 2023 and is expected to exhibit a CAGR Of 5.0% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Propylene is an organic compound used as an intermediate chemical in production of various plastics, synthetic fibers and films. It is primarily used as a raw material in the manufacturing of polypropylene which are used in products ranging from packaging to automotive parts. The key advantages of propylene market include its widespread applications in several end-use industries that positively impact economic development and growth. With growing population and rising disposable incomes, the demand for consumer goods manufacturing will continue to surge thereby driving propylene consumption.
Market key trends:
One of the major trends witnessed in the global propylene market is shift towards digitalization and use of advanced technologies for supply chain & distribution network optimization. Several petrochemical companies are increasingly investing in digital platforms and integrated solutions to gain real-time production and demand insights. This helps avoid bottlenecks and enables just-in-time inventory management. Digital transformation initiatives are allowing propylene producers to enhance operational efficiencies, reduce costs and better cater to dynamic consumer needs. Continued focus on digitalization of processes will be a key factor boosting the propylene market revenue during the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the market requires high initial investments. However, growth opportunities arise from rising demand.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of multiple suppliers.However, the differentiated product offerings provide buyers with options.
Bargaining power of suppliers: The bargaining power of suppliers is high since there are few large players controlling majority of supply. However, factors such as automation and integration mitigate their influence over long term.
Threat of new substitutes: The threat from substitutes is low as propylene has strong applications and limited feasible replacements in the market.
Competitive rivalry: Fierce competition exists among the large industry players globally to gain market share.
Key Takeaways
The Global Propylene Market Demand is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period 2023 to 2030, due to increasing demand from end-use industries such as construction and automotive.
Regionally, the Asia Pacific region dominates the global propylene market currently and is expected to continue its dominance during the forecast period. This can be attributed to rapid industrialization and growth of end-use industries in countries such as China and India.
Key players operating in the propylene market are BASF SE, BP Plc., China Petroleum & Chemical Corporation, ExxonMobil Corporation, IRPC Plc., LyondellBasell Industries N.V., Reliance Industries Ltd., SABIC, The Dow Chemical Company, and YEOCHUN NCC CO., LTD.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
