The Propylene Oxide market is estimated to be valued at US$ 16,063.5 million in 2022 and is expected to exhibit a CAGR of 5.87% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Propylene oxide is an important raw material and intermediate primarily used in the production of polyether polyols for polyurethane products. Key polyurethane products produced using propylene oxide include flexible foams, rigid foams, adhesives, sealants, elastomers, and coatings. Polyurethanes provide exceptional insulation properties and great mechanical strength which has increased their applications in furniture, footwear, automotive interiors, insulation for pipes, foams for construction industry, among others.
The growth of the propylene oxide market is majorly driven by increasing applications of polyurethanes in various end-use industries and continuous innovations in polyurethane products by key players. Polyurethanes have emerged as one of the most widely used polymers globally and account for approximately 10% of the global polymer consumption. The construction industry has also been witnessing strong growth especially in emerging economies which is expected to drive the demand for polyurethane insulation products thereby promoting the growth of the propylene oxide market.
Strength: Propylene oxide has wide applications in industries like construction and automotive which gives it stable demand. It is used to produce polyether polyols which find diverse end uses. Production technologies for propylene oxide are well established.
Weakness: Fluctuations in raw material prices directly impact the cost of propylene oxide. Strict environmental regulations regarding its production and disposal can increase costs. hazadous in nature if not handled properly.
Opportunity: Growing demand for polyether polyols and propylene glycols from industries like furniture and textiles offers new opportunities. Emerging applications in pharmaceutical sector also provides scope.
Threats: Availability of substitute chemicals poses threat. Regulations on toxic emissions during production are becoming stricter over time.
The Global Propylene Oxide Market Growth is expected to witness high, exhibiting CAGR of 5.87% over the forecast period, due to increasing demand from polyether polyols and propylene glycols industries.
Asia Pacific dominates the global market and is expected to continue its dominance, growing at a CAGR of over 6% during the analysis period. This is attributed to increasing demand from industries like construction and automotive in China and India. Europe is the second largest market owing to large polyurethane industry.
Key players operating in the propylene oxide market are SK Chemicals, The Dow Chemicals Royal Dutch Shell, Tokuyama Corporation, Co., Ltd., BASF S.E., Huntsman International LLC., AGC Chemicals, CSPC Pharmaceutical Group Limited, Air Products and Chemicals, Inc., China Petrochemical Corporation, Eastman Chemical Company, Inc., PetroChina International Co., Ltd., Ineos Group Limited, Tokuyama, Hanwha Group, The Dow Chemical Company, Sumitomo Chemical, Repsol, Air Liquide, and Mitsui Chemicals.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it