· Propylene oxide is an organic compound with chemical formula C3H6O. It is a colorless and volatile liquid with an ether-like odor. Propylene oxide is commonly used to produce other chemicals such as polyether polyols, propylene glycol, and glycol ethers. Polyether polyols produced from propylene oxide are further used to manufacture polyurethane foam, which has applications in diverse industries such as furniture, construction, automotive, and packaging. Rising demand for polyurethane foam from various end-use industries is propelling the global propylene oxide market growth.
The global Propylene Oxide Market is estimated to be valued at US$ 16,852.2 Mn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Growing demand from polyether polyols sector
The global demand for polyether polyols is growing steadily owing to increasing usage of polyurethane foam in various applications such as bedding, furniture, construction, and automotive interiors. Polyether polyols are mainly produced from propylene oxide. According to industry estimates, nearly 80% of global propylene oxide production is consumed in the production of polyether polyols. Moreover, the polyether polyols market is forecast to exhibit a CAGR of over 6% during 2023-2030. Thus, growing consumption of polyether polyols will positively influence the demand for propylene oxide over the forecast period. Rising demand from the polyether polyols sector is expected to generate significant opportunities for propylene oxide producers during the forecast period.
Porter's Analysis
· Threat of new entrants: The propylene oxide market has moderate threat of new entrants as it requires high capital investment to establish manufacturing facilities.
· Bargaining power of buyers: The buyers have moderate bargaining power as the products have substitutes. However, regulations also impact buyers' options.
· Bargaining power of suppliers: Major suppliers have significant influence over prices due to supply constraints of raw materials.
· Threat of new substitutes: Substitutes have low threat as propylene oxide is widely used in broad range of industrial applications with no close substitutes.
· Competitive rivalry: The market has high competitive rivalry owing to presence of many global players operating with large capacities.
SWOT Analysis
· Strength: Propylene oxide has wide applications in industries like chemicals and construction. Established manufacturing facilities of key players.
· Weakness: Volatility in raw material prices can impact costs. Stringent regulations regarding production and use.
· Opportunity: Growing end-use industries in developing nations provide new areas for sales. Developing bio-based production methods.
Threats: Environmental concerns and health hazards associated with propylene oxide pose risks. Economic slowdowns affect demand.
Key Takeaways
The global propylene oxide market is expected to witness high growth over the forecast period of 2023 to 2030. The market size for 2023 is estimated to be US$ 16,852.2 Mn.
Regional analysis: Asia Pacific dominates the market currently owing to presence of fast developing economies like China and India with rapidly expanding construction and industrial activities. The region is estimated to witness the highest CAGR over the forecast period.
Key players operating in the propylene oxide market are Lyondellbasell Industries (Netherlands), Shell plc (United Kingdom), BASF SE (Germany), Evonik Industries (Germany), Dow Chemical Company (United States), Huntsman Corporation (United States), Repsol S.A. (Spain), Asahi Glass Co. Ltd. (Japan), Sumitomo Chemical Company (United Kingdom), INEOS Group (Japan), and Balchem Corporation (United States). Key players are focused on capacity expansions to cater to increasing demand.
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The Global Propylene Oxide Market is forecast to reach USD 27.24 Billion by 2028, according to a new report by Reports and Data.
Propylene oxide is an organic flammable, volatile, and colorless liquid compound that is soluble in both alcohol and ether.
The compound is used as an intermediate for the manufacture of various commercial products.Increase in demand for the product by various end-use industries such as constructions, packaging, automotive, furnishings, and textiles is anticipated to patronize the growth of the market in the coming years.
The market is mainly driven by the growth in demand for polyether polyols, rising demand owing to the increase in its applications, huge investment in infrastructural spending, and an increase in the demand for automotive products.Propylene oxide finds its application in tub-shower, gasoline tanks, and boat hulls.
Rise in the consumption of products that include polyalkylene glycols, popylene glycols, and propylene glycol ethers will propel market expansion.
Propylene Oxide is used in adhesives, grouts, paints, coatings, waterproofing materials in both the construction and infrastructure industry.Increase in construction in emerging, and developed nations such as China, India, Brazil, Saudi Arabia, UAE, and Qatar will influence the growth of the market.Propylene oxide is also used in various end-use products such as hydraulic fluids, automotive coolants, engineering fibers, and plastics.
