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 organic, colorless and volatile compound with ether-like odor. It is commonly used as a chemical intermediate in the production of polyether polyols for polyurethane foams, specialty chemicals like solvents and functional fluids. Propylene oxide can also be used directly as a specialty solvent or chemical intermediate in various industries including automotive, construction, furniture, packaging and others.
The primary drivers fuelling the growth of propylene oxide market include increasing demand from polyurethane foam sector and rapid industrialization. Polyurethanes are used in various applications such as construction, furniture, automotive, footwear and packaging industries due to properties like durability, flexibility and elasticity. The growth in these end use industries is expected to propel the demand for propylene oxide over the forecast period. In addition, propylene oxide also find usage as a chemical intermediate in various specialty chemicals like glycol ethers which are further used in products like paints, coatings, pharmaceuticals etc. The growing specialty chemical industry is anticipated to augment the market growth during the forecast period.
The propylene oxide market is dominated by the polyether polyols sub-segment. Propylene oxide is widely used to produce polyether polyols that find extensive applications in industries such as construction, automotive and furniture. Polyether polyols are key raw materials used in manufacturing polyurethane flexible foams. As polyurethane foams are in high demand from various end use industries for insulation and cushioning purposes, the polyether polyols sub-segment dominates the overall propylene oxide market.
Political: Major propylene oxide manufacturing countries have stringent environmental and safety regulations regarding production and transportation of hazardous chemicals like propylene oxide, which moderately impact the market.
Economic: The market is expected to grow moderately owing to rising applications in construction and automotive industries across developing nations with growing economies.
Social: Increasing use of polyurethane products in furniture and bedding drives demand for propylene oxide from the polyether polyols segment.
Technological: Key players are focusing on developing cost-effective and sustainable production technologies to meet growing demand in a responsible manner.
The Global Propylene Oxide Market Growth is expected to witness high growth, exhibiting CAGR of 5.87% over the forecast period 2023-2030, due to increasing applications in polyurethane foam production.
Regional analysis: Asia Pacific dominates the global market and is expected to continue its dominance over the forecast period. This is attributed to rapid infrastructural development and growth of end use industries such as construction and automotive in China and India.
Key players analysis: 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.