The global 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 a colourless volatile liquid that is soluble in organic solvents. It is a key raw material used in the production of polyether polyols, which are further used to manufacture polyurethane flexible and rigid foams. Propylene oxide also finds applications as a chemical intermediate in the production of solvents, additives, and other chemicals. Owing to its widespread applications across industries, propylene oxide plays an important role in fuelling the growth of the global chemical industry.
Market key trends:
One of the key trends in the propylene oxide market is the increasing demand from polyurethane foam manufacturers. Polyurethane foams find extensive applications across industries such as construction, automotive, furniture, bedding & furniture, and packaging. The growth of these end-use industries is anticipated to propel the demand for polyurethane foams, thereby driving the propylene oxide market growth over the forecast period. Another major trend is the shift towards bio-based propylene oxide. Concerns regarding environmental impact are encouraging manufacturers to invest in bio-based technologies to produce propylene oxide from renewable feedstocks such as plant oils and alcohols. This is expected to emerge as an important trend in the coming years.
Threat of new entrants: Low capital requirements and established buyers allow new players to enter the market easily. However, presence of major players and need for proprietary technology act as barrier for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products. However, diversified use of propylene oxide increases buyer dependence on suppliers.
Bargaining power of suppliers: Major players control the supply globally. Supply industry is moderately consolidated which gives bargaining power to suppliers.
Threat of new substitutes: Few substitute products exist and propylene oxide has widespread application horizon, limiting threats from new substitutes.
Competitive rivalry: High as major players compete on basis of pricing and product differentiation through investments in R&D.
The Global Propylene Oxide Market Demand is expected to witness high growth, exhibiting CAGR of 5.87% over the forecast period, due to increasing demand from construction and automotive industries.
Regional analysis shows that Asia Pacific dominates the market with over 40% share owing to large manufacturing base in China and India. North America stands as the second largest region due to high demand from automotive and construction industries in U.S and Canada. Europe also captures significant share and is expected to witness steady growth in demand.
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. These players are focusing on capacity expansions and product differentiation through intensive R&D to strengthen their hold in the market.