The global propylene oxide market is projected to expand at a high CAGR during the forecast period, 2021-2028. The growth of the market is attributed to the rising use of propylene oxide in various industries. Propylene oxide is an organic, highly reactive, colorless, and odorless chemical. It has a molecular formula CH3CHCH2O. It is used for the production of a variety of derivatives and end-use products. Propylene oxide is used in the production of polyether (the primary component of polyurethane foams) and propylene glycol. Short-term contact of propylene oxide to humans and animals causes eye and respiratory tract irritation. Propylene oxide acts as a mild central nervous system (CNS) depressant in humans. It releases flammable vapors below normal ambient temperatures. When mixed with air and exposed to a source of ignition, it can burn in the open or explode if confined. Increase in the applications of propylene oxide and its derivatives is projected to boost the sale of propylene oxide during the forecast period.
Market Trends, Drivers, Restraints, and Opportunities:
- High usage of propylene oxide, as a raw material, for the production of insulators, mattresses, carpets, and cars is projected to fuel the market growth.
- Rise in population and increase in urbanization drives the demand for automotive coolants, brakes, and hydraulic fluids that use propylene oxide derivatives and require replacement at regular intervals. This, in turn, drives the need for propylene oxide during the forecast period.
- Propylene glycol, which is a derivative of propylene oxide, is used in constructions. This factor is estimated to boost the demand for propylene oxide.
- Growth in the use of fast emerging, low-priced alternatives of propylene oxide such as alkylene carbonate is expected to hamper the propylene oxide market.
- Fluctuations in prices of propylene oxide and growing awareness about the harmful effects of the production process of propylene oxide on mammals are impeding the market globally.
Scope of the Report:
The report on the global propylene oxide market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes
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Details
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Report Title
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Propylene Oxide Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Production Processes (Chlorohydrin Process, Ethylbenzene Hydroperoxide with Tert-butyl Alcohol Co-product, Cumene Hydroperoxide Process, Ethylbenzene Hydroperoxide with Styrene Co-product, and Epoxidation with Hydrogen Peroxide), Applications (Polyether Polyols, Propylene Glycol, Propylene Glycol Ethers, Polyalkylene Glycols, Fumigation, Oil Demulsifier, and Adhesives & Sealants), End-use Industries (Automotive, Building & Construction, Electronics, Food & Beverages, Packaging, Chemical & Pharmaceutical, Oil & Gas, and Textile & Furnishing)
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Regional Scope
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North America, Europe, Asia Pacific, Latin America, Middle East &
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E Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
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Key Players Covered
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BASF SE, China Petrochemical Corporation, Covestro AG, DuPont, Huntsman International LLC, Shell Companies, Solvay, Sumitomo Chemical Co., Ltd., Lyondellbasell Industries Holdings B.V., Eastman Chemical Company, Thermo Fisher Scientific, and Balchem Inc.
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Global Propylene Oxide Market Segment Insights
Epoxidation with hydrogen peroxide (HPPO) to dominate the market
On the basis of production processes, the global propylene oxide market can be segregated into chlorohydrin process (CPHO), ethylbenzene hydroperoxide with tert-butyl alcohol (TBA) co-product process, cumene hydroperoxide process (CHP), ethylbenzene hydroperoxide with styrene co-product, and epoxidation with hydrogen peroxide (HPPO). Traditional and commonly used processes such as the chlorohydrin process, produces large volumes of chlorinated products; however, it requires high capital costs. Hence, new processes such as epoxidation with hydrogen peroxide are used as substitutes for the chlorohydrin process.
Polyether polyols segment to expand at a high CAGR
In terms of applications, the market can be divided into polyether polyols, propylene glycol, propylene glycol ethers, polyalkylene glycols, fumigation, oil demulsifier, and adhesives & sealants. The polyether polyols segment is estimated to hold a substantial share of the market, owing to the increase in the manufacture of refrigerators and freezers and high consumption of polyurethane foam, made using polyether polyols in construction and automotive industries.
Building & construction and automotive segments account for key market share
Based on end-use industries, the propylene oxide market can be segmented into automotive, building & construction, electronics, food & beverages, packaging, chemical & pharmaceutical, oil & gas, and textile & furnishing. Demand for propylene oxide is expected to increase in the automotive industry, as it is used as a solvent for manufacturing carpets, car seats, sealants, and insulators. Propylene oxide derivative and polyurethane are used to manufacture fiberglass and flooring materials.
Asia Pacific to dominate the global propylene oxide market
In terms of regions, the global market can be classified as North America, Europe, Asia Pacific, Latin America, Middle East & Africa. Rapid growth of the construction and automotive sectors in developing countries of Asia Pacific such as India, China, Vietnam, Indonesia, and Thailand drive the market in the region. For example, China has planned to increase the production of electric vehicles to 7 million by 2025, which in turn, is estimated to drive the demand for propylene oxide. Moreover, propylene oxide and its derivatives are easily available in this region as raw materials. Hence, Asia Pacific is anticipated to hold a dominant share of the global propylene oxide market during the forecast period.
The market in North America is projected to grow, due to the rise in the demand for propylene oxide in the food & beverages and packaging sector. Sales are estimated to reach 4000 KT by the end of 2027. Propylene oxide is widely used in packed foods as a food additive. The use of propylene glycol as nicotine in countries such as Germany, Switzerland, Italy, and the Netherlands is estimated to increase the demand for propylene oxide in Europe.
Segments
The global propylene oxide market can be divided on the basis of production processes, applications, end-use industries, and regions.
Production Processes
- Chlorohydrin Process
- Ethylbenzene Hydroperoxide with Tert-butyl Alcohol Co-product
- Cumene Hydroperoxide Process
- Ethylbenzene Hydroperoxide with Styrene Co-product
- Epoxidation with Hydrogen Peroxide
Applications
- Polyether Polyols
- Propylene Glycol
- Propylene Glycol Ethers
- Polyalkylene Glycols
- Fumigation
- Oil Demulsifier
- Adhesives & sealants
End-use Industries
- Automotive
- Building & Construction
- Electronics
- Food & Beverages
- Packaging
- Chemical & Pharmaceutical
- Oil & Gas
- Textile & Furnishing
Regions
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Key Players Covered
- BASF SE
- China Petrochemical Corporation
- Covestro AG
- DuPont
- Huntsman International LLC
- Shell Companies
- Solvay
- Sumitomo Chemical Co. Ltd.
- Lyondellbasell Industries Holdings B.V.
- Eastman Chemical Company
- Thermo Fisher Scientific
- Balchem Inc.
Competitive Landscape
The global propylene market consists of numerous affluent players such as BASF SE, China Petrochemical Corporation, Covestro AG, DuPont, Huntsman International LLC, Shell Companies, Solvay, Sumitomo Chemical Co., Ltd., Lyondellbasell Industries Holdings B.V., Eastman Chemical Company, Thermo Fisher Scientific, and Balchem Inc.