Propylene Oxide Market Share

Global Propylene Oxides Market Overview

Propylene Oxides Market Size was valued at USD 16,852.2 million in 2023. The Propylene Oxides industry is projected to grow from USD 18,004.7 million in 2024 to USD 25,356.9 million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.87% during the forecast period (2024 - 2032). The primary force behind the growth of the propylene oxides market worldwide is the increasing demand in the construction industry. Propylene oxide (PO) is a chemical compound with the molecular formula C₃H₆O. It is an organic compound that belongs to the class of epoxides, which are cyclic ethers with a three-membered ring structure. Propylene oxide is a colorless, volatile liquid with a slightly sweet odor.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Propylene Oxides Market Trends

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  Increasing demand in the construction industry to fuel the propylene oxides market

  
  

Propylene oxide is rising in demand in the construction sector, among other end use industries. Propylene oxide is a fundamental chemical intermediate. Almost all propylene oxide generated is transformed into a derivative. Propylene oxide is principally utilized in the manufacture of polyether polyols, propylene glycols, and propylene glycol ethers. The majority of propylene oxide produced is utilized as an intermediary for polyether polyols, which are primarily employed in the production of polyurethanes. Polyurethanes may be manufactured with a variety of hardness, stiffness, and density properties. Currently, rigid polyurethane is used in building construction, which minimizes energy consumption and carbon emissions, which is excellent for the environment.

The building business is quickly expanding because of increased urbanization and improving living standards. Spending in the construction business has also increased over the years and is projected to continue. According to Statista, worldwide construction investment in 2021 will be valued around 12.9 trillion US dollars. The market is expected to reach approximately 17.1 trillion US dollars by 2030. According to the National Bureau of Statistics of China, the value of building production in China in 2021 was CNY 29.31 trillion, up from CNY 26.39 trillion in 2020. The construction industry's increased emphasis on energy-efficient buildings has resulted in a rise in demand for polyurethane materials.

The growing demand for building chemicals in the construction sector is expected to have an influence on the worldwide growth of the propylene oxide market. Polyurethane roof and wall insulation, wall and window insulation, and pipe insulations can help to increase energy savings and energy efficiency in buildings by keeping temperatures stable. Thermal insulation is thus an obvious advantage for the end user, who will spend less on-air conditioning and hence return their investment in 2 to 4 years. Yet, it is also a very effective strategy for decreasing pollutants created by building heating and cooling systems. Polyurethane is especially sustainable because to its longevity, which often outlasts the useful life of the structure itself..

Propylene Oxides Market Segment Insights

Propylene Oxides by Application Insights

The Propylene Oxides Market segmentation, based on type has been segmented as polyether polyols, propylene glycol, fumigation, adhesives & sealants, oil demulsifier, and others. Among these, the polyether polyols type is projected to dominate the Propylene Oxides Market revenue through the projected period. Polyether polyols are made by reacting propylene oxide and/or ethylene oxide with an initiator, which can be a diol, water, glycerin, TMP, sucrose, or sorbitol in the presence of a catalyst. Polyether polyols have a low glass transition temperature (Tg), which results in high physical property retention and impact resistance at extremely low temperatures. It is an important component in the manufacture of polyurethanes that work in extremely low temperatures. Polyether polyols are primarily utilized in the production of polyurethanes rigid foam, soft foam, and molded foam. More than 80% of polyether polyols are consumed in polyurethane production. These are widely in automobile cushioning, bedding, and furniture. The rise in demand for polyurethanes will eventually raise the propylene oxide market during the forecast period.

July  2022, BASF has approved the investment of €10 billion (US$10 billion) for the construction of an integrated chemicals facility in Zhanjiang, China. After Ludwigshafen in Germany and Antwerp in Belgium, the massive facility will become the German company's third-largest location worldwide.

Propylene Oxides by End-use Industry Insights

The Propylene Oxides Market segmentation, based on application, the market is segmented as construction, paints & coatings, oil & gas, transportation, and others. Out of which the construction segment dominated the base year market and is also projected to be holding a dominating share in the forecasted period as well. Propylene oxides derivatives are being extensively utilized in the construction industry. It is used in grouts, building insulation, waterproofing materials, sealants, foams and other things. Growth in the construction sector, particularly in developing countries, as well as greater government efforts in infrastructure building, have all aided market expansion. In the Union Budget 2023, the government of India has committed INR 1,000 crore to infrastructure development in tier 2 and tier 3 cities. In addition, with increased urbanisation and energy conservation programmes, there is an increase in demand in the construction sector for greater energy efficiency.

April 2020, BASF and Shandong INOV Polyurethane Co., Ltd. (INOV) signed an agreement to satisfy the growing demand from diverse sectors in China and throughout the world. The two firms will collaborate on raw material supply, market expansion, research and development for sustainable goods, increased operational quality and environmental protection, as well as health and safety (EHS). The agreement expands on BASF's long-standing collaboration with INOV, China's major manufacturer of propylene oxide (PO), ethylene oxide (EO) downstream products, and polyurethane.

Propylene Oxides Regional Insights

By Region, the study segments the Propylene Oxides market into North America, Europe, Asia-Pacific, Middle East & Africa and Latin America. The sizable propylene oxides industry in Asia-Pacific is likely to make the region the largest expanding global market for propylene oxides. The Asia-pacific market is mainly driven by the availability of raw materials and increasing demand for propylene oxide across the region for various end-use applications in polyether polyols, propylene glycol, fumigation, adhesives & sealants, oil demulsifier, and others. Due to the rise in population and increased per capita income, demand for propylene oxide-based products is increasing in the region. In addition, infrastructure in Southeast Asia is expanding, with large projects in Vietnam, Thailand, the Philippines, Malaysia, and Indonesia. Furthermore, in order to stimulate the Chinese economy, the government intends to increase its investment in infrastructure megaprojects such as high-speed rail and water tunnels.

September 2022, INEOS Group extends its P-Series Glycol Ether range in order to fulfill increased demand in important downstream sectors. The newly introduced Propylene Glycol n-Butyl Ethers reinforce the company's commitment to clients in the industrial coatings and home care areas.

Propylene Oxides Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Propylene Oxides Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Propylene Oxides Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global propylene oxides industry to benefit clients and expand the Propylene Oxides market sector is partnerships and acquisitions. The market for Propylene Oxides is recognized as being extremely competitive and fragmented. The market for Propylene Oxides offers considerable potential opportunities for domestic and unorganized companies. Some of the key players operating in the Propylene Oxides 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). To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

Lyondellbasell Industries N.V.: Lyondellbasell Industries N.V. is a leading global manufacturer of propylene oxide (PO), a commodity chemical used in the production of hundreds of common items ranging from antifreeze to cosmetics. The company operates in 10 business segments: olefin & co-products, polyethylene, polypropylene, propylene oxides & derivatives, oxyfuel, intermediates chemicals, advanced polymer, refined products, compounding & solutions, and others. It is present in 100 countries throughout the world. The company has 55 manufacturing facilities in 17 countries worldwide. It has a strong presence in the United States, Germany, China, Italy, Mexico, France, Japan, Netherlands, Poland, and other countries.

Shell plc (Shell): Shell plc (Shell), formerly Royal Dutch Shell Plc, is a leading manufacturer of propylene oxide and its primary derivatives, polyether polyols and propylene glycols. It offers propylene oxide for various ultimate uses including foams in furniture and automobile seats, artificial sports tracks, building insulation, waterproof clothes, and aviation de-icers. It operates in four business segments: integrated gas, upstream, oil products, and chemicals. It has a presence in more than 70 countries across the globe. The company markets its products directly and indirectly through distributors in Europe, Asia, Oceania, Africa, North America, and South America.

Key Companies in the Propylene Oxides Market includes:

• 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)


• Balchem Corporation (United States)

Propylene Oxides Industry Developments

November 2022: LyondellBasell announced the plan for expanding propylene production capacity at its Channelview Complex in Houston, Texas. A new propylene factory would be built utilizing the company’s current technology to convert ethylene into propylene for the manufacturing of polypropylene and propylene oxide.

January 2021,  LyondellBasell, one of the world's largest plastics, chemicals, and refining companies, and China Petroleum & Chemical Corporation (Sinopec), one of China's largest integrated energy companies, announced the signing of a 50:50 joint venture (JV) to produce propylene oxide (PO) and styrene monomer (SM) in the Chinese market. 

April 2021: Shell Nanhai B.V. (Shell) and CNOOC Oil & Petrochemicals Co., Ltd (CNOOC) announced the launch of new units in their 50:50 joint venture, to deliver critical petrochemicals to the Chinese market. The new unit is China's largest of its kind, capable of generating up to 630,000 tonnes of styrene monomer and 300,000 tonnes of propylene oxide per year. These compounds are found in a variety of products ranging from home appliances to packaging and computers.

Propylene Oxides Market Segmentation

Propylene Oxides Application Outlook

• Polyether Polyols


• Propylene Glycol


• Fumigation


• Adhesives & Sealants


• Oil Demulsifier


• Others

Propylene Oxides End-use Industry Outlook

• Construction


• Paints & Coatings


• Oil & Gas


• Transportation


• Others

Propylene Oxides Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • Russia
  
  
  • Italy
  
  
  • France
  
  
  • Spain
  
  
  • UK
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • South Africa
  
  
  • GCC Countries
  
  
  • Rest of Middle East & Africa
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Mexico
  
  
  • Argentina
  
  
  • Rest of Latin America