Propylene Oxide Market Estimated To Witness High Growth Owing To Increased Use In Polyurethanes Production
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.
Market Overview:
Propylene oxide is a colorless volatile liquid that is soluble in organic solvents. It is an important industrial chemical that is primarily used in the production of polyurethanes. Propylene oxide reacts with polyols to form polyether polyols, which are further processed to manufacture polyurethane flexible and rigid foams for various applications such as insulation for buildings, furniture, bedding, and automotive interiors.
Market key trends:
Propylene oxide finds major application in the production of polyurethane flexible and rigid foams. The increasing demand for polyurethanes from various end-use industries such as construction, automotive, packaging, and bedding is expected to drive the growth of the propylene oxide market over the forecast period. Polyurethanes offer advantages such as durability, flexibility, insulation, water resistance, and stain resistance which make them suitable for a wide range of applications. Further, the growing construction industry in emerging economies of Asia Pacific is anticipated to augment the consumption of propylene oxide for manufacturing polyurethane insulation and rigid foams.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the capital requirement for setting up a new manufacturing unit is high. However, availability of raw materials is favourable and scope for backward integration exists.
Bargaining power of buyers: The bargaining power of buyers is moderate as propylene oxide has applications in various end-use industries. Buyers can switch between suppliers depending on price fluctuations.
Bargaining power of suppliers: The bargaining power of suppliers is low as propylene and cumene are basic raw materials available globally at competitive prices from multiple suppliers.
Threat of new substitutes: Threat of new substitutes is low as propylene oxide has well-established applications and substitutes are not close replacements.
Competitive rivalry: The competitive rivalry is high due to presence of numerous global players operating in the market.
SWOT Analysis
Strength: Propylene oxide has wide applications in automotive, construction and several other industries. Growing end-use industries globally drive the market growth.
Weakness: Volatility in raw material prices can hamper market growth. Stringent environmental regulations regarding VOC emissions increase production cost.
Opportunity: Rising disposable income in developing countries boosts paints, coatings and automotive production. Growing infrastructure sector increases construction chemical demand.
Threats: Economic slowdowns adversely impact end-use industries thereby affecting market. Supply disruptions due to geopolitical issues and natural calamities hamper production.
Key Takeaways
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 automotive, construction and polyurethane foam industries. Asia Pacific dominates the global market and is expected to continue its dominance during the forecast period registering fastest CAGR. Countries such as China, Japan and India significantly contribute to market growth owing to rapidly expanding manufacturing sector and improving economic conditions.
Regional analysis: Asia Pacific region dominates the propylene oxide market with China being the largest producer and consumer. Growth drivers in the region include expanding polymer processing industry, recovering construction sector and growing automotive sales. Rapid industrialisation and infrastructure development in India further stimulates regional 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
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
