Product Code: 46152
The propylene oxide market is expected to register a CAGR of less than 6% during the forecast period. Propylene oxide market growth is hampered by the COVID-19 pandemic, as lockdowns, social distances, and trade sanctions have triggered massive disruptions to global supply chain networks. Due to lockdowns in various countries, most of the industries or factories were temporarily shut down and have impacted the building and construction sector. Over 65% of companies in the construction ecosystem have been severely affected by the prolonged construction inactivity, thus, having a negative impact on the propylene oxide market.
- Over the medium term, the growth of the propylene oxide market is likely to be driven by rising demand for polyether polyols for polyurethane production, as polyurethane is used in various end-user applications, such as bedding, automobile carpet underlay insulation, building thermal insulation, wrapping, industrial refrigeration, door frame molding, columns, balusters, window headers, pediments, etc.
- However, health hazard caused by prolonged contact with exposure is a major factor restricting the growth of the global market for propylene oxide. Also, volatility in raw material prices and the emergence of low-priced substitutes such as alkylene carbonate are likely to hinder the propylene oxide market.
- Asia-Pacific dominated the market across the world, owing to the robust growth of construction activities in the region.
Key Market Trends
Construction/Infrastructure Segment to Dominate the Market Demand
- The construction/infrastructure industry is the largest consumer of propylene oxide. Propylene oxide is used in numerous applications in the construction industry, such as flexible and rigid polyurethane products, coatings, elastomers, adhesives, and sealants.
- The increasing use of propylene derivative, polyurethane, in the construction industry has widely helped the propylene oxide market to have a stronghold in the construction and infrastructure segments.
- Asia-Pacific has been witnessing strong growth in residential as well as commercial construction in countries such as India, China, the Philippines, Vietnam, and Indonesia, which is further likely to increase the demand for propylene oxide during the forecast period.
- In the Middle-East and Africa region, growing hotel construction and public infrastructure have been driving the construction industry in the region.
- Besides, residential construction is also strong in North America due to high housing demand due to the growing population demand for homes and the trend of nuclear families.
- Construction is likely to be one of the most dynamic industrial sectors in the next ten years and is crucial to the evolution of prosperous societies around the world. The volume of construction output is estimated to grow by 85% worldwide, to USD 15.5 trillion, by 2030, with three countries-China, the United States, and India-leading the way, accounting for 57% of the total global growth.
- Hence, all such trends in the global construction industry are expected to positively influence the demand for propylene oxide during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the global market share. The robust growth of the construction sector is the factor driving the demand for the propylene oxide market in the region.
- Currently, China has numerous airport construction projects, which are either in the development or planning stage. The Civil Aviation Administration of China (CAAC) aims to construct 216 new airports by 2035 to meet the growing demands for air travel. China had a total of 234 civil airports at the end of October, and this number is likely to hit 450 by 2035. Additionally, the government rolled out massive construction plans for the movement of 250 million people to its new megacities over the next ten years.
- In India, the construction industry, in value terms, is expected to record a CAGR of 15.7% to reach USD 738.5 billion by 2022.
- In Indonesia, the government planned to invest in the construction sector USD 450 billion by 2021, which is expected to provide a boost to residential construction in the country.
- China, the world's largest automotive producer, is majorly focusing on increasing the production and sale of electric vehicles in the country. For this purpose, the country has planned to increase the production of electric vehicles (EVs) to 7 million a year by 2025.
- Hence, all such market trends are expected to add to the demand for the propylene oxide market in the region during the forecast period.
The propylene oxide market is a fragmented market, where numerous players hold an insignificant share to affect the market dynamics individually. Some of the noticeable players in the market include Dow, BASF SE, Indorama Ventures Public Company Limited, Sumitomo Chemical Co. Ltd, and LyondellBasell Industries Holdings BV, among others.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Rising Demand for Polyether Polyols for Polyurethane Production
- 4.1.2 Wide Ranging Downstream Applications of Propylene Glycol
- 4.2 Restraints
- 4.2.1 Threat Due to the Emerging Alternatives
- 4.2.2 Potential Carcinogenicity and Hazardous Effects on Mammals
- 4.2.3 Impact of COVID-19
- 4.3 Industry Value Chain Analysis
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 Production Process
- 5.1.1 Chlorohydrin Process (CHPO)
- 5.1.2 Ethylbenzene Hydroperoxide with Tert-butyl Alcohol Co-product (POTBA)
- 5.1.3 Cumene Hydroperoxide Process (CHP)
- 5.1.4 Ethylbenzene Hydroperoxide with Styrene Co-product (POSM)
- 5.1.5 Epoxidation with Hydrogen Peroxide (HPPO)
- 5.2 Product
- 5.2.1 Polyether Polyols
- 5.2.2 Propylene Glycols
- 5.2.3 Propylene Glycol Ethers (PGE)
- 5.2.4 Polyalkylene Glycols
- 5.2.5 Other Products
- 5.3 End-user Industry
- 5.3.1 Automotive
- 5.3.2 Construction/Infrastructure
- 5.3.3 Food and Beverage
- 5.3.4 Intermediates
- 5.3.5 Functional Fluids
- 5.3.6 Other End-user Industries
- 5.4 Geography
- 5.4.1 Asia-Pacific
- 18.104.22.168 China
- 22.214.171.124 India
- 126.96.36.199 Japan
- 188.8.131.52 South Korea
- 184.108.40.206 ASEAN Countries
- 220.127.116.11 Rest of Asia-Pacific
- 5.4.2 North America
- 18.104.22.168 United States
- 22.214.171.124 Canada
- 126.96.36.199 Mexico
- 5.4.3 Europe
- 188.8.131.52 Germany
- 184.108.40.206 United Kingdom
- 220.127.116.11 France
- 18.104.22.168 Italy
- 22.214.171.124 Spain
- 126.96.36.199 Russia
- 188.8.131.52 Rest of Europe
- 5.4.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share/Ranking Analysis**
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 AGC Chemicals
- 6.4.2 LyondellBasell Industries Holdings BV
- 6.4.3 Dow
- 6.4.4 SKC
- 6.4.5 Royal Dutch Shell PLC
- 6.4.6 Sumitomo Chemical Co. Ltd
- 6.4.7 BASF SE
- 6.4.8 Indorama Ventures Public Company Limited
- 6.4.9 Repsol
- 6.4.10 Air Liquide
- 6.4.11 China Petroleum & Chemical Corporation
- 6.4.12 Eastman Chemical Company
- 6.4.13 Mitsui Chemicals Inc.
- 6.4.14 INEOS
- 6.4.15 Tokuyama Corporation
- 6.4.16 SABIC
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Increasing Infrastructure Spending in Emerging Economies