The Global Propylene Oxide Market size is expected to reach $36.3 billion by 2031, rising at a market growth of 5.7% CAGR during the forecast period. In the year 2023, the market attained a volume of 13,671.4 kilo tonnes, experiencing a growth of 20.8% (2020-2023).
Styrene monomer is a crucial feedstock for producing polystyrene (PS) and expandable polystyrene (EPS), which have extensive applications in packaging, construction, electronics, and automotive industries. Thus, the styrene monomer process segment captured 19.5% revenue share in the market 2023. In the terms of volume styrene monomer process segment would attain a volume of 4,162.1 kilo tonnes in the market 2030. The growing demand for lightweight, durable, and versatile materials in these sectors drives the consumption of PS and EPS, fueling the demand for styrene monomers. Hence, these aspects will help in the expansion of the segment.
Bio-based propylene oxide is produced from renewable feedstocks such as biomass, bioethanol, or glycerol, which have a lower carbon footprint than fossil fuel-derived feedstocks. By utilizing biomass as a raw material, bio-PO production emits fewer greenhouse gases, thereby reducing overall carbon emissions.
Additionally, governments and private investors worldwide are undertaking large-scale infrastructure development projects to modernize and expand transportation networks, utilities, and public facilities. These projects include the construction of roads, bridges, railways, airports, ports, and energy infrastructure.
However, Epichlorohydrin and other chemicals are substitutes for it in various applications, such as epoxy resins, glycols, and polyurethanes. These substitute products may offer comparable performance characteristics or cost advantages, making them attractive alternatives for consumers and industries. Therefore, these factors can pose challenges for the propylene oxide market.
Styrene monomer is a crucial feedstock for producing polystyrene (PS) and expandable polystyrene (EPS), which have extensive applications in packaging, construction, electronics, and automotive industries. Thus, the styrene monomer process segment captured 19.5% revenue share in the market 2023. In the terms of volume styrene monomer process segment would attain a volume of 4,162.1 kilo tonnes in the market 2030. The growing demand for lightweight, durable, and versatile materials in these sectors drives the consumption of PS and EPS, fueling the demand for styrene monomers. Hence, these aspects will help in the expansion of the segment.
Bio-based propylene oxide is produced from renewable feedstocks such as biomass, bioethanol, or glycerol, which have a lower carbon footprint than fossil fuel-derived feedstocks. By utilizing biomass as a raw material, bio-PO production emits fewer greenhouse gases, thereby reducing overall carbon emissions.
Additionally, governments and private investors worldwide are undertaking large-scale infrastructure development projects to modernize and expand transportation networks, utilities, and public facilities. These projects include the construction of roads, bridges, railways, airports, ports, and energy infrastructure.
However, Epichlorohydrin and other chemicals are substitutes for it in various applications, such as epoxy resins, glycols, and polyurethanes. These substitute products may offer comparable performance characteristics or cost advantages, making them attractive alternatives for consumers and industries. Therefore, these factors can pose challenges for the propylene oxide market.
End Outlook
Based on end-user, the market is segmented into automotive, building & construction, textile & furnishing, chemical & pharmaceutical, packaging, electronics, and others. The automotive segment held 27.8% revenue share in the market in 2023. In the terms of volume, the automotive segment would attain a volume of 5,036.2 kilo tonnes in the market 2031.
Production Process Outlook
Based on production process, the market is divided into chlorohydrin process, styrene monomer process, TBA co-product process, cumene-based process, and hydrogen peroxide process. The chlorohydrin process segment recorded 31.9% revenue share in the market in 2023. In the terms of volume, the TBA segment would attain a volume of 5,940.4 in the market 2029.Application Outlook
On the basis of application, the market is divided into polyether polyols, propylene glycol, glycol ethers, and others. In 2023, the propylene glycol segment witnessed 21.4% revenue share in the market. In terms of volume the propylene glycol segment would attain a volume of 4,427.4 kilo tonnes in the market 2028.Regional Outlook
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2023, the Europe segment acquired 21.7% revenue share in the market. In terms of volume the Europe region would attain a volume of 3,733.8 kilo tonnes in the market 2028.Recent Strategies Deployed in the Market
- Mar-2024: Shell plc came into partnership with Braskem, a Brazilian petrochemical company. Through this partnership, Shell would reinforce its product portfolio and offering and would enhance its global market presence.
- Oct-2023: The Dow Chemical Company came into partnership with Evonik Industries, a publicly listed German specialty chemicals company. Through this partnership, The Dow Chemical Company would announce the successful launch and operation of a groundbreaking pilot plant for hydrogen peroxide to propylene glycol (HPPG) conversion at Evonik's facility in Hanau, Germany. Additionally, the pilot plant will showcase the advantages of this innovative technology.
- Oct-2023: Sumitomo Chemical has initiated the construction of a pilot facility aimed at developing a process for directly producing propylene from ethanol, which is gaining recognition as a sustainable chemical feedstock. The advancement of this technology is among the initiatives funded by the NEDO Green Innovation (GI) Fund.
- Sep-2023: The Dow Chemical Company introduced "PG RDC, PG REN, and PG CIR "a new range of propylene glycol (PG) solutions featuring alternative-lower carbon, bio-based, and circular - feedstocks in Europe. These products are suitable for various applications across a wide spectrum of industries, including agriculture, pharmaceuticals, cosmetics, textiles, and food. In the upcoming months, Dow plans to introduce similar products in additional regions worldwide.
- May-2023: The Dow Chemical Company came into partnership with New Energy Blue, LLC, a US-based chemical company. Through this partnership, The Dow is aiding in the development of New Energy Freedom, a novel facility located in Mason City, Iowa. This facility is anticipated to handle 275,000 metric tons of corn stover annually and generate significant volumes of second-generation ethanol and environmentally friendly lignin.
- Apr-2020: BASF SE came into partnership with Shandong INOV Polyurethane Co., Ltd. (INOV), a plastic manufacturing company in China. Through this partnership, BASF SE would enhance material innovation capabilities to effectively cater to customers both in China and international markets.
List of Key Companies Profiled
- The Dow Chemical Company
- BASF SE
- LyondellBasell Industries Holdings B.V.
- Shell plc
- INEOS Group Holdings S.A
- Merck KGaA
- Huntsman Corporation
- Sumitomo Chemical Co., Ltd.
- Tokuyama Corporation
- Repsol Group
Market Report Segmentation
By Production Process (Volume, Kilo Tonnes, USD Billion, 2020-2031)- Chlorohydrin Process
- Styrene Monomer Process
- TBA Co-product Process
- Cumene-based Process
- Hydrogen Peroxide Process
- Polyether Polyols
- Propylene Glycol
- Glycol Ethers
- Others
- Automotive
- Building & Construction
- Textile & Furnishing
- Chemical & Pharmaceutical
- Packaging
- Electronics
- Others
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 5. Global Propylene Oxide Market by Production Process
Chapter 6. Global Propylene Oxide Market by Application
Chapter 7. Global Propylene Oxide Market by End-user
Chapter 8. Global Propylene Oxide Market by Region
Chapter 9. Company Profiles
Companies Mentioned
- The Dow Chemical Company
- BASF SE
- LyondellBasell Industries Holdings B.V.
- Shell plc
- INEOS Group Holdings S.A
- Merck KGaA
- Huntsman Corporation
- Sumitomo Chemical Co., Ltd.
- Tokuyama Corporation
- Repsol Group
Methodology
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