USD 23.84 billion
Propylene Oxide Market Size, Share, and Growth Analysis
Propylene Oxide Market By Production process (Chlorohydrin Process, Styrene Monomer Process), By Application (Polyether Polyols, Propylene Glycol), By End-use industry (Automotive, Building & Construction), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG15B2100 |
Region:
Global |
Published Date: January, 2025
Pages:
157
|Tables:
67
|Figures:
75
Format -
Propylene Oxide Market Insights
Propylene Oxide Market size was valued at USD 23.84 billion in 2023 and is poised to grow from USD 25.25 billion in 2024 to USD 39.94 billion by 2032, growing at a CAGR of 5.9% during the forecast period (2025-2032).
The global propylene oxide market is experiencing significant growth due to the increasing demand for propylene glycol, polyurethane foams, and glycol ethers across various industries.
The automotive and construction sectors are driving the market growth, as they heavily rely on polyurethane foams for insulation and cushioning applications. The pharmaceutical, cosmetics, and food processing industries are also contributing to the market expansion through their demand for propylene glycol.
Additionally, there is a growing trend towards bio-based propylene oxide derived from renewable feedstocks, driven by environmental regulations and sustainability initiatives.
Technological advancements in propylene oxide production processes, such as the hydrogen peroxide to propylene oxide (HPPO) process and direct oxidation of propylene (PO-DO), are gaining prominence for their efficiency and reduced environmental impact.
However, the market faces challenges due to volatility in raw material prices, particularly crude oil and natural gas, as well as concerns about environmental safety and carbon emissions. To overcome these challenges, collaboration and partnerships among market players are becoming crucial for expanding market presence and strengthening distribution networks.
Overall, the propylene oxide market presents significant opportunities for industry participants who adopt proactive strategies focused on innovation, sustainability, and market expansion.
US Propylene Oxide Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Polyether polyols
Fastest Growth
Polyether polyols
Growth Rate
5.9% CAGR
Global Propylene Oxide Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Propylene Oxide Market Segments Analysis
Global Propylene Oxide Market is segmented by Production process, Application, End-use industry and region. Based on Production process, the market is segmented into Chlorohydrin Process, Styrene Monomer Process, TBA Co-product Process, Cumene-based Process and Hydrogen Peroxide Process. Based on Application, the market is segmented into Polyether Polyols, Propylene Glycol, Glycol Ethers and Others. Based on End-use industry, the market is segmented into Automotive, Building & Construction, Textile & Furnishing, Chemical & Pharmaceutical, Packaging, Electronics and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Propylene Oxide Market Analysis by Application
The largest market segment in the propylene oxide market is the polyether polyols segment. Polyether polyols are the largest consumers of propylene oxide due to their extensive use in the production of polyurethane foams, coatings, adhesives and sealants. These polyurethane products find wide applications in various industries, including automotive, construction, furniture, and bedding.
On the other hand, the fastest-growing segment in the propylene oxide market by application is the propylene glycol segment. Propylene glycol is produced using propylene oxide as a key raw material and finds applications in industries such as pharmaceuticals, cosmetics, food processing, and industrial manufacturing. The growing demand for propylene glycol in these industries, driven by factors like population growth, urbanization, and increased consumer awareness about personal care and hygiene, contributes to the rapid growth of this segment.
Propylene Oxide Market Analysis by End-Use
The largest segment by end-use in the propylene oxide market is the automotive industry. Propylene oxide is extensively used in the automotive sector for the production of polyurethane foams, which are utilized in various applications such as seat cushions, interior components, and insulation materials. The automotive industry's high demand for polyurethane foams contributes to the significant market share of this segment.
The fastest-growing segment by end-use is the building and construction industry. Propylene oxide-based polyurethane foams are widely used in construction applications for insulation, sealing, and adhesion purposes. The increasing focus on energy-efficient and sustainable construction practices, coupled with the growing construction sector globally, is driving the demand for propylene oxide in this industry. Additionally, the use of propylene oxide-derived products, such as propylene glycol and glycol ethers, in the construction industry further supports the rapid growth of this segment.
Global Propylene Oxide Market By Type
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Propylene Oxide Market Regional Insights
The largest market region in the propylene oxide market is Asia Pacific. The region holds a significant market share due to its rapid industrialization, urbanization, and increasing disposable incomes. Countries such as China, India, and Japan are major contributors to the propylene oxide market in the region. The automotive, construction, textile, and chemical industries in Asia Pacific drive the demand for propylene oxide-based products, particularly polyurethane foams and propylene glycol. Additionally, favorable government initiatives, infrastructural development, and a rising population contribute to the region's dominance in the propylene oxide market.
On the other hand, the fastest-growing region in the propylene oxide market is expected to be the Middle East and Africa (MEA). The region is witnessing a surge in infrastructure development and construction activities, which drives the demand for propylene oxide-based polyurethane products. Additionally, the growing chemical and pharmaceutical industries in the MEA region contribute to the market's growth. The increasing urbanization, expanding population, and favorable government policies promoting industrial growth and foreign investments are factors propelling the propylene oxide market in this region.
Global Propylene Oxide Market By Geography
- Largest
- Fastest
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Propylene Oxide Market Dynamics
Propylene Oxide Market Drivers
Growing Demand for Polyurethane Foams
- Polyurethane foams, which are produced using propylene oxide, are extensively used in various industries such as automotive, construction, furniture, and bedding. The increasing demand for comfortable seating, insulation materials, and energy-efficient solutions in these sectors drives the need for propylene oxide.
- There is a growing awareness among consumers and industries about the importance of energy-efficient materials and products. Propylene oxide-based polyurethane foams offer excellent insulation properties, which align with the demand for energy-efficient solutions, driving market growth.
Propylene Oxide Market Restraints
Volatility in Raw Material Prices
- Propylene oxide is derived from petroleum-based feedstocks such as crude oil and natural gas. Fluctuations in the prices of these raw materials can significantly impact the overall production costs of propylene oxide. Price volatility poses challenges for market players in terms of planning, pricing, and profitability.
- Propylene oxide faces potential substitution threats from alternative materials or processes. Market players need to stay updated with technological advancements and innovations in other chemical compounds or production methods that could potentially replace or reduce the demand for propylene oxide.
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Propylene Oxide Market Competitive Landscape
The competitive landscape of the propylene oxide market is characterized by the presence of several key players who actively contribute to market growth. These companies emphasize research and development activities to introduce innovative products and improve production processes. Additionally, they prioritize sustainability and environmental considerations in their operations.
Top Players in Propylene Oxide Market
- LyondellBasell Industries N.V. (Netherlands)
- Dow Inc. (United States)
- BASF SE (Germany)
- Royal Dutch Shell plc (United Kingdom/Netherlands)
- Huntsman Corporation (United States)
- Repsol S.A. (Spain)
- INEOS Oxide (United Kingdom)
- AGC Inc. (Japan)
- Balchem Corporation (United States)
- Befar Group (China)
- Indorama Ventures Public Company Limited (Thailand)
- Manali Petrochemicals Limited (India)
- Merck KGaA (Germany)
- PCC Rokita SA (Poland)
- Sadara Chemical Company (Saudi Arabia)
- SKC Co., Ltd. (South Korea)
- Sumitomo Chemical Co., Ltd. (Japan)
- Tianjin Dagu Chemical Co., Ltd. (China)
- Tokuyama Corporation (Japan)
- Wanhua Chemical Group Co., Ltd. (China)
Propylene Oxide Market Recent Developments
- In November 2022, LyondellBasell announced that it would build a new propylene oxide plant in Houston, Texas. The plant is expected to be completed in 2025 and will have a capacity of 1.5 million tons per year.
Propylene Oxide Key Market Trends
- Increasing Preference For Non-Fusion Alternatives: As sustainability and environmental concerns become more prominent, there is a growing emphasis on reducing carbon footprints and utilizing renewable resources. Bio-based propylene oxide, derived from renewable feedstocks such as biomass or plant-based materials, offers a more environmentally friendly alternative to traditional petroleum-based propylene oxide. This trend is driven by stringent environmental regulations and the desire to achieve more sustainable manufacturing processes.
Propylene Oxide Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our analyses, the propylene oxide market is poised for substantial growth in the coming years. The increasing demand for propylene glycol, polyurethane foams, and glycol ethers across various industries, such as automotive, construction, textiles, and chemicals, is a major driving factor for market expansion. Among the segments, polyether polyols currently dominate the market due to their extensive use in the production of polyurethane foams. However, the fastest-growing segment is propylene glycol, fueled by its applications in pharmaceuticals, cosmetics, and food processing industries. The future scope of the propylene oxide market lies in the shift towards bio-based propylene oxide derived from renewable feedstocks, as sustainability and environmental concerns gain prominence. Technological advancements and collaborations among market players will further shape the market landscape. Overall, the propylene oxide market presents immense opportunities for industry participants to tap into the growing demand across various sectors, while embracing sustainable practices to meet evolving consumer preferences and regulatory requirements.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 23.84 billion |
| Market size value in 2032 | USD 39.94 billion |
| Growth Rate | 5.9% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Propylene Oxide Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Propylene Oxide Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Propylene Oxide Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Propylene Oxide Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Propylene Oxide Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Propylene Oxide Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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