Global Propylene Oxide Market 2016-2020

January 20, 2016
This market research report includes a detailed segmentation of the global propylene oxide market by production process (chlorohydrin process, PO/TBA, PO-only cumene-based process, and PO/SM process) and by application (polyether polyols, propylene glycols, and others). It also outlines the market shares for key regions like APAC, Europe, North America, Latin America, and ROW. The leading vendors analyzed in this report are Asahi Glass, BASF, Dow Chemicals, Huntsman, LyondellBasell Industries, Repsol, and Royal Dutch Shell.

Market outlook of the global propylene oxide

Technavio’s market research analyst predicts the global propylene oxide market to grow at a slow but modest CAGR of more than 3% by 2020. The rising demand for polyether polyols, which is used in the manufacture of polyurethanes and applications like packaging, footwear, furniture, construction, and automotive will bolster the prospects for growth in this market during the forecast period. Furthermore, the increasing usage of polyurethanes in sealants, thermal industries, and flooring materials will propel market growth as polyurethanes are manufactured using propylene oxide.

In terms of geography, the APAC region will be the largest market for propylene oxide during the forecast period. The growing use of propylene oxide in industries such as furniture, automotive, and construction will foster market growth in this region. Additionally, the widespread availability of raw materials like propylene in regions such as India and China will enhance the prospects for market growth in this geography during the predicted period.

Segmentation by production process and analysis of the propylene oxide market

  • Chlorohydrin process
  • PO/TBA
  • PO-only cumene-based process
  • PO/SM process

In this market study, analysts have estimated the chlorohydrin process segment to be the largest market segment during the forecast period. This segment currently accounts for a market share of approximately 37% and is closely followed by the PO/SM process segment and the PO/TBA process segment. In the chlorohydrin process, roughly 2 tons of calcium chloride is produced as a by-product. Dow Chemical is the largest manufacturer of propylene oxide by this process.

Application-based segmentation of the propylene oxide market

  • Polyether polyols
  • Propylene glycols

Technavio market research analysts have estimated the polyether polyols segment to account for an impressive market share of more than 68% by 2020. The augmented demand from the polyurethane industry will impel the market growth for polyether polyols. The ability of polyether polyols to aid in the manufacture of polyurethane foams, which are used in applications such as bedding, furniture, carpets interlay, and vehicle seats will result in this segment’s impressive market share during the forecast period.

Competitive landscape and key vendors

This market is extremely competitive and is dominated by large vendors like Dow, LyondellBasell, and Shell. The leading vendors in this market together account for approximately 41% of the global production and will dominate the global propylene oxide market during the forecast period. These companies leverage back-integration into existing feedstock chains to maintain an efficient manufacturing base and consistent product supply.

Leading vendors in the market are -

  • Asahi Glass
  • BASF
  • Dow Chemicals
  • Huntsman
  • LyondellBasell Industries
  • Repsol
  • Royal Dutch Shell

Other prominent vendors in the market include Ineos Oxide, Balchem, SKC, and Sumitomo Chemicals.

Key questions answered in the report include

  • What will the market size and the growth rate be in 2020?
  • What are the key factors driving the global propylene oxide market?
  • What are the key market trends impacting the growth of the propylene oxide market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the vendors in the global propylene oxide market?
  • Trending factors influencing the market shares of the APAC, Europe, North America, Latin America, and the ROW.
  • What are the key outcomes of the five forces analysis of the propylene oxide market?

Technavio also offers customization on reports based on specific client requirement.

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