Propylene Market - By Derivative (Polypropylene, Propylene oxide, Cumene, Acrylonitrile, Acrylic acid & Acrylates and Others (Oxo-alcohols, Isopropyl alcohol, Isobutyl benzene, EPDM rubbers)), By Industry (Automotive, Construction, Packaging, Textile and Others (Pharmaceuticals, Solvents)) - Global Opportunity Analysis and Industry Forecast, 2020 – 2030

Propylene Market held USD 85.3 billion in 2020 and is to grow with a CAGR of 2% from 2020-2030. Propylene belongs to the volatile and highly flame retardant alkene family of hydrocarbons. Propylne is one of the most commonly used organic chemical compounds. On-Purpose Technology (OPT) and FCC splitters are the most commonly used technologies for processing propylene worldwide. Propylene is a byproduct of oil refining and natural gas processing. About 65 per cent of propylene is used in processing of polypropylene. Propylene is also used in various industries, like automobile, manufacturing, pharmaceutical, solvents, automobile, textile, and other industries like packaging films, biocide, etc.

Market Dynamics and Factors:

Growing demand for propylene in industries like automotive, construction and packaging industries is a major factor expected to drive global propylene market growth. Increasing demand for automobiles in developing countries is expected to elevate the global propylene market sales growth due to increase in people's purchasing power. Growing demand for propylene for various applications in the packaging industry is another factor anticipated to help in generating the potential global propylene market revenue over the forecast period. But fluctuating prices of propylene raw materials are likely to hamper target demand growth over the next 10 years. Due to  expansion in the production of ethylene and propylene, combined with increasing demand for downstream goods from India, China and the Middle East, will drive the global propylene market growth in the overall market for ethylene and propylene. Strict environmental regulations, fluctuations in prices of raw materials and political instability in regions producing crude oil are major factors which restrict the demand for ethylene and propylene, thus limiting the growth opportunities of global propylene market.

Market Segmentation:

Based on the derivatives, the global propylene market is segmented into (propylene oxide, polypropylene, acrylonitrile,  cumene, acrylates &  acrylic acid and others (isopropyl alcohol, oxo-alcohols, EPDM rubbers and isobutyl benzene). On the basis of industry, the market is segmented into construction, packaging, automotive, textile and others (solvents, pharmaceuticals). Geographic breakdown of global propylene market includes regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographic Analysis:

Asia-Pacific is the main propylene market which is closely followed by Europe and North America. Major emerging economies like China, India, and Japan are the main consuming markets for propylene in the Asia-Pacific region. In the next five years, China is expected to expand its propylene manufacturing capacity at the fastest rate as compared to any country in the world, hence this factor may turn China into a world leader of global propylene market. Currently it is the second-largest producer of propylene but is unable to satisfy its own domestic demand, resulting in further capacity building. China is projected to account for approximately 70 per cent of Asia's added capacity and 45 per cent of global propylene market's demand over the next five years of global propylene market. The production of propylene has been widespread in the past due to being a by-product of refining sources. However, there has been an significant development in this sector in North America due to the increasing production of shale gas where substantial quantities of natural gas are extracted from shale and other unconventional sources, along with accompanying natural gas such as ethane and propane.

Competitive Scenario:

The key players of global propylene market are ExxonMobil Chemical, BASF, Formosa Plastics Corporation, DuPont, INEOS, LyondellBasell Industries, Dow Chemical, Chevron Phillips, Saudi Basic Industries Corporation and Sumitomo Chemical.

Propylene Market Report Scope