The global propylene market was worth more than USD xx billion in revenue in 2018 and is expected to cross USD xx billion in 2023, growing at a healthy CAGR of over xx% during the forecast period.
Propylene is an aliphatic hydrocarbon produced from steam cracking of naphtha and propane (natural gas). It is a major feedstock for producing many downstream chemicals. About two-thirds of global consumption of propylene are from polypropylene market. Other important downstream chemicals produced from propylene include acrylonitrile (ACN), acrylic acid, oxo-alcohols, propylene oxide (PO), and cumene. Propylene is also used to make high-octane gasoline blendstocks and can also be blended into propane.
Rising demand of polypropylene and others from various industries such as packaging and automobiles industry are likely to drive the propylene market. As propylene is a major feedstock for polypropylene production, demand for polypropylene is expected to fuel the growth of this market. Demand for packaging and automobiles industry are actually increasing because of growing population and extra income in developing countries. Additionally, demand for acrylonitrile (ACN), acrylic acid, oxo-alcohols, propylene oxide (PO), and cumene is likely to increase at a greater rate because of an upsurge in demand from end-use markets, which in turn will boost propylene demand. A portion of propylene demand is also from acrolein, alkylates, dimersol, polymer gasoline, propylene oligomers, iso-butyl benzene, EPDM rubbers and isopropyl alcohol end-use markets.
Drivers and Restraints of Propylene Market
Growing investments in downstream industries in regions like the Americas, the Middle East and the Far East are likely to offer tremendous possibilities for propylene and its derivatives market in the future. As a result of accessibility to raw material, multinational businesses are investing in resource-rich regions to be able to limit the overall production cost. In the USA, the shale gas revolution has made the raw material cost much cheaper in the recent past which lasted after the global market was flooded with crude oil oversupply.
Propylene and its derivatives are exposed to the probability of volatility in supply and price of crude oil. Propylene has an adverse effect on human body if exposed to it for a longer duration. It’s combustible and carcinogenic nature often makes environmental regulatory institutions to implement strict regulations on propylene usage. Existing and future regulations concerning the use of propylene and its derivatives in end products are likely to hinder the market growth.
Propylene Market by Region
Asia was the largest consumer of propylene and its derivatives and this pattern is anticipated to continue to be identical over the following few years. Consumption in Asia is showing upward trend because of increase in economic activity in China and India. China, Japan and South Korea were the largest consumers of propylene in this region, whereas India is likely to grow at a higher pace. Growing demand for packaging and automobiles and other industries will drive propylene market in Asia. Consumption of propylene and its derivatives in rest of the world was minimal however it is likely to grow at a reasonable rate next to Asia. North America is likely to grow at a significant rate due to demand from packaging and textiles industry. With major production capacities in USA, the region is likely to grow in terms of global supply capability. Demand from Europe was low relatively and is likely to stay same in the next few years and will continue focusing on exporting to Asia.
Top players in this market include China Petroleum & Chemical Corporation (Sinopec Corp.), China National Petroleum Corporation(CNPC), ExxonMobil Corporation, LyondellBasell Industries N.V., Royal Dutch Shell PLC, The Dow Chemical Company, Saudi Arabia Basic Industries Corporation (SABIC), BASF SE, BP Plc and INEOS Group among others.
The report covers exhaustive analysis on:
- Global Market Segments
- Global Market Size
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
- In depth summary of parent market
- Altering market characteristics in the industry
- Detailed market segmentation
- Historical and forecast market size in terms of volume and value
- Current industry developments
- Competitive landscape
- Potential and niche segments, regions showing promising growth