Propylene is primarily used to produce polypropylene, which has applications in a wide variety of consumable and durable goods such as packaging, textiles, plastic components and various construction materials. Being lightweight and durable, propylene based products provide effective alternatives to traditional materials.
The global propylene market is estimated to be valued at US$ 210 Billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rapid urbanization has resulted in increased infrastructure development projects such as housing, commercial buildings and roadways. Polypropylene is widely used in pipes, fences and various other construction components due to its resistance to corrosion and durability. The easy availability and cost-effectiveness compared to steel and aluminum have further boosted its adoption. With the construction industry expected to grow substantially driven by developing economies, the demand for propylene and associated products is projected to rise considerably over the forecast period. This will augment the overall expansion of the propylene market size and valuation.
The global propylene market is segmented by derivative, end-use industry, and region. Based on derivative, the market is segmented into polypropylene, propylene oxide, cumene, acrylonitrile, acrylic acid & acrylates, and other derivatives. The polypropylene segment dominates the market and is expected to witness significant growth during the forecast period. Polypropylene holds around 60% share in the global propylene market as it has versatile properties like durability, flexibility, transparency, chemical resistance and heat resistance. It is increasingly being used to produce fibers and fabrics for many industries like automotive, packaging, construction and consumer products.
The global propylene market is expected to witness high growth during the forecast period of 2024 to 2031.
Regional analysis: Asia Pacific dominates the global propylene market and is expected to continue its dominance during the forecast period. This is attributed to rising demand from the construction and automotive industries from countries like China and India. China contributes to around 30% of global propylene consumption. Europe is expected to be the second fastest growing market owing to the increasing use of propylene derivatives like polypropylene and propylene oxide in various applications.
Key players operating in the propylene market are Dow Chemical, ExxonMobil, LyondellBasell, SABIC, BASF SE. Dow Chemical is a market leader with around 10% of global polypropylene production capacity. ExxonMobil operates refineries across 18 countries and is one of the largest producers of petrochemical intermediates including propylene. LyondellBasell is a leading licensor of polyolefin technologies and among the top five producers of polymers, chemicals and fuels.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it