Propylene belongs to the alkene class with three double bonded carbon atoms. It is the second highest used petrochemical after ethylene. Propylene or Propene is a byproduct of oil refining and natural gas processing. During oil refining, ethylene, propene, and other compounds are produced as a result of cracking larger hydrocarbons. A major source of propylene is naphtha cracking, which is intended to produce ethylene and results from refinery cracking producing other products. Propane dehydrogenation converts propane into propylene with byproduct hydrogen. Fluid Catalytic Cracking splitters and On-Purpose Technology (OPT) are most widely used propylene production technologies worldwide. Its end-uses include films, fibers, containers, packaging, and caps and closures. Propylene is considered as an important building block for various chemicals such as polypropylene, propylene oxide, acrylonitrile, cumene, oxoalcohols, isopropylalcohol, acrylic acid, acrylated, isobutyl benzene, and EPDM rubbers. These derivatives of propylene are used in various end-use industries such as automotive, construction, textiles, and packaging.
Global propylene market was valued at US$ 3.9 Billion in 2021, in terms of revenue, exhibiting a CAGR of 5.9% during the forecast period (2022 to 2030).
Drivers
Growth of the propylene market is fuelled by increasing demand for its derivatives especially by polypropylene. Moreover, increasing demand from various industries such as automotive and packaging has further propelled the global propylene market growth. Propylene oxide is used for mattresses, insulators, carpets, car seats, and construction chemicals.
Among regions, Asia Pacific held highest market share in the global propylene market in 2021, and is expected to continue its dominance over the forecast period. This is attributed to growth of automotive and construction industries in the region. According to International Trade Administration (ITA), China is the world’s largest construction market and it was valued at US$ 717.71 billion in 2016, and is estimated to reach US$ 1,042.17 billion in 2021.
The major regions in propylene market are China, the U.S., and Western Europe, which account for over 70% of the total market demand. .
Figure 1. Global Propylene Market Value Share (%), By Region, 2021
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Market Restraints
Lack of universal directives pertaining to applications of the global propylene market is expected to restrain market growth during the forecast period. Every country has different directives pertaining to use and applications of propylene. Key players find it difficult to cope with such country wise regulations, which in turn is discouraging investment in the propylene industry, thereby restraining the market growth.
Propylene Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2021 | Market Size in 2021: | US$ 3.9 Bn |
Historical Data for: | 2017-2021 | Estimated Year: | 2022 |
Forecast Period 2022 to 2030 CAGR: | 5.9% | Forecast Period: | 2022-2030 |
Geographies covered: |
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Segments covered: |
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Companies covered: |
BASF SE, BP Plc., China Petroleum & Chemical Corporation, ExxonMobil Corporation, IRPC Plc., LyondellB |
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Growth Drivers: |
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Restraints & Challenges: |
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Market Trends
Increasing demand for derivatives, especially polypropylene and propylene oxide is the main trend in the propylene market. Polypropylene and its alloys are extensively used in automotive industry. Another derivative acrylonitrile is used in a variety of elastomeric fibers and polymers. It is used for acrylic fibers in clothes such as sweaters, socks, beddings, carpets, sportswear, cushions, and blankets.
Figure 2. Global Propylene Market Value Share (%), By End-use Industry, 2021
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Among end-use industry, automotive segment held the dominant position in the global propylene market in 2021. The segment is projected to retain its dominance over the forecast period due to substantial growth of automotive and packaging industry across the world.
Recent Developments
Competitive Section
Major players operating in the global propylene market include BASF SE, BP Plc., China Petroleum & Chemical Corporation, ExxonMobil Corporation, IRPC Plc., LyondellBasell Industries N.V., Reliance Industries Ltd, Royal Dutch Shell PLC, SABIC, Sinopec Corp., The DOW Chemical Company, Total S.A., and Valero Energy Corp.
Frequently Asked Questions
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