Propylene market

Propylene Market, by Derivative (Polypropylene, Propylene oxide, Cumene, Acrylonitrile, Alcohols, Acrylates, and Others), by End-use Industry (Automotive, Construction, Textiles, Packaging, and Others), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2030

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Jul 2022
CMI1997
179 Pages
Excel & Pdf
Bulk Chemicals

Summary

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

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
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:	Region: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
Segments covered:	By Derivative: Polypropylene, Propylene oxide, Cumene, Acrylonitrile, Alcohols, Acrylates, Others By End-use Industry: Automotive, Construction, Textiles, Packaging, Others
Companies covered:	BASF SE, BP Plc., China Petroleum & Chemical Corporation, ExxonMobil Corporation, IRPC Plc., LyondellB
Growth Drivers:	Increasing demand for propylene derivatives especially by polypropylene Increasing demand for derivatives, especially polypropylene and propylene oxide
Restraints & Challenges:	Lack of universal directives pertaining to propylene

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

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

On August 05, 2021 – BASF and SINOPEC made joint venture to expand their Verbund site operated by BASF-YPC Co., Ltd. This is a 50-50 joint venture of both companies in Nanjing, China. It includes the capacity expansion of several downstream chemical plants, including a new tert-butyl acrylate plant to support the growing Chinese market.
In February 2022, ExxonMobil announced that they will tart polypropylene capacity in Louisiana, U.S. by the end of 2022. This expansion is budgeted at US$ 500 million. Through this expansion, ExxonMobil will enhance their market presence in the U.S. and adjoining countries.
In April 2022, Shell plc, a subsidiary of Shell plc, signed the Production Sharing Contract to formally acquire a 25 percent stake of the Atapu field. Shell paid US$ 1.1 billion to Petrobras for the increased stake in the field. With the contract now signed, Shell plc will start receiving its additional share of oil from the field.

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.

Table of Content

Table of Contents

* Browse 50 market data tables* and 40 figures* on “Global Propylene Market” - forecast to 2030.

Segmentation

Detailed Segmentation:

- Frequently Asked Questions -

What was the global propylene market size in 2021?

Global propylene market was valued at around US$ 3.9 Billion in 2021.

What are the major factors that are expected to drive growth of the market during the forecast period?

Growth of the propylene market is fuelled by increasing demand for its derivatives especially by polypropylene.

What are the trends in the market?

Increasing demand for derivatives, especially polypropylene and propylene oxide are the trend in the market.

What are the key factors hampering growth of the market?

Lack of universal directives pertaining to applications of propylene is expected to restrain market growth during the forecast period.

Which are the key players in the market?

Major players operating in the 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.

What is the estimated growth rate for the market?

The market is estimated to grow at around 5.9% CAGR in the forecast period (2022-2030).