Propylene Oxide Market

Global Propylene Oxide Market Size, Share & Trends Analysis Report By Production Process, By Application, (Polyether Polyols, Propylene Glycol, Glycol Ethers, and Others), By End User, By Regional Outlook and Forecast, 2024 - 2031

Report Id: KBV-22463 Publication Date: May-2024 Number of Pages: 437
USD 23.5 Billion
USD 36.3 Billion
Historical Data
2020 to 2022

Market Report Description

The Global Propylene Oxide Market size is expected to reach $36.3 billion by 2031, rising at a market growth of 5.7% CAGR during the forecast period. In the year 2023, the market attained a volume of 13,671.4 kilo tonnes, experiencing a growth of 20.8% (2020-2023).

Styrene monomer is a crucial feedstock for producing polystyrene (PS) and expandable polystyrene (EPS), which have extensive applications in packaging, construction, electronics, and automotive industries. Thus, the styrene monomer process segment captured 19.5% revenue share in the market 2023. In the terms of volume styrene monomer process segment would attain a volume of 4,162.1 kilo tonnes in the market 2030. The growing demand for lightweight, durable, and versatile materials in these sectors drives the consumption of PS and EPS, fueling the demand for styrene monomers. Hence, these aspects will help in the expansion of the segment.

Propylene Oxide Market Size - Global Opportunities and Trends Analysis Report 2020-2031

Bio-based propylene oxide is produced from renewable feedstocks such as biomass, bioethanol, or glycerol, which have a lower carbon footprint than fossil fuel-derived feedstocks. By utilizing biomass as a raw material, bio-PO production emits fewer greenhouse gases, thereby reducing overall carbon emissions.

Additionally, governments and private investors worldwide are undertaking large-scale infrastructure development projects to modernize and expand transportation networks, utilities, and public facilities. These projects include the construction of roads, bridges, railways, airports, ports, and energy infrastructure.

However, Epichlorohydrin and other chemicals are substitutes for it in various applications, such as epoxy resins, glycols, and polyurethanes. These substitute products may offer comparable performance characteristics or cost advantages, making them attractive alternatives for consumers and industries. Therefore, these factors can pose challenges for the propylene oxide market.

Driving and Restraining Factors
Propylene Oxide Market
  • Growing consumption of propylene oxide in propylene glycol production
  • Shift towards bio-based propylene oxide.
  • Increasing infrastructure development and urbanization
  • Concerns regarding competitive pressure from substitutes
  • Health and safety risks linked with propylene oxide
  • Technological advancements in propylene oxide production
  • Expanding packaging industry utilizing propylene oxide-derived plastics and films
  • Regulatory compliance and environmental concerns
  • Volatility in raw material prices

End Outlook

Based on end-user, the market is segmented into automotive, building & construction, textile & furnishing, chemical & pharmaceutical, packaging, electronics, and others. The automotive segment held 27.8% revenue share in the market in 2023. In the terms of volume, the automotive segment would attain a volume of 5,036.2 kilo tonnes in the market 2031.

Propylene Oxide Market Share and Industry Analysis Report 2023

Production Process Outlook

Based on production process, the market is divided into chlorohydrin process, styrene monomer process, TBA co-product process, cumene-based process, and hydrogen peroxide process. The chlorohydrin process segment recorded 31.9% revenue share in the market in 2023. In the terms of volume, the TBA segment would attain a volume of 5,940.4 in the market 2029.

Application Outlook

On the basis of application, the market is divided into polyether polyols, propylene glycol, glycol ethers, and others. In 2023, the propylene glycol segment witnessed 21.4% revenue share in the market. In terms of volume the propylene glycol segment would attain a volume of 4,427.4 kilo tonnes in the market 2028.

Free Valuable Insights: Global Propylene Oxide Market size to reach USD 36.3 Billion by 2031

Regional Outlook

By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2023, the Europe segment acquired 21.7% revenue share in the market. In terms of volume the Europe region would attain a volume of 3,733.8 kilo tonnes in the market 2028.

Propylene Oxide Market Report Coverage
Report Attribute Details
Market size value in 2023 USD 23.5 Billion
Market size forecast in 2031 USD 36.3 Billion
Base Year 2023
Historical Period 2020 to 2022
Forecast Period 2024 to 2031
Revenue Growth Rate CAGR of 5.7% from 2024 to 2031
Quantitative Data Volume in Kilo Tonnes, Revenue in USD Billion, and CAGR from 2020 to 2031
Number of Pages 437
Number of Tables 830
Report coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives
Segments covered Production Process, Application, End-user, Region
Country scope
  • North America (US, Canada, Mexico, and Rest of North America)
  • Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific)
  • LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)
Companies Included The Dow Chemical Company, BASF SE, LyondellBasell Industries Holdings B.V., Shell plc, INEOS Group Holdings S.A, Merck KGaA, Huntsman Corporation, Sumitomo Chemical Co., Ltd., Tokuyama Corporation, Repsol Group
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Recent Strategies Deployed in the Market

  • Mar-2024: Shell plc came into partnership with Braskem, a Brazilian petrochemical company. Through this partnership, Shell would reinforce its product portfolio and offering and would enhance its global market presence.
  • Oct-2023: The Dow Chemical Company came into partnership with Evonik Industries, a publicly listed German specialty chemicals company. Through this partnership, The Dow Chemical Company would announce the successful launch and operation of a groundbreaking pilot plant for hydrogen peroxide to propylene glycol (HPPG) conversion at Evonik's facility in Hanau, Germany. Additionally, the pilot plant will showcase the advantages of this innovative technology.
  • Oct-2023: Sumitomo Chemical has initiated the construction of a pilot facility aimed at developing a process for directly producing propylene from ethanol, which is gaining recognition as a sustainable chemical feedstock. The advancement of this technology is among the initiatives funded by the NEDO Green Innovation (GI) Fund.
  • Sep-2023: The Dow Chemical Company introduced "PG RDC, PG REN, and PG CIR "a new range of propylene glycol (PG) solutions featuring alternative–lower carbon, bio-based, and circular – feedstocks in Europe. These products are suitable for various applications across a wide spectrum of industries, including agriculture, pharmaceuticals, cosmetics, textiles, and food. In the upcoming months, Dow plans to introduce similar products in additional regions worldwide.
  • May-2023: The Dow Chemical Company came into partnership with New Energy Blue, LLC, a US-based chemical company. Through this partnership, The Dow is aiding in the development of New Energy Freedom, a novel facility located in Mason City, Iowa. This facility is anticipated to handle 275,000 metric tons of corn stover annually and generate significant volumes of second-generation ethanol and environmentally friendly lignin.
  • Apr-2020: BASF SE came into partnership with Shandong INOV Polyurethane Co., Ltd. (INOV), a plastic manufacturing company in China. Through this partnership, BASF SE would enhance material innovation capabilities to effectively cater to customers both in China and international markets.

List of Key Companies Profiled

  • The Dow Chemical Company
  • LyondellBasell Industries Holdings B.V.
  • Shell plc
  • INEOS Group Holdings S.A
  • Merck KGaA
  • Huntsman Corporation
  • Sumitomo Chemical Co., Ltd.
  • Tokuyama Corporation
  • Repsol Group

Propylene Oxide Market Report Segmentation

By Production Process (Volume, Kilo Tonnes, USD Billion, 2020-2031)

  • Chlorohydrin Process
  • Styrene Monomer Process
  • TBA Co-product Process
  • Cumene-based Process
  • Hydrogen Peroxide Process

By Application (Volume, Kilo Tonnes, USD Billion, 2020-2031)

  • Polyether Polyols
  • Propylene Glycol
  • Glycol Ethers
  • Others

By End User (Volume, Kilo Tonnes, USD Billion, 2020-2031)

  • Automotive
  • Building & Construction
  • Textile & Furnishing
  • Chemical & Pharmaceutical
  • Packaging
  • Electronics
  • Others

By Geography (Volume, Kilo Tonnes, USD Billion, 2020-2031)

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Singapore
    • Malaysia
    • Rest of Asia Pacific
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA


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