Propylene Market Estimated To Witness High Growth Owing To Increasing Demand From Industrial And Construction Sector
 |
| propylene market |
The propylene market is estimated to be valued at US$ 4.37 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Propylene is an organic chemical that is primarily used to produce
polypropylene which finds applications in a variety of industries such as
automotive, packaging, textiles, constructions, etc. Polypropylene is a
versatile plastic with excellent chemical and corrosion resistance properties.
It is used to make films, fibers, batteries, medical devices, pipes and
fittings among other things. Propylene derivatives also have applications as
adhesives and sealants in construction and industrial sectors.
Market Dynamics:
The growth of the propylene market is driven by increasing demand from
industries such as automotive, packaging, constructions among others. growth.
Polypropylene demand is surging owing to rising vehicle production and need for
lightweight materials in automotive interiors and components. In constructions,
polypropylene is increasingly being used to make pipes, fittings, insulation
boards and sheets which is fuelling the propylene consumption. Furthermore,
rapid urbanization has augmented the infrastructure development globally, thus
propelling the growth of construction sector. Additionally, strong revival of
industrial activities post pandemic has augmented the demand for polypropylene
in industrial applications such as batteries, medical devices, industrial
equipment etc. However, volatility in crude oil prices which is the primary
feedstock for producing propylene can hamper the market growth.
SWOT Analysis
Strength:
- Propylene is a versatile raw material used in numerous industrial and
consumer applications giving it wide end-use markets.
- Asia Pacific region is emerging as high growth market increasing demand for
propylene.
- technological advances are allowing production of propylene as a byproduct
from other petrochemical processes.
Weakness:
- Propylene production is dependent on crude oil prices and subject to
volatility in energy markets.
- Environmental regulations over emission norms are increasing production
costs.
Opportunity:
- Rising demand for polypropylene used in packaging, construction and
automotive parts offers major growth opportunities.
- Governments promoting bio-propylene from renewable sources can reduce
dependence on crude oil.
Threats:
- Fluctuations in crude oil prices impact the profitability of propylene
producers.
- Strict environmental rules in developed markets increase compliance costs.
Key Takeaways
The Global
Propylene Market is expected to witness high growth, exhibiting CAGR of
5.0% over the forecast period, due to increasing consumption of polypropylene
in packaging, automotive and construction industries. The propylene market size
for 2023 is US$ 4.37 Bn.
Regional analysis
The Asia Pacific region dominates the global propylene market with over 35%
share due to rapid industrialization and growing manufacturing sectors in
China, India and Southeast Asian countries. China represents the fastest
growing as well as largest regional market for propylene in Asia Pacific.
Key players
Key players operating in the propylene market are BASF SE, BP Plc., China
Petroleum & Chemical Corporation, ExxonMobil Corporation, IRPC Plc.,
LyondellBasell Industries Holdings B.V. Major players are investing in capacity
expansion projects to cater to rising demand for propylene and derivative polymers
from end-use industries.
.jpg)
Comments
Post a Comment