The propylene oxide market is expected to grow at a CAGR of around 5.9% during the forecast period of 2019-2024, as per Research and Markets.
The major factors driving the growth of market studied are the rising demand for polyether polyols for polyurethane production, and wide ranging downstream applications of propylene glycol. On the flipside, the threat due to the emerging alternatives, potential carcinogenicity and hazardous effects on mammals, and environmental liabilities of chlorohydrin process are some of the major concerns for the studied market.
Key Highlights of the reports:
The polyether polyols segment dominated the market in 2018 and is likely to grow during the forecast period, with the growing demand for use with polyurethane to produce flexible and rigid polyurethane foams, and for non-foam applications in products, such as coatings, elastomers, adhesives, and sealants. The increasing infrastructure spending in emerging economies, like China, India, and Brazil is likely to provide opportunities for the studied market during the forecast period. Asia-Pacific dominated the market across the globe, owing to the robust growth of construction activities and automotive production in the region.
Major Market Trends:
Construction & Infrastructure Segment to Dominate Market Demand
Construction and infrastructure industry is the largest consumer of propylene oxide. Propylene oxide is used in numerous products used in the construction industry, such as flexible & rigid, polyurethane products, coatings, elastomers, adhesives, and sealants.
The increasing use of propylene derivative, polyurethane, in the construction industry, has widely helped the propylene oxide market to have a strong hold in the construction and infrastructure segments. Asia-Pacific has been witnessing strong growth in the residential as well as commercial construction in countries such as India, China, Philippines, Vietnam, and Indonesia, which is further likely to increase the demand for propylene oxide during the forecast period. In the Middle East & Africa region, growing hotel construction, and public infrastructure have been driving the construction industry in the region. Besides, the residential construction is also strong in North America, due to high housing demand due to growing population demand for homes, and trend of nuclear families, which is further projected to drive the demand for propylene oxide market during the forecast period. Whereas, Europe has been witnessing healthy recovery of construction activities, which is expected to further increase the demand for propylene oxide in the years to come. Hence, all such trends in the global construction industry are expected to positively influence the demand for propylene oxide during the forecast period.
Asia-Pacific to Dominate the Global Market:
Asia-Pacific region dominated the global market share in 2018. Robust growth of construction sector and increasing automotive production are some of the factors driving the demand for propylene oxide market in the region. Residential and commercial construction in the countries, such as India, China, Philippines, Vietnam, and Indonesia, have been increasing at a robust rate, which is fuelled by growing private investments and increasing foreign investments in the region. China currently has numerous airport construction projects, such as, which are either in development or planning stage. These include - Beijing Capital International Airport, Chengdu Shuangliu International Airport, Guangzhou Baiyun International Airport, etc. Besides, the government rolled out massive construction plans, including making provision for the movement of 250 million people to its new megacities over the next ten years.
In India, the government's investment target of US$120.5 bln for developing 27 industrial clusters, which is expected to boost commercial construction in the country. In Indonesia, the government planned to invest in construction sector about US$450 bln by 2021, which is expected to provide a boost to residential construction in the country.China, the world's largest automotive producer, is majorly focusing on increasing the production and sale of electric vehicles in the country. For this purpose, the country has planned to increase the production of electric vehicles (EVs) to 2 million a year by 2020, and 7 mln a year by 2025.
India is witnessing investments in the automotive industry, which is further expected to increase production in the country. For instance, in 2018, Hyundai planned investment of US$1 bln in India by 2020. Similarly, SAIC Motor has also announced to invest US$500 mln in India by 2020. Besides, countries such as Indonesia, Malaysia, and Thailand have also been witnessing strong growth in the production of vehicles in the region. Hence, all such market trends are expected to add to the demand for propylene oxide market in the region during the forecast period.