Global propylene oxide market to register CAGR of around 3% until 2020

Global propylene oxide market is estimated to register a CAGR of around 3% until 2020, as per a report by Technavio. The demand for propylene is driven by industries such as packaging, automotive, footwear, furniture, and construction. The automobile industry in particular uses polyurethanes in the manufacture of automobile seating, headrests, armrests, dashboards, and headliners. The growth of the automotive industry in Brazil, China, and India is predicted to propel the demand for polyurethanes over the next four years. The global propylene oxide market is divided into segmentations based on its various applications. Its three key application types include polyether polyol, propylene glycols and others. The others segment constitutes flame retardants, modified carbohydrates, surfactants, and synthetic lubricants Polyether polyols are categorized into the following based on their cell structure: Flexible polyether polyols Rigid polyether polyols Specialty polyether polyols In terms of consumption, polyether polyols emerged as the largest segment of this market in 2015, accounting for 7.06 mln metric tons last year. The demand from the polyurethane industry drives the propylene oxide market with applications in areas such as bedding, furniture, carpets interlay, and vehicle seats. The propylene oxide market is also witnessing a growing use of specialty polyether polyols in making coatings, castings, adhesives, inks, and defoamers. The APAC region leads the global polyether polyols market owing to an increased demand from industries such as furniture and pharmaceuticals, and this trend is expected to continue during the next four years. The demand for polyether polyols will particularly witness an increase in consumption from countries such as India, Taiwan, and the Middle East in this period. Propylene glycols emerged as the second largest segment of this market in 2015 owing to its extensive use in the manufacture of engine coolants. The demand for high-performance coolants around the world has led to an increase in the demand for these products. Propylene glycols are also used as solvents in liquid detergents, especially in North America and Western Europe. During the forecast period, vendors are expected to increase their focus on the manufacture of bio-based glycols to negate the impact of petroleum-based glycols on the environment. As per this forecast, the market is likely to witness a shift in preference towards bio-based glycols particularly coming from pharmaceuticals and cosmetics owing to its lower toxicity as compared to petroleum counterparts. In terms of consumption, Technavio’s market research analysts estimate the global propylene oxide market for other applications to be close to 3.44 million metric tons in 2015. Applications such as modified carbohydrates or starches are increasingly being used in industries such as construction, paint, food, and pharmaceuticals. Hydroxypropyl starches maintain the integrity of frozen food products owing to their better stability in low temperatures. Food starches modified with propylene oxide used as thickening agents or stabilizers are making their way into food products such as canned soups, desserts, and puddings. Industrial starches modified with propylene oxide are expected to find growing application in areas like oilfield drilling chemicals, paints, and adhesives. The application of propylene oxide in flame retardants is also gaining traction. The use of flame retardants in polyurethane foams, and for textile and flooring applications will gain traction during the forecast period.