The global propylene market was valued at over 92 metric tons in 2015 and is expected to reach almost 122 metric tons by 2020, says Technavio.
Technavio has announced the launch of its latest market research report on propylene to its olefins portfolio. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the propylene market during the forecast period 2016-2020. Some of the top vendors listed in this industry analysis include BASF, Dow Chemical, ExxonMobil Chemical, INEOS, and LyondellBasell Industries.
In terms of geographical analysis, APAC is the largest propylene-consuming market, reaching almost 69 metric tons in terms of consumption. During the forecast period, China, India, and Japan will emerge as the key revenue-generators for APAC.
“The production of on-purpose propylene in the global market is on a rise. This trend is spurred by the high cost of heavy feedstocks that are used in the steam cracking process. Due to difficulties in the operating conditions, the use of on-purpose technologies is on the rise among propylene producers. Some of the on-purpose technologies commonly used by producers are propane dehydrogenation (PDH), methanol to olefins (MTP), and olefin metathesis,” says Swapnil Tejveer Sharma, a lead analyst at Technavio for olefins.
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The new industry research report from Technavio analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Growing demand from China
The demand for propylene from China is on an upsurge, as a result of which, the Chinese propylene market has a higher CAGR compared to the markets in all the other geographical regions. In 2015, China accounted for a majority of the propylene demand in APAC. The market’s growth is attributable to the growing population and the resultant need for industrialization and improvements in lifestyle and the resultant rise in the consumption of products like polypropylene, propylene oxide, and polyether polyols in the country. By 2020, China is anticipated to become the largest manufacturer of propylene with a capacity addition of nearly 40 million metric tons.
Increasing demand for polyurethane
Made from propylene oxide, polyurethane is used for the manufacture of sealants, thermal insulators, and flooring materials that are used across industries like packaging, automotive, footwear, furniture, and construction. Polyurethane also finds application in the production of rigid foams owing to their insulation properties. In the automobile industry, polyurethanes are used in the manufacture of automobile seating, headrests, armrests, dashboards, and headliners.
The demand for polyurethane in the global market is expected to increase with the growth of the automotive industry in Brazil, China, and India. High disposable incomes and changing lifestyles in emerging economies such as Brazil, China, and India coupled with the resultant growth of the global furniture market will fuel the demand for polyurethane in the global market.
Growing preference for sustainable products
Increased concern about the environment is prompting consumers across the globe to switch to products that are relatively less harmful to the environment. According to a European Commission survey, 80% of the consumers in Europe prefer buying products that have minimal impact on the environment. Due to this rise in consumer inclination towards bio-based products, food and beverage manufacturers are increasingly focusing on using bio-polypropylene as a packaging material.
Bio-polypropylene is used extensively for the manufacture of sustainable products. It is lightweight and has fewer wall-thickness capabilities, which helps in producing more finished goods using less raw materials. This, in turn, substantially reduces transportation costs and carbon footprint. Governments of many countries are advancing bio-based packaging in their development, resource, and environmental change strategies to encourage this buying pattern.
Some of the other prominent vendors identified in this report are DuPont, Sumitomo Chemical, Saudi Basic Industries (SABIC), and Chevron Phillips Chemical.
This research report includes an in-depth analysis and market shares and sizes of the sub-segments and geography. It provides a comprehensive analysis of the key companies, including their market shares, business overview, key financials, etc. The market study also offers a detailed analysis of key drivers, challenges, and opportunities influencing this market.
A more detailed analysis is available in the Technavio report titled, ‘Global Propylene Market 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global Propylene Oxide Market 2016-2020
- Global Polyurethane Market 2016-2020
- Global Bio-based Propylene Glycol Market 2016-2020
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