APAC a key region in the global propylene oxide market
The APAC region, largely led by China accounted for more than a third of the global propylene oxide market in 2017 and this is poised to rise to more than 35% by the end of the forecast period. Within APAC, China alone accounted for over 3/4th of the market share in 2015 and is predicted to account for around 77% of the APAC propylene oxide market by the end of 2025. China should gain a massive 130 BPS over the eight year study period. In terms of market value, China is estimated to be worth almost US$ 3.5 Bn by the end of 2017 and this is anticipated to rise to just under US$ 5.6 Bn by 2025. This is largely on account of the highest CAGR of 5.9%. In terms of volume, China is expected to grow to a little over 4000 KT by the end of 2025 from roughly 2600 KT in 2016 due to a substantial CAGR of 5%.
Lion’s share of propylene oxide is consumed by end-use applications
For the forecast period 2017-2025, almost 90% of the total propylene oxide produced in the propylene oxide market is predicted to be consumed by end-use applications such as the continued demand seen for products on account of polyether polyols. The manufacture of propylene oxide by the chlorohydrin method as a feedstock agent is preferred by most manufacturers as it has minimal processing cost. However, it has a number of hazardous effects and therefore, new production plants and process upgrades are in place to ensure that manufacturers switch to a more eco-friendly production method.
Propylene oxide market serves the automotive and construction industries
Propylene glycol is widely deployed as a construction chemical for use in paints, grouts, adhesives, waterproofing materials, and coatings, in both infrastructure and the construction industry. A wide-ranging number of propylene glycol applications are anticipated to be an important driver of the propylene oxide market in the days ahead. Another industry that is witnessing a resurgence in recent times is the automotive industry. This should directly benefit the propylene oxide market as the products are utilized in a number of components such as flexible foams, paints, adhesives, and sealants. Thus, it can be said that the propylene oxide market is intrinsically linked to the automotive industry.
Consumption of polyurethane is only expected to rise in the days ahead
Insulators, mattresses, carpets, and car seats are just some products that have continuous consumption and their demand will never ebb due to rapid urbanization and ever-increasing automobile production. The above products are mostly made of polyurethane, the production technique of which needs propylene oxide to be used as a raw material. Therefore, growing polyurethane applications are predicted to directly benefit the propylene oxide market. Propylene oxide derivatives also find use in several end-use products such as automotive coolants, brakes and hydraulic fluids, and engineering plastics and fibers. In addition to these, propylene oxide can be quite beneficial in areas as diverse as fumigants, flame retardants, modified starch, and textile surfactants. All of these are forecast to drive the continued growth of the propylene oxide market for some time to come.
Emerging alternatives a major challenge in the propylene oxide market
Propylene oxide is deployed as a raw material to manufacture polyester and many other chemicals that are then used to manufacture paints, solvents, grouts, and insulators. However, alternatives to propylene oxide have begun to emerge in recent times and these could potentially restrain the unencumbered growth of the propylene oxide market. For e.g. - The Huntsman Corporation markets Alkylene Carbonate as a viable substitute to propylene oxide that is already used to manufacture many products that comprise solvents, grouts, paints, and insulators.
Persistence Market Research in its upcoming report titled ‘Propylene Oxide Market: Global Industry Analysis and Forecast 2017–2025’ has conducted an in-depth analysis of the propylene oxide market for an eight year forecast period concluding in 2025. The study is based on key market segments that have been appropriately explained below.
Global Propylene Oxide Market: Taxonomy
Best-in-class Research Methodology
Persistence Market Research analysts have devised a unique, proprietary research methodology that is truly world-class and has been used to great effect while preparing the propylene oxide market report. The experts begin by conducting extensive primary and secondary research to gain an understanding of the propylene oxide market and formulate a market player list that consists of all important nodes of the value chain. A questionnaire is then devised to extract all the relevant information pertaining to the propylene oxide market. The information is then exhaustively verified using the triangulation method that combines expert analysis with both primary and secondary research to deliver the final data. This data is then thoroughly scrutinized using advanced tools to gain all possible insights into the propylene oxide market.
A Cohesive Report Structure
An important section of the propylene oxide market report focuses on a detailed analysis of the global propylene oxide market. A comparative study of the production vs. consumption outlook and anticipated pricing projections for every region can be extremely helpful in decision making. The propylene oxide market size forecast in terms of US$ million along with the Y-o-Y growth and absolute dollar opportunity that can be exploited in the propylene oxide market are all given in this chapter. They are complemented by a supply chain and profitability margin analysis of the propylene oxide market. A list of the active participants that includes raw material suppliers, retailers/distributors, and manufacturers can also be found here.
Before entering the propylene oxide market, it is essential to be aware of the market dynamics that shape both the present and future of the market. The market dynamics section of the propylene oxide market report discusses at length the drivers, restraints, opportunities, and trends that are predicted to have an oversized impact on the propylene oxide market. For key stakeholders who need to make strategic business or investment decisions in the propylene oxide market that have a long-term impact, a perusal of this section can mean the difference between sustainability and profitability in the propylene oxide market.
The global propylene oxide market has been segmented into five distinct geographic regions for the purpose of the study. Each region has been provided with a dedicated section in which a thorough analysis has been done. The basis point share and the Y-o-Y growth statistics of the major countries in each region have been highlighted along with their market attractiveness analysis. This is followed by a region-specific application focus, which also includes a study on the basis of the metrics mentioned above. This section of the propylene oxide market report is perfect for any potential market entrant who wishes to target only a particular high-growth region or end-use application.
No market can be truly complete without the market players as they are the ones who create expectations and shape the general direction of the industry, especially one as brutally competitive as the propylene oxide market. It pays to be aware of what the nearest competition plans and that is what the completion dashboard section of the propylene oxide market report strives to achieve. A market share analysis of important players in the propylene oxide market has been provided for readers’ perusal. This section also comprises vital company information such as product overview, revenue and Y-o-Y growth statistics, key financials, and the operating and net margins. Relevant company developments and a broad strategy overview give a complete picture of the competition, making report readers well aware of what to expect in the global propylene oxide market.
The executive summary is a brief yet inclusive first glance at the global propylene oxide market. It is followed by the market introduction section that includes a definition as well as an overview of the propylene oxide market. For readers who wish to understand what the propylene oxide market entails at a grassroots level, these two sections can be referred to first. There have also been certain assumptions made and acronyms used throughout the propylene oxide market report. Each has been properly explained in dedicated sections to dispel any questions that report readers may have.