by The Global 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 compound which is produced as a co-product during the cracking process of petroleum products to produce gasoline and diesel fuels. It is a colorless gas and is a building block for the production of a variety of plastics and basic chemicals such as polypropylene, propylene oxide, cumene, acrylonitrile, and plasticizers. It is primarily used to produce polypropylene which is further used in construction materials, automotive parts, packaging products, medical devices among others. The growing construction and automotive industries are augmenting the demand for polypropylene which is driving growth of the propylene market.
Market key trends:
One of the key trends in the propylene market is growing construction activities in Asia Pacific region. Asia Pacific accounts for over 60% of the global construction spending. Rapid urbanization and industrialization in countries such as China and India are augmenting the growth of infrastructure and residential construction activities in the region. As polypropylene is widely used in construction materials such as pipes, window frames, roofing sheets etc., increasing construction spending is expected to drive the demand for polypropylene and in turn propel growth of the propylene market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to the requirement of large capital investments needed to set up production facilities and acquire technologies. However, advancements in shale gas extraction have lowered entry barriers to an extent.
Bargaining power of buyers: The bargaining power of buyers is high given the presence of numerous established buyers and substitutes. Buyers can negotiate for lower prices and demand better quality and services.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as the market has large number of suppliers and raw materials required are also available from alternate sources. However, integration across the value chain provides suppliers an advantage.
Threat of new substitutes: The threat of substitutes is moderate as propylene has applications in diverse end-use industries. However, continuous research is being conducted to develop substitutes like bio-propylene.
Competitive rivalry: The competitive rivalry is high due to presence of numerous global and regional players. Players compete based on pricing strategies, product differentiation, quality and reliability of supply.
Key Takeaways
The Global Propylene Market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand from petrochemical industries and packaging applications.
Regional analysis
Asia Pacific dominates the global propylene market with over 50% share. China contributes significantly to regional demand followed by India and Japan. This can be attributed to large presence of petrochemical industries, expanding polypropylene production capacities and rising automotive sales in the region. North America and Europe are other major markets driven by recovering construction sector.
Key players
Key players operating in the propylene market are BASF SE, BP Plc., China Petroleum & Chemical Corporation, ExxonMobil Corporation, IRPC Plc., LyondellBasell Industries N.V., Reliance Industries Ltd., SABIC, The Dow Chemical Company and TOTAL S.A. Major players are investing in capacity expansions and strategic partnerships to gain competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
