by Propylene or propene is a colorless flammable gas that serves as an important basic petrochemical in the production of polypropylene, propylene oxide, acrylonitrile, cumene and isopropyl alcohol. It is used to manufacture various types of plastic materials, synthetic fibers, fiberglass mats, and polyurethane. Polypropylene which is formed using propylene as a raw material, finds widespread application in packaging films, textiles, plastic parts and reusable containers due to its high chemical resistance, moisture resistance and ability to be recycled. There is rise in demand for polypropylene from industries such as automotive, infrastructure, pharmaceuticals and consumer goods. The increasing demand for polypropylene in turn boosts consumption of propylene in its manufacturing. Further, propylene is a key feedstock for manufacturing propylene oxide which is further processed to produce polyether polyols and propylene glycols that are components of polyurethane foams, spandex fibers, insulation foams, and automotive antifreeze.
The global Propylene Market is estimated to be valued at US$ 165 billion in 2023 and is expected to exhibit a CAGR of 4% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the propylene market is the rising investments focussed on capacity expansion. Petrochemical companies are expanding their production capacities of propylene to cater to the growing demand. For instance, Exxon Mobil Corporation announced plans to invest around US$ 10 billion by 2024 to expand its polyolefin production capacities including propylene at its complex in Baytown, Texas. Similarly, Saudi Basic Industries Corporation (SABIC) and TotalEnergies signed an agreement in 2021 for the development of a petrochemical complex with a new propylene production unit in Jubail Industrial City II, Saudi Arabia. The new unit is expected to start operations by 2027 and will have a capacity of 1.5 million metric tons per year of propylene. Such heavy investments are driving the global propylene market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: Medium as capital requirements and global footprint makes entry difficult.
Bargaining power of buyers: High as buyers have higher bargaining power due to availability of alternatives.
Bargaining power of suppliers: High as raw material suppliers have established global presence.
Threat of new substitutes: Medium as no direct substitutes exist but alternatives can impact.
Competitive rivalry: High as market is dominated by large global players following aggressive pricing strategies.
Key Takeaways
The global propylene market is expected to witness high growth. Propylene finds wide applications in production of polypropylene, propylene oxide, acrylonitrile and cumene. The global Propylene Market is estimated to be valued at US$ 165 billion in 2023 and is expected to exhibit a CAGR of 4% over the forecast period 2023-2033.
Regional analysis comprises
Asia Pacific accounts for more than 50% of global propylene market share led by China, India and Japan. Rising population, urbanization and growth in end-use industries are projected to drive the demand in the region. North America and Europe are other major markets with demand primarily coming from automobile and packaging sectors.
Key players related content comprises
Key players operating in the propylene market include BASF, ExxonMobil, DuPont, LyondellBasell Industries Holdings B.V., SABIC and INEOS. BASF is one of the leading producers of petrochemicals with global production sites and a diverse product portfolio. ExxonMobil is a major integrated oil and gas company and one of the largest refiners and marketers of petroleum products globally.
