Propylene Market Size (2023 – 2030)

The global Propylene Market was estimated to be worth USD 104.05 Billion in 2022 and is projected to reach a valuation of USD 139.79 Billion by the end of 2030, growing at a CAGR of 3.76% during the outlook period 2023-2030.

The propylene market is a significant component of the global petrochemical sector, having uses in plastics, chemicals, automotive, packaging, and construction. Propylene is an organic compound that is utilized as a building component in the production of a wide range of products. Propylene is typically produced by the refining of crude oil and the processing of natural gas liquids. It is also created as a byproduct of ethylene synthesis via steam cracking. Propylene's market is being propelled by its wide applications and escalated demand for its derivatives. One of the most important markets for propylene is the plastics industry. Propylene is an important feedstock in the manufacture of polypropylene (PP), one of the world’s most widely used polymers. Packaging, vehicle components, consumer goods, and building materials all make extensive use of PP. The increased need for lightweight, long-lasting polymers drives the propylene sector forward. The Propylene market has grown significantly as a result of factors such as the rise in chronic illness incidence, technological advancements, and the rising demand for remote patient monitoring. These tools make it possible for people to receive preventive Injection Moulding, offer personalized health monitoring, and have control over their health. Propylene has a promising future despite several challenges. It is projected that ongoing developments will encourage more creativity and uptake in apps for Injection Moulding, wellness, and lifestyle. 

Global Propylene Market Drivers:

Propylene derivatives are in high demand boosting market size.

The global propylene market is being propelled by escalated demand for propylene derivatives in a variety of industries. Propylene is a significant raw material in the production of several derivatives, including polypropylene (PP), propylene oxide (PO), and propylene glycol (PG). To begin with, the demand for polypropylene is fast expanding. Polypropylene is a versatile plastic that is widely used in packaging, automotive components, consumer goods, and building materials. E-commerce growth, urbanization, and customer preferences for lightweight and durable items stimulate demand for polypropylene, which drives demand for propylene. Second, propylene oxide is a crucial derivative with rising demand. It is used to create polyurethane, which is used in furniture, bedding, coatings, adhesives, and automotive parts. The arising construction and automotive sectors, as well as the growing demand for energy-efficient materials, drive demand for propylene oxide and, as a result, the propylene market.

Increased Demand in the Automobile Industry is fuelling market expansion.

The automobile industry is a major contributor to the worldwide propylene market. Propylene and its derivatives are extensively used in the manufacture of automotive components and materials due to benefits such as lightweight, durability, and cost-effectiveness. To begin, propylene is utilized in the manufacture of a variety of automobile components, consisting of bumpers, dashboards, interior trim, and engine components. The car industry's ongoing quest for lightweight materials to increase fuel efficiency and lower emissions is propelling up demand for propylene-based goods. Propylene-based polymers are also used to make automobile fibers, films, and foams. These materials are used to insulate cars, dampen noise, minimize vibration, and reinforce structures. The propylene market is escalating to meet the demand for innovative, high-performance automotive materials.

Global Propylene Market Challenges:

One of the key challenges confronting the global propylene sector is the need to address environmental sustainability while adhering to stringent regulatory criteria. The petrochemical sector, particularly the propylene industry, is under increasing pressure to minimize its environmental footprint and greenhouse gas emissions. As the world focuses on sustainability and the mitigation of climate change, there is a growing emphasis on developing bio-based alternatives and applying cleaner manufacturing practices. The propylene industry must engage in research and development to discover renewable feedstock options and implement eco-friendly technologies that reduce emissions and waste output. Furthermore, compliance with changing environmental regulations involves considerable investments in infrastructure and operational enhancements, posing cost and efficiency challenges for market participants.

Global Propylene Market Opportunities:

Technological developments and innovation present a significant opportunity in the global propylene market. Continuous R&D activities offer the ability to discover new production methods, increase process efficiencies, and create novel propylene derivatives. Technological advances in catalysts, process intensification, and the use of renewable feedstocks can improve the sustainability and cost-effectiveness of propylene production. Furthermore, new applications and product advancements can create new market segments and increase demand for propylene and its derivatives in a variety of industries, providing chances for market participants to grow. 

COVID-19 Impact on Global Propylene Market:

During the COVID-19 epidemic, the global propylene market benefited from increased demand for some propylene-based goods. The increased awareness of hygiene and cleanliness increased the demand for packaging materials such as films and wraps made from propylene-based polymers. Furthermore, during the pandemic, demand for personal protective equipment (PPE) like as gloves, masks, and gowns, which frequently include propylene derivatives, increased, contributing to market growth. On the negative side, the worldwide propylene market had difficulties as a result of the pandemic-induced economic slowdown. Supply chain interruptions, temporary shutdowns of production facilities, and decreased consumer spending all hurt demand for propylene and its derivatives. The automobile industry, a key user of propylene-based products, saw a considerable drop in sales and output, resulting in lower propylene demand for automotive applications. Furthermore, travel restrictions and lockdown measures had an impact on a variety of end-use industries, resulting in a temporary fall in global propylene consumption.

Global Propylene Market Recent Developments:

In April 2021, Braskem, the Americas' largest polyolefins producer, increased its additive manufacturing product offering with the introduction of carbon fiber-reinforced polypropylene filament. The CF-PP or FL900PP-CF filament has outstanding mechanical and thermal qualities, as well as negligible warpage. It permits the manufacture of lightweight and rigid parts for a variety of high-end applications such as automotive, aeronautical, nautical, and recreational products. Notably, the FL900PP-CF filament is produced entirely of recycled carbon fiber and performs identically to virgin carbon fiber.

PROPYLENE MARKET REPORT COVERAGE:

Global Propylene Market Segmentation: By Type

• Homopolymer

• Copolymer

• Random

• Block

The global propylene market is divided into homopolymer and copolymer, which are further subdivided into random copolymer and block copolymer. Homopolymers are propylene polymers that contain solely propylene monomers, whereas copolymers contain propylene monomers as well as additional monomers. Copolymers are further divided as random copolymers (propylene and other monomers are arranged randomly) and block copolymers (propylene and other monomers are arranged structured). Due to their outstanding mechanical qualities and low cost, homopolymers are widely employed in a variety of industries, including packaging, automotive, and construction. Copolymers, particularly random copolymers, are favored for their improved clarity, flexibility, and impact resistance, making them ideal for consumer goods and packaging applications. Block copolymers are used in a variety of applications. While market share varies by location and application, homopolymers account for a sizable component of the market due to their widespread use in a variety of industries. Copolymers, particularly random copolymers, have a significant market share due to their versatility and performance advantages. Block copolymers have a smaller market share because they are used in specialist applications. Overall, the propylene market is diverse, with several types of propylene polymers catering to certain industry needs.

Global Propylene Market Segmentation: By End User

• Packaging

• Medical & Consumer Goods

• Automotive & Electronics

• Textile & Agriculture

• Others

End users in the global propylene market include packaging, medical and consumer goods, automotive and electronics, textile and agriculture, and others. Propylene-based polymers are widely used in flexible packaging materials such as films and wraps due to their excellent barrier properties and cost-effectiveness, accounting for a considerable market share. The medical & consumer goods market is driven by demand for propylene-based products such as medical equipment, personal care items, and household goods. Propylene is used to produce lightweight components such as bumpers and dashboards in the automotive and electronics industries. Propylene-based products are utilized in the textile and agriculture industries for fibers and films, among other things. Other industries that contribute to the propylene market include construction and chemicals. While market share varies by industry, packaging, and automotive & electronics are among the primary sectors driving worldwide propylene demand due to its widespread use and expanding market potential. 

Global Propylene Market Segmentation: By Application

• Injection Moulding

• Film & Sheet

• Film & Sheet

• Fiber & Blow Moulding

The global propylene market is divided into three applications: injection molding, film and sheet, and fiber and blow molding. Because propylene is widely utilized in the production of plastic components for numerous industries such as automotive, packaging, and consumer products, injection molding has a considerable market share. Demand for propylene-based films and sheets used in packaging, agricultural films, and construction materials drives the film and sheet segment. The fiber & blow molding division covers the manufacture of propylene fibers for textiles, carpets, and geotextiles, as well as blow molding applications for the manufacture of bottles and containers. While market share varies, injection molding is the most important segment due to its wide range of uses, followed by the film and sheet segment.

Global Propylene Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

The majority of the global propylene market is accounted for by North America, Europe, Asia Pacific, South America, the Middle East, and Africa. Because of their well-established petrochemical industries and the presence of substantial industry competitors, North America and Europe have significant market shares. The Asia Pacific region is a key propylene market due to fast industrialization, urbanization, and a propelling middle class. Because of their substantial industrial sectors, China and India have seen significant growth in propylene utilization. South America, where countries like as Brazil contribute to the propylene sector, provides ongoing development potential. As a result of increased investments in petrochemical infrastructure, growth prospects exist throughout the Middle East and Africa. While specific market shares may differ, Asia Pacific is the largest contributor to the worldwide propylene market, followed by North America and Europe, with the remaining regions exhibiting potential for growth in the next years. 

Global Propylene Market Key Players:

1. BASF SE 

2. Repsol 

3. Borouge 

4. Borealis AG 

5. MOL Group 

6. Beaulieu International Group 

7. LyondellBasell Industries N.V. 

8. ExxonMobil Chemical 

9. China National Petroleum Corporation 

10. INEOS 

11. China Petroleum & Chemical Corporation 

12. SABIC 

13. Ducor Petrochemicals 

14. Reliance Industries Limited 

15. Formosa Plastic Group 

16. Total S.A. 

17. Braskem