The global market value of propylene oxide increases steadily

Recently, the market research organization Markets&Markets released a report stating that the global propylene oxide market value is expected to grow from US$22.5 billion in 2021 to US$29.5 billion (approximately RMB 190 billion) in 2026, with an average annual compound growth rate of 5.6%.

The propylene oxide market is mainly driven by the growing demand for polyurethane in various end industries, such as automobiles, construction, textiles and furniture, chemicals and pharmaceuticals, packaging and electronics. Polyurethane is used more and more in insulation materials, sealants and flooring materials, and it is expected to drive market growth in the near future. Among them, the automotive industry accounts for the largest share of the propylene oxide application market. In 2020, nearly 77 million cars were produced globally, which led to high demand for polyurethane foam, which ultimately led to an increase in demand for propylene oxide.

In terms of direct downstream applications, polyether polyols have the largest market share in the propylene oxide market. Such a large share is attributed to the fact that polyether polyol is the basic raw material used to produce polyurethane foam.

In 2020, the Asia-Pacific region is the largest regional market for propylene oxide due to the consumption of propylene oxide in polyurethane foam applications. The substantial increase in China's propylene oxide production capacity will meet local demand. This will further boost the Asia-Pacific market.