Propylene Oxide Market is to reach USD 33.25 billion by 2033, Asia Pacific leads the market with 48.25% of market share | Major Players:- Dow, BASF SE, Royal Dutch Shell PLC.

The global propylene oxide market size was valued at USD 22.4 Billion in 2024. Looking forward, DataM Intelligence estimates the market to reach USD 33.25 billion by 2033, exhibiting a CAGR of 4.7% during 2025-2033. Asia Pacific currently dominates the market, holding a market share of over 51% in 2024. The increasing demand for polyurethane foam products in day-to-day activities and use of propylene oxide as a raw material in automotive, building & construction, textile & furnishing, electronics and other end use industries is expected to drive demand for propylene oxide across the globe.

DataM Intelligence unveils its latest report on the "propylene oxide Market size 2025," offering an in-depth analysis of market trends, growth drivers, competitive landscape, and regional dynamics. The study covers market size in value and volume, CAGR forecasts, and emerging opportunities that can guide businesses in seizing growth potential and crafting winning strategies. Packed with data-driven insights on current developments and future trends, this report is essential for companies aiming to stay ahead in the competitive Market.

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United States: Key Industry Developments (2025)

✅ August 2025: LyondellBasell expanded its propylene oxide portfolio with low‐emission, high‐efficiency PO products tailored for polyols and surfactants, backed by a $12 million investment to enhance production and reduce emissions.

✅ July 2025: Huntsman Corporation launched customized propylene oxide solutions targeting adhesives, coatings, and specialty plastics applications, supported by $10 million in R&D and capacity enhancements to capture growing industrial demand.

✅ March 2025: LyondellBasell approved a major propylene expansion project in the U.S. to strengthen feedstock integration and increase downstream cost competitiveness, boosting overall propylene derivatives including PO supply capability.

Japan: Key Industry Developments (2025)

✅ October 2025: Mitsubishi Chemical launched a high‐performance propylene oxide grade optimized for polyurethane, coatings, and chemical intermediates, supported by ¥800 million in R&D and production investment.

✅ September 2025: Sumitomo Chemical introduced low‐VOC propylene oxide products geared toward industrial and specialty applications, enhancing environmental compliance and product performance in Japanese manufacturing.

✅ August 2025: NOF Corporation expanded its propylene oxide offerings with high‐purity and specialty formulations for chemical and pharmaceutical applications, backed by ¥500 million in research and development.

✅ July 2025: Daicel Corporation launched customized propylene oxide solutions focused on industrial and specialty chemical uses, with ¥400 million invested in production scaling and technology upgrades.

📌 propylene oxide Market 2025-26 M&A Deals

→ In 2026, Exxon Mobil announced that it will close its Fife ethylene/chemicals plant in Scotland by February 2026 amid weak market conditions linked to broader challenges in ethylene/propylene derivatives markets. This facility shutdown, while not a transaction, can trigger future asset sales or partnerships affecting PO feedstock dynamics.→ In January 2025, Celanese Corporation launched a new line of thermally conductive polyamides tailored for electric vehicle and consumer electronics applications, enhancing its materials portfolio. This development reflects strategic market positioning rather than a corporate acquisition.

→ In August 2025, Huntsman Corporation (U.S.) completed the acquisition of a specialty chemicals firm to enhance its product portfolio in the propylene oxide segment. The strategic move aims to integrate new technology and expand Huntsman's reach in propylene‐based intermediates and derivatives. [Likely August 2025]

→ In 2025, Solvay entered into a technology licensing agreement with North Huajin Refining and Petrochemical Company (China) to supply its proprietary hydrogen peroxide process for a 300 kiloton/year propylene oxide mega‐plant in Panjin, China. This partnership focuses on efficient propylene oxide manufacturing capacity set to start in 2026. (Note: licensing vs acquisition but significant for PO market expansion.)

→ In early 2025, LyondellBasell and Covestro pursued strategic restructuring of their European propylene‐oxide production assets, including evaluating alternative ownership options after deciding to close the Maasvlakte PO/SM unit in the Netherlands. While the closure itself is not an M&A, it signals asset repositioning in the PO supply chain.

Why the propylene oxide market is growing?

⏭ Polyurethane applications account for more than 49.23 % of overall propylene oxide demand, driven by insulation, automotive seating, furniture, and packaging.

⏭ Growth in automotive lightweight materials especially for electric vehicles is boosting polyurethane use in seat cushions, interiors, and energy-efficient components.

⏭ The construction sector is simultaneously expanding its use of rigid foams for insulation, with demand up by 36 % in energy-efficient building materials.

⏭ Nearly 43 % of automotive interior cushioning is now built from propylene oxide derivatives.

⏭ Polyurethane foams improve fuel efficiency and passenger comfort, key drivers in both traditional and electric vehicle design.

⏭ Propylene glycol - used in antifreeze, pharmaceuticals, food processing, personal care, and de-icing fluids.

⏭ Glycol ethers - important for paints, coatings, and industrial cleaners.

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propylene oxide Major Players:-

LyondellBasell Industries Holdings B.V., Dow, BASF SE, Royal Dutch Shell PLC, AGC Inc., Tokuyama Corporation, Repsol S.A., SKC, Indorama Ventures Public Company Limited and Sumitomo Chemical Co. Ltd.

Key players highlights:-

Dow Inc.
- One of the leading global producers of propylene oxide, strong in HPPO technology and large integrated chemical operations.
- Holds one of the largest market shares globally (27% of surveyed industry preference) among PO suppliers.

LyondellBasell Industries Holdings B.V.
- Major PO manufacturer with broad industrial-scale capacity and diversified derivative products.
- Estimated as a leading market share holder (23% preference) with extensive presence across Europe, Americas and Asia.

BASF SE
- Germany-based chemical giant with vertically integrated propylene oxide and downstream polyol production.
- Strong regional capacity in Europe and Asia and a significant contributor to overall market volume.

Royal Dutch Shell PLC
- Integrated energy and chemical company producing propylene oxide alongside petrochemical products worldwide.
- Well-recognized in global PO supply chains with stable capacity and strategic reach.

AGC Inc.
- Japanese specialty chemicals firm with regional production and focus on efficient propylene oxide technologies.
- Known for flexible modular plants and catering to Asia-Pacific markets.

propylene oxide Regional Highlights

Asia Pacific
Asia-Pacific holds the largest share (48.25%) of the global propylene oxide market, led by China and India's industrial growth and strong polyurethane demand.
Rapid urbanization and investments in automotive, construction, and coatings sectors are driving consumption and production capacity expansions.
Sustainability trends and HPPO/green production adoption are emerging, boosting regional competitiveness.

North America
North America accounts for a significant share (21.45%) with the U.S. as a key producer.
Growth is supported by automotive, construction demand and advanced manufacturing infrastructure.
Focus on sustainable production processes and regulatory compliance is shaping development.

Europe
Europe holds around 23.12% of the global propylene oxide market, with Germany and other Western European nations as top contributors.
Market growth is driven by sustainability regulations, innovation in production technology, and strong automotive/chemical sectors.
However, higher costs and capacity closures in some areas reflect industry pressures.

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propylene oxide segmentation :

By production process, the market includes the chlorohydrin, styrene monomer (SM), TBA co-product, cumene, and hydrogen peroxide (HPPO) processes. The HPPO process is gaining preference due to its lower environmental impact and reduced waste generation, while traditional processes like chlorohydrin remain in use because of established infrastructure and stable output.

By application, propylene oxide is primarily used in polyether polyols, propylene glycol, glycol ethers, and other derivatives. Polyether polyols dominate demand as they are widely used in polyurethane foams for insulation, furniture, and automotive interiors, while propylene glycol sees steady growth in food, pharmaceutical, and personal care applications.

By end-user, major consumption comes from automotive & transportation, building & construction, textile & furnishing, chemical & pharmaceuticals, packaging, electronics, and other industries. Building & construction leads usage due to rising demand for insulation materials, while automotive and electronics sectors contribute through lightweight materials and high-performance components.

By region, Asia Pacific holds the largest market share driven by rapid industrialization, expanding construction activities, and strong manufacturing bases in China and India. North America and Europe show stable growth supported by technological advancements and sustainability initiatives, while Latin America and the Middle East & Africa offer emerging opportunities through infrastructure development and growing chemical production capacity.

Propylene Oxide Market - FAQs

Q1: What is driving growth in the Propylene Oxide Market?
A: Rising demand for polyether polyols in polyurethane foams across construction, automotive, and furniture sectors is the primary growth driver.

Q2: Which production process dominates the Propylene Oxide Market?
A: The hydrogen peroxide to propylene oxide (HPPO) process is gaining dominance due to lower emissions, reduced by-products, and cost efficiency.

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