(Australia-NewsWire.Com, August 06, 2018 ) According to a Global Propylene Market Report by Derivative (Polypropylene, Propylene oxide, Cumene, Acrylonitrile, Alcohols, Acrylates, and Others), by End-Use Industry (Automotive, Construction, Textiles, Packaging, and Others) published by Coherent Market Insights, key factors such as increasing demand for propylene in the packaging industry, the growth of automotive industry across the world, along with the rise in sales of passenger & commercial vehicles are fueling the growth of the global propylene market. According to India Brand Equity Foundation study, domestic sales of passenger vehicles in India is expected to increase at a CAGR of 12.87% from 2016 to 2026.
Increasing concern over environmental impact and disposal of plastics may restrain global propylene market growth. For instance, in May 2018, the European Union proposed to ban plastic products such as cotton buds, straws, stirs, and balloon sticks in order to reduce the pollution when the alternatives are easily available.
Among derivatives, polypropylene segment is projected to gain major traction in the market over other derivatives throughout the forecast period, owing to increasing demand from end-use industries.
Among end-use industries, automotive and packaging segments held the dominant position in the global propylene market in 2017. The segment is projected to retain its dominance over the forecast period due to substantial growth of automotive and packaging industry across the world.
The Asia Pacific held the largest market share in the global propylene market in 2017. This is attributed to increasing demand from the end-use Polypropylene and its alloys are extensively used in the automotive industry. Another derivative acrylonitrile is used in a variety of elastomeric fibers and polymers. It is used for acrylic fibers in clothes such as sweaters, socks, beddings, carpets, sportswear, cushions, and blankets. Alcohol derivative of propylene- isopropyl alcohol is mainly used as a solvent in personal care products, cosmetics, paints, coatings, and resins.
Europe market is expected to exhibit significant growth throughout the forecast period. This is owing to the favorable growth of the automotive industry in the region. Germany is a leading Automotive and Original Equipment Manufacturers (OEM) market in Europe. Around 21 of the world, the top 100 automotive suppliers are headquartered in Germany. Moreover, Germany offers a competitive tax system under which corporate companies have an overall tax burden of less than 30%. Such favorable conditions for the automotive industry are expected to propel demand for propylene in this region.
Key players operating in the global propylene market include China Petroleum & Chemical Corporation, BASF SE, ExxonMobil Corporation, The DOW Chemical Company, LyondellBasell Industries N.V., SABIC, BP Plc., and IRPC Plc. Many players are focusing on increasing the existing production capacities and launching new projects. For instance, in December 2016, Thai IRPC announced to expand its local production capacity of propylene by 63% to boost its long-term growth in earning.
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Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.