ALKYLENE OXIDES MARKET ANALYSIS

Alkylene Oxides MarketSize and Trends

Market Dynamics:

The global alkylene oxides market growth is driven by the rising demand for ethylene and propylene glycols for production of polyester resins such as Polyethylene Terephthalate (PET) for various end-use applications. For instance, on May 2017, Russian Joint Stock (JS) Company Polyester Plant Ivanovo started construction of a new 200 Kilo Tons polyester plant, with an investment of around US$ 420 million. The PET polymer will be used to manufacture polyester yarn for the textile industry. The construction is set to complete by 2020.

Government regulations regarding the usage of non-biodegradable plastics and consumption of fossil fuels such as crude oil and natural gas has negatively affected the alkylene oxide market growth. For instance, on April 29, 2017, Regulation (EU) 2017/752 was published by the European Commission (EC) which amends the regulation for plastic materials intended for contact with food in its official journal.

Market Outlook:-

On the basis of product type, the global alkylene oxides market is segmented into ethylene oxide, propylene oxide and butylene oxide. The propylene oxide segment is estimated to witness rapid growth during the forecast period compared to the ethylene oxide segment. The increasing demand for polyurethane products is expected to favor growth of the propylene oxide segment during the forecast period. For instance, according to a report titled ‘The Economic Benefits of the U.S. Polyurethanes Industry 2017’ published by the American Chemistry Council, in October 2018, revenue generated by the polyurethanes industry in the U.S was US$ 37.9 bn in 2017, out of which, polyurethane products accounted for a revenue of US$ 20.5 bn.