Propylene Carbonate Market Trends

Growth Drivers

• Growing Consumption and Production of Natural Gas - Propylene carbonate is generally utilized as a solvent that removes CO2 and H2S in oil pyrolysis gas and natural gas treatment along with applications of synthetic ammonia conversion gas. Based on the statistics provided by the U.S. Energy Information Administration (EIA), it was stated that in 2019 the total production of natural gas was 142,687,000 million cubic feet while the consumption was estimated to be 141,353,000 million cubic feet.
• Spiking Demand for Benzene across the Globe - As of 2022, the demand for benzene is estimated to reach about 50 million metric tons worldwide. Propylene carbonate is used as a solvent for many organic compounds, including benzene.
• Higher Requirements of the Product in the Dyes and Pigments Production - In 2021, the volume of pigment and dye production was noticed to be around 360 thousand metric tons solely in India. Propylene carbonate is used in the production of dyes and pigments as it comprises of a wide range of syntheses and applications.

Challenges

• Requirement for Higher Initial Investment - The high costs included in the initial stage is expected to pose a challenge as it becomes difficult for the population with middle-income startups to incorporate pressure-sensitive adhesives in the use of varied processes. Therefore, this factor is estimated to hamper the growth of the market over the forecast period.

• Restrictions on the Export and Import of Chemicals
• Competition from Other Alternatives