Propylene Oxide Market Size

Propylene Oxide Market size was valued at USD 22.24 billion in 2024 and is set to reach USD 42.83 billion by the end of 2037, registering around 5.3% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of propylene oxide is assessed at USD 23.17 billion.

The growth of the market can primarily be attributed to the higher demand for propylene oxide to manufacture various types of furniture such as bedding, carpets, and others. Higher demand for seat cushioning in automobiles is also anticipated to hike the demand for propylene oxide. For instance, in 2022, nearly 65 million cars were noticed to be sold out across the globe.

Rising demand for propylene oxide for the production of chemical intermediates, especially for the polyurethane and the solvents industry is a crucial factor expected to propel the market growth over the forecast period. Propylene oxide is primarily used for the production of polyether polyols, a crucial precursor for the production of polyurethane. Polyurethane, in turn, is used in a wide array of applications, namely furniture upholstery, thermal insulation, automobile components, coatings materials, and sporting goods. Besides, it also acts as an essential chemical intermediate for the production of propylene glycol, which is extensively used in the chemical, food & beverage, pharmaceutical, and cosmetics industries. Therefore, this factor is also projected to drive market growth over the forecast period.