NEW YORK, June 2, 2020 /PRNewswire/ -- According to a new report by Reports and Data, the global polypropylene market is forecasted to reach USD 205.61 Billion by 2027. Increasing adoption of PP in the 3D Printing industry owing to its superior chemical resistance is a significant factor influencing market demand. Polypropylene has the lowest density out of all commonly used in manufacturing plastics, which makes it very light. Other benefits associated with the material, including flexibility, durability, and electrical resistance, make it highly practical for the industry. Currently, the product is being used in the healthcare sector to manufacture medical vials, diagnostic devices, specimen bottles, and pill containers.
The increasing global installation of propane dehydrogenation (PDH) facilities is anticipated to influence demand. In the U.S. and Canada, the ethane steam crackers have reduced the production of propylene. Thus, companies have been shifting to propane dehydrogenation for the production of propylene. Based on statistics, since 2010, more than 2 million metric tons/year of new PDH capacity have been developed in both the U.S. and Canada, and around 1.6 MMTPA capacity is currently under development.
Europe is projected to witness a CAGR of 4.4% in the forecast period. Increasing adoption of PP in the construction sector is likely to foster demand. PP is used in construction applications such as air and moisture barrier membranes, films, and sheets used in insulating building wraps, carpet textiles, and in plastic parts such as pipes. The growing demand for light-weight automobiles has also driven the demand for plastics particularly, PP in the region. Manufacturers in the region have been shifting to polymers and plastic composites to achieve better fuel efficiency levels.
The COVID-19 impact:
The spread of Covid-19 poses a threat to the global oil and gas industry due to various factors. The drastic action taken to curb the spread of the virus has had a significant impact on the working of different sectors. For instance, offshore workers have to balance maintaining social distancing while living and working in confined spaces. Similarly, travel bans and quarantines inhibit companies' ability to facilitate travel and conduct meetings. The uncertainty that runs through the pandemic further affects the historically volatile industry. This uncertainty is further supported by the lack of an apparent historical instance for the phenomenon in the oil and gas sector. The oil industry is being affected by dual frontiers, including the demand destruction caused by the Covid-19 pandemic and the price war amongst key global producers that have brought about a record plunge in prices.
Polypropylene is one of the fastest-growing polymers. This growth is mostly attributed to polypropylene's ability to displace conventional materials such as wood, glass, and metal at a lower cost. The material offers excellent chemical resistance and weldability, which makes it ideal for the automotive industry, consumer goods, and packaging applications.
The demand for PP resins for moulding is projected to grow significantly in the coming years. PP exhibits specific properties, such as chemical resistance, low density, outstanding property balance, and versatility, which makes it apt for a wide range of applications.
Polypropylene is majorly used for food packaging. It is widely used for sweet and snack wrappers, hinged caps, and microwave containers. Furthermore, since PP containers do not leach chemicals, they are considered safe for packaging applications.
Increasing adoption of Biaxially Oriented Polypropylene (BOPP) films in food packaging is also a significant trend observed in the market. Benefits associated with BOPP films, including low moisture transmission rate, excellent slip, and optical properties, high tensile strength, and low thermal shrinkage, have driven their demand for food packaging applications.
The automotive segment is expected to have lucrative growth during the forecast period due to the increased production of automobiles. Polypropylene is widely used in automotive parts due to its low cost, outstanding mechanical properties, and moldability. Main application areas include battery cases and trays, bumpers, fender liners, interior trim, instrumental panels, and door trims.
Key participants include BASF SE, China National Chemical Corporation (CHEMCHINA), Dow Chemical Company, ENI S.P.A., Exxon Mobil Corporation, Braskem, INEOS Group Holdings S.A., LyondellBasell Industries N.V., Saudi Basic Industries Corporation, SINOPEC, and TOTAL Specialties USA, Inc.
In May 2020, LyondellBasell unveiled that Advanced Global Investment Company (AGIC) has selected the Spheripol technology: the company's leading polypropylene technology for a new world-scale facility.
In May 2020, CNOOC and Shell collaborated to expand their petrochemical complex in Huizhou, Guangdong province in China. The companies will focus on the production of ethylene glycol, polyethylene, polypropylene, and propylene oxide through the partnership.
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