PUBLISHER: BIS Research | PRODUCT CODE: 1252626
PUBLISHER: BIS Research | PRODUCT CODE: 1252626
Global Propane Dehydrogenation (PDH) to Propylene Market to Reach $22,721.2 Million by 2031
Propane Dehydrogenation (PDH) to Propylene Market: Industry Overview
The global propane dehydrogenation (PDH) to propylene market is projected to reach $22,721.2 million by 2031 from $10,314.6 million in 2022, growing at a CAGR of 9.2% during the forecast period 2022-2031.
The production of polypropylene is increasing with the growing middle-class population across the globe, especially in developing countries. In these countries, demand for plastics increased significantly for consumer goods such as kitchen utensils, food containers, apparel, area rugs, batteries, and others. Polypropylene is one of the most versatile plastics and has huge demand. Traditional methods of propylene production as a by-product include fluid catalytic cracking and steam cracking. Propylene producers as a by-product are failing to cater to increasing demand from its derivatives, prominently polypropylene. This has led to an increased gap between supply and demand since 2011. Propylene producers are adopting on-purpose propylene production technologies to fulfil the demand-supply gap caused by increased demand. Propane dehydrogenation is a process where propane is converted to propylene with the option to use the by-product hydrogen for fuel or export for other uses. A PDH unit is easily integrated at a propane source or at a downstream polypropylene production plant. Various companies are developing PDH technology to be more efficient and economical. For instance, in December 2018, KBR, Inc. developed a proprietary propane dehydrogenation (PDH) technology, K-PRO. The technology is based on the company's catalytic olefins technology, K-COT, which is a fluidized-bed technology used for converting low-value olefinic, paraffinic, or mixed streams into high-value propylene and ethylene.
Market Lifecycle Stage
The propane dehydrogenation (PDH) to propylene market has been in its growth stage, and much has been attributed to the increasing gap between propylene demand and supply and the high efficiency of PDH technology. The ecosystem of the propane dehydrogenation (PDH) to propylene market comprises feedstock suppliers, PDH to propylene producers, propylene derivatives producers, and end users. The market is still developing, with China at the forefront, followed by other regions such as North America, the Middle East and Africa, Europe, Asia-Pacific, South America, and the U.K.
Industrial Impact
Impact of COVID-19
COVID-19 pandemic has had a severe impact on almost every sector across the globe, owing to countrywide lockdown, temporary shutdown of production facilities, and the slowdown of the overall global economy. The COVID-19 pandemic had a significant impact on society, populations, and enterprises. Numerous industry sectors' growth projections have been adversely affected, while several other market participants' production levels could be unaffected and look promising. The pandemic has shown a severe adverse impact on automotive, electrical and electronics, construction, and among other industries. Furthermore, the COVID-19 epidemic-related global lockdown led to production halts, disruptions in supply chains, and manufacturing activity, all of which had a detrimental effect on the market for propane dehydrogenation (PDH) to propylene in 2020.
Market Segmentation:
Segmentation 1: by End User
Based on end users, the propane dehydrogenation (PDH) to propylene market is estimated to be led by the packaging segment during the forecast period of 2022-2031.
Segmentation 2: by Technology
Based on technology, the propane dehydrogenation (PDH) to propylene market is estimated to be led by the UOP Oleflex segment during the forecast period of 2022-2031.
Segmentation 3: by Derivative
Based on derivative, the propane dehydrogenation (PDH) to propylene market is estimated to be led by the polypropylene segment during the forecast period of 2022-2031.
Segmentation 4: by Region
In the global propane dehydrogenation (PDH) to propylene market, China and North America are anticipated to gain traction in terms of propane dehydrogenation (PDH) to propylene production, owing to the presence of the world's largest manufacturers in those regions.
Recent Developments in Propane Dehydrogenation (PDH) to Propylene Market
Demand - Drivers and Limitations
The following are the demand drivers for propane dehydrogenation (PDH) to propylene market:
The market is expected to face some limitations due to the following challenges:
How can this report add value to an organization?
Product/Innovation Strategy: The product segment helps the reader understand the different technologies and derivatives involved in the propane dehydrogenation (PDH) to propylene market. The technology segment has been segmented into CATOFIN, UOP Oleflex, Fluidized Catalytic Dehydrogenation (FCDh), Steam Active Reforming (STAR), Fluidized Bed Technology (K-Pro), and others. The derivative segment has been segmented into polypropylene, propylene oxide, acrylonitrile, cumene, alcohols, acrylic acid and acrylates, and others. Moreover, the study provides the reader with a detailed understanding of the propane dehydrogenation (PDH) to propylene market based on end users, including automotive, construction, packaging, textile, electrical and electronics, consumer goods, medical and healthcare, and others. The increasing adoption of propane dehydrogenation (PDH) to propylene in advanced manufacturing technology is fuelling the growth of the market.
Growth/Marketing Strategy: The propane dehydrogenation (PDH) to propylene market has seen major development by key players operating in the market, such as business expansions, partnerships, collaborations, mergers and acquisitions, and joint ventures. The favored strategy for the companies has been business expansions to strengthen their position in the propane dehydrogenation (PDH) to propylene market. For instance, in July 2019, Borealis planned to invest in a new, world-scale propane dehydrogenation (PDH) plant located at the existing production site in Kallo (Antwerp), Belgium. The PDH plant would have a targeted production capacity of 750,000 tons of propylene per annum.
Competitive Strategy: Key players in the propane dehydrogenation (PDH) to propylene market analyzed and profiled in the study involve propane dehydrogenation (PDH) to propylene producers and the overall ecosystem. Moreover, a detailed competitive benchmarking of the players operating in the propane dehydrogenation (PDH) to propylene market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, acquisitions, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
Key Market Players and Competition Synopsis
Propylene is a colorless, flammable, gaseous hydrocarbon obtained from petroleum, and large quantities of propylene are used in the manufacturing of resins, fibers, and elastomers. Propane dehydrogenation (PDH) technology is used to produce high-purity polymer-grade propylene from a propane-rich stream. The process comprises two steps, i.e., dehydrogenating the hydrocarbon feed and removal of the hydrogen that is being formed by a specific dehydrogenation reaction. The polypropylene segment dominated the propane dehydrogenation (PDH) to propylene market in 2021 and is the largest segment owing to growing demand from end-use industries such as automotive, electrical and electronics, medical devices, aerospace and defense, and packaging. Polypropylene is a tough, rigid plastic and is produced in a variety of molecular weights and crystallinities.
Some of the prominent producers of propane dehydrogenation (PDH) to propylene are:
Company Type 1 (by Technology): UOP Oleflex
Company Type 2 (by Technology): CATOFIN
Company Type 3 (by Technology): Fluidized Catalytic Dehydrogenation (FCDh)
Company Type 4 (by Technology): Steam Active Reforming (STAR)
Company Type 5 (by Technology): Fluidized Bed Technology (K-Pro)
Various players are involved in the market, which has been covered in different sections of the report. Most of the players are also involved in providing custom solutions to customers.
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