India Propylene Market Assessment, By Derivatives [Polypropylene (Homopolymer, Copolymer), Acrylonitrile, Propylene Oxid, Isopropanol, Acrylic acid and Acrylates, Others], By End-User [Automotive, Packaging, Construction, Textile, Others], By Purity [4.0

India Propylene Market Assessment, By Derivatives [Polypropylene (Homopolymer, Copolymer), Acrylonitrile, Propylene Oxid, Isopropanol, Acrylic acid and Acrylates, Others], By End-User [Automotive, Packaging, Construction, Textile, Others], By Purity [4.0 (99.9%), Polymer (99.5%), CP (99.0%)], By Production Process [Steam Crackers, Refineries, On-Purpose Technologies], By Region, Opportunities, and Forecast, FY2017-2031F

The India Propylene Market size in terms of volume was registered at 6.01 million tons in FY2023 and is estimated to reach 9.01 million tons by FY2031. The market is growing at a CAGR of 5.19% for the forecast period between FY2024 and FY2031, owing to increasing usage in the manufacturing of industrial coatings, hot melt adhesives, plastic & rubber processing aids, body care products, metal casting, medicines, and electrical insulations.

Additionally, almost two-thirds of propylene is utilized to make polypropylene, a plastic resin used to manufacture clothes, plastic squeeze bottles, outdoor furniture, etc. Similarly, automotive components, boats, furniture, appliances, and solvents are also made from propylene oxide, thereby increasing the demand for propylene.

India is witnessing massive inflow of investments for establishing of new polypropylene plant owing to high global demand. India is already in top 5 largest propylene manufacturers and exporters as well and with the new investments and projects, India is set to become 2nd largest manufacturer globally by the end of FY2028. Some of the biggest projects include Reliance Industries (RIL), an India based chemical and petrochemical conglomerate is developing a complete crude to chemicals refinery in Jamnagar, where propylene will be manufactured. The project will cost USD 8.7 billion and construction will be completed by 2027.

Automotive Sector Has Gained the Maximum Share

India propylene market is anticipated to gain momentum from the automotive sector; used to manufacture battery cases and trays, bumpers, interior trim, instrument panels, fender liners, door trims, and other crucial parts of automobiles. Therefore, the rise in the mass manufacture of vehicles leads to growth of the India propylene market.

In India, new automotive sales have increased by 24% in 2022 compared to 2021 reaching 54.56 million vehicles produced. High automotive production directly reflects to higher demand of propylene in the country. Also, as more vehicles are on road, higher demand for the material will be generated. Ind India, one accident is witnessed every few seconds which not just damages car but generated demand for replacement impacting polypropylene consumption through aftermarket sales of automotive components.

Safety Issues Limit the Growth of the Market

A key market limitation is the strict safety rules related to the production and shipping of propylene. When exposed to high temperature and pressure, propylene is very flammable, poisonous, and dangerous. The propylene manufacturers are investing in new methods and procedures to reduce the chemical concentrations and harmful levels. The challenging characteristics of propylene raised the operating expenses of both its manufacturers and consumers, reducing the opportunity for investments in the introduction of new products and development into new markets, which in turn had a negative impact on the India propylene market growth.

Moreover, exposure to low levels of propylene in the air results in dizziness, drowsiness, and unconsciousness. Skin contact with liquid propylene causes frostbite, serious damage, or burns. To reduce exposure, workers require access to personal protective equipment and are trained how to use it in occupational contexts where there is a presence of propylene.

Propylene is a colourless, flammable, gaseous hydrocarbon that is derived from petroleum. It is widely used to make resins, fibres, elastomers, as well as a variety of other chemical products. Propylene is a by-product of natural gas and crude oil and is the most utilized petrochemical, after ethylene. Both natural and artificial sources, such as emissions from vegetation, burning of organic matter, incomplete combustion of fossil fuels, and its manufacture and usage, contribute to the atmospheric presence of propylene.

Impact of COVID-19 on India Propylene Market

Rising demand for N95 masks during COVID-19 pandemic and lockdown, the propylene market experienced exponential growth. The India propylene market flourished due to the increasing demand for safe packaging during the pandemic. Many businesses are working on masks that are frequently reusable, thus increasing the need for propylene in the future.

Furthermore, due to the rising cautious behaviours of the population, strong demand for propylene is being driven by the market's continued growth in the packaging industry. With the ease of lockdown and restrictions, the automotive sector, which previously faced hindrances due to the disruption of supply lines, is regaining its growth impact. However, the market's expansion is hampered by the restricted supply of propylene due to inadequate labour and logistical challenges.

Impact of Russia-Ukraine War on India Propylene Market

Due to supply chain interruptions, a rise in commodity prices, and economic sanctions against other countries because of the conflict between these two nations, there has been inflation in propylene prices not just in India but throughout the world. High crude oil prices also impacted its production and transportation, making it more costly.

Key Players Landscape and Outlook

Companies continue to dominate the India propylene market by increasing their manufacturing capacity, R&D efforts, and product launches. Different tactics are used, such as strategic partnerships, agreements, mergers, and collaborations.

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