The Global Propane Dehydrogenation (PDH) to Propylene Market is projected to grow at a CAGR of 9.20% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The factors attributing to the growth in the demand for Propane Dehydrogenation (PDH) to Propylene are the expanded usage of propylene chemical compounds in end-user industries such as automotive, packaging, chemicals, etc. These industry verticals use propylene & its derivatives, owing to salient features such as durability, impact resistance, flexibility & versatility. As a result, there has been a surge in their requirement in recent years.
Further, the end-user industries like consumer goods and e-commerce platforms have been immensely expanding due to the surge in the requirement for finished goods. The expansion & upsurge of these industry verticals to cater to the growing need for finished goods among individuals is enhancing the necessity for this chemical, thereby creating the demand-supply gap. Thus, to minimize this gap, the companies such as Oriental Energy Co. Ltd., Al-Waha Petrochemical Co., and others are inclining towards the PDH Technology offered by the companies like Lummus Technology, KBR Inc., etc., to produce this chemical & its derived products directly. Hence, the investments to produce on-purpose propylene have been consequently driving the Propane Dehydrogenation (PDH) to the Propylene Market.
Further, the conventional methods for the formation of propylene have lower conversion efficiencies and result in higher energy consumption rates. As a result, petrochemical companies like Petronet LNG Ltd, GAIL, etc., have been investing heavily in the PDH plants & technology to upscale the generation of propylene. Thus, the rising investments to build PDH plants would ramp up the demand for PDH Technology in the forthcoming years, further states the research report, “Global Propane Dehydrogenation (PDH) to Propylene Market Analysis, 2023.”
Higher Reliability, Efficiency, and Economic Viability Leads to the Surge in the Demand for CATOFIN
Based on the Technology segment, the market is further bifurcated into, CATOFIN, UOP Oleflex, Fluidized Catalytic Dehydrogenation, Steam Active Reforming (STAR), and Fluidized Bed Technology (K-Pro). Among these different types of technologies, CATOFIN acquired a significant share during the historical years due to its long-standing presence in the PDH industry. Moreover, the process utilizes a few types of equipment like a fixed-bed reactor and a unique catalyst system. As a result, it provides ease of operation to the end user industry i.e., the petrochemical industry, therefore the petrochemical companies have been adopting CATOFIN technology.
The establishment of new PDH plants in a specific region based on CATOFIN technology will help in increasing their share in the Global Propane Dehydrogenation (PDH) to Propylene Market. In addition to this, the cost-associated benefits of CATOFIN technology would further compel the PDH plant operators to install CATOFIN Technology in the forthcoming years.
The Prevalence of PDH Plants & Petrochemical Industry in the Middle East & Africa Leads to Market Growth
Geographically, Middle Eastern countries like Saudi Arabia, Qatar, etc., are known for their oil reserves & the abundance of natural gases & propane. This favorable resource availability streamlines propylene production processes since propane serves as a valuable feedstock necessary for propylene generation. As a result, the Middle East and Africa region played a significant role in the Global Propane Dehydrogenation (PDH) to Propylene Market. Moreover, these countries are laying out plans to diversify their energy resources, as a result, these nations have been fostering the development of downstream industries, including petrochemicals. The expansion of these industries in the Middle East is resulting in the setup of PDH plants, consequently surging the demand for PDH Technology in the Middle East & Africa.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (LyondellBasell Industries Holdings B.V., Honeywell International Inc., Dow Chemical Company, KBR Inc., Lummus Technology LLC, ExxonMobil, CB&I, Thyssenkrupp Industrial Solutions, etc.) are looking forward to strengthening their market position.
Key Questions Answered in the Research Report