Press Release

Global Propane Dehydrogenation (PDH) to Propylene Market to Surge at a Steady CAGR of Around 9.20% During 2024-30

The Global Propane Dehydrogenation (PDH) to Propylene Market is projected to grow at a CAGR of around 9.20% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. The factors attributing to the growth in 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 requirements in recent years.

Moreover, 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, companies such as Oriental Energy Co. Ltd., Al-Waha Petrochemical Co., and others are inclining towards the PDH technology offered by 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 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, 2024.”

Segmentation Analysis

The Large-Scale PDH Plants Segment Holds a Major Market Share

Based on the end-user, the market is further bifurcated into Small & Medium-Scale PDH Plants and Large-Scale PDH Plants. Over recent years, the Large-Scale PDH Plants have experienced substantial market growth. The demand for propylene, a vital raw material necessary to manufacture numerous chemicals and consumer goods, has continued to increase, resulting in an amplified need for large-scale plants capable of meeting this surge in demand while guaranteeing consistent supply chains. Given their enhanced production capabilities, these facilities can generate ample supplies of propylene destined for broader customer bases. Consequently, they hold a considerable market share within the Global Propane Dehydrogenation (PDH) to Propylene Market.

Moreover, bigger PDH facilities obtained benefits from economies of scale, leading to a reduced cost per propylene unit produced. When the plant size expanded, costs related to infrastructure, equipment, and materials were spread out over a greater production capacity, resulting in lower production expenses. This led larger plants to be more profitable and competitive in the market compared to smaller ones. Consequently, these long-term cost savings associated with large-scale PDH installations are expected to further improve its growth within the global propane dehydrogenation (PDH) industry in the upcoming years.

The Middle East & Africa Region Leads Propane Dehydrogenation (PDH) to Propylene Industry

The Middle East & Africa have dominated the other regional markets over the years. Saudi Arabia, Qatar, and other Middle Eastern & African nations are rich in natural gas reserves containing ample amounts of propane. This helps drive market growth as propane is an essential feedstock for propylene generation. Consequently, the Middle East & Africa region holds a significant share of the Global Propane Dehydrogenation (PDH) to Propylene Market due to this advantage in facilitating production processes.

Furthermore, countries in the Middle East like Bahrain and the UAE have devised strategies to decrease their dependence on oil and gas as a source of economic prosperity. To achieve this goal, they are cultivating downstream businesses such as petrochemicals. Consequently, it is anticipated that the market share held by Middle Eastern nations in the market will surge during the forecast period as well.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including LyondellBasell Industries Holdings B.V., INEOS Group Limited, Dow Chemical Company, Borealis AG, Formosa Plastics Corporation, Jinneng Science and Technology Co. Ltd., KBR Inc., GAIL Limited, Hyosung Chemical, Lummus Technology LLC, Ascend Performance Materials, Shanghai Huayi (Group) Company, Enterprise Products Partners L.P., Oriental Energy Co. Ltd., PJSC SIBUR Holding, and others, are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the regions?
6. How have the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?