Polyphenylene Oxide Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Polyphenylene Oxide Market is Segmented By Application (Air Separation Membranes, Medical Instruments, Domestic Appliances, Automotive (Structural Parts), Electronic Components, Fluid Handling), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Polyphenylene Oxide Market Outlook

180 Pages report analyses the global polyphenylene oxide market size, shares, recent trends, competitive intelligence, and future market outlook. Polyphenylene oxide usage in engineering is on the rise. Demand for automotive, and electronics in ‘The Asia Pacific’ is spiking. The competitive rivalry intensifies with LyondellBasell Industries, N.V., Mitsubishi Chemicals, and others active in the market. 
 

Polyphenylene Oxide Market Scope 

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Polyphenylene oxide (PPO), also known as polyphenylene ether (PPE), is a thermoplastic, linear, non-crystalline polyether used in engineering because of its high strength, high heat distortion temperature, and high chemical resistance. PPO has been widely used for various applications due to its unique combination of high mechanical properties, low moisture absorption, excellent electrical insulation property, excellent dimension stability, and inherent flame resistance.

PPO resins have received much attention due to the growing demand for high-end engineering thermoplastics across industrial verticals. PPO is used in various applications due to its unique properties, such as excellent mechanical performance, low moisture absorption, great dimension stability, and electrical insulation. PPO is suitable for hot water applications due to its good water, heat, and electrical resistance, but many applications are in instrument housings and internal components in electrical equipment.

Consumer spending on electronic devices such as smartphones, LCDs, tablets, and laptops is expected to drive PPO demand over the forecast period. Due to expanding production facilities and rising demand from end-use application industries, China is expected to hold a prominent position in the global arena. In recent years, the country has seen a rapid increase in the demand for mobile devices.

Profit margins for PPO manufacturers are expected to remain stable over the next few years. Profit margins in the polymers industry have been high due to a significant drop in oil prices. Companies are increasingly attempting to increase revenues by lowering raw material costs by using less expensive feedstocks.

Source: DataM Intelligence Analysis (2023)

Polyphenylene Oxide Market Dynamics

End-user industries such as automotive, electronics, and electrical are experiencing increased demand. Globally, rising demand for electronic products such as outlet boxes, smoke detectors, and lighting is expected to drive the PPO market forward. Improving living standards, combined with rising per capita disposable income, is expected to positively impact the market in the coming years. The market is expected to grow as a result of burgeoning automotive manufacturing.

The spike in polyphenylene oxide applications in the electrical and electronics industry drives market expansion. 

The electrical and electronics industries, which utilize polyphenylene oxide in T.V. output transformers, air conditioning control boxes, deflection yokes, and bobbins, are likely to drive market growth. Polyphenylene oxides are used as electrical and electronics components in connectors, coil formers, bobbins, terminal blocks, relay components, molded bulb sockets for electrical power station control panels, brush holders, motor housings, thermostat parts, and switch components.

The market in Asia-Pacific is expanding due to government initiatives encouraging the adoption of electric vehicles and the construction of electric vehicle production facilities. A well-established electrical and electronics manufacturing base in China, Taiwan, and South Korea and a strong chemical manufacturing foundation in India will drive polyphenylene oxide adoption. The end-user industries in China, the world's largest market, have grown dramatically.

Rising demand for polyphenylene oxide in the automotive industry to enhance the market.

Polyphenylene oxide’s demand will most likely be spurred in part by increased automotive component demand. Polyphenylene oxides are used in instrument panels, bulb sockets, radiator tanks, outside mirror housings, car fascia, and steering columns. Rapid advancements in automobile manufacturing in various parts of the world are also helping the sector. A rise in vehicle production facilities in developing countries such as Asia-Pacific, Central, and South America, and the Middle East and Africa is predicted to support the overall market growth.

Polyphenylene oxide is used in automotive instrument panels, interior trim, headlamps, wheel covers, fuse boxes, speaker grilles, mirror enclosures, and electrical connectors. A shift in automobile component production facilities to Asia-Pacific rising nations such as China, India, and Japan is expected to stimulate product demand due to low-cost manufacturing. However, the automotive industry is likely to rebound in the future and the increased need for hybrid vehicles may help drive demand for polyphenylene.

The high price of raw polyphenylene hinders market growth.

Raw material prices have recently risen and fallen dramatically. The market for polyphenylene oxides is suffering as a result of this. Crude oil price fluctuations affect the profitability margins of resin manufacturers, which can increase or decrease. The "futures contract" made between the buyer and sellers allows the buyer to buy resins at a fixed price in the future, which creates uncertainty in the profitability margins of resins manufacturers due to fluctuations in oil prices.

COVID-19 Impact on Polyphenylene Oxide Market Growth

COVID-19 has wreaked havoc on many manufacturing businesses, particularly the automotive industry, and overall economic activity. The introduction of lockdowns in many countries, as well as supply shortages, has harmed the sector. Furthermore, the slowing economy has harmed manufacturing, new sector development, and expansions, all of which harm demand for polyphenylene and its derivatives, which are used to manufacture various molded components.

Applications of polyphenylene oxides in 5G circuit boards are expected to provide various market growth opportunities shortly. On the other hand, the slowdown in global conventional automobile manufacturing and the impact of COVID-19 are expected to stifle market growth. Businesses were forced to close temporarily to combat the unusual coronavirus. Development has stalled, social isolation has persisted and other measures that have impacted every aspect of life have been implemented. The global polyphenylene oxide market has been impacted by the pandemic's reduction in industrial operations.

Global Polyphenylene Oxide Market Segment and Shares Analysis

The polyphenylene oxide market is segmented into air separation membranes, medical instruments, domestic appliances, automotive (structural parts), electronic components, and fluid handling.

Thermal stability of polyphenylene oxide to drive the automotive (structural parts) segment.

The automobile market will emerge as the main application category in the next years, with a healthy growth rate. Rising demand for automotive components is expected to play a significant role in driving PPO demand. A rise in automotive manufacturing facilities in emerging markets such as Asia-Pacific, Central, and South America, and the Middle East and Africa is expected to supplement the overall market growth.

Polyphenylene oxide is used in instrument panels, internal trim, headlights, wheel covers, fuse boxes, speaker grilles, mirror cases, and electrical connectors in automobiles. Because of low-cost manufacturing, a shift in automotive component production facilities to Asia-Pacific emerging economies such as China, India, and Japan is likely to fuel product demand.

Polyphenylene oxides are chosen in electric vehicle parts that require increased thermal stability. Polyphenylene oxide and other polyphenylene derivatives have become the material of choice for high-temperature automobile parts. These are capable of delivering tremendous strength while remaining light in weight. Examples are electrical connectors, ignition systems, lighting systems, fuel systems, hybrid car inverter components, and pistons.          

Source: DataM Intelligence Analysis (2023)

Polyphenylene Oxide Market Geographical Analysis

Electronics and automotive industries to drive spectacular growth in Asia-Pacific

Polyphenylene oxide has the greatest market in Asia-Pacific. Because of the existing industrial basis in the region, demand for polyphenylene has been expanding in nations such as China, Japan, South Korea, and India. Increasing demand from automotive, transportation, electrical, and electronics is predicted to make it the fastest-growing market throughout the projection period. Although the Chinese automobile market contracted in 2019, the electric car segment grew significantly.

Governments in the Asia-Pacific area have developed policies that encourage electric vehicles and establish electric vehicle manufacturing facilities. Increasing electric vehicles is expected to significantly boost the region's electric vehicle market during the projected period. People in Asian countries have become more conscious of electric and hybrid vehicles as their living levels have risen.

With countries like China, Japan, South Korea, and Malaysia contributing, the Asia-Pacific is also the world's leading producer of electrical and electronics. In Asia, India is also becoming a manufacturing center for electronic devices. Polyphenylene and its derivatives are projected to be in high demand in the region due to the well-established electronics business. Japan's electrical and electronics sector is one of the most advanced globally; the Japan Electronics and Information Technology Industries Association confirms this.

Source: DataM Intelligence Analysis (2023)

Polyphenylene Oxide Companies and Competitive Landscape

The market is moderately competitive. New industry participants are projected to pose a moderate threat to the industry, whereas counter goods pose a low risk. The market has grown rapidly because of the increasing use of polyphenylene oxide in the automotive and electronics industries. To accommodate future market demand, manufacturers are currently increasing capacity. The arrival of electric vehicles will significantly impact the competitive landscape. Companies like LyondellBasell Industries, N.V., Mitsubishi Chemicals, BASF SE, SABIC, Solvay S.A., Evonik Group, Momentive Performance Materials, Toray Industries, Sumitomo Chemicals, Asahi Kasei Plastics are prominent players in this industry.

LyondellBasell Industries, N.V.

Overview: LyondellBasell is a global leader in plastics, chemicals, and refining. It creates materials and products that are critical to advancing solutions to modern challenges, like improving food safety through lightweight and flexible packaging, safeguarding the purity of water supplies through more robust and more versatile pipes, and improving the safety, comfort, and fuel efficiency of many cars and trucks on the road. It is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies, with products sold in over 100 countries.

Product Portfolio: LyondellBasell is a leading producer of propylene oxide (PO), a commodity chemical used to manufacture tens of thousands of everyday products ranging from antifreeze to cosmetics. LyondellBasell leads the industry in basic chemical production, including ethylene, propylene, propylene oxide, ethylene oxide, tertiary butyl alcohol, methanol, acetic acid, and derivatives. The chemicals created are used to make fuels, automotive fluids, furniture, home goods, coatings, adhesives, cleaners, cosmetics, personal care products, coatings, adhesives, cleaners, cosmetics, and personal care items.

Key Developments: LyondellBasell and Sinopec, one of China's largest integrated energy companies, announced the formation of a 50:50 joint venture (J.V.) to produce propylene oxide (P.O.) and styrene monomer (S.M.) in the domestic market. The joint venture will be known as Ningbo ZRCC LyondellBasell New Material Company Limited and it was first announced on December 23, 2019.

Why Purchase the Report?

• Visualize the polyphenylene oxide segmentation by application and region, highlighting the key commercial assets and players.
• Identify commercial opportunities in polyphenylene oxide by analyzing trends and co-development deals.
• Excel data sheet with thousands of data points of polyphenylene oxide - level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global polyphenylene oxide report would provide access to approx. 45 market data tables, 35 figures, and 180 pages.