The Alpha Olefin Market is expected to grow at a CAGR of 4.21% to reach USD 11.69 billion by 2025.
Alpha olefin (chemical formula CXH2X) is an unsaturated hydrocarbon, used to manufacture synthetic lubricants, synthetic acids, LLDPE & HPDE polymers, detergent intermediates, oilfield chemicals, and additives. This chemical is majorly manufactured through ethylene oligomerization or through Fischer-Tropsch synthesis. The market growth is majorly attributed to the increasing demand for polyalphaolefins in synthetic lubricants due to its ability to protect the engine from wear and tear damage.
The demand for synthetic lubricants is increasing in the industrial, marine, automotive, and aerospace sectors. These lubricants are widely accepted due to benefits such as reduced oil consumption and improved thermal stability. On the flip side, advancement in nanoparticle along with the presence of substitutes such as tungsten disulfide hamper the industry growth. Furthermore, the product demand is anticipated to dampened by high prices due to increased raw material costs.
- Hexane is expected to emerge as the fastest-growing product segment over the forecast years. To promote sector growth, industry players increased the use of 1-hexane as a common monomer for the production of low density (LLDPE) and high-density polyethylene (HDPE) polymers.
- Polyethylene is a major application area, accounting for about 55% of the market share in 2018. Construction is the primary application for polyethylene compound.
- Regionally, key players have a strong presence in North America, Western Europe, and the Middle East. However, in Western Europe, a limited amount of ethylene is likely to be generated and linear alpha-olefin (LAO) production will continue through extractive distillation or a full range process with the addition of a small volume.
- Investments in the Middle East and North America focus on heavier LAO. These areas will be targeting distinct kinds of polyethylene that focus on the production of LLDPE in the category of C8 and C6.
- Linear Alpha Olefins (LAO) has three biggest manufacturers from the oligomerization of ethylene. These are Shell, Chevron Phillips, and INEOS i.e. Inspec Ethylene Oxide Specialities Oligomers.
- These companies have established manufacturing plants in developing countries to take advantage of future opportunities.
- Companies namely Exxon Mobil Corporation, Chevron Phillips, Petrochemicals (Malaysia), Mitsubishi Chemical Corporation, INEOS Oligomers, and Qatar Chemical Company are actively operating in this industry.
- Industry participants focus primarily on new product development and long-term partnerships with raw material suppliers.
- The market growth is manipulated by several competitive factors including pricing, product portfolio, and manufacturing technology.
- The majority of the manufacturers operate in different locations throughout the world, so they can indulge in research and development activities for innovative and sustainable production methods.
Reasons to Buy This Report –
- The proposed study on Global Alpha Olefin Market offers a hawk-eye view on market trends and demand
- It provides comprehensive information on market revenue, growth, volume, industry hopes, trends, and competitive backgrounds
- The industry report also provides the market positioning of key players operating in this market
- Thus, the study will provide strategic vision and must-have information for industry players to improve and sustain their market position.
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The scope of this report covers the market by its major segments, which include as follows:
MARKET, BY PRODUCT
MARKET, BY APPLICATION
- Detergent Alcohol
- Synthetic Lubricant
MARKET, BY REGION
- North America
- United Kingdom
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of APAC
- Latin America
- Rest of LATAM
- The Middle East and Africa
- Saudi Arabia
- United Arab Emirates
- Rest of MEA
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