The Alpha Olefin Market is expected at USD 8.9 billion in 2022 and is anticipated to extend an over USD 12.0 billion by the end of the assessment period. with a CAGR of 5.0% throughout the estimated period (2023-2028).
The increasing demand for gasoline is also driving the growth of the alpha-olefins market. Although polyethylene is widely used in end-use industries as a substitute for heavy metals and fibers, the non-degradability and harmful effects of polyethylene on the environment is a significant challenge. Alpha olefin belongs to the alkene family which is an organic compound with a double bond for the primary carbon. This double bond improves the reactivity of the compound and makes it useful for various applications. Alpha olefin is produced primarily by the catalytic oligomerization of ethylene and the fisher-tropsch process. Alpha-olefin has two structural forms, linear alpha-olefins, and branched alpha-olefins. Linear alpha-olefin is extremely diverse, known for its purest form, increasing its application as waxes, plastic packaging, high-performance industrial and motor oils, and as building blocks for surfactants and other specialty chemicals. In addition, it is used as a surfactant in the production of detergents and the refining of crude oil.
Isobutylene is a branched alpha-olefin that finds application in the production of methyl tert-butyl ether (MTBE) and ethyl tert-butyl ether (ETBE) which are components of gasoline blends for cleaner burning fuels. According to the United States Energy Information Administration, total gasoline consumption in the United States accounted for about 58% of total energy use in the transportation sector in 2019. Gasoline is widely used as a fuel in automobiles, airplanes, and generators for portable and emergency power supply.
INEOS declared that it has contracted a memo of empathy with Total and Saudi Aramco, in France, for the production of three new manufacturing works as a portion of the Jubail 2 compound in the Saudi Arabia Kingdom. It will be the first plant of its kind in the Middle East when it comes online in 2025. These units will be the most energy efficient in the world when they go into production in 2025.
Growing environmental concerns and the use of paper in the packaging industry have driven the use of alkenyl succinic anhydride, which in turn has increased the growth of the alpha-olefin market. Thus, increased demand for paper is driving the growth of the alpha-olefin market. PAOs were quickly accepted as high-performance lubricants because they possess highly desirable characteristics such as high viscosity index, thermal stability, oxidative stability, compatibility with mineral oils, and low toxicity. DTPs not only offer the advantages of technical performance but also maintain environmental quality in certain sensitive applications. Furthermore, some PAOs are biodegradable and can therefore be used as substitutes for vegetable oils.
Stringent restrictions by the government on the use of polyethylene is hindering the demand of the alpha-olefins market. For example, California introduced a regulation known as SB270 in July 2015 to ban the use of plastic bags in supermarkets, pharmacies, and other stores. Furthermore, in Africa, in May 2019, the United Nations Environment Program (UNEP), in Tanzania banned the import, production, sale, and use of plastic bags. Strict regulations to reduce the use of polyethylene have limited the growth of alpha-olefins.
Alpha-olefins are used in the production of alkenylsuccinic anhydride (ASA). Alkenyl succinic anhydride is a widely used paper sizing agent in the paper industry to increase the softness and water resistance of paper.
Challenges in the Alpha Olefin Market:
The implementation of strictly private and government regulations by various countries poses a challenge for the expansion of the Alpha Olefin Market.
REPORT METRIC |
DETAILS |
Market Size Available |
2022-2028 |
Base Year |
2022 |
Forecast Period |
2023-2028 |
CAGR |
5.0% |
Segments Covered |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
|
Market Leaders Profiled |
Shell Chemical LP, ExxonMobil Chemical Co., Dow Chemical Company, JAM Petrochemicals Company, SABIC, Mitsubishi Chemical, PJSC Nizhnekamskneftekhim,Chevron Phillips Chemical Company LP, Evonik Industries AG |
By Type
The key driver of development for 1-butene is its application in the making of polymers. The increasing application of these products in the packaging industry is expected to increase the consumption of 1-butene, as it is one of the important raw materials.
By Application
Polyolefin comonomers, which accounted for the largest market share in 2019, are expected to grow at a CAGR of 3.53% over the forecast period. The growth in demand is driven by increased applications in the consumer goods and packaging industry.
The Alpha Olefin Report includes the segmentation of Regions:
North America is the largest market for alpha-olefins. Growth in North America is primarily attributed to the continued expansion of oil, gas and petrochemical infrastructure in the United States, Canada and Mexico. North America is observed as a potential investment center for alpha-olefin manufacture by several internal and external companies owing to its massive reserves of natural resources. It is home to some of the major regional players, such as Chevron Phillips Chemical Company (USA) and ExxonMobil. (U.S.). Strong growth in the region is likely to be supported by growing demand from the plastics industry coupled with growing awareness of green products. Investments in the Middle East and North America are focused on the heaviest LAAs. These regions should target special grades of polyethylene, with an emphasis on the production of C6 and C8 LLDPE. Rapid urbanization and industrialization in the emerging economies of China and India are expected to boost demand for polyethylene products. Various government incentives and a favorable regulatory environment in China, India, Malaysia, and Indonesia have fueled the growth of the manufacturing sector in the Asia-Pacific region. The product is widely used in polyethylene, detergent alcohols, synthetic lubricants, and plasticizers. Increased production of these products in Asia-Pacific is expected to further boost the regional market during the forecast period.
The automotive sector, which is the key sector of the economy, due to the major disruptions caused by the pandemic, has hampered the growth of the alpha olefins market.
Before COVID-19, businesses experienced moderate growth with sustainable growth. However, the coronavirus pandemic is having a major impact on several industries, including the plastics industry, growing concerns about the hygiene and safety of reusable plastic packaging are leading to a decrease in the demand for alpha-olefin.
The major players covered in the Alpha Olefin Market report are
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region