Alpha Olefin Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2020 - 2026
Report ID: GMI3753
Alpha Olefin Market size is likely to witness a significant upsurge to 2025 owing to growing demand for linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE) in plastics industry. It is majorly utilized for LLDPE & HDPE manufacturing owing to attaining persuading attributes including superior resistance and flexibility which may accelerate industry growth.
It belongs to a family of organic compounds which are alkenes. These compounds are obtained through ethylene oligomerization. It finds broad applications potential in various end use industries including Polyolefin Comonomers, Surfactants & Intermediates, Synthetic Lubricants, Petroleum Additives, Plasticizers, Oilfield Chemicals owing to presence of double bond which enhances chemical reactivity which is likely to drive alpha olefin market growth.
1-Hexene alpha olefin market size is anticipated to rise significantly in projected timeframe owing to growing plastics and automobiles demand. 1- Hexene is predominantly utilised as a comonomer in manufacturing plastic products including polyethylene, LLDPE and HDPE for attaining superior mechanical resistance which will promote product demand. Growing plastic packaging demand from industries including food & beverages, pharmaceutical, chemical, consumer goods and cosmetics & personal care will favour plastics demand thus, driving 1-Hexene olefins market growth.
Alpha Olefin market size from surfactant application may witness a steady demand over forecast period. Growing product utilisation in surfactants production owing to beneficial attributes including superior detergency, compatibility with hard water along with quality wetting and forming should promote industry growth.
Alpha Olefin market size from plastomers application may witness appreciable gains in the projected time frame. Rising product utilisation as a major raw material for plastomers production owing to gain rubber like properties and plastic processability will have positive impact on industry growth. Growing plastomers demand in flexible packaging, molded & extruded products and foamed compounds manufacturing owing to superior toughness, impact strength, durability and flexibility should promote product demand.
Rising synthetic lubricants demand over petroleum-based lubricants owing to persuading characteristics including biodegradability and non-toxicity which will promote industry growth. Escalating synthetic lubricants demand in automotive industry due to energy efficiency, superior wear protection and broad range of working temperature should accelerate alpha olefin product demand.
Volatility in raw material prices including ethylene owing to ethane feedstock supply deficit for ethylene production may challenge industry profitability, thus affecting alpha olefin market price trends. Rising capital investment for setting up commercial manufacturing plant may hamper industry growth.
North America, led by Mexico, Canada and the U.S. alpha olefin market size, is anticipated to rise significantly in the projected time period. Growing oil & gas exploration and production activities owing to rising shale oil reserves should promote alpha olefin demand. Capacity expansion by major players including Chevron Phillips Chemical Company, Dow chemical and ExxonMobil should cater growing product demand, thus driving regional industry growth.
In 2019, ExxonMobil announced expansion of its Baytown, Texas chemical plant. Through this expansion, the company will able to increase its linear alpha olefin production capacity to 700 million lb/ year unit. This will help the company to cater rising product demand along with attaining strong market position mainly in North American region.
Europe, driven by UK, Spain, Italy, France and Germany alpha olefin market may observe steady gains due to rising production and automobiles sales. Supportive EU commission initiatives including target 2030 aiming to reduce 40% pollutant emission should accelerate synthetic lubricants demand owing to superior fuel efficiency and eco-friendly attributes, thus driving alpha olefin industry growth.
Asia pacific, led by Australia, South Korea, Japan, China and India market size is anticipated to experience significant growth in plastics industry. China is the largest plastic products producer and consumer. Rising plastics usage in consumer electronics, automotive, packaging and medical industries should promote regional industry growth. Supportive Chinese government initiatives including “Made in China” providing favourable investment climate will promote inland product manufacturing, thus driving regional alpha olefin market growth.
Global alpha olefin market share is moderately fragmented. The key players operating in the market includes Royal Dutch Shell, Chevron Phillips Chemical, INEOS Group, Evonik Industries, SABIC, ExxonMobil, PJSC Nizhnekamskneftekhim, Qatar Chemical Company, Idemitsu Kosan Co and Sasol Limited.
Companies are majorly focusing on innovation, increasing production capacities, acquisitions and mergers to cater worldwide product demand. In 2019, Shell Chemical LP started fourth alpha olefin production unit at Geismar, Louisiana, USA. This expansion will increase the company’s production capacity to more than 1.3 million tonnes per annum. This strategic initiative will help the company to cater rising product demand from laundry detergent, motor oils and hand soaps industry.
In 2019, INEOS Oligomers announced expansion of low viscosity poly alpha olefin capacity. This expansion should add 15% to the company’s global production capacity by 2019. Through this expansion the company will be able to ensure continuous product supply and cater wide range of customers globally.
Initiatives along with competitive pricing will support increase in alpha olefin market share over projected time frame. Manufacturers are predominantly investing in research for developing innovative products for obtaining sustainability and reducing environmental damages.
Alpha Olefin Market, By Type, 2014-2025 (Kilo Tons) (USD Million)
Alpha Olefin Market, By Application, 2014-2025 (Kilo Tons) (USD Million)
- Polyolefin Co-monomers
- Surfactants and Intermediates
- Fine Chemicals
- Oil Field Chemicals
The above information is provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- Royal Dutch Shell
- Chevron Phillips Chemical
- INEOS Group
- Evonik Industries
- PJSC Nizhnekamskneftekhim
- Qatar Chemical Company
- Idemitsu Kosan Co
- Sasol Limited
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