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Poly alpha olefin market size is set to grow at a robust pace between the period 2023 and 2032 on account of the higher prevalence of engine wear and tear as well as the incessant need for thermal and hydrolytic stability in industrial operations. The rise in offshore drilling activities has led to the growing emphasis by numerous regulatory bodies on environmental protection. In addition, there is a paradigm shift towards high-grade lubricants over conventional mineral oils in countries including India and Brazil.
Poly Alpha Olefins are mainly colorless lubricants comprising hydrogen and lithium soap that offer enhanced oxidative stability. Rising investments in the automotive vertical, urbanization, and the hiking per capita consumer incomes are other factors that will substantially contribute to the overall poly alpha olefin market growth.
The industry may witness sluggish growth over the coming years, attributed to the broken value chains and scarcity of raw materials caused as a consequence of the Russia-Ukraine conflict and following sanctions imposed on Russia. This has led to a decline in industrial production globally and a noticeable surge in the prices of commodities, thus hampering the market growth. This apart, a dramatic shift in consumer buying patterns induced by diminishing economic growth will significantly impact poly alpha olefin market revenues over 2023-2032.
Synthetic lubricants will record optimum penetration of poly alpha olefins by 2032, driven by the increasing advancements in the automotive sector. The growing requirements to ramp up the drain intervals and seal protection has increased the demand for industrial oils and metalworking fluids. On account of their physical & chemical features, such as low volatility, synthetic lubricants are increasingly preferred over their Esters, PAG, and Group III counterparts, which may favor market growth through 2032.
The automotive sector is expected to record a significant revenue share over 2023-2032, owing to the rising efforts to curb greenhouse gas emissions. The product marks extensive penetration in automotive fluids, hydraulics, gear, and bearing oils on account of its ability to operate in extremely hot or cold climatic applications. This apart, poly alpha olefins are also used as base fluids in various wide temperature ranges of greases, thus, bolstering segment revenues over the estimation period.
North America poly alpha olefin market is anticipated to gain remarkable proceeds owing to the rising need for petrochemicals. The higher ethylene manufacturing, along with the higher shale oil & gas production across the region, will significantly contribute to the industry share. To illustrate, according to the U.S. Energy Information Administration (EIA), around 2.84 billion barrels, equivalent to nearly 7.79 million barrels per day of crude oil, were generated directly from shale oil resources in the U.S., in 2022, accounting for approximately 66% of total crude oil production in the country.
The demand for poly alpha olefins in the APAC region is slated to grow exponentially with the growing demand for synthetic-based lubricants and expanding automotive sector in the region.
Global poly alpha olefin market key players include Chevron Phillips Chemical (Parent organizations: Chevron U.S.A. Inc., Phillips 66 Company), Sasol, ExxonMobil Corp., Shell Chemicals (Royal Dutch Shell), and Q-Chem. These chemical entities are actively indulging in inorganic marketing moves, such as investments, acquisitions, capacity expansions, and partnerships, along with new product development and differentials, to amplify their geographical presence while attaining a competitive edge.