According to a new research report by Global Market Insights Inc., the Linear Alpha Olefins (LAO) Market size may surpass $19 billion by 2024.
Growing PAOs demand in synthetic based lubricants manufacturing due to key properties including reduced wear & tear, low volatility, thermal stability, natural lubricity, and chemical inertness should positively influence linear alpha olefins market. PAO is widely used in production of engine oils and greases to balance cost with performance may fuel product demand.
U.S. linear alpha olefins must surpass $6 billion during the forecast period due to its surge in ethylene production and shale oil boom in the region. Availability and constant supply of ethylene at low price has resulted in increasing production of LAO based products.
HDPE application segment should grow steadily surpassing USD 2.4 billion by 2024. Growing HDPE demand in film and injection molding applications owing to its superior impact & puncture resistance and high tensile strength should boost the linear alpha olefins market demand over the forecast timeframe.
Companies focusing on development of bio-based products to reduce dependency on fossil based raw materials should have positive impact on the linear alpha olefins market growth. Growing R&D expenditures to formulate renewable products and reduce environmental impact should favor industry growth. Increasing investments on to enhance manufacturing process technology for high quality products should surge product demand.
Key feedstock required for commercial LAO production include ethylene, syn-gas and C4 steam. Fluctuating crude oil index coupled with procurement risk associated with transportation & handling of raw material may challenge industry profitability and impact linear alpha olefins market price trends. However, technological innovations in production process to produce sustainable products should propel the linear alpha olefins market growth.
Browse key industry insights spread across 175 pages with 173 market data tables & 10 figures & charts from the report, “Linear Alpha Olefins Market Size By Product (1-Butene, 1-Hexene, 1-Octene, 1-Decene, 1-Dodecene, 1-Tetradecene, 1-Hexadecene, 1-Octadecene), By Application (LLDPE, HDPE, PAO, Detergent Alcohols, Oil Field Chemicals, Lubricants, Plasticizers), Regional Outlook Competitive Market Share & Forecast, 2017 – 2024” in detail along with the table of contents:
1-Octene segment will witness growth at over 3.5% through 2024 owing to strong application outlook in polyolefin elastomers production. These elastomers are used for components of automotive interiors and flexible packaging. These materials replace EPDM and EVA on accounts of low production cost and availability.
Europe, led by Germany, France and Italy linear alpha olefins market size, is estimated to show steady growth rates and surpass 1.5 million tons by 2024. Increasing production and sales of automobiles coupled with presence of big automotive production companies should favor the linear alpha olefins market value.
Increasing environmental concern towards harmful automobile emissions supported by strict automobile emission control policies set by government should boost synthetic lubricants demand thereby driving market demand.
Easy accessibility, consistent supply and low cost of key raw material, ethylene for production owing to shale gas exploration activities mainly in U.S. and Europe should stimulate linear alpha olefins market growth. Increasing petrochemicals demand along with development of enhance drilling techniques has led to rise in shale gas extraction thereby driving linear alpha olefins market.
key participants in the linear alpha olefins industry including INEOS, Shell, Chevron, Sasol, Idemitsu, Jam Petrochemical and Evonik Industries. Participants focus on expanding their regional presence, product portfolio and technology through partnerships, mergers and acquisitions.