Alpha Olefin Market

Alpha Olefin Market Research, 2031

The global alpha olefin market was valued at $4.1 billion in 2021, and is projected to reach $8.2 billion by 2031, growing at a CAGR of 7.5% from 2022 to 2031.Olefins are hydrocarbons with one or more double bonds between two adjacent carbon atoms, often known as alkenes. Olefins or alkenes with the chemical formula CnH2n are known as alpha olefins, which can be identified from other mono-olefins with a similar molecular formula by the regularity of the hydrocarbon chain and the positioning of the double bond at the main or alpha position. Alpha olefin are primarily used in the production of polyethylene, lubricants, detergents, plasticizers, oil field chemicals, and fine chemicals.

The COVID-19 pandemic has brought several uncertainties leading to severe economic losses as various businesses across the world were standstill.The COVID-19 pandemic had a detrimental influence on the market due to statewide lock down, social distancing measures, and worldwide travel restrictions that disrupted the car and oil and gas industries. This has ultimately lowered the demand for alpha olefins due to disruptions in supply chain, closure of manufacturing plants, as well as economic slowdown across several countries.

The increase in demand from the automobile industry is a major driver that is anticipated to expand the alpha olefin market size. Alpha olefin base synthetic lubricants are in high demand because of the constant rise in the number of automobiles around the world. Alpha olefin end products such as plasticizers, synthetic lubricants, and others are mostly used in the automotive industry. Natural atomic orbitals and their derivatives are widely used as plasticizers, surfactants, vehicle additives, synthetic lubricating oils, lubricating, paper scaling, and in a variety of specialized applications. Due to these applications, alpha olefins serve as the foundation for synthetic lubricants used in automotive and industrial applications. When compared to mineral base stocks, a number of parameters, including kinematic viscosity and viscosity index, pour point, volatility, thermal and oxidative stability, sensitivity to antioxidants, and flash and auto-ignition points, are superior to mineral-based synthetic lubricants.

The process used to manufacture alpha olefin is considered to be the main market constraint. The process requires extreme pressure and temperature for the manufacturing of olefins. Incorrect pressure and temperature changes may result in a product fault that makes it unusable and results in a considerable loss for the manufacturing company. These factors are projected to hamper the alpha olefin market growth in the forecast time.

The consumption of alpha-olefins is increasing across the globe due to the increase in usage of alpha olefins in various industries. The major businesses are ready to make huge investments in the study and creation of alpha olefins. The market for alpha olefins is anticipated to expand in the upcoming years due to its numerous applications in areas such as consumer goods, packaging, industrial processes, and others. Alpha olefins can be used as the drilling fluids for drilling equipment owing to the increase in the extraction of oil and gas.

The industry players are investing on the R&D of smart and unique strategies to sustain their growth in the market. These strategies include product launches, mergers & acquisitions, collaborations, partnerships, and refurbishing of existing technology. On February 25, 2022, Axens and Univation Technologies entered into an agreement to increase capital and operational efficiency for the production of on-purpose linear alpha olefins, including butene-1 and hexene-1, for use in producing polyethylene resins using the UNIPOL PE process.

The alpha olefin market key players profiled in the report include Qatar Chemical Company Ltd (Q-chem)., Chevron Phillips Chemical Company LLC, Mitsubishi Chemical Corp, Exxon Mobil Corporation, INEOS Oligomers, Petrochemicals Sdn. Bhd, Royal Dutch Shell, Evonik Industries, and JAM Petrochemicals Company.

The alpha olefin market forecast is segmented on the basis of product, application, and region. By product, the market is divided into 1-Octene, 1-Hexene, 1-Butene, and others. By application, the market is classified into synthetic lubricants, detergent alcohol, polyethylene, and others. By region, the alpha olefin market outlook is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The alpha olefin market is segmented into Product and Application.

By product, the 1-Hexene sub-segment dominated the market in 2021. 1-Hexene is a higher olefin, or alkene, with the formula C6H12. Since 1-hexene is an alpha-olefin, its double bond is in the alpha position, giving the alpha olefins greater reactivity and hence advantageous chemical characteristics. 1-Hexene is a commercially important linear alpha olefin. The principal application of 1-hexene is as a comonomer in the manufacturing of polyethene. Another important application of 1-hexene is the manufacturing of linear aldehyde by hydroformylation for the subsequent generation of the short-chain fatty acid heptanoic acid. These are predicted to be the major factors affecting the alpha olefin market share during the forecast period.

By application, the polyethylene sub-segment dominated the global alpha olefin market share in 2021. One of the most widely used polymers in the world is polyethylene, usually referred to as polythene or polyethene. Synthetic polymers are largely used in packaging; polyethylene is commonly used in plastic bottles, films, bags, and containers. Every year, more than 100 million tons of polyethene are produced for commercial and industrial purposes.

By region, North America dominated the global market in 2021 and is projected to remain the fastest growing region during the forecast period. The region offers significant market potential for alpha olefins due to its extensive and diverse industrial base. The existence of several manufacturing enterprises, as well as an increase in developments in petrochemical and gas and oil infrastructure, are projected to drive the expansion of the regional market. North America is considered as a potential investment hub for the manufacturing of alpha olefins by both local and international firms due to its abundant natural resource reserves. For instance, in December 2021, Chevron Phillips Chemical announced a final investment decision for a new C3 splitter facility to help expand its propylene business. The unit will be housed within the company's Cedar Bayou factory in Baytown, Texas. Starting in 2023, it is planned to have an annual capacity of 1 billion pounds.

Impact of COVID-19 on the Global Alpha Olefin Industry

• The COVID-19 pandemic has had a severe impact on the alpha olefin market globally. The alpha olefins market growth has suffered as a result of prolonged lockdowns in the majority of the countries.
• Sales of alpha olefins are directly proportional to the demand from end-use industries namely automotive, chemicals, appliances, packaging, and others. However, the demand for alpha olefins in the chemicals industry was greatly affected owing to import-export restrictions, closed borders, and supply chain disruptions due to the outbreak of the COVID-19 pandemic.
• The economic slowdown has affected the setup of new alpha olefins projects across the world as the majority of government funding was diverted toward the healthcare sector owing to the rapid spread of COVID-19, impacting the market to a great extent

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the alpha olefin market analysis from 2021 to 2031 to identify the prevailing alpha olefin market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the alpha olefin market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global alpha olefin market trends, key players, market segments, application areas, and market growth strategies.

 Alpha Olefin Market Report Highlights