The global amorphous polyalphaolefin market was valued at $375.8 million in 2020, and is projected to reach $649.3 million by 2030, growing at a CAGR of 5.6% from 2021 to 2030.
Amorphous polyalphaolefin (APAO) is manufactured through polymerization reaction with use of catalyst based on Z-N and alkyl aluminum. This process leads to formation of amorphous polyalphaolefin that has low level of crystallinity. It has perfect combination of physical and chemical properties making them suitable for formulation of hot melt adhesives.
Amorphous polyalphaolefins that are manufactured through direct synthesis are widely used for formulation of hot melt adhesives. Furthermore, hot melt adhesives can be formulated into structural or pressure sensitive adhesives. Automotive assembly line is a high-speed manufacturing process and use of hot melt adhesives has been proven to offer rapid and precise application at these assembly lines. In addition, these adhesives offer fire retardancy, making them suitable and versatile adhesives for joining components in the aerospace sector as well as other core structures in airborne vehicles. APAO properties such as chemical resistance, low volatility, adhesiveness, and they are capable of withstanding low & high temperatures makes them suitable to be used for applications such as pavement marking, sealing of bitumen sheets, and wood industry. All these factors collectively surge demand for amorphous polyalphaolefin, which augments the global market growth.
However, fluctuation in cost of raw materials that are used for formulation of amorphous polyalphaolefins, which is expected to hamper the market growth.
Constructed roads are vulnerable to stress imparted by high traffic volumes and to sustain this stress, physical properties of roads need to be improved constantly. Use of amorphous APAO along with bituminous asphalt during pavement construction enhances structure of asphalt and improves its physical properties. In addition, pavements or roads based on amorphous APAO are capable of withstanding high stress load, offers resistance toward environmental conditions, and improves durability. It is a key factor that is anticipated to offer new opportunity in the global amorphous polyalphaolefin market.
The global amorphous polyalphaolefin market analysis is done on the basis of product type, application, and region. Depending on product type, the market is divided into homo-polymer, co-polymer, and terpolymer. On the basis of application, it is fragmented into paper & packaging, personal hygiene, wood working, adhesives, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major companies profiled in this report include Liaoyang Liaohua Qida Chemicals Co. Ltd., Ter Hell & Co. GMBH, Exxonmobil Corporation, Chevron Phillips Chemical, Evonik Industries AG, REXtac LLC, Ineos Oligomers, Soltex, A S Harrison & Co. Pty Limited, and Labdhi Chemicals.
Amorphous polyalphaolefin market, by region
The Asia-Pacific amorphous polyalphaolefin market size is projected to grow at the highest CAGR of 6.3% during the forecast period, and accounted for 39.1% market share in 2020. This is attributed to proliferating demand for amorphous polyalphaolefins for applications such as manufacturing of hot melt adhesives, paper & packaging sector, road pavement, and lubricants.
Asia-Pacific would exhibit highest CAGR of 6.3% during 2021-2030.
Amorphous polyalphaolefin market, by product type
In 2020, by product type, the co-polymer segment was the largest revenue generator, and is anticipated to grow at a CAGR of 5.9% during the forecast period. APAO-based on copolymers offers beneficial properties such as improved processability, resistance to deformations, wettability, and enhanced resistance to heat that make it a perfect choice for formulation of low viscosity grade transmission oils.
By Product Type
Co-polymer product type is the most lucrative segment
Amorphous polyalphaolefin market, by application
By application, the adhesives segment dominated the global market in 2020, and is anticipated to grow at a CAGR of 5.5% during the forecast period. This is attributed to the fact that adhesives are used in applications such as tapes, labels, packaging, graphics, and bonding of substrates.
Personal hygiene application is projected as the fastest growing segment
Key benefits for stakeholders
- Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- It outlines the current amorphous polyalphaolefin market trends and future estimations from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
- The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
- The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
- The profiles of key players and their key strategic developments are enlisted in the report.
Impact Of Covid-19 On The Global Amorphous Polyalphaolefin Market
- Novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe.
- The amorphous polyalphaolefin market has been negatively impacted due to the wake of the COVID-19 pandemic, owing to its dependence on construction, automotive, and paper & packaging industries. According to a report published by Wipro, the automotive industry witnessed 30% decline in sales from March 2019 to March 2020, owing to lockdowns and shutdowns of auto plants.
- Several automotive companies have either shutdown or shrank their operations due to the risk of infections among workforce where amorphous polyalphaolefins are used for formulation of hot melt adhesives. Adhesives are used as a prime bonding material for hoods, grills, interior panels, and other vehicle parts. This has temporarily hampered demand for adhesives amid the COVID-19 period, which, in turn, has negatively impacted on the production and demand for amorphous polyalphaolefins.
- Amorphous APOs are used for formulation of pressure sensitive adhesives (PSA) and these PSA are used in construction and roofing tapes. Rise in number of COVID-19 infections has forced government bodies to impose strict lockdowns, which has affected deadlines of construction projects being delayed. Moreover, the construction sector accounted for 7.7% of global employment, and it was projected to reach 13.4% by 2022. However, current pandemic situation has created stress among workers and downfall in the revenue from the construction & building sector has impacted negatively on this sector.
Amorphous Polyalphaolefin Market Report Highlights
By PRODUT TYPE
Key Market Players
Soltex, Chevron Phillips Chemical, REXtac LLC, A S Harrison & Co. Pty Limited, Liaoyang Liaohua Qida Chemicals Co. Ltd.Ter Hell & Co. GMBH, Ineos Oligomers, Exxonmobil Corporation, Labdhi Chemicals, Evonik Industries AG
According to the CXOs of leading companies, the global amorphous polyalphaolefin market is expected to exhibit high growth potential during the forecast period. Amorphous polyalphaolefin tend to melt at elevated temperature, which makes them suitable to be used for formulation of synthetic hot melt structural or pressure sensitive adhesives. In addition, other end-use industries where APAO are used include paper & packaging, diapers, wood working, and clothing. Hence, these factors propel the market growth.
Growth in demand for low viscosity lubricants such as transmission oils and rise in number of stringent regulations to minimize emission has attracted the automotive OEM sector toward use of light base oils. Low volatility and low viscosity at any operating temperature range of APAOs makes them suitable to be used for formulation of transmission oils and other automotive lubricants. In addition, viscosity index of amorphous polyalphaolefins makes them widely adopted material for formulation of industrial grade oils. Moreover, industrial oils that are used in applications that demand stability, elevated temperature range, and other extreme conditions employ APAOs for formulations of these oils. APAOs can also be used as viscosity boosters along with low viscosity fluids and mineral oils. This factor is expected to offer lucrative growth opportunities for the market in the future.
Amorphous polyalphaolefins are used in the personal hygiene sector that includes applications such as baby diapers, feminine care products, and adult incontinency care. Moreover, paper lamination, labels, paper & packaging, and profile wrapping are other industries that use APAOs. Hence, APAOs is not only gaining immense attention in the market but is also emerging as a key strategy in terms of gaining additional market demand.