Alpha Olefin Market Expected to Reach $8.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Alpha Olefin Market," The alpha olefin industry was valued at $4.1 billion in 2021, and is estimated to reach $8.2 billion by 2031, growing at a CAGR of 7.5% from 2022 to 2031.

The alpha-olefin family of organic compounds is identified by the presence of a double bond in the primary position. The alpha olefins compound's higher reactivity at this primary position of a double bond makes it suitable for a wide range of applications. Alpha-olefins containing four or more carbon atoms are key compounds that are highly sought-after in the chemical industry as the building blocks for a variety of high-value chemicals. The linear alpha-olefins are used in the production of polyethylene, the creation of alcohols, primarily in detergents and plasticizers, and the synthesis of polyalphaolefins. To add stress-crack resistance, butene-1, hexene-1, octene-1, and decene-1 are primarily used in the production of plasticizers for high-density polyethylene, and linear low-density polyethylene. 

The high initial investment required for raw materials and manufacturing of alpha olefins is the major restraint for the growth of the alpha olefin market. The increase in the use of electric vehicles is anticipated to have a significant impact on the global lubricant demand, which is projected to have an impact on the expansion of the alpha olefin market size.

The use of alpha olefins as synthetic lubricants is expected to increase as alpha olefins have highly desirable qualities such as high viscosity index, thermal stability, oxidative stability, and low toxicity cost-effective fuel, as well as the capacity to meet industry norms to minimize environmental dangers. The use of alpha olefins in the food packaging industry is always in high demand as alpha olefins have been effective against a wide range of bacteria, fungi, and microorganisms. The major businesses are ready to make huge investments in the study and creation of alpha olefin market. The alpha olefin market 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 fuel for drilling equipment due to the increase in the extraction of oil and gas. The global increase in oil and gas exploration operations will lead to an increase in the alpha olefin market demand during the next few years. These factors are anticipated to boost the alpha olefin market share in the upcoming years.

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

The key players profiled in the alpha olefin market forecast 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.

The report offers a comprehensive analysis of the global alpha olefin market trend by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and the emergence of substitutes in the market.

Impact of COVID-19 on the Global Alpha Olefin Industry

• Sales of alpha olefin are directly proportional to the demand from the chemical, automobile, and petrochemical industries. However, various sectors such as chemical and automotive were negatively impacted by the COVID-19 pandemic which has affected the production and demand for alpha olefin due to a disrupted supply chain.
• The COVID-19 pandemic impacted almost all industries and the alpha olefins producing companies ceased their operations owing to import-export restrictions, lockdowns imposed across several countries, shortage of labor due to the fear of contracting the novel coronavirus led to sluggish demand in the alpha olefin market.
• Social distancing norms, closed borders, and production constraints, due to the pandemic, across various countries such as China, India, and the U.S. have affected the global alpha olefin market.

Key Findings of the Study

• Based on product, the 1-Hexene sub-segment emerged as the global leader in 2021 and the others sub-segment is anticipated to be the fastest growing during the forecast period
• Based on application, the polyethylene sub-segment emerged as the global leader in 2021 and the others sub-segment is predicted to witness the fastest growth in the upcoming years
• Based on region, the North America alpha olefin market registered the highest market share in 2021 and is projected to maintain its position during the forecast period