A new report from MarketsandMarkets entitled, ‘Alpha Olefin Market by Type (1-Butene, 1-Hexene, 1-Octene, C10 & Higher Olefins) and by Application (LLDPE, HDPE, Valeraldehyde, Plasticizers, Lubricants, and Others) - Global Trends & Forecasts to 2020’, has projected the alpha olefin market to reach US$19.85 billion by 2020, registering a CAGR of 6.2% during the forecast period.
The increasing use of plastics for packaging applications is a major driver of the market. Moreover, the growing automotive industry also supports the growth of the market, globally.
Linear low density polyethylene (LLDPE) is the largest application segment of alpha olefins
The LLDPE application segment accounts for the largest share of the alpha olefins market due to the huge demand for high quality plastics from the plastics industry. The superior properties of LLDPE, such as high tensile strength, high puncture resistance and so on make it the appropriate material for use in plastic applications. It is mostly used in packaging applications, such as food packaging, pharmaceutical packaging, and consumer goods packaging, among others. The growth of plastics in the packaging industry is driving the market for alpha olefins.
LLDPE is replacing conventional LDPE in many areas because of more economical production cost and better product performance. The market for alpha olefins is growing due to the increased demand for LLDPE from various industries. Asia Pacific is the largest market for LLDPE.
1-Hexene alpha olefins projected to witness the highest growth
1-Hexene accounts for the largest share of the overall alpha olefins market, in terms of volume and value. It is used as a co-monomer in the manufacture of polyethylene. It is also used in the production of aldehydes to make fatty acid for plasticisers.
Asia Pacific is the key market for alpha olefins
Asia Pacific dominated the global alpha olefins market in 2014. The region is not only the largest but also the fastest growing market for alpha olefins in the world. The market growth is driven by the rapid economic growth of the nations in the region. End use industries such as packaging, building and construction, consumer goods, automotive, and textiles are witnessing high growth in Asia Pacific, thereby, driving the global alpha olefins market.
China is projected to witness the highest growth in the region. The market in China is primarily driven by its growing plastic industry. The expanding manufacturing sector in the region, driven by low costs and easy availability of raw materials, has led to exponential growth of the plastics industry in China. LLDPE is the largest application segment of alpha olefins in the country.
Chevron Phillips Chemical Company LLC (US), Royal Dutch Shell Plc (Netherlands), and TPC Group (US) are some of the major players in the global alpha olefins market which are profiled in this report.
You can read the full report here.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/16022016/alpha-olefin-market-worth-20-billion-dollars-2020-2495/