According to a new research report by Radiant Insights, Inc. ‘Alpha Olefin Market Size, Share, Research Report 2020’, the global alpha olefins market size is predicted to be valued at US$10.7 billion by 2020. It is estimated that the increasing polyethylene demand for use in plastic production will drive market growth. The growing application scope of protective films agriculture for reduction in soil erosion and UV rays protection is likely to favour demand. Increase in poly-alpha-olefin demand for manufacturing synthetic lubricants to act against an engine's wear and tear is likely to support market growth.
An increase in synthetic oil demand for oilfield exploration and production (E&P) and drilling is also anticipated to drive growth. Volatile prices observed in key raw materials, which include ethylene, along with regulations to curb carbon emissions is very likely to challenge industry growth. The growing number of investments into the development of bio-based alpha olefins is similarly anticipated to provide new avenues for market growth.
1-hexene was the largely consumed product segment and accounted for more than 23% of the market share in 2013. 1-hexene is likely to witness the highest gains in the run up to 2020, owing to its major use in manufacturing HDPE and LLDPE polymers. 1-butene is estimated to witness average gains at an estimated CAGR of 4.3% from 2014 - 2020.
The report highlights:
- The global alpha olefin market size was estimated 3.82 million t in 2013 and may register 5.16 million t by 2020 growing with an estimated CAGR of 4.4% from 2014 - 2020.
- Polyethylene dominated the application segment and accounted for 61.6% of the total volume in 2013 and is also expected to witness highest growth rates. Increasing plastics demand in packaging and consumers goods is likely to favour alpha olefin market growth. Synthetic lubricants are likely to gain below average growth rates with an estimated CAGR of 2.5% up to 2020.
- North America dominated the regional market and accounted for 43.5% of the total volume in 2013. Capacity expansion coupled with increasing oilfield E&P activities in the US is likely to favour demand. Asia Pacific is likely to witness highest gains at an estimated CAGR of 6.6% from 2014 - 2020.
- The market is moderately consolidated and top four companies accounts for over 60% of the total share with major players concentrated in Middle East and US. Key companies include Shell Chemicals, Sasol, Ineos Oligomers, Mitsubishi Chemicals, Chevron Phillips, Evonik, Qatar Chemical, Exxon Mobill and Saudi Industries Basic Corp.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/23112015/alpha-olefin-market-estimated-to-increase-by-2020-1783/