The alpha olefins market share is expected to increase by USD 3.67 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 5.67%.
This alpha olefins market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers alpha olefins market segmentation by type (1-Hexene, 1-Butene, 1-Octene, 1-Decene, and others), application (polyethylene, synthetic lubricants, plasticizers, and others), and geography (North America, Europe, APAC, MEA, and South America). The alpha olefins market report also offers information on several market vendors, including Chevron Phillips Chemical Co. LLC, Dowpol Chemical International Corp., Evonik Industries AG, Exxon Mobil Corp., Idemitsu Kosan Co. Ltd., INEOS Group Holdings SA, Mitsubishi Chemical Holdings Corp., Royal Dutch Shell Plc, Sasol Ltd., and Saudi Basic Industries Corp. among others.
What will the Alpha Olefins Market Size be During the Forecast Period?
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Alpha Olefins Market: Key Drivers, Trends, and Challenges
The increasing demand for rubber chemicals is notably driving the alpha olefins market growth, although factors such as fluctuations in oil prices may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the alpha olefins industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Alpha Olefins Market Driver
Increasing demand for rubber chemicals is a major driver fueling the alpha olefins market growth. Butene, especially 1- and 2-Butene, is used to make Polybutadiene (PB). PB is also known as rubber or synthetic rubber in general terms. Pure 1-Butene is used in the production of LLDPE. The oxo reaction of a mixture of 1- and 2-Butene results in the formation of valeraldehyde. Valeraldehyde is then converted into C10 plasticizers. These substances, including LLDPE, valeraldehyde, and plasticizers, are used to manufacture rubber. Apart from this, C4 olefins and their derivatives are used to manufacture synthetic rubber. The growing rubber chemicals market is expected to increase the demand for Butene. Thus the market is expected to grow during the forecast period.
Key Alpha Olefins Market Trend
Increasing LLDPE share is a major trend influencing the alpha olefins market growth. Among polyethylene applications, linear low-density polyethylene (LLDPE) is expected to hold the maximum share of the market by the end of the forecast period. LLDPE is replacing LDPE in many traditional and conventional applications. LLDPE's share is also increasing because of its strength and higher impact, and chemical resistance. It also performs better compared with LDPE. In simple terms, it has a good cost-benefit ratio. The demand for LLDPE is significantly increasing in APAC and Europe, the Middle East, and Africa (EMEA) because of its low cost and easy availability. LLDPE is also preferred because of its use in multiple applications, such as coatings, agriculture, and pharmaceuticals.LLDPE is expected to grow because of the high demand for high-quality plastics from the plastics industry. The plastics industry has grown rapidly in terms of production compared with the previous year. China holds the major share of global production, followed by Europe. The growing plastics industry is expected to drive the demand for alpha olefins in these regions.
Key Alpha Olefins Market Challenge
Fluctuations in oil prices are a major hindrance to the alpha olefins market growth. Crude oil prices worldwide have been fluctuating for many years, and this is expected to continue in the coming years. Fluctuations in oil prices affect the price of paraffin wax. Paraffin wax is a petroleum byproduct obtained during the refining process of crude oil to form gasoline. Paraffin wax is thermally cracked to form alpha olefins. If the price of the base oil rises, it leads to an increase in alpha olefin prices. The prices of commodities, including crude oil, steel, and copper, depending on currency fluctuations. The price of crude oil is quoted in US dollars. The values of various currencies are measured against the US dollar, and the cumulative effect is calculated to determine the cost of crude oil. Oil price fluctuations are heavily dependent on changes in the currency values of various countries. Due to this, the global alpha olefins market will grow during the forecast period.
This alpha olefins market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Parent Market Analysis
Technavio categorizes the alpha olefins market as a part of the global specialty chemicals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the alpha olefins market during the forecast period.
Who are the Major Alpha Olefins Market Vendors?
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
- Chevron Phillips Chemical Co. LLC
- Dowpol Chemical International Corp.
- Evonik Industries AG
- Exxon Mobil Corp.
- Idemitsu Kosan Co. Ltd.
- INEOS Group Holdings SA
- Mitsubishi Chemical Holdings Corp.
- Royal Dutch Shell Plc
- Sasol Ltd.
- Saudi Basic Industries Corp.
This statistical study of the alpha olefins market encompasses successful business strategies deployed by the key vendors. The alpha olefins market is fragmented and the vendors are deploying growth strategies such as organic and inorganic strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The alpha olefins market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Alpha Olefins Market Value Chain Analysis
Our report provides extensive information on the value chain analysis for the alpha olefins market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of global specialty chemicals market includes the following core components:
- Inputs
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
- Support activities
- Innovation
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
Which are the Key Regions for Alpha Olefins Market?
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51% of the market’s growth will originate from North America during the forecast period. The US and Canadaare the key markets for alpha olefins market in North America. Market growth in this region will be faster than the growth of the market in regions.
High demand for alpha olefins in automotive sector will facilitate the alpha olefins market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
COVID-19 spread widely across North America, especially in the US in 2020. The rising number of deaths due to the disease led to a lockdown in countries across the region, primarily during the first half of 2020. As a result, several chemical manufacturing units were closed, which had an adverse impact on the growth of the regional market. However, the region is witnessing a decline in the number of COVID-19 cases with the availability and administration of COVID-19 vaccines. As a result, operations in industries are expected to stabilize during the forecast period. This will translate to the gradual growth of the alpha olefins market in North America during the forecast period.
What are the Revenue-generating Type Segments in the Alpha Olefins Market?
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The alpha olefins market share growth by the 1-Hexene segment has been significant. The 1-Hexene segment holds the major share of the market. 1-Hexene is preferred over other types of alpha olefins because of its unique properties. It is used as a comonomer in the production of polyethylene and aldehydes. 1-Hexene is also used as an intermediate in the production of oxo alcohols, hexyl mercaptans, organoaluminium compounds, and synthetic fatty acids for plasticizers. It is used the maximum in polyethylene manufacturing and plasticizers. With the growth in the global plastic market during the forecast period, the demand for 1-Hexene is expected to increase.
This report provides an accurate prediction of the contribution of all the segments to the growth of the alpha olefins market size and actionable market insights on post COVID-19 impact on each segment.
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Alpha Olefins Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2020 |
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Forecast period |
2021-2025 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.67% |
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Market growth 2021-2025 |
$ 3.67 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
5.10 |
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Regional analysis |
North America, Europe, APAC, MEA, South America, North America, Europe, APAC, MEA, and South America |
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Performing market contribution |
North America at 51% |
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Key consumer countries |
US, Canada, Germany, UK, and China |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Chevron Phillips Chemical Co. LLC, Dowpol Chemical International Corp., Evonik Industries AG, Exxon Mobil Corp., Idemitsu Kosan Co. Ltd., INEOS Group Holdings SA, Mitsubishi Chemical Holdings Corp., Royal Dutch Shell Plc, Sasol Ltd., and Saudi Basic Industries Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Alpha Olefins Market Report?
- CAGR of the market during the forecast period 2021-2025
- Detailed information on factors that will drive alpha olefins market growth during the next five years
- Precise estimation of the alpha olefins market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the alpha olefins industry across North America, Europe, APAC, MEA, South America, North America, Europe, APAC, MEA, and South America
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of alpha olefins market vendors
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