Olefins Market

Olefins Market Size & Growth (2023-2028);

The Olefins Market size is valued at USD 322.12 billion by 2028 and is anticipated to grow at a compound annual growth rate of 5.0% for the forecast period 2023-2028

Olefins are chemical compounds that are used as a manufacturing component for a variety of other chemical components. They are alkenes made up of hydrogen and carbon containing one or more carbon atoms linked by a double bond. Ethylene occurs naturally in the environment and is produced by plants of all kinds. Olefins are a class of compounds that include ethylene, propylene, and butadiene. Olefin production is primarily dependent on natural gas processing products or crude oil fractions. Ethylene is produced from various raw materials, such as crude oil condensate, natural gas, ethane, butane, propane, and others.

Lubricants are used in crankcase lubricants, hydraulic fluids, gear oils, etc. Higher olefins are used in the formulation of lubricant additives for automotive lubricants and industrial lubricants. Lubricant additive technology offers many benefits for the environment and end-users. Concern for the environment is an important parameter that is taken into account when formulating and using the lubricant. The steady evolution of engine oil specifications for different automotive vehicles has increased the demand for new lubricant formulations, which has increased the demand for lubricant additives. Automotive, Plastics, and Other End Industries, In addition, the discovery of shale gas and the demand for PAO-based synthetic lubricants are fueling the growth of the alpha-olefin market. This opens the doors to the use of alternative, profitable, and bio-based raw materials for the production of olefins. The olefins market focuses on the use of biomass, a material rich in carbon, as a feedstock. Manufacturers aim to get the most out of high-yielding organic products so that production is profitable. Due to technological advancements and refinements in the hydraulic fracturing process, methane production has increased significantly, and the price of methane has dropped significantly. This has caught the attention of several olefin manufacturing companies in the United States. Due to the wide availability of shale gas, manufacturers are finding ways to upgrade methane in the form of olefins, either directly or indirectly.

Olefins Market Drivers:

The increasing implementation in the automotive industry has had a great influence on the growth of the olefins market. With this in mind, the increasing demand for polycarbonates also acts as a key determinant supporting the growth of the olefins market during the forecast period 2022 - 2027. In addition, the increase in the global population contributes significantly to the growth in the food and beverage industry as the extreme demands on packaging materials and the increasing population. The main factor responsible for the growth of the market is the growth of the automotive industry, which demands the high-quality olefin used to make car interiors. The domestic olefin market is also expected to benefit greatly from the growing global demand for greener and cleaner industrial fluids and the increasingly stringent emissions regulations in place in a number of developed and developing economies. In addition, the high use of internal olefins in oil drilling and related activities is also expected to boost the olefins market, as the global demand for crude oil and its derivatives has exploded again. The market is also benefiting from the higher global demand for agrochemicals in agrarian and emerging economies reduction in the cost of energy and raw materials for the production of light olefins drives olefins market growth.

The planned replacement of petroleum by Shale gas, extracted from ethylene, further drives the market growth during the assessment period. One of the main factors that are likely to have a noticeable positive impact on the domestic olefin market is the increased demand for lubricants from the automotive industry. Over the past decade, sales of passenger cars and luxury cars have increased dramatically in developing economies in regions such as Asia-Pacific and Latin America. The number of vehicles in circulation in developed economies has also remained steadily high, if not significantly increased. As consumers are more open to regular servicing and servicing of their vehicles to reduce their impact on the environment, the growing demand for motor oils is also likely to improve global demand for lubricants in the near future, increasing even more. The olefin market is also expected to benefit greatly from the growing global demand for greener and cleaner industrial fluids and the increasingly stringent emissions regulations in place in a number of developed and developing economies. In addition, the high use of internal olefins in oil drilling and related activities is also expected to boost the market, as the global demand for crude oil and its derivatives has exploded again. The market is also benefiting from increased global demand for agrochemicals in agrarian and emerging economies.

Olefins Market Restraints:

Fluctuating prices of raw materials for the manufacture of olefins and high investments may be a key constraint to the olefins market's growth rate during the forecast period 2022 - 2027, to factors such as the availability of substitutes. Such as alpha-olefins, LAO, and PAO with improved properties and high purity pose a threat to the market. In addition, the ease of availability and cost-effectiveness of ethylene as the main raw material for substitutes is inhibiting the growth of the domestic olefin market. Readily available alternatives such as poly-alpha-olefins and fluctuating raw material costs could negatively impact the market's growth prospects to some extent during the forecast period of the report.

Opportunities in the Olefins Market:

The strong penetration of electronics in various applications and innovations and increasing advancements in production methods leading to greater efficiency of the production process and better product offering will provide a variety of growth opportunities. For the olefins market during the forecast period. The trend of biofuel production from bio ethylene using sugarcane and corn is likely to offer substantial market growth opportunities during the forecast period.

Challenges in the Olefins Market:

Strict environmental regulations on the production and manufacture of crude oil by-products have the potential to challenge the growth of the olefins market during the aforementioned forecast period.

OLEFINS MARKET REPORT COVERAGE:

Olefins Market Segmentation

Olefins Market - By Type

• Butadiene

• Ethylene

• Propylene

• Others

Ethylene is the major segment in types of the olefins market because of its high demand in the production of various polyethylene and ethylbenzene.

Olefins Market - By Application

• Lubricant Additives

• Surfactants

• Agricultural Chemicals

• Paints and Coatings

• Corrosion Inhibitors

• Other Applications

Steadily changing specifications of engine oils for different automotive vehicles have increased the demand for new lubricant formulations, thereby increasing the demand for the lubricant additives segment.

Olefins Market - By Region

•  North America 

•  Europe 

•  Asia Pacific 

•  Latin America 

•  Middle East & Africa 

The Asia Pacific Region (APAC) is expected to offer a lucrative market in terms of volume and revenue as the field has cheap labor and labor prices, tire manufacturers have reduced their amenities to the Asia-Pacific Province (APAC). The Asia-Pacific region dominated the global olefins market share. China is one of the fastest-growing economies. China is the region's largest consumer and producer of surfactants which is supported by domestic consumption and the presence of a large number of local producers in the country. The olefins market for synthetic soap, laundry, and detergents in China has grown at an average annual rate of 13.4% over the past five years due to the growing awareness of hygiene and soap development. Liquid. Therefore, various end-users growth is expected to result in higher olefin consumption, as these are the reactive intermediates used to make automotive products, surfactants, agricultural chemicals, coatings, and corrosion inhibitors.

North America leads the olefin market because of its high production rate and strict regulations of the environment.

Olefins Market Key Players:

1. Exxon Mobil Corporation

2. INEOS AG

3. Royal Dutch Shell

4. National Petrochemical Company

5. China Petroleum & Chemical Corporation

6. SABIC

7. DuPont

8. Total

9. NOVA Chemicals Corporate

10. Chevron Phillips Chemical Company LLC

11. LyondellBasell Industries Holdings B.V.

12. Sasol, Evonik Industries AG

13. Qatar Chemical Company Ltd

14. Mitsubishi Electric Corporation

15. Idemitsu Kosan Co.Ltd.

16. Mitsui Chemicals, Inc.

17. Jam Petrochemical Company

18. TPC Group

19. BASF SE.