Rising Demand for Alpha Olefin in the Automobile Industry to Boost the Growth of the Global Alpha Olefins Market by 2031

Chemical compounds play a crucial role in various industries, contributing to the development of numerous products that individuals use in their daily life. Among these compounds, alpha olefins have emerged as a versatile and important group of chemicals. Alpha olefins exhibit distinct properties that make them valuable in several industrial applications. They are characterized by their linear structure and the presence of a double bond at the alpha position. The production of alpha olefins primarily involves two major processes, including the oligomerization of ethylene and the separation of linear alpha olefins from the reaction mixture. Alpha olefins are key building blocks to produce high-density polyethylene and linear low-density polyethylene. These polyethylene variants are extensively used in packaging materials, plastic films, pipes, and various other plastic products. Moreover, alpha olefins are used to produce synthetic lubricants and surfactants and act as valuable intermediates in the production of various chemicals including aldehydes, alcohols, and organic acids.

Forecast Analysis of the Global Alpha Olefins Market

The increasing demand for alpha olefins in the automotive industry, as it is widely used as automotive additives, lubricants, synthetic motor oils, and in various other specialized applications, is expected to augment the growth of the alpha olefins market during the forecast period. Moreover, the rising use of alpha olefins as biodiesel and to produce detergent intermediates, oil-field chemicals, paper-sizing chemicals, plasticizers, and others is predicted to create several growth opportunities for the market players during the forecast period. However, the cost involved in the raw materials and manufacturing of the components is projected to hinder the growth of the market during the forecast timeframe.

According to the report published by Research Dive, the global alpha olefins market is anticipated to generate a revenue of $8,172.3 million and rise at a CAGR of 7.5% during the forecast period from 2022 to 2031. The major players of the market include JAM Petrochemicals Company, Qatar Chemical Company Ltd (Q-chem), Evonik Industries, Chevron Phillips Chemical Company LLC, Royal Dutch Shell, Mitsubishi Chemical Corp, Petrochemicals(M) Sdn. Bhd, Exxon Mobil Corporation, INEOS Oligomers, and others.

Key Developments of the Alpha Olefins Market

The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and product launches to maintain a robust position in the overall market, which is subsequently helping the global alpha olefins market to grow exponentially. For instance:

• In May 2021, Chevron Phillips Chemical, a leading petrochemical company announced to expand its alpha olefins business in collaboration with a second world-scale unit to manufacture on-purpose 1-hexene, which is a vital component in the production of high-performance polyethylene (PE).
   
• In December 2021, ExxonMobil Chemical Company, one of the largest chemical companies announced acquisition of Materia, Inc., a renowned provider of next-generation and sustainable materials. With this acquisition, the company aims to focus on the development of new hydrocarbon-based materials that are more durable, lighter, and stronger than existing thermoset products.
   
• In March 2022, Exxon Mobil Corporation, an American multinational oil & gas corporation announced the opening of its new linear alpha olefins (LAO) manufacturing unit at Baytown, Texas. The new facility is designed to produce 350,000 metric tons of approximately LAO yearly.

Most Profitable Region

The North America region of the alpha olefins market is expected to hold the maximum share of the market during the forecast period. This is mainly due to the rising implementation of technological advancements and expansions of the alpha olefins sector. Moreover, the extraction of shale gas and the availability of cheap raw materials are further expected to boost the regional growth of the market during the forecast timeframe.

COVID-19 Impact on the Alpha Olefins Market

The rise of the COVID-19 pandemic has brought several uncertainties across various industries. It has also hampered the growth of the alpha olefins market. The economic slowdown, closure of manufacturing plants, and disruptions in the supply chain have decreased the demand for alpha olefins during the pandemic. Moreover, the import-export restrictions have badly impacted the major alpha olefins-producing countries which further impacted the industry in terms of sales and acquisitions. All these factors hampered the growth of the market throughout the pandemic.