INTERNAL OLEFINS MARKET ANALYSIS

Global internal olefins market was valued at US$ 2.0 Billion in 2022 in terms of revenue, exhibiting a CAGR of 0.55 % and expected to reach at 2.09 Billion during the forecast period (2023 to 2030).

Internal olefins are high-value chemicals, produced by dehydrochlorination or chlorination of linear paraffins. It is used in various applications such as lubricants, oil drilling, surfactants, and agrochemicals. Internal olefins are valuable intermediate for processes such as synthesis of linear alkyl benzenes and oxo alcohols. It is also used during drilling mud, paper sizing, and for lubrication-based oil.

Drivers

Increased Use of Olefins

The growing use of olefins in the automobile industry has significantly impacted market growth. The rising demand for polycarbonates is a significant variable encouraging the olefins market's expansion over the forecast period. Additionally, the growing worldwide population contributes considerably to the expansion of the food and beverage industry, which has high needs for packaging materials, and rising population levels are favorably impacting the olefins market. The expanding automobile industry, which necessitates the use of high-quality olefin in the creation of automobile interiors, is the primary driver of market expansion.

Surging Demand for PAO-based Synthetic Lubricants

PAOs have quickly acquired popularity as high-performance lubricants due to their desirable properties such as high viscosity index, thermal stability, oxidative stability, mineral oil compatibility, and low toxicity. PAOs provide technological benefits, but they also help protect environmental quality in some sensitive applications. Synthetic lubricants based on PAO provide improved performance in offshore drilling applications with environmental concerns. Furthermore, because some PAOs are biodegradable, they can be used to replace vegetable-based oils. PAO-based synthetic lubricants have a tendency to eliminate drilling-related performance errors. The high demand for PAO-based synthetic lubricants, further boosts the growth of overall olefins market.

Furthermore, the rise in demand for engine oils will further propel the growth rate of olefins market. Additionally, the growth in usage of internal olefins in oil drilling and associated activities will also drive market value growth. The increased global demand for agrochemicals in agrarian and emerging economies is projected to bolster the growth of the market.

The recent outbreak of coronavirus had a negative impact on the olefins market. Olefins market growth has suffered as a result of long-term lockdowns in the majority of countries. During this epidemic, the olefins industry has experienced significant losses due to travel restrictions around the world and severe social distancing measures. Throughout the second half of 2020, this market has recovered. In pharmaceutical applications, however, demand for olefins has remained consistent.

Figure 1. Global Internal Olefins Market Value Share (%), By Region, 2021

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Market Restraints

Fluctuation in Raw Material Prices

Variable raw material prices heavily influence the olefins market. The cost of generating olefins rises in tandem with the rise in raw material prices. The manufacturers' overall costs will rise as a result of this. The fluctuating prices of raw materials for the manufacturing of olefins will therefore, create hindrances for the growth of the olefins market.

Environment Regulations

Also, the strict environmental regulations regarding the production and manufacturing of crude oil bi-products have the potential to challenge the growth of the olefins market growth rate. This olefins market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the olefins market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Market Trends

Some of the other key factors likely to work well for the global internal olefins market are the rising demand for environment-friendly synthetic fluids from across a number of industries. Strict emission-related regulations governing a number of industries is the chief factor driving this trend. Moreover, the rising global demand for oil and gas is also emerging as a leading growth driver for the market as internal olefins find vast usage in oil drilling activities. Furthermore, the rising global consumption of agrochemicals and the steadily expanding agriculture sector in emerging as well as developed economies are working well for the internal olefins market. However, the growth prospects of the market could be restricted to a certain extent by the easy availability of substitutes such as poly-alpha-olefins. Moreover, the fluctuating costs of raw materials could also negatively impact the market to a certain extent over the report’s forecast period.

Figure 2. Global Internal Olefins Market value Share (%), By Product Type, 2021

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Global Internal Olefins Market- Impact of Coronavirus (Covid-19) Pandemic

The coronavirus pandemic has negative impact on internal olefins market. Olefins market growth has suffered due to lockdown in various countries. Olefins industry experienced significant losses due to lockdown, travel restrictions, social distancing. Olefins demand was consistent in pharmaceutical industry.  Internal olefins market was recovered after covid-19 pandemic.

Recent Developments

• In June 2022, Shell Retail and Convenience Operations LLC, a wholly-owned subsidiary of Shell Oil Products US, completed the acquisition of the Landmark Group of companies with company-owned fuel and convenience retail sites. The acquisition includes supply agreements for the independently operated fuel and convenience oil sites.
• On 27 January 2023, Shrieve Chemical Company, a portfolio company of Gemspring Capital and a leading, value-added chemicals distributor, announced today that it has acquired Chem One. Based in Houston, TX, Chem One is a provider of dry chemicals that are sourced and developed for a range of industrial applications including water treatment, micro-nutrients, animal feed, oil and gas, and other industries across North America.

Competitive Section

Major players operating in the global internal olefins market include INEOS Group Limited, Sasol Limited, Royal Dutch Shell plc, Elevance Renewable Sciences, Inc., Chevron Corporation, SABIC, Halliburton Company, Schlumberger Limited, Shrieve Chemical Company, and Idemitsu Kosan Co., Ltd.