LIGHT LINEAR ALPHA OLEFINS MARKET ANALYSIS

Light Linear Alpha Olefins MarketSize and Trends

Market Dynamics  

• A major driver promoting growth of the global light linear alpha olefins market is increasing plastic demand in various applications such as packaging and automobile. Light LAOs are primarily used as feedstock to manufacture plastics. For instance, according to The Federation of Indian Chambers of Commerce and Industry report 2017, plastic contributes 42% of the total packaging materials, whose current share is worth US$ 294 billion and is expected to reach US$ 450 billion by 2020.
• Increasing demand for automobiles will significantly rise demand for linear LAOs in the market during the forecast period. Plastics are extensively used in automobile industry to decrease the total weight of vehicle and hence, increase fuel efficiency. For instance, according to Automotive Mission Plan 2026, India automotive industry is expected to reach US$ 300 billion in 2026, which stood at US$ 74 billion in 2016. Such developments will increase plastic consumption, which will boost growth of the global light linear alpha olefins market.

Market Outlook

The Asia Pacific region is expected to remain the major consumer of Light LAOs due to expanding capacity of plastic manufacturing plants coupled with robust and increasing demand due to rapid urbanization. For instance, according to Turkish Plastics Industry Foundation report 2016, India and China contributed around 30% of the total global plastic production followed by USA, which contributed around 14.6% in 2016.