H1 2023: The top players in the global Linear Alpha Olefin (LAO) market in H1 2023 were Shell Chemical Company, INEOS, and Chevron Phillips Chemical Company LP. The USA's Linear Alpha Olefin market displayed fluctuations in prices in the first half of 2023. In the first three months of 2023, the market trend was bullish. Winter Storm Elliot had a significant impact on the sluggish start of the resins market in January 2023. The supply chain was also affected in early February by weather-related problems. Additionally, US’ efforts to enhance the export shipments for downstream polyethylene resulted in hike of linear alpha olefin market pricing in February 2023. The prices continued to rise in March 2023, supported by heavy demand from the downstream polymer sector for the production of polyethylene, polypropylene, and other polyolefins. With the lack of inventory to meet the downstream demand, the supply-demand gap increased in the US. However, starting from April 2023, US market began to show bearish LAO market trend. With deflationary pressure and slow demand in the downstream polymer market, the price of feedstock ethylene displayed gloomy attitudes, the prices of Linear Alpha olefins displayed a bearish trend till June 2023. Due to Europe's inflationary scenario and China's feeble economic recovery, the demand of LAO from global markets remained depressing from April 2023 to June 2023.
The global Linear Alpha Olefin (LAO) market has touched the number of around 6.5 million tonnes in 2022 and is expected to grow at an impressive CAGR of 6% during the forecast period until 2035. ExxonMobil's new unit for manufacturing LAOs at the integrated petrochemical complex situated in Baytown, Texas, is anticipated to begin its operation in 2023. This unit is estimated to have an annual capacity of 700 million pounds of LAO once in the process.
The term "olefin" simply refers to the family of chemical compounds known as alkenes, all of which include the double-bond functional group. Chemical characteristics are governed by the double bond's degree of unsaturation. The chain length of olefins affects both their physical characteristics and, consequently, their chemical uses. These olefines include Butene-1, Hexene-1, Octene-1, tetradecane-1, octadecane-1 , and more olefin blends with C20-C24. At room temperature, Butene-1 is a gas; olefins in the C6–C18 range are colorless liquids; olefins in the C20–+ range are waxy solids.
The oligomerization of ethylene or the Fischer-Tropsch synthesis, followed by purification, is used to create them. They are employed to synthesize Polyethylene, industrial oils, and automotive components like engines and spare parts. They are also used as co-monomers for manufacturing Polyethylene, plastic packaging, inks, waxes, cosmetic emollients, color concentrates, and industrial oils. They help to make other polymers stronger, wear-resistant, and impact-resistant so that they can be utilized to create products, plastic shopping bags, and beverage and food containers.
The demand for Linear Alpha Olefin (LAO) as a raw material in the production of specialty chemicals like surfactants and petroleum chemicals is increasing because of various qualities of Linear Alpha Olefin (LAO)s, such as high compatibility with hard water and excellent foaming properties. However, the Polyethylene industry is the primary driver of the LAO market. With the growing demand for consumer goods and packaging material for Food & Beverage, the demand for LAO is anticipated to rise in the forecast period. The Linear Alpha Olefin (LAO) market is estimated to reach a volume of nearly 14 million tonnes by 2035.
Based on type, the Linear Alpha Olefin (LAO) market is bifurcated into Butene-1, Hexene-1, Octene-1, and Others. 1-Butene is the leading fragment of the market with applications in industries like petroleum, rubber, and packaging. This compound offers unique qualities like improved tensile strength. Butene-1 is often used in the construction industry as well for the production of pipes and hot adhesives or containers. Additionally, it is used in various chemical techniques to make chemicals like butene oxide, valeric acid, and in bio-refineries.
On the global level, North America is the leading consumer of Linear Alpha Olefin (LAO). In 2022, North America consumed roughly 35% of the worldwide demand. The ongoing construction of oil and gas and petrochemical infrastructure in the United States, Canada, and Mexico will most probably result in surge of Linear Alpha Olefin (LAO) by the region of North America in the upcoming years. Currently, USA is leading in terms of producing LAO across the globe.
Based on the end-user industry, the global Linear Alpha Olefin (LAO) market is segmented into different industrial sectors that include Polyethylene, Polyalphaolefins, Oxo alcohols, and others. However, Polyethylene is the dominating sector as the consumer of Linear Alpha Olefin (LAO). This industry consumed approximately 50% of the market in 2022 and is anticipated to remain the leading consumer in 2035. Polyethylene is the most popular kind of plastic and comes in two variants: Low-density polyethylene (LDPE) and High-density polyethylene (HDPE). Polyethylene is utilized in multiple industries like packaging, consumer goods, chemicals, and plasticizers. The primary applications include packing film, trash, shopping bags, agricultural mulch, cable, and wire insulation, squeeze bottles, toys, and home goods.
Major players in the production of Global Linear Alpha Olefin (LAO) are Shell Chemical Company, INEOS, Chevron Phillips Chemical Company LP, Sasol Limited, Qatar Chemical Company Ltd., Sinochem Quanzhou Petrochemical, Evonik Industries, Arabian Petrochemical Company (PETROKEMYA), Dow Chemical, Nizhnekamskneftekhim, Baltic Chemical Plant LLC (BCP) - JSC RusGazDobycha, Sinopec Company, Saudi Basic Industries Corp., and Yanbu National Petrochemicals Cmpny SJSC.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2035
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Objective of the Study:
• To assess the demand-supply scenario of Linear Alpha Olefin (LAO) which covers production, demand and supply of Linear Alpha Olefin (LAO) market in the globe.
• To analyse and forecast the market size of Linear Alpha Olefin (LAO)
• To classify and forecast Global Linear Alpha Olefin (LAO) market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Linear Alpha Olefin (LAO) market in the globe.
To extract data for Global Linear Alpha Olefin (LAO) market, primary research surveys were conducted with Linear Alpha Olefin (LAO) manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Linear Alpha Olefin (LAO) market over the coming years.
ChemAnalyst calculated Linear Alpha Olefin (LAO) demand in the globe by analyzing the historical data and demand forecast which was carried out considering the consumption of raw material to produce Linear Alpha Olefin (LAO)s. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Linear Alpha Olefin (LAO) manufacturers and other stakeholders
• Organizations, forums and alliances related to Linear Alpha Olefin (LAO)s distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Linear Alpha Olefin (LAO) manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years, thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
ChemAnalyst calculated Linear Alpha Olefin (LAO) demand in the globe by analyzing the historical data and demand forecast which was carried out considering the historical extraction and supply and demand of Linear Alpha Olefin (LAO) across the globe. ChemAnalyst sourced these values from industry experts, and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Report Scope:
In this report, Global Linear Alpha Olefin (LAO) market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
6.5 million tonnes
Market size Volume by 2035
14 million tonnes
Growth Rate
CAGR of 6% from 2023 to 2035
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2035
Quantitative units
Demand in million tonnes and CAGR from 2023 to 2035
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Type, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Foreign Trade, Manufacturing Process, Policy and Regulatory Landscape.
Segments covered
By End-Use: (Polyethylene, Polyalphaolefins, Oxo alcohols, and others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Market Data & Insights
Table of Content
1. Industry Market Size
It is an essential metric for market analysis, as it provides insights into the overall size and growth potential of Linear Alpha Olefin (LAO) market in terms of value and volume.
2. Capacity By Company
On our online platform, you can stay up to date with essential manufacturers and their current and future operation capacity on a practically real-time basis for Linear Alpha Olefin (LAO).
3. Capacity By Location
To better understand the regional supply of Linear Alpha Olefin (LAO) by analyzing its manufacturers' location-based capacity.
4. Plant Operating Efficiency
To determine what percentage manufacturers are operating their plants or how much capacity is being currently used.
5. Production By Company
Study the historical annual production of Linear Alpha Olefin (LAO) by the leading players and forecast how it will grow in the coming years.
6. Demand by Type
Learn about the various types: Butene-1, Hexene-1, Octene-1, and Others and their demands. It will allow you to choose which type to concentrate on when designing your strategy.
7. Demand by End- Use
Discover which end-user industry (Polyethylene, Polyalphaolefins, Oxo alcohols, and others) are creating a market and the forecast for the growth of the Linear Alpha Olefin (LAO) market.
8. Demand by Region
Analyzing the change in demand of Linear Alpha Olefin (LAO) in different regions, i.e., North America, Europe, Asia Pacific, Middle East and Africa, and South America, that can direct you in mapping the regional demand.
9. Demand by Sales Channel (Direct and Indirect)
Multiple channels are used to sell Linear Alpha Olefin (LAO). Our sales channel will help in analyzing whether distributors and dealers or direct sales make up most of the industry's sales.
10. Demand-Supply Gap
Determine the supply-demand gap to gain information about the trade surplus or deficiency of Linear Alpha Olefin (LAO).
11. Company Share
Figure out what proportion of the market share of Linear Alpha Olefin (LAO) is currently held by leading players across the globe.
12. Demand-Supply Gap
Determine the supply-demand gap to gain information about the trade surplus or deficiency of Linear Alpha Olefin (LAO).
13. Company Share
Figure out what proportion of the market share of Linear Alpha Olefin (LAO) is currently held by leading players across the globe.
14. Manufacturing Process
Discover insights into the intricate manufacturing process of Linear Alpha Olefin (LAO).
15. Policy and Regulatory Landscape
Gain a comprehensive understanding of the policy and regulatory landscape within the Linear Alpha Olefin (LAO) market.
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What was global market size of Linear Alpha Olefin (LAO) in terms of volume for 2022?
Ans:
The global market size of Linear Alpha Olefin (LAO) was approximately 6.5 million tonnes in 2022.
Q2.
What are the major end-use industries of Linear Alpha Olefin (LAO)?
Ans:
Linear Alpha Olefin (LAO) is used in a wide range of end use industries including Polyethylene, Polyalphaolefins, Oxo alcohols, and Others.
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