H1 2023: In H1 2023, Polyalphaolefin prices in Europe remained at the lower range due to limited trading and subdued activity in downstream lubricant industries. Producers maintained stability as supply outpaced demand, and regional trade saw moderate transactions in PAO exports from Germany to other European regions. The European domestic Polyalphaolefin market, influenced by weak purchasing fundamentals from end-users, exhibited a downtrend. Polyalphaolefin (PAO) prices in Europe remained low, primarily influenced by diminished demand in the automotive sector and elevated inventory levels. The automotive industry witnessed a substantial decline in offers, with abundant inventories attributed to increased interest rates limiting consumer spending throughout the quarter. European market participants did production rate reductions, cost optimization, and the maintenance of a stable supply chain. Furthermore, the decline in feedstock Ethylene prices also contributed to the overall downward trend in PAO prices in Europe in H1 2023. Similarly, During the first half of 2023, the Polyalphaolefin market displayed stagnancy in North America, characterized by restrained offers and bids from downstream lubricant industries. With no significant disruptions in Polyalphaolefin supplies and moderate production activities in both upstream and downstream sectors, prices remained muted in North America. Additionally, stringent financial conditions and inflationary pressures adversely affected consumer buying potential across diverse sectors, thereby shaping the hazy PAO prices in the U.S. market.
The global Polyalphaolefin (PAO) market stood at approximately 780 thousand tonnes in 2022 and is anticipated to grow at a CAGR of 4.5% during the forecast period until 2032. Polyalphaolefin (PAO) fluids represent the predominant synthetic base oils extensively utilized in industrial and automotive lubricants. Engineered for superior lubrication performance across diverse operating temperatures compared to petroleum oils, PAO fluids are generally less volatile. The industrial production of PAO involves a synthetic chemical process derived from ethylene.
Polyalphaolefin (PAO) is widely applied across diverse industries due to its advantageous characteristics, serving as a foundational component in the formulation of synthetic lubricants. Known for exceptional lubricity, resistance to thermal fluctuations, and robust resilience against oxidation, PAO plays a crucial role in crafting automotive engine oils, gear oils, hydraulic fluids, and industrial lubricants. Its consistent performance in various temperatures, especially in automotive fluids like transmission fluids, brake fluids, and power steering fluids, is ensured by its steadfast viscosity-temperature characteristics. PAO's resistance to thermal breakdown and oxidation makes it a valuable addition to compressor oils, contributing significantly to the efficiency and durability of compressors in industrial settings. Its excellence extends to heat transfer applications, acting as a crucial component in systems such as automotive radiators, solar thermal setups, and industrial heat exchangers. PAO also plays a pivotal role in metalworking scenarios, serving as a base fluid in cutting oils and metalworking fluids, optimizing machining processes. The chemical inertness and compatibility of PAO make it valuable in adhesives, sealants, and personal care products, while its role as a plasticizer enhances the flexibility and durability of plastics. Overall, PAO's versatility positions it as a critical and multifaceted component in various industrial and consumer applications, contributing significantly to the efficiency, longevity, and performance of diverse products and systems.
The thriving automotive sector is set to propel the expansion of the Poly Alpha Olefin (PAO) industry. The escalating adoption of top-tier raw materials, specifically poly alpha olefin (PAO), in the formulation of automotive lubricants is on the rise, aligning with the automotive industry's efforts to enhance fuel efficiency and minimize emissions. As concerns regarding heightened air pollution, stemming from pollutants released during fuel combustion, continue to grow, there is a substantial market demand for efficient solutions, thus supporting the market growth. Moreover, the increasing need for synthetic lubricants across diverse end-use sectors like automotive, oil, and gas is having a favourable impact on market expansion. Poly Alpha Olefins (PAOs) play a pivotal role in preserving seals, preventing component failures, and prolonging drain intervals in applications such as metalworking fluids, compressor oils, engine oils, heat transfer fluids, transmission oils, and gear oils. These factors collectively contribute to the overall market growth. The global Polyalphaolefin (PAO) is anticipated to reach nearly 1212 thousand tonnes by 2032.
Based on region, Asia Pacific is the biggest consumer of Polyalphaolefin (PAO) followed by Europe. Asia, encompassing nations like China, Japan, South Korea, and India, stands as a pivotal market for Polyalphaolefin (PAO) due to multifaceted factors. The region's rapid industrialization and economic expansion fuel heightened manufacturing activities in sectors like automotive, packaging, and construction, amplifying the demand for synthetic lubricants and functional fluids, where PAOs excel. The automotive industry, flourishing in Asia as a consumption hub of PAO, is a substantial consumer of PAO-based lubricants, driven by the quest for high-performance solutions. Concurrently, the burgeoning urbanization and infrastructure development in Asia propel the need for construction materials, fostering demand for PAO-based products in sealants, adhesives, and lubricants. According to OECM, China is the leading the global automotive producer of PAO. In Europe, the automobiles sector is emerging as the most thriving sector. Moreover, the increasing industrialization in the region amplifies the demand for Polyalphaolefin. Germany, a key market for Polyalphaolefin, benefits from their diverse applications in lubricants within the automotive industry.
Based on the end-user industry, the global Polyalphaolefin (PAO) market is divided into Automotive, Industrial, Electrical, Aerospace, and Others. Among these, Automotive sector is the major segment and held approximately 38% of the global Polyalphaolefin (PAO) market in 2022. Polyalphaolefins find diverse applications, ranging from aviation lubricants, compressor lubricants, and drilling fluids to usage in the automotive sector, including engine oils, transmission fluids, and gear oils.
Major players in the Global Polyalphaolefin (PAO) market are Chevron Corporation., Exxon Mobil Corporation., TULSTAR PRODUCTS INC., Idemitsu Kosan Co., Ltd., LANXESS, NACO Corporation, Shell group of companies, Croda International Plc, Mitsui Chemicals, Inc., INEOS AG, Lubricon, RB PRODUCTS, INC., Labdhi Chemicals., Novvi, LLC., Sasol, LUKOIL Marine Lubricants DMCC, Valero and Phillips 66 Company.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Polyalphaolefin (PAO) which covers production, demand and supply of Polyalphaolefin (PAO) market in the globe.
• To analyse and forecast the market size of Polyalphaolefin (PAO)
• To classify and forecast Global Polyalphaolefin (PAO) market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Polyalphaolefin (PAO) market in the globe.
To extract data for Global Polyalphaolefin (PAO) market, primary research surveys were conducted with Polyalphaolefin (PAO) 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 Polyalphaolefin (PAO) market over the coming years.
ChemAnalyst calculated Polyalphaolefin (PAO) demand in the globe by analyzing the historical data and demand forecast which was carried out considering the production of raw material to produce Polyalphaolefin (PAO). 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:
• Polyalphaolefin (PAO) manufacturers and other stakeholders
• Organizations, forums and alliances related to Polyalphaolefin (PAO) 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 Polyalphaolefin (PAO) manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Polyalphaolefin (PAO) 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
780 thousand tonnes
Market size Volume in 2032
1212 thousand tonnes
Growth Rate
CAGR of 4.5% from 2023 to 2032
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2032
Quantitative units
Demand in thousand tonnes and CAGR from 2023 to 2032
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Manufacturing Process.
Segments covered
By End-Use: (Automotive, Industrial, Electrical, Aerospace, 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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Member - Board of Directors
Osaka Gas Co. Ltd
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What was the net market size of Polyalphaolefin (PAO) in terms of volume in 2022?
Ans:
The global market size of Polyalphaolefin (PAO) had reached approximately 780 thousand tonnes in 2022.
Q2.
Which region is the major consumer of Polyalphaolefin (PAO)?
Ans:
Asia Pacific region is the leading consumer of Polyalphaolefin (PAO) globally.
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