The global internal olefins market was valued at US$ 1.64 Billion in 2017, according to Internal Olefins Market Report, by Technology (Paraffin Dehydrogenation and Isomerization & Disproportionation), by Application (Surfactants, Oil Drilling, Pharmaceuticals, Lubricants, Agrochemical, and Others), and by Region (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa).
The global internal olefins market is projected to reach US$ 2.46 Billion by 2026, exhibiting a CAGR of 4.7% during the forecast period. Increasing demand for environmentally safe synthetic fluids is expected to propel growth of the internal olefins market. Furthermore, growing demand for oil and gas is driving growth of this market. According to Scottish Government, in Scotland the production of oil and gas increased by 21.4% during 2014 to 2015 and accounted for 81% of the total U.K. production. However, high purity intrinsic characteristics of internal olefins’ substitutes such as linear alpha olefins and poly-alpha-olefins is expected to restrain growth of the internal olefins market.
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Key Trends and Analysis of the Internal Olefins Market:
- Lubricants segment held the highest market share in 2017, in the global internal olefins market, owing to its high industrial consumption. According to California Department of Resources Recycling and Recovery, in the U.S. industrial lubricants’ consumption was 1,266.7 million gallons in 2010, of which nearly 44% of industrial lubricants were produced by processed oils.
Key Takeaways of the Market:
- Asia Pacific held the dominant market share of 24% in 2017, in the global internal olefins market. This is attributed to increasing ethylene production, the raw material used to manufacture internal olefins, in this region. Various manufacturers are focused in expansion of ethylene plant capacity, to meet the rising global demand. For instance, in August 2017, ExxonMobil Asia Pacific acquired Jurong Aromatics Corporation (JAC), one of the largest aromatics facilities in Singapore, with an ethylene production capacity of 1.9 million tons per year.
- Furthermore, growing demand for agrochemicals with expanding agriculture industry is fueling growth of the internal olefins market in Asia Pacific. According to India Brand Equity Foundation (IBEF), the agrochemical industry in India was valued at US$ 4.4 billion in 2015, and is expected to reach US$ 6.3 billion by 2020.
- North America was one of the largest regions in the internal olefins market in 2017. Shale gas revolution paved paths for increasing exploration and production activities in this region. According to the U.S. Energy Information Administration, the total shale production in the U.S. in 2014, was 13.4 trillion cubic feet, which reached up to 15.2 trillion cubic feet in 2015. Increase in offshore exploration & production (E&P) activities in shallow and deep water contributed to increasing growth of the oil and gas chemicals industry in this region, in turn aiding in growth of the internal olefins market.
- Furthermore, the U.S. Environmental Protection Agency (EPA) puts a limit on the use of oil-based chemicals in offshore drilling processes due to presence of high level of aromatic substitutes, which in turn increases demand for synthetic-base fluids. These are the major factors driving growth of the internal olefins market in the region.
- 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.