13-Apr-2023 | Zion Market Research
The global olefins market size was worth around USD 240.1 Billion in 2022 and is predicted to grow to around USD 348 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.76% between 2023 and 2030.
Olefins are a group of unsaturated hydrocarbons containing at least one carbon-to-carbon double bond. They are widely used as building blocks for different types of chemical products like rubber, plastics, fibers, and solvents. It is used in industries like textiles, automotive, packaging, and construction. The sectors have a wide range of applications for olefins in various products, such as polyethylene, polypropylene, and polyvinyl chloride (PVC). These items have further applications in everyday items like plastic bags, pipes, water bottles, and cables.
The olefins industry is highly competitive since it is currently run by a growing number of players at domestic and international levels. Some other crucial but influential factors in the industry include fluctuations in crude oil prices. Companies are constantly investing in advanced research and development to enable them to improve their production processes and develop new products which has led to the market becoming highly competitive.
The global olefins market is projected to grow owing to the increasing popularity and demand for lightweight products. Olefins tend to have a high rate of strength-to-weight ratios. They are also lightweight. This has led to increased use of different types of olefins in various sectors, especially the ones that are aiming to reduce the overall weight of the final product. For instance, the demand for lightweight airplanes is causing more industry players to invest in olefin-derived products.
Similarly, the automotive industry is one of the largest consumers of the global industry. In addition to this, the production of olefins requires petroleum-based feedstocks as a main resource. The feedstock is made to undergo a process called steam cracking. This procedure is low in cost compared to other various petrochemical production processes. Hence the market is more attractive to new players in the petrochemical industry. The growing shift toward sustainable and renewable sources is another crucial factor for the market size as companies are now investing in finding out other renewable sources that can be used for the production of olefins.
The olefins industry faces growth restrictions owing to the fluctuating prices of crude oil. The industry is highly price-sensitive due to greater dependence on petroleum-based feedstocks. Any change in the price of crude oil directly impacts the profit rate of the businesses working in the sector. Furthermore, the growing competition from alternative materials like natural fibers and bioplastics which are gaining more attention as potential substitutes to olefins can lead to reduced demand in the industry. These materials are more cost-effective while offering comparable properties.
The increasing demand for renewable feedstock may provide excellent growth opportunities while the changing prices of feedstock could challenge market expansion.
The global olefins market is segmented based on product type, type, distribution channel, application, and region.
Based on product type, the global market divisions are olefin oxides, olefin glycols, ethylbenzene, polyolefins, and cumene.
Based on type, the global market divisions are ethylene, butadiene, propylene, butylene, and others. In 2022, the industry witnessed the highest growth in the ethylene segment since it is the most produced and consumed olefin globally. It accounts for more than 50% of the total global olefins production. It is used as a source for producing different chemicals, such as ethylene oxide, and ethylene dichloride which are further used in several applications like packaging, construction, and automotive. The second-most revenue-generating segment is the propylene segment as it accounts for nearly 30% of the global olefin production share.
Based on distribution channel, the global market is segmented into distributors and wholesale
Based on application, the global market divisions are synthetic lubricants, polyethylene, detergent alcohol, cosmetics, plasticizers, adhesives, and others. The market registered the highest growth in the polyethylene segment. It is a thermoplastic polymer that has the largest-scale applications across end-user verticals. It accounts for a major share of the industry due to high demand in the packaging, agriculture, construction, and healthcare sector. The second most revenue-generating segment is the synthetic lubricants segment. These are superiors in performance and in durability. The molecular formula for polyethylene is (C2H4)n
Asia-Pacific is expected to register the highest revenue-grossing regional market in the global olefins industry. This is mainly due to the high production rate of olefins in China, India, and other territories that are currently investing heavily in the regional petrochemical sector. Furthermore, China is expected to lead the regional expansion since it is pushing for its chemical industry to overtake the global chemical sector. Alongside, Asia-Pacific is fast emerging as a dominant territory in the automotive sector which may open doors for new growth opportunities for the market players.
In North America, the demand for polypropylene and polyethylene is increasing due to growing end-user applications, especially in the construction sector. The growing hale gas production has also boosted the olefins market in North America.
This review is based on a report by Zion Market Research, titled “Olefins Market By Product Type (Olefin Oxides, Olefin Glycols, Ethylbenzene, Polyolefins, and Cumene), By Type (Ethylene, Butadiene, Propylene, Butylene, Others), By Distribution Channel (Distributors and Wholesale), By Application (Synthetic Lubricants, Polyethylene, Detergent Alcohol, Cosmetics, Plasticizers, Adhesives, and Others), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2023 – 2030.”- Report at https://www.zionmarketresearch.com/report/olefins-market
The global olefins market is expected to lead by players like:
By Product Type
By Distribution Channel
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