The demand for specialty chemicals has been increasing at a rapid pace in industries, owing to swift industrialization in developing countries and rising population across the globe. Specialty chemicals such as plasticizers, lubricants, plastomers, oilfield chemicals, and surfactants are used extensively in a number of industries, including, food & beverages, paints & coatings, automotive & aerospace, agriculture, and textiles. These chemicals are basically used for enhancing the performance of other products and therefore are also called performance chemicals.
The growth of end-use industries is driving the demand for specialty chemicals as well, which, in turn, is leading to the growth of the alpha olefins. These compounds are utilized widely in the production various specialty chemicals. For example, poly-alpha-olefin-based lubricants provide higher viscosity index and greater oxidative stability, in comparison to mineral oils. Such benefits are leading to increased applications of alpha olefins in the production lubricants.
Owing to all these factors, the global alpha olefins market is predicted to generate a revenue of $15,846.5 million by 2023, increasing from $11,704.2 million in 2017, progressing at a 5.4% CAGR during the forecast period, as per a report by P&S Intelligence. Different types of alpha olefins are 1-dodecene, 1-decene, 1-octene, 1-hexene, and 1-butene, among which, the demand for 1-hexene has been the highest up till now. This compound is used for producing several products, including hexyl mercaptans, oxo alcohols, and synthetic fatty acids.
1-hexene is also primarily utilized in the production of polypropylene and polyethylene, which are basically the building blocks of the petrochemical industry. The compound is further being used for producing plastic resin, which is then used in a number of industries, such as food and beverages. The major applications of alpha olefins are oilfield chemicals, plasticizers, petroleum additives, synthetic lubricants, surfactants & intermediates, and polyolefin comonomers. Some other applications of these compounds are producing paper-sizing chemicals, property-enhancement of waxes, and synthetic acids.
Among all these, the demand for alpha olefins has been the highest for polyolefin comonomer applications. Polyolefin comonomers are being used in a number of industries, such as construction, automotive, and plastics, all across the globe. The demand for alpha olefins is further predicted to be considerable high for this application in the years the years to come, owing to the rising utilization of polyethylene, which is a type of polyolefin. The use of polyethylene in various industries, including cables and packaging is leading to the growth of the market.
Geographically, North America emerged as the largest alpha olefins market in 2017, owing to the increasing consumption of plastics and rising production capacity of the compound in the region. Alpha olefins are the major raw materials that are used for the production of polyethylene, which is the plastic resin that is used most widely. In addition to this, major manufacturing facilities of various key players are present in the region, thereby leading to the growth of the regional market.
In conclusion, the market is growing due to the increasing demand for specialty chemicals in industries.
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