Light olefin market Market Size

Global Light Olefins Market Overview

The light olefins market is expected to generate a revenue of more USD 475.8 million by the end of the forecast. The global light olefins market is expected to register a CAGR of 5.58% by the forecast year 2030. When hydrocarbons are heated under high temperature by the method called hydrocracking, Light olefins are produced. The production of light olefins includes various raw materials like ethane, naphtha, propane, biomass, and butane. Light olefins are of different variants like oil (extracted from naphtha), gas (extracted from propane, ethane, and butane), natural gas (extracted from biomass).

Polycarbonates are other types of light olefins extracted using an energy-intensive process from ethylene. These polycarbonates further produced nitrogen dioxide, coke, and carbon dioxide which give rise to an increase in demand for green tires to control pollution. Green tires are made from the extraction of bio-butadiene which gives rise to synthetic rubber. This extraction also helps in making green tire coatings and other automotive accessories. Bisphenol-A is also used to derive polycarbonates give a rise to light olefins in the automotive industry.

A global shift from traditional substances like metal, wood, and concrete has given rise to light olefins because of the reduced value of raw materials and cost of production.COVID-19 Analysis:

The COVID-19 pandemic affected the world socially, politically, and economically. It shook the dynamics of the world. We saw a great loss of human life. The world was not prepared for the threat at hand. Work from home culture grew drastically because industries were shut to contain the spread of the virus. Lockdowns were imposed to minimize social gatherings and make places lesser on containment areas.

Many industries saw a downward trend due to less manpower. The Light olefins sector registered a slump growth due to decreased demand for manufacturing new products. The virus that spread from a flea market in Wuhan, China turned the world on its pivot. With an escalation in the cases of COVID-19 virus affected people there occurred an imbalance in the market dynamics of the Light olefins industry. Seeing the current scenario, the fruit pectin industry is expected to regain its market value owing to an increase in demand for the chemical. Let us hope that the measures taken will be able to combat the adverse effect of the pandemic from this market.

In 2018, Mitsui Chemicals, Inc. made the decision to establish a new MILASTOMERTM thermoplastic olefin elastomer production facility at its Advanced Composites, Inc. U.S. subsidiary's Ohio plant. Olefin rubber and olefin resin are the main components of MILASTOMERTM thermoplastic olefin elastomer. Mitsui Chemicals sells the soft resin all over the world as an alternative to vulcanized rubber and vinyl chloride because of its low density, light weight, and exceptional moldability. MILASTOMERTM has numerous applications, including as golf club grips, gaskets for buildings, vehicle parts, and toothbrushes. The need for products like steering bellows, weather strips, air bag covers, and car interior covers is expected to increase globally. It is anticipated that demand for automobile interior covers would rise, particularly in North America.

Market Dynamics:

Drivers:

- Polycarbonates which are further produced nitrogen dioxide, coke, and carbon dioxide which have given the rise to an increase in demand for green tires to control pollution are dominating the market.

- Rise in demand for synthetic rubber to produce green tires and their coating.

- A global shift from traditional substances like metal, plastic goods, wood, and concrete has given rise to light olefins because of the reduced value of raw materials and cost of production.

- Using methanol to extract light olefins.

- Shale gas is a substitution of oil, biofuel is a substitution of petrol and diesel, and zeolites used to methanol into light olefins are marketing the growth of the light olefins industry.

- Exploration of gas and oil reserves because of the government's initiative to switch to eco-friendly products.

- Increase in demand for products that help in the reduction of gases like nitrogen dioxide, coke, and carbon dioxide.

- Production of bio-ethylene from corn and sugarcane.

- Easy availability of raw materials.

- Cost-effective values while extracting light olefins from raw materials.

- An increasing rise of the interest of investors to invest in light olefins manufacturing industries.

Challenges:

- Use of toxic ethylene has harmful, hazardous environmental effects on wildlife and human life.

- Environmental protection laws by the government.

- High price of feedstock.

Technology Analysis:

When hydrocarbons are heated under high temperature by the method called hydrocracking, Light olefins are produced. The production of light olefins includes various raw materials like ethane, naphtha, propane, biomass, and butane. Polycarbonates are another type of light olefins extracted using an energy-intensive process from ethylene. These polycarbonates further produce nitrogen dioxide, coke, and carbon dioxide which give rise to an increase in demand od green tires to control pollution.

Green tires are made from the extraction of bio-butadiene which gives rise to synthetic rubber. This extraction also helps in making green tire coatings and other automotive accessories. Bisphenol-A is also used to derive polycarbonates give a rise to light olefins in the automotive industry.

A global shift from traditional substances like metal, wood, and concrete has given rise to light olefins because of the reduced value of raw materials and cost of production. Shale gas is a substitution of oil, biofuel is a substitution of petrol and diesel, and zeolites used to methanol into light olefins are marketing the growth of the light olefins industry. Light olefins are of different variants like oil (extracted from naphtha), gas (extracted from propane, ethane, and butane), natural gas (extracted from biomass). Light olefins are seeing an upward trend in the forthcoming years.

Study Objectives:

The study objectives of the Light Olefins Market are:

- Regional prevalence, Regional Competitors, and Regional analysis

- An estimate on market share, CAGR, revenue, market volume, and market value.

- The demand and supply as per customer's request.

- Factors driving the market, challenges faced, and Strategic recommendations.

- Various technologies are involved in light olefin extraction.

- Detailed strategies, common trends, and recent developments.

Segment Overview:

By Product Type:

The light olefins market is segmented by product type as propylene, Butadiene, ethylene, Butylene, and others.

By Derivatives:

The light olefins market is segmented by derivatives as propylene oxide, cumene, acetate monomer, oxo alcohols, ethylene oxide, EDC/ VCM/ PVC, alpha-olefins, polypropylene, acrylonitrile, acrylic acid, polyethylene, glycol, and styrene.

By Application:

The light olefins market is segmented by application as refinery and chemical commodities.

By Distribution Channel:

The light olefins market is segmented by distribution channels as Distributors and Wholesaler.

Regional Analysis:

The light olefins market is segmented by region as:

- North America (the US and Canada)

- Europe (U.K, France, Italy, Germany, Russia, Spain, and Rest of Europe)

- Asia Pacific (India, China, Japan, and Rest of Asia Pacific)

- Latin America (Argentina, Mexico, Brazil, and the Rest of Latin America)

- The Middle East

- Africa

- Turkey

- Iran

Asia-Pacific is the market-dominant of the global light olefins market. This is because of the thriving e-commerce in the emerging economies of countries like China, Japan, and India. Increase in supply and delivery services of online food and beverage packaging services to secure the products.

North America and Europe have also seen an upward trend in the light olefins market due to rapid technological advancements, increase in consumers interests, changing market dynamics, high penetration of electronics, increased use of synthetic fibers in green tires manufacturing, and government's initiate to control pollution from hazardous waste disposal.

Competitive Landscape:

The competitive analysis of the global light olefins market identifies a report cumulated, studied, and compiled using knowledge of industry's expert about strategic alliances, collaborations, comprehensive report, market's microscopic look, footprints of the manufacturers, global revenue, and the global price of raw materials and how it affects the market.

The prominent market players of the global light olefins market are Royal Dutch Shell (Netherlands), Reliance Industries Limited (India), Honeywell International Inc. (U.S.), DowDuPont (U.S.), Gazprom (Russian Federation), BASF SE (Germany), PetroChina (China), China Petro & Chemical Corp (China), Exxon Mobil Corporation (U.S.), and Saudi Arabian Oil Co. (Saudi Arabia).

Recent Developments:

August 2021- Lummus Technology has disclosed that the start-up of company’s CDAlky alkylation unit located at Zhejiang Petroleum & Chemical Co. Ltd's refinery in Zhejiang Province, China. The latest facility will have a capacity of over 45 000 bpsd of alkylate product, resulting it to be the largest alkylation unit across the globe certified by Lummus.The latest alkylation unit deals with C4s from upstream refining and petrochemical units, causing an extremely high isobutylene concentration in the net olefins mixture while manufacturing a greater alkylate quality.

October 2021- Siemens Energy and Technip Energies have announced the signing of an exclusive contract to collaboratively build, commercialize, and license the Rotating Olefins Cracker (ROC) technology to make the olefin production process carbon-free. The ROC technology uses a dynamic reactor system, which replaces traditional furnaces used for pyrolysis while producing light olefins- the raw material for chemical products used in everyday materials.

November 2021- The Board of Reliance Industries Ltd (RIL) has planned to deploy a Scheme of Arrangement to turn over Gasification Enterprise into a Wholly Owned Subsidiary (WOS). The Jamnagar Gasification project was established to manufacture syngas to fulfill the needs as refinery off-gases that catered as fuel in the past were redesigned into feedstock for the Refinery Off Gas Cracker (ROGC). The company stated that this deployment allows olefins manufacturing at competitive capital and operating costs. The statement further revealed that Syngas as a fuel guarantees supply reliability and aid lower volatility in the energy costs.

In 2018, Exxon Mobil collaborated with Saudi Basic Industries Corporation (SABIC) to build the world’s largest plant for ethylene production. This collaboration was more than 1.4 billion US dollars of worth.

In June 2018, a Cumene unit was built in Germany by a leading light olefin market player i.e. INEOS Phenol (UK) to maintain continuity between customer's demand and supply. This construction helped the company's plants in Gladbeck and Antwerp to improve the security of this supply and demand by the year 2020.

Report Overview:

The global Light Olefins Market research report identifies the following points:

- Regional prevalence, Regional Competitors, country-wise statistics, top industry players, and Regional analysis. This report will help you in understanding the future growth and development that is going to take place in this market.

- An estimate on market share, CAGR, revenue, market volume, Pricing Strategy, and market value.

- Market segmentation.

- The demand and supply as per customer's request.

- Factors driving the market, challenges faced by the market, new entrants in the raw materials, and strategic recommendations.

- Various technologies are involved in light olefin extraction.

- Detailed strategies, common trends, Competitive landscape, and recent developments.

- Financials based on historical and current data.