The global internal olefins market size was valued at USD 2.1 billion in 2023 and is projected to reach USD 3 billion by 2032, registering a CAGR of 4.6% during the forecast period (2024-2032). The market has experienced growth because of the expanding automotive sector, which has led to a higher need for engines for regular maintenance and servicing of cars. Additionally, the automotive industry has seen a rise in demand for lubricants.
Internal olefins are valuable compounds synthesized through the process of dehydrochlorination or chlorination of linear paraffin. It finds utility in many applications, such as lubricants, oil drilling, surfactants, and agrochemicals. Internal olefins are highly useful intermediates in producing linear alkylbenzenes and oxo alcohols. Additionally, it is employed in drilling mud and paper sizing processes and as a lubricant in oil-based applications.
It is primarily utilized in engine oil and industrial lubricant applications to inhibit oil thickening and reduce sludge formation, enhancing the longevity and performance of cars and machines. In addition, the increasing global need for environmentally friendly and purified industrial fluids and the widespread usage of internal olefins in oil drilling and related operations are expected to contribute to market growth. This is due to the expanding global demand for crude oil and its byproducts. Moreover, the increasing pace of urbanization and industrialization, the expanding ownership of vehicles, and a trend towards opulent lifestyles would expedite the need for the global internal olefins market.
Highlights
The increasing use of agrochemicals, including herbicides, insecticides, and fungicides, in modern agriculture methods is a significant factor driving the internal olefin market. Agrochemicals employ internal olefins to manage pests and illnesses, improving crop yields effectively. Agrochemical goods from India are extensively exported to industrialized countries, with the USA and Brazil accounting for over 50% of the USD 5.3 billion agrochemical market in 2023.
In addition, the growth of the agriculture industry, especially in developing countries, also increases the need for internal olefins. Countries such as India, China, Brazil, and others are experiencing swift growth in agriculture due to increasing disposable income, urbanization, and government efforts to enhance agricultural output. Furthermore, the progress of farming methods and technology is improving the requirement for inventive agrochemical compositions, consequently boosting the demand for internal olefins.
The expansion of the automotive sector is expected to drive the advancement of the internal olefin market. According to OICA, in 2022, North America manufactured 14.8 million automobiles, which accounted for 17.4% of the global total. By the conclusion of 2023, around 18.6% of the worldwide output will be accounted for, with the United States and Mexico being among the top ten producers globally. With the increasing global demand for automobiles, especially in emerging nations, there is a proportional rise in the requirement for internal olefins. These compounds produce many automotive components, including plastics, lubricants, and fuels.
Moreover, the inclination towards reducing the weight of automobiles to enhance fuel economy also stimulates the need for internal olefins, as they are utilized in manufacturing lightweight substances such as polyethylene and polypropylene. In 2023, the automotive sector in the United States sold around 15.5 million units of light vehicles. This data includes the total number of passenger vehicles sold, which amounts to approximately 3.12 million, and the sales of light trucks, a little below 12.4 million. Furthermore, the industry is strengthened by the progress made in electric car technology, which continues to depend on plastics and other materials derived from olefins. Given the continuous growth of the automotive sector, it is anticipated that the internal olefin market will see substantial expansion in the upcoming years.
The volatile prices of ethylene can pose difficulties for the internal olefins market. Ethylene is the most extensively manufactured petrochemical globally in terms of volume. Recently, there has been a rise in environmental concerns, which has led to a greater focus on finding alternate methods for producing ethylene, a substance often sourced from petroleum. One particular method of interest is the dehydration of ethanol derived from biological sources. Due to the wide variety of derivative products, the demand for Ethylene is highly responsive to changes in economic cycles. Ethylene production's economics primarily rely on the prices of feedstocks and co-products, particularly propylene. Generally, heavier feeds increase production costs and require more significant capital investment.
Additionally, the price fluctuations of ethylene, a crucial raw material for the production of internal olefins, can directly impact the cost structure and profitability of manufacturers of internal olefins. In the fourth quarter of 2023, the Chinese market steadily rose in ethylene prices, increasing from approximately USD 840 per metric ton in October to USD 869 per ton in December. This was a result of heightened demand from the polyethylene and ethanol sectors. Conversely, the Indian market experienced a rapid price decline over the same timeframe due to an excess supply of ethylene stockpiles. Uncertainty in pricing and supply chain management of internal olefins can hurt manufacturers and consumers, impeding the worldwide market.
Between 2019 and 2023, the expansion of renewable energy surpassed that of fossil fuels by a factor of two. The recent analysis conducted by the IEA reveals that the implementation of renewable energy technology over the last five years has effectively curbed the rise in demand for fossil fuels. This presents a favorable chance to embrace cleaner and more environmentally friendly alternatives. Growing awareness and legislative mandates about environmental sustainability drive the rising demand for environmentally friendly industrial fluids. Global governments are enacting strict restrictions to decrease carbon emissions and encourage the adoption of environmentally friendly products. Consequently, enterprises are constantly searching for solutions that reduce their impact on the environment while still preserving operational efficiency.
In addition, internal olefins produced by removing hydrogen chloride from linear paraffins are becoming increasingly popular as sustainable substitutes for conventional industrial fluids because of their exceptional environmental profile and performance attributes. Internal olefins have numerous benefits compared to traditional fluids. These materials have outstanding resistance to changes in temperature, lack of reactivity with other substances, and capacity to break down naturally, which makes them very suitable for various uses such as metalworking fluids, lubricants, and hydraulic fluids. Moreover, their exceptional capacity to dissolve substances and minimal harmfulness further augment their appropriateness for industrial applications.
Furthermore, the increasing focus on corporate sustainability programs and green procurement practices is compelling organizations to implement more environmentally conscious solutions across their supply chains. The growing emphasis on sustainability is predicted to enhance the market for internal olefins as organizations strive to conform to consumer tastes and regulatory mandates. Ultimately, the increasing worldwide need for environmentally friendly and less polluting industrial fluids will drive the internal olefin market ahead, presenting prospects for advancement, expansion, and ecological responsibility in diverse sectors.
Polyalphaolefins (PAOs) have rapidly gained popularity as high-performance lubricants due to their advantageous characteristics, including high viscosity index, thermal stability, oxidative stability, compatibility with mineral oil, and low toxicity. PAOs offer technological advantages while simultaneously safeguarding environmental quality in some delicate applications. PAO-based synthetic lubricants provide enhanced performance in offshore drilling applications while addressing ecological considerations.
Moreover, due to the biodegradability of certain PAOs, they can serve as substitutes for oils derived from vegetables. PAO-based synthetic lubricants effectively mitigate drilling-related performance problems. The strong demand for polyalphaolefin (PAO)--based synthetic lubricants significantly expands the total olefin market
| Study Period | 2020-2032 | CAGR | 4.6% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 2.1 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 3 billion |
| Largest Market | North America | Fastest Growing Market | Asia-Pacific |
The global internal olefins market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.
North America is the most significant global internal olefins market shareholder and is estimated to grow at a CAGR of 4.5% over the forecast period. Internal olefins are extensively employed in many industries throughout North America, with their uses ranging from plastics to lubricants. Internal olefins are widely utilized in the production of polyethylene, a versatile polymer employed in various sectors such as packaging, building, and automotive industries. The American Chemistry Council (ACC) reports that the polyethylene market in North America had strong growth. This was due to growing demand for different types of polyethylene, which increased production capacity. Many of these expansions were driven by using internal olefins as feedstocks.
Moreover, internal olefins produce specialized chemicals, such as corrosion inhibitors, plasticizers, and additives for coatings and adhesives. Due to their distinctive chemical qualities, they are highly sought-after ingredients in formulations designed to improve the performance and functionality of final products in various industries throughout North America.
Asia-Pacific is anticipated to exhibit a CAGR of 4.9% over the forecast period. The extent of China's internal olefins market is experiencing substantial growth due to the expanding automotive industry. The increase in the use of agrochemicals in the agriculture business, driven by concerns about food safety and the growing awareness among consumers about healthy lifestyles and high-quality personal care products, will lead to a higher demand for these products in the region.
Various significant factors impact the European internal olefin market. Environmental protection policies, such as REACH laws, influence the production and utilization of internal olefins. REACH incorporates a limitation procedure for compounds deemed to have an unacceptable impact on human health or the environment, known as substances of very high concern. If necessary, such chemicals may be subject to limitations or even prohibition. Adhering to these restrictions frequently necessitates investments in more environmentally friendly technologies, which impacts the market dynamics.
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The global internal olefins market is segmented based on technology and application.
The market is segmented by technology into Paraffin Dehydrogenation and Isomerization and Disproportionation.
The paraffin dehydrogenation segment is expected to hold a significant market share. Paraffin dehydrogenation has various advantages for the synthesis of internal olefins. Internal olefins are essential chemical intermediates utilized in the manufacturing of a broad category of products, including surfactants, lubricants, and specialty chemicals. Furthermore, this procedure offers a pathway to obtain internal olefins, which are often more challenging to acquire than terminal olefins. In addition, paraffin dehydrogenation can be conducted by catalytic procedures, which are frequently more ecologically sustainable and economically advantageous than alternative techniques. These advantages contribute to the expansion of the segment.
The isomerization and Disproportionation segment is the second largest. These techniques transform straight-chain olefins into useful internal olefins, hence broadening the selection of chemical raw materials. Isomerization and disproportionation reactions commonly occur at low temperatures and pressures, decreasing energy usage and lowering manufacturing expenses. In addition, these methods allow for the use of inexpensive raw materials, such as refinery streams or by-products, which helps improve the overall efficiency and sustainability of the process.
Based on application, the internal olefins market is segmented into Oil Drilling, Surfactants, Lubricants, Agrochemicals, and Pharmaceuticals.
The oil drilling segment will have a dominant market share in 2023. The stability at elevated temperatures, lubricating properties, and stability during drilling may be potential contributory factors. Due to its lower toxicity, it offers efficient drilling operations. This is anticipated to enhance this particular sector.
Internal olefins demand from lubricant applications exhibit significant growth. Synthetic lubricants incorporate additives due to their exceptional attributes, including thermal stability, hydrolytic stability, solvency, lubricity, and biodegradability. It is commonly utilized in engine oil and industrial lubricant applications because it reduces sludge formation and prevents oil thickening, enhancing the longevity and performance of cars and machinery. The internal olefins market size will be stimulated by favorable laws, such as eco-label status for synthetic lubricants and their increasing use in industrial applications due to their significant advantages over conventional lubricants.
Internal olefins from surfactant applications also exhibit significant growth. The growing demand for personal care products and specialized chemicals will drive the surfactants market size. The substance is used in various detergents and surfactants, such as shampoos, light and heavy-duty liquid detergents, dishwashing solutions, and liquid hand soaps. Internal olefins exhibit lower toxicity and undergo rapid biodegradation, resulting in surfactants devoid of sensitizers and skin irritants. The shift in consumer preference towards higher quality and branded personal care products and the growing demand for detergents in domestic and industrial applications is expected to impact the market favorably.
