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Poly Alpha Olefin (PAO) Market By End-User (Industrial, Automobile) By Application (Lubricants, Industrial Oils, Hydraulic Fluids, Greases, Compressor Oil, Engine Oil,Gear Oil, Others) - Growth, Future Prospects & Competitive Analysis, 2016 – 2028

About this report

The global poly alpha olefin (PAO) market report explores the critical analysis of the poly alpha olefin (PAO) industry using key parameters. The report consists of investment strategies, the need for investments in the poly alpha olefin (PAO) industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the global technical regulations for the poly alpha olefin (PAO) industry, as well as how economic and non-economic barriers are helping the poly alpha olefin (PAO) market grow. Moreover, the report analyzes the global, regional, and country-level historic and forecasted market size. The report also provides a comprehensive analysis of key investment propositions, demand and supply gap, competitors positioning, STAR analysis, SRC analysis, and Tornado analysis. Key technological developments and other analyses such as porter's five forces analysis, PESTEL analysis, value chain analysis, etc.

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Key Highlights of the report

How are the major segments performing in the Poly Alpha Olefin (PAO) Market?

In 2021, the automobile will be the leading segment in the end user. Fuel efficiency and emissions reduction are top priorities for the automobile industry, which is achieved by using high-quality base stocks, such as PAO, in lubricant formulations. Ultimately driving the demand for the PAO.

In 2021, the engine oil category led the poly alpha olefin industry as a whole, and this trend is anticipated to remain for the entire projection period. Major factors contributing to the market's growth include the surge in industrialization, especially in developing nations. 

Which region dominated the Poly Alpha Olefin (PAO) Market?

In 2021, Europe was one of the major contributors to the global poly alpha olefin (PAO) market. Due to the relatively high share of revenue in the automobile industry and the presence of major companies in the area. As a result of both the fierce upstream natural gas market and low crude oil inventories, North America's poly alpha olefin market was extremely pressured, leading the manufacturers to maintain higher contracts.

What is the competitive environment of the Poly Alpha Olefin (PAO) Market?

A deal signed between Baltic Chemical Plant LLC and Axens will provide alpha-olefin production technology for an ethane-containing gas processing complex in the Leningrad Region. In addition to producing high purity 1-butene, Axens will also provide high purity 1-hexene with its AlphaButol technology. Also, A three-unit production agreement was signed between INEOS and Saudi Aramco and Total in the Middle East. Synthetic lubricants, carbon fiber and engineering polymers will be produced at these plants.

Executive Summary

What are technical developments being developed in the Poly Alpha Olefin (PAO) Industry Market?

A variety of technologies and procedures are used to manufacture poly alpha-olefin. These technologies have been patented by a number of key players in the market. Over the forecast period, extensive research has been conducted on alpha olefin manufacturing technologies, which will fuel the growth of the poly alpha olefin industry.

Which are the key investments by the players in the Poly Alpha Olefin (PAO) Industry Market?

Chemical companies are actively acquiring, expanding their capacities, establishing partnerships, and developing new products to enhance their geographical presence while gaining a competitive edge through inorganic marketing. For instance, it was announced in June 2019 that INEOS and Saudi Aramco had signed an MoU to construct a 400,000-tonne LAO (linear alpha olefin) plant in Saudi Arabia and an associated PAO (poly alpha olefin) facility on a global scale. Furthermore, in September 2020, Axens signed an agreement with Baltic Chemical Plant LLC to supply its alpha-olefins production technology to support a complex gas-chemical construction project along the Gulf of Finland. A $156-billion effort by the German government to fight COVID-19-related economic damage includes plans for tripling purchase incentives for EV batteries. It is anticipated that the Tesla Gigafactory in Berlin will assist Germany's electric vehicle industry to grow in the coming years while also benefiting the country's poly alpha olefins industry.

Some of the major players in the market are Shell Chemical Ltd., Mitsui Chemicals, Inc., Idemitsu Kosan Co., Ltd., Lubricon Industries, Shanghai Fox Chemical Technology Co., Ltd., NACO Corporation, Chemtura Corporation, INEOS Oligomers, Tulstar Products, Inc, ExxonMobil, and Chevron Phillips Chemical Company LLC.

What are the Major Driving Factors for the Poly Alpha Olefin (PAO) Market?

The automobile will likely lead to an acceleration in market growth. As the automobile industry strives to improve fuel efficiency and reduce emissions, high-quality basic stocks such as poly alpha olefin (PAO) are increasingly used in automobile lubricant formulations. As air pollution levels rise in response to pollutants released from fuel combustion, an effective solution is in high demand, stimulating the market. 

What are the Major Risks for the Poly Alpha Olefin (PAO) Market?

Global poly alpha olefin (PAO) market growth has been restricted by the growing number of automobiles contributing to rising greenhouse gas emissions. The price volatility of essential raw materials is expected to remain a major challenge for the industry.

Which is the key Application in the Poly Alpha Olefin (PAO) Market

The engine oil sector dominated the poly alpha olefin (PAO) market in 2021. At high temperatures, it resists oil consumption, viscosity breakdown, sludging, and oxidation, while at low temperatures, it is used to lubricate at both ends of the temperature spectrum. A higher degree of hydrolytic stability and demulsibility, a higher viscosity index (VI), and a lower pour point will all contribute to the rapid growth of gear oil over the projection period. In addition to lower CO2 emissions, the growing demand for better-performing engine oils and lubricants for industrial equipment is driving the market's growth. It is increasingly important in automobile lubricant formulations to use high-quality base stocks, such as PAO, to improve fuel efficiency and reduce emissions. Automotive lubricants play a crucial role in the manufacturing of automobiles since they are extensively used in engines and other automotive components. Lubricants are also used in hybrid electric vehicles to prevent copper corrosion of electrical components. For managing thermal characteristics in electric vehicles, PAO-based synthetic lubricants are utilized. In addition to improving oxidative stability, PAO-based synthetic lubricants enable longer product life, drain intervals, and desirable electrical conditions over the lubricant's lifetime.

How is the Poly Alpha Olefin (PAO) Market performing in regions?

In 2021, the global Poly Alpha Olefin (PAO) market was dominated by Europe. Poly alpha olefins are in high demand across Europe because of the rapid growth of the industrial sector, which has accelerated urbanization in Europe. Residents are choosing more customized smart homes to improve their quality of life. The German market is particularly important for poly alpha olefins as manufacturers seek to build lighter, more fuel-efficient vehicles. Poly alpha olefins also play a fundamental role in electric vehicle components. With its high demand for passenger cars, high technological advancements, automobile industry, and presence of major players across regions, Western Europe leads the global poly alpha olefin (PAO) market.

Besides, The IoT market in the North American region is anticipated to grow fastest. It is particularly beneficial to petrochemical producers in the U.S. due to the boom in shale gas production, which will impact ethylene production, an essential raw material for PAO production. Shale gas production, which impacts ethylene production, an essential raw material for PAO production, is particularly beneficial to petrochemical producers in the U.S.

What is the regulatory landscape for the Poly Alpha Olefin (PAO) Market?

As a result of the container crisis at ports and restrictions imposed by the Chinese government in compliance with its zero-covid policy, Polyalpholefin consignments were delayed in reaching the Chinese downstream market in December, causing prices to settle around USD 3,683/MT. 

What is the Market Size of the Poly Alpha Olefin (PAO) regarding value?

The global poly alpha olefin (PAO) market is anticipated to grow at a substantial CAGR of 4.70% in the upcoming years. The global poly alpha olefin (PAO) industry was estimated to be worth USD 1,198.3 million in 2021 and was expected to be worth USD 1,578.5 million by 2028.

What major players are planning for the future of the Poly Alpha Olefin (PAO) Market?

In order to achieve a competitive edge, these chemical entities are actively investing, acquiring, expanding capacity, forming partnerships, and developing new products and differentials. It was announced in June 2019 that INEOS and Saudi Aramco had signed an MoU to construct a 400,000-tonne LAO (linear alpha olefin) plant in Saudi Arabia and an associated PAO (poly alpha olefin) facility on a global scale.

Segmentation of Global Poly Alpha Olefin (PAO) Market-

Global Poly Alpha Olefin (PAO) Market – By End-User

  • Industrial
  • Automobile

Global Poly Alpha Olefin (PAO) Market – By Application

  • Lubricants
  • Industrial Oils
  • Hydraulic Fluids
  • Greases
  • Compressor Oil
  • Engine Oil
  • Gear Oil
  • Others (Liquid Chillers)

Global Poly Alpha Olefin (PAO) Market – By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East and Africa

Frequently asked questions about the global poly alpha olefin (PAO) market

The poly alpha olefin (PAO) market also suffered from the COVID-19 pandemic, which resulted in a decline in revenue generated in 2020. As evidenced by the increase in crude oil and petroleum products following the removal of restrictions, the ongoing COVID-19 pandemic negatively impacts poly alpha olefin prices.

Europe accounted for the highest share in the Poly Alpha Olefin (PAO) Market. A major regulatory framework that supports biodegradable base oils in Europe is the Blue Angel Scheme and the White Swan Scheme.

The growth is primarily driven by expanding automotive industry and rising offshore drilling activity, an increasing economy, a growing population and employment, rising disposable incomes, and rapid urbanization and industrialization.

Automobile had a major share in 2021. Besides, it is also projected to witness the fastest growth. Fuel efficiency and emissions reduction are top priorities for the automobile industry, which is achieved by using high-quality base stocks, such as PAO, in lubricant formulations. Ultimately driving the demand for the PAO.

The engine oil had a major share in the global market in 2021 and is projected to continue its dominance over the forecast period. Major factors contributing to the market's growth include the surge in industrialization, especially in developing nations.

Poly Alpha Olefin (PAO) Market Scope

Report Attribute Details
Market Value in 2021 USD 1,198.3 million
Market Value in 2028 USD 1,578.5 million
CAGR 4.70%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Trusted By
Godaddy
Published Date:  Jun 2016
Category:  Chemicals
Report ID:   57957
Report Format:   PDF
Pages:   120
Rating:    4.3 (60)
Delivery Time: 24 Hours to 48 Hours   
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