Poly alpha olefin is a type of synthetic chemical compound which is derived from alpha-olefin by polymerization technique.
Global poly alpha olefins market is likely to register strong growth owing to increasing demand for synthetic lubricants, industrial oils, greases, and hydraulic fluids. In addition, PAO offers advantages such as excellent thermal stability, good load carrying capacity, and wear & tear protection as compared to conventional lubricants, which is projected to propel PAO market growth over the forecast period. Also, ease handling and rising benefits of products are likely to contribute market growth. Moreover, growing automotive industry, increasing offshore drilling activities, development in manufacturing equipment, along with increasing purchasing power in the emerging economies are some factors that propel growth of poly alpha olefin market. Whereas, high cost of raw material and labor are some factors that may hamper growth of the market.
Global poly alpha olefin market is segmented into type, application, and region. On the basis of type, the target market segmented into low viscosity PAO, medium viscosity PAO, and others. Growing demand for low viscosity base oils is the major factor driving growth of global poly alpha olefin market. By application, the market segregated into automotive oils and industrial oils. Among these, the automobile segment is growing at a substantial value in global poly alpha olefin market, whereas industrial segment accounts for moderate revenue share over the forecast period.
Geographically, the market in Europe is expected to contribute major share in target market followed by North America and the Asia Pacific. This can be attributed to rising demand from the automotive sector. In addition, stringent regulations in Europe related to use of biodegradable oils under Blue Angel Scheme and White Swan Scheme, and other schemes which supports consumption of biodegradable oils and estimated to drive growth in the region. On the other hand, Asia Pacific is expected to register significant growth rate in the global poly alpha olefin market over the forecast period, owing to advancement in automotive sector across the region.
- By Type
- By Region
- By Application
New technologies and procedures are used for manufacturing poly alpha olefin. Extensive research and development activities related to alpha olefins manufacturing technologies adopted by major players operating in market, is in turn projected to fuel growth of the poly alpha olefin market over the forecast period.
Major players profiled in the report include ExxonMobil Chemical, INEOS Oligomers, Sasol Limited, Chemtura, Mitsui & Co., Ltd, Idemitsu Kosan, Chevron Phillips Chemical Company, SABIC, and Shenyang HCPAO
- In January 2019, Shell Chemical LP announced to construct fourth alpha olefin unit at its chemical manufacturing site in Geismar, Louisiana
- In December 2017, US-based INEOS Oligomers announced to build a new low viscosity Polyalphaolefin unit at its Bayou site in Texas
- In June 2017, US-based Chevron Phillips Chemical Company has successfully completed low-viscosity polyalphaolefins capacity expansion at its Cedar Bayou plant in Texas. The company has increased its capacity by 20% and focusing to meet rising demand for high-performance lubricants in automotive and industrial applications.