Light Olefins Market is all set to scale a USD 475.8 Million during the forecast period (2020-2023) with a moderate CAGR of 5.58%. Light olefins are a made by the hydrocracking process of hydrocarbons using high temperature. To make light olefins, manufacturers need naphtha, ethane, propane, butane, and biomass. The product is gaining much prominence as customers preference have substantially shifted towards plastic commodities over traditional components such as metal, wood, and others.
Conversion of light olefins market from methanol and increasing use of shale gas are major influencers. With zeolites, the process of extracting light olefins from methanol becomes easier. The process allows 100% conversion. The market is also expected to benefit from the increasing exploration of oil and gas exploration. Production of bio-fuel from bio-ethylene can provide much traction to the market as well. Especially at a time when ethylene is getting negative reviews for its toxicity. These bio-fuels would help manufacturers reduce the carbon emission considerably.
Notable players, as per the MRFR report, who are influencing the global Light Olefin Market are:
- Royal Dutch Shell (Netherlands),
- Petrochina (China),
- Reliance Industries Limited (India),
- China Petro & Chemical Corp (China),
- DowDuPont (U.S.),
- Exxon Mobil Corporation (U.S.),
- Gazprom (Russian Federation),
- Saudi Arabian Oil Co. (Saudi Arabia),
- BASF SE (Germany),
- Honeywell International Inc. (U.S.).
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In 2020, the U.S. Department of Energy (DOE) joined hands with Southern Research with an award plan for$1.5 million to initiate advance technology for carbon dioxide (CO2) utilization which can help in the catalytic process for conversion of CO2 and shale-derived ethane to ethylene. This will significantly promote olefin production.
MRFR, in their report on the light olefins market, segmented the market by product type, derivatives, and application.
Based on the product type, the light olefins market can be segmented into ethylene and propylene. The ethylene segment, as of 2016, had over 60% of the global market share with its worth touching USD 152.7 billion and the segment is expected to grow at a CAGR of 5.78% during the forecast period.
Based on the derivatives, the light olefins market comprises propylene oxide, polyethylene, acrylonitrile, cumene, polypropylene, oxo alcohols, acrylic acid, alpha olefins, ethylene oxide/ glycol, EDC/ VCM/ PVC, styrene, and acetate monomer. The polyethylene market showcased the maximum market control by taking over 37% of the global share.
Application-wise, the light olefins market can be segmented into chemical commodities and refinery. The chemical commodities segment had control over two-third of the market as of reports of 2016.
Geographically, MRFR in their report on the global light olefins market, included five regions, namely, Europe, North America, Latin America, Asia Pacific (APAC), and the Middle East and Africa (MEA).
The APAC market is all set to dominate the market in the coming years. The region, as per the studies of 2016, already took over 40% of the global share and with a CAGR 6.22%, this dominance is only going to get solidified. The regional market is receiving thrust from the demand for high performance and efficient automotive in countries such as India, Japan, and China. Availability of raw materials at a cheap price and easy production of biomass such as corn and sugarcane can increase the market volume substantially during the forecast period.
In 2016, North America ranked second in the global market and it is predicted to expand at 5.58% CAGR during the forecast period. Feedstock and high fuel production are also expected to boost the market in the coming years. Ethane’s affordable price during supply can trigger the market growth as well. The market is also relying much on the packaging industry and the innovations it is introducing.
Europe’s market is depending mostly on the biodegradable sources as stringent regulations in the region is are curbing the practice of toxic chemicals. Governments in the region are limiting carbon emission which is pushing manufacturers to adopt more bio-friendly materials.