Alpha Olefins Market Size, Share, Growth Analysis, By Product(1-Butene, 1-Hexene, 1-Octene, 1-Decene), By Application(Polyethylene, Detergent Alcohol, Synthetic Lubricant, Others), By Region - Industry Forecast 2024-2031

Drivers

Shale Gas to Bolster Demand for Alpha Olefins

• The discovery of shale gas is a significant contributor to market expansion. Ethylene, naphtha, butane, and natural gas are the primary sources of alpha olefins. The most commonly used production process for producing a full range of alpha olefins is ethylene oligomerization, whereas ethylene is primarily obtained from ethane, which is derived from natural gas. Because shale gas is rich in olefins, its recent discovery in several countries has resulted in an expansion of the olefin industry. The abundant supply of low-cost natural gas-based feedstock from North America's highly productive shale fuels the alpha olefins market. Because of the increased availability of ethane and propane feedstock from shale gas, nearly all of the major North American alpha olefin producers have announced capacity additions for ethylene/propylene or alpha olefins.

Restraints

Stringent Regulations to Hinder Market Growth

• Regulations on the use of polyethylene by the government is a restraint to alpha olefins market growth. Although polyethylene is widely used as a replacement for heavy metals and fibres in end-use industries, its non-degradability and negative environmental impact are significant issues. Government restrictions on polyethylene use reduce demand for alpha olefins, slowing market growth. California, for example, passed SB270 in July 2015, which prohibits the use of plastic bags in grocery stores, pharmacies, and other stores. According to the United Nations Environment Programme, Tanzania has banned the importation, manufacture, sale, and use of plastic bags in May 2019. (UNEP). Strict rules aimed at reducing the use of polyethylene have hampered the growth of alpha olefins.