Alpha Olefin Market Size, Share & Trends Analysis Report By Product (1-hexene, 1-octene, 1-butene), By Application (Polyethylene, Synthetic Lubricants), By Region, And Segment Forecasts, 2023 - 2030

Research Methodology

A three-pronged approach was followed for deducing the alpha olefin market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for alpha olefin market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of alpha olefin market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Alpha Olefin Market Categorization:

The alpha olefin market was categorized into three segments, namely product (1-butene, 1-hexene, 1-octene, 1-decene, 1-dodecene), application (Polyethylene, Detergent Alcohol, Synthetic Lubricants), and region (North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa). 

Segment Market Methodology:

The alpha olefin market was segmented into product, application, and region. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The alpha olefin market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into seven countries, namely, the U.S.; the UK; Germany; France; China; India; Japan.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Alpha olefin market companies & financials:

The alpha olefin market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• Chevron Phillips Chemical Company LLC - Chevron Phillips Chemical Company (CPCC) was jointly formed by Phillips Petroleum Company and Chevron Corporation. The company was founded in 2012 by joint chemical operations of both companies. CPCC is headquartered in the U.S. The company operates in over 35 research and manufacturing centers and as of 2013, has over 5,000 people employed worldwide. CPCC has production units majorly in Saudi Arabia, the U.S., China, Qatar, Singapore, South Korea, Belgium, and Colombia. The company offers a diversified product range including olefins, polyethylene, aromatics, drilling specialties, polyalphaolefins, K-Resin SBC, normal alpha olefins, performance pipe, and specialty chemicals.

• Dow Chemical Co. - Dow Chemical Co. is a multinational company established in 1897, headquartered in the U.S. Dow produces plastics, agriculture products, and chemicals in over 160 countries globally. Dow manufactures a variety of chemicals catering to many segments such as oil & gas, renewable energy, water, transportation, household, packaging, automotive, etc. Dow supplies products mostly to manufacturing industries rather than end-users. As of 2013, the company has a huge employee base of over 53,000 people worldwide.

• ExxonMobil - ExxonMobil, founded in November 1999, is an oil, gas, and petrochemical company. It is headquartered in the U.S. The company employs over 83,000 people worldwide as of 2014 and is engaged in manufacturing products such as polymers (polyethylene, polypropylene, butyl polymers, specialty elastomers, and tackifying resins) and chemicals & fluids (hydrocarbon & oxygenated fluids, plasticizers, synthetic fluids, and lubricant base stocks). ExxonMobil also manufactures various alpha olefins commonly used as comonomers in polyethylene production. Aera Energy, XTO Energy, SeaRiver Maritime, and Superior Oil Co. are some of the subsidiaries of ExxonMobil.

• Idemitsu Petrochemical Co. Ltd. - Idemitsu Petrochemical, founded in 1940 is a subsidiary of Idemitsu Kosan Co. Ltd. It is a petroleum refining and manufacturing company headquartered in Japan. The company caters to various markets such as lubricants, petrochemicals, refinery & plant, agri-bio, renewable energy, electronics materials, packing material, logistics, and plastics. As of 2014, the company employed over 8,749 employees. The company has its global offices in East Asia, South East Asia, Europe & Russia, North & South America, and Australia. It markets its fuel products through a global network of around 4,600 service stations. The company is actively involved in developing oil exploration and production along with coal and uranium extraction activities.

• INEOS Oligomers - INEOS Oligomers, a subsidiary of INEOS Group PLC, founded in 2006 is a specialty chemicals manufacturer of polyethylene, lubricants, fuel additives, surfactants, and other specialty materials for diverse applications. INEOS Oligomers product portfolio is classified into four groups, linear alpha olefins, polyalphaolefins, polybutene, and specialty oligomers. The company serves various market segments including automotive, cosmetics & pharmaceutical, coatings, adhesives, paint & ink, paper, chemical intermediates, and oilfield drilling. As of 2013, the company employed over 500 employees across five manufacturing facilities, each located in the U.S., Canada, Germany, Belgium, and France.

• Mitsubishi Chemical Corp. - Mitsubishi Chemical Corporation (MCC) was founded in 1994 and is headquartered in Japan. The company has production plants in Kurosaki, Yukkaichi, Mizushima, Sakaide, Kashima, and Tsukuba. MCC has 184 subsidiaries and affiliates worldwide, and major subsidiaries are in the U.S., Europe, China, Thailand, and Singapore. As of March 2015, MCC has over 27,000 employees including all subsidiaries. MCC creates products for applications in numerous end-use industries as acrylic acid derivatives, specialty chemicals, solvents, surfactants, petrochemical products, performance polymers, electronic chemicals, etc. Mitsubishi Pharma Corporation and Mitsubishi Chemical Corporation merged and established a holding company, Mitsubishi Chemical Holdings Corporation in 2005.

• Nizhnekamskneftekhim - Nizhnekamskneftekhim was founded in 1967 and is headquartered in Russia. The company is a part of TAIF Group and produces numerous products such as plastics, specialty synthetic rubber, and ethylene. In 2009, the company inaugurated a 230 KTA polyethylene production facility. The product portfolio consists of numerous products including specialty and general-purpose synthetic rubber; monomers as feedstock for the production of plastics and rubbers; plastics including polyethylene, polypropylene, and polystyrene; and other petrochemical products such as propylene oxide, alpha olefins, ethylene oxide, and surfactants.

• Qatar Chemical Company Ltd (Q-chem) - Qatar Chemical Company Ltd. (Q-chem) is a joint venture of Mesaieed Petrochemical Holding Company Q.S.C., Chevron Phillips Chemical International Qatar Holdings LLC, and Qatar Petroleum with a share of 49%, 49%, and 2%, respectively. The company started its commercial operations in 2004. The company manufactures medium- and high-density polyethylene, 1-hexene, and other products. Company production capacity includes 453 kilotons of polyethylene and 47 kilotons of 1-hexene per annum. Q-chem product portfolio includes polyethylene, 1-hexene, sulfur, and normal alpha olefins.

• Qatar Chemical Company II Ltd. - The outstanding performance of Q-chem evoked the founders to expand the capacity business by inaugurating another project named Qatar Chemical Company II Ltd. with an investment of USD 2 billion. The company is located adjacent to the previous company in the Mesaieed Industrial City, Qatar, and began its operations in 2010. Q-Chem II has an extended capacity to produce 350,000 metric tons per annum of High-Density Polyethylene (HDPE) and also introduced a new Normal Alpha Olefin unit with a capacity to produce 350,000 metric tons per annum. Q-Chem II is a joint venture of Mesaieed Petrochemical Holding Company Q.S.C. (49% share), Chevron Phillips Chemical International Qatar Holdings LLC (49% share), and Qatar Petroleum (2% share). Operations in the new facility have increased HDPE production capacity by 77% to meet rising global demands.

• Sasol Limited - Sasol Limited is a public limited company, established in 1950, headquartered in South Africa. Sasol develops technologies and operates worldwide to manufacture diverse products including high-value chemicals, liquid fuels, and low-carbon electricity. Sasol operates in over 37 countries with 33,000 employees across the world. In 1980, Sasol produced and sold its first chemical product, ammonia. Sasol has an integrated product line that manufactures over 200 chemical products worldwide.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Alpha Olefin Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Alpha Olefin Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.