The U.S Olefins Market is segmented by type, feedstock, product and end user. The market consists of ethylene and propylene products. Among these, ethylene market is anticipated to rise at a CAGR of 4.3% between 2018 and 2023. Among the different feedstock used for the production of olefins, ethane accounted for 21.55 MMTPA in 2017 and is expected to rise at a CAGR of 5.6% during 2018-2023. The use of ethane reduces the production cost significantly and thus the demand is increasing rapidly. The demand for olefins will continue rising during the forecast period as it is widely used in construction, polyester fibers, and packaging of consumer products.
What are Olefins?
Olefins are also known as alkenes which are made up of hydrogen and carbon that contains one or more pairs of carbon atoms linked by a double bond. Ethylene occurs naturally in the environment and is produced by plants of all types. Olefins are class of compounds which include ethylene, propylene and butadiene. The production of olefin is mainly dependent on natural gas processing products or crude oil fractions. Ethylene is produced from various feed stocks such as crude oil condensates, natural gas, ethane, butane, propane and others. The current technology used for the olefin production is steam cracking. Ethylene is the largest volume olefin produced in the U.S. and globally.
What are the applications of Olefins?
Olefins are used in various industries such as polymer, building and construction, food, manufacturing, textile and automotive. Polymers of ethylene are used to manufacture fibers, bins, pails, crates, bottles, piping, food packaging films, trash liners, bags, wire and cable sheathing, insulation, surface coatings for paper and cardboard and wide variety of other products. In building and construction, olefins are used in tile and flooring. Ethylene is also used to manufacture other chemicals that are used as antifreeze, solvents, surfactants, detergents, and polyglycols. Olefins are also used as fuel gas in the welding and cutting operations in manufacturing industries. They are also used as a refrigerant in commercial greenhouses as a ripening agent for fruits and vegetables.
Market Research and Market Trends of U.S Olefins Market:
- The exploitation of crude oil has become very expensive due to the depletion of sources. This opens doors for the use of alternative, cost effective and bio based feed stocks for the production of olefins. The olefin market is focusing on the use of biomass, a carbon- rich material, as a feedstock. The manufacturers are aiming to make the best use of bio based products with high efficiency so that the production becomes cost effective.
- Due to the technological advancements and refinements in fracking process, the methane production has increased enormously and the price of methane has dropped significantly. This has drawn the attention of several olefin manufacturing companies in the United States. Due to the large availability of shale gas, manufacturers are finding routes for valorizing methane in the form of olefins either directly or indirectly.
- LyondellBasell Industries has acquired A. Schulman Inc. for $2.25 billion. This acquisition will allow the company to gain high growth markets such as agriculture, electronics and construction. This merger indicates how the abundance and affordability of U.S. shale natural gas, combined with pro-growth public policies, is making a real difference in the growth of America's economy.
- Companies are investing in the development of new olefin producing technologies to improve the way plastics and chemical precursors are produced and separated by saving energy and creating less waste. The main focus of the companies creating new value from existing streams, all while capturing energy savings and reducing carbon footprint.
Who are the Major Players in U.S Olefins Market?
The companies referred in the market research report are Dow Chemical Company, BASF SE, Royal Dutch Shell plc, ExxonMobil Corporation and 10 other companies.
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