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The polyolefin market size is estimated to grow at a CAGR of 6.86% between 2022 and 2027. The market size is forecasted to increase by USD 117.45 billion. The growth of the market depends on several factors, including the increasing use of polyolefin films in the solar power generation industry, growth in the packaging industry, and strong demand from the automotive industry.
This polyolefin market report extensively covers market segmentation by product (PE, PP, and functional polyolefin), application (film and sheet, injection molding, blow molding, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing use of polyolefin films in the solar power generation industry is notably driving market growth, although fluctuations in crude oil prices may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing use of polyolefin films in the solar power generation industry is notably driving the polyolefin market growth. Recently, the solar power industry recorded double-digit growth in installations, with slightly higher revenues. In the coming years, photovoltaic (PV) systems will reach around 175 gigawatts worldwide. Also, China alone had more PV installations than all of Europe. The solar installation industry is driven by Japan's stimulus package, continued growth in the under-penetrated US market, and steady demand, especially from emerging markets in APAC.
Polyolefin encapsulating film has high moisture resistance and electrical insulation. These properties can protect the solar cells and modules and extend the service life of the modules over non-insulated solar cells and modules. The growth of the global solar power generation industry is expected to spur the growth of the polyolefin market during the forecast period.
Increasing demand for bio-based polyolefin is a key trend influencing the polyolefin market growth. Green polyolefin is produced by effectively sequestering carbon dioxide from sugar cane. This helps reduce the impact of greenhouse gases on global warming. The bio-based polyolefin market is growing due to the collaboration of manufacturers, consumers, and government officials to promote the development and acceptance of these products around the world.
For example, as part of the International Sustainability and Carbon Certification (ISCC) Plus program, SABIC has launched a polyolefin portfolio containing renewable PE and PP to meet customer demand for sustainable materials, especially in the packaging industry. Strict regulations on the use of synthetic polymer products and growing environmental concerns are the major factors driving the growth of the market during the forecast period.
Fluctuations in crude oil prices are challenging the polyolefin market growth. Fluctuation in raw material costs for polyolefin production is a major challenge for the polyolefin market. Prices for raw materials such as polymers and resins have fluctuated since 2015. Polyolefins are derivatives of petroleum and natural gas. Therefore, the price of these materials fluctuates with the price of natural gas and crude oil. The sharp volatility in the price of crude oil and its derivatives results from a systematic imbalance between supply and demand in the global crude oil industry.
Since some of the raw materials widely used in the production of packaging films are petroleum derivatives, their price fluctuations can make the market unpredictable. This can negatively impact production costs and reduce profit margins. Therefore, crude oil price volatility may impede the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Polyolefin Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Arkema Group: The company offers soft polyolefin-based thermoplastic materials. It also manufactures different varieties of adhesives for several applications.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the PE segment will be significant during the forecast period. Linear high-molecular hydrocarbons are formed during the polymerization of ethylene. PEs are classified based on the relative degree of branching in their molecular structures. This is controlled by the targeted use of catalysts. The main types of PE polymers are low-density PE (LDPE), high-density PE (HDPE), LLDPE, and crosslinked high-density PE (XLPE).
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The PE segment was valued at USD 115.88 billion in 2017 and continued to grow until 2021. The automotive, construction, packaging, and healthcare industries are growing at significant rates. Rising demand for PEs from various application fields due to their high toughness and excellent chemical resistance will drive the growth of the PE segment and drive the growth of the market during the forecast period.
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North America is estimated to contribute 30% to the growth of the global polyolefin market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Increased frequency of oil and natural gas production in North America is expected to boost the demand for polyolefins in this region during the forecast period. Polyolefins are widely used in medium- and low-pressure natural gas extraction and distribution systems. These polyolefin pipes are used as an alternative to traditional cast iron pipes due to their high resistance to corrosion, abrasion, and chemical attack. Countries such as the US and Canada are major oil and gas producers in the region. Increasing oil and gas production in the US will boost the demand for polyolefins in the country during the forecast period.
The COVID-19 pandemic spread globally in 2019. Several countries across the world imposed lockdowns resulting in manufacturing plant closures, which adversely affected the growth of the polyolefin market. However, with the lifting of lockdown restrictions in 2021 following the start of large-scale vaccination programs across the world in 2021, the market recovered. Additionally, the reopening of global markets provided a favorable environment for automakers to expand production, boosting demand for polyolefins from the first half of 2021. Additionally, the resumption of operations in the oil and gas industry has increased demand for associated pipeline projects. Such pipeline projects are expected to boost the demand for polyolefins and are expected to drive the growth of the market during the forecast period.
The polyolefin market report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes global polyolefin as part of the global commodity chemicals market within the global chemicals market. The global commodity chemicals market includes companies primarily producing industrial and basic chemicals including, but not limited to, plastics, synthetic fibers, films, basic paints and pigments, explosives, and petrochemicals. The market does not include chemical companies that produce diversified chemicals, fertilizers and pesticides, industrial gases, and specialty chemicals. Technavio calculates the global basic chemicals market size based on the combined revenues of industrial and basic chemicals manufacturers.
Polyolefin Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.86% |
Market growth 2023-2027 |
USD 117.45 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.57 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 30% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arkema Group, BASF SE, Berkshire Hathaway Inc., Carlisle Companies Inc., China Petrochemical Corp., Dow Inc., Exxon Mobil Corp., Filtration Group Corp., Holcim Ltd., Koster Bauchemie AG, Lanxess AG, LyondellBasell Industries NV, RPM International Inc., Saudi Arabian Oil Co., Sika AG, SOPREMA SAS, Standard Industries Inc., Wacker Chemie AG, Zylog ElastoComp, and Suzhou GWELL machinery co. LTD. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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