The market size of polyolefins (PO) is estimated to reach USD 297.09 Billion by 2021, at a CAGR of 7.82% during the forecast period. The market is driven by increasing demand from the plastic, packaging, building & construction, and transportation end-use industries. The need for PO is backed by increasing demand for plastic products in film & sheet, injection molding, extrusion coating, blow molding, and other applications.
Film & sheet is the largest end-use application of PO. Increasing use of films in automobile, construction, food & non-food packaging, and solar energy is one of the major drivers the PO market. PO materials such as PE, PP, and EVA are expected to show high demand in the film & sheet application. PE is the most widely used polymer in the plastic industry due to easy availability and cheaper processing techniques in comparison to other polymers. The primary driver for PO resin consumption is the increasing demand from developing countries. Growing preference of manufacturers for bio-based polyolefins products is also driving the market. The plastic industry has wide scope of expansion, which in turn is expected to increase the consumption of PO materials during the forecast period.
PO materials are segmented into PE, PP, and FPO, including EVA, EPDM, TPO, POE, and POP, based on type. In 2015, PE accounted for the largest market share, in terms of value and volume, and is projected to register the second-fastest growth in the PO market, between 2016 and 2021, owing to its superior properties and cost advantages over other PO products.
Asia-Pacific, North America, Europe, the Middle East & Africa, and South America are considered as the main regions for the PO market. Asia-Pacific dominates the market owing to increased population and rising demand for plastic products. The rising demand for high-quality PO products with superior physical properties has significantly increased the growth of the region’s process industry, which consequently has triggered the demand for PO. Film & sheet and injection molding are the top two end-use applications contributing to the growing demand for PO in Asia-Pacific.
High capacity-to-demand ratio is considered as a major restrain for the overall market. There has been a surge in plant capacities in the PO market, whereas the demand has been increasing at a moderate rate, resulting in higher capacity-to-demand ratio. Concerns over plastic disposal and stringent government regulations for increasing the use of paper products are also growing concerns of the PO market.
The global PO market is dominated by leading players such as Sinopec Corp. (China), LyondellBasell Industries Holdings B.V. (Netherlands), ExxonMobil Corporation (U.S.), and The Dow Chemical Company (U.S.). The diverse product portfolio, strategically positioned R&D centers, continuous adoption of development strategies, and technological advancements strengthen the market position of these companies in the PO market. They have been adopting various organic and inorganic growth strategies, such as new product launches, expansions, collaborations, & investments acquisitions, agreements, & technology transfers, to enhance their current market shares. This is expected to help the market evolve in more applications and expand their market shares.
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